KUALA LUMPUR (Aug 26): KLCCP Stapled Group (KL:KLCC) reported a 1.98% increase in second-quarter net profit, driven by stable office performance and higher contributions from its retail and management services segments.

Net profit for the three months ended June 30, 2026 (2QFY2026) rose to RM204.42 million from RM200.45 million a year earlier, said the group, which comprises KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust.

Quarterly revenue edged up 1.33% to RM415.72 million from RM410.25 million previously, according to a filing with Bursa Malaysia on Wednesday.

The group declared a dividend of 9.3 sen per stapled security for the quarter, bringing its cumulative dividend for the first half of FY2026 to 18.6 sen per share.

The group’s retail segment — comprising Suria KLCC and the retail podium at Menara 3 PETRONAS — delivered a stronger performance, with revenue rising 4.2% year-on-year to RM143.7 million and profit before tax (PBT) up 4.4% to RM114.3 million.

Growth was supported by full occupancy at the Menara 3 PETRONAS retail podium, up from 97% a year earlier. The Suria KLCC mall also added eight new tenants during the quarter, including three flagship stores — Gentle Monster, Marithe François Girbaud and BOSS Green.

The office segment remained stable, supported by triple-net lease arrangements and long-term leases across the PETRONAS Twin Towers, Menara 3 PETRONAS, Menara ExxonMobil and Menara Dayabumi. Revenue stood at RM146.7 million, while PBT was RM122.9 million.

The management services segment, comprising facilities management and car park operations, recorded a 3.9% increase in revenue to RM99.5 million, while PBT rose to RM21.6 million, driven mainly by higher car park income and increased planned maintenance activities.

The performance of the hotel segment — represented by Mandarin Oriental, Kuala Lumpur — however, remained subdued during the quarter due to softer seasonal demand and ongoing room renovations. Revenue fell to RM46.7 million, resulting in a loss before tax of RM2.2 million.

For the first half of FY2026, the group’s net profit rose 1.66% year-on-year to RM408.63 million from RM401.94 million, while revenue increased 1.26% to RM827.5 million from RM817.17 million.

Looking ahead, KLCCP Stapled expects a challenging operating environment in the second half of the year amid continued economic uncertainty, evolving market conditions and heightened geopolitical risks. It will focus on disciplined cost management, operational efficiency and prudent capital allocation to strengthen resilience and navigate these challenges.

“While we continue to navigate a complex market landscape, our focus remains on strengthening the fundamentals of our businesses. Our retail segment continues to build momentum through a broader tenant mix, to include distinctive lifestyle concept stores and emerging brands that appeal to today’s customers.,” said chief executive officer Datuk Mohd Salem Kailany in a statement.

“At the same time, we continue to enhance our assets and operational efficiency and elevate our offerings to capture opportunities and deliver sustainable growth over the longer term. These efforts, underpinned by the strength and diversity of our portfolio, give us confidence in our ability to respond to market dynamics and remain focused on the opportunities ahead,” he added.

KLCCP Stapled units closed unchanged at RM8.70 on Wednesday, giving the group a market capitalisation of RM15.7 billion.