KUALA LUMPUR: KLCCP Stapled Group – an integrated structure comprising KLCC Property Holdings Bhd (property development and management) and KLCC Real Estate Investment Trust (rental income generation) – expects rental rates for its office segment to rise this year, supported by ongoing asset rejuvenation and modernisation efforts.
CEO Datuk Mohd Salem Kailany said its rental reversion continues to trend upwards despite rising costs and broader global economic uncertainties.
“How we build our value proposition is by rejuvenating and refurbishing our assets to be more modern and market-ready. We are positioning our properties on a higher pedestal compared to the market, and therefore we are able to command higher rents corresponding to the improvements we have made,” he said in a press conference after the group’s annual general meeting today.
Mohd Salem said the group’s capital deployment this year will focus primarily on asset rejuvenation and refurbishment that are part of its normal budget cycle rather than new capital expenditures.
“This is where we will continue to focus. What you see is a defensive stock, stable and delivering high-yielding dividends. The essence of the company will be preserved. Given the trust placed in us, I believe we are on the right path, and we will continue doing things the way they are.”
He added that shareholders observed the group has good tenants and stable companies. “The tenancy arrangements for the office segment are largely based on triple net lease structures and long-term leases. Some of those upgrading costs will be borne by the tenants.”
Apart from that, Mohd Salem said, retail asset upgrades are ongoing, with escalator replacements completed and toilet refurbishments under way.
Chairman Datuk Annies Md Ariff said the group continues to maintain the strong quality of its assets, with its office segment operating at 100% occupancy. “We have strong quality assets. We need to do something to always maintain its strong quality.”
As for retail, he said the occupancy rate is 99%, while driving higher customer engagement and footfall of over 50 million visitors. “All in all, we are positive about our outlook moving forward. At the same time, we remain focused on safeguarding and strengthening the assets we already have.”
The group achieved sterling results in the financial year ended Dec 31, 2024 with record-breaking revenue, profit, and dividend since its listing.
Revenue saw a 5.7% year-on-year increase, hitting RM1.7 billion, while profit before tax rose to RM1.2 billion.
In line with this performance, the group declared its highest-ever dividend payout of 44.50 sen per stapled security, a 9.9% increase from 2023.
Mohd Salem commented that during the year the group deployed the right strategies, elevated the customer experience, and ensured assets remained in pristine condition, driving the strength in its properties and business growth.
