Kuala Lumpur, 15 August – KLCC REIT successfully secures a long term lease with PETRONAS for the remaining 40% office space at Menara ExxonMobil in April 2017, for an initial term of 3 years with the option to renew for 5 successive terms of 3 years each.
This can be contributed to the consistent stable performance of the Group’s office segment in spite of the 2 months vacancy at Menara ExxonMobil, which was partially offset from the recognition of additional rental following the conversion of atrium spaces at Menara Dayabumi.
With the leases at Menara ExxonMobil fully secured, KLCCP Stapled Group is on a strong footing with occupancy for the office portfolio back to 100%.
Overall, KLCCP Stapled Group maintained its stable performance for the second quarter ended 30 June 2017, with resilient top line and earnings growth from the office and retail segments, excluding the one-off write-off of furniture and fittings at the hotel and back charge rental from a tenant in the retail, in quarter 2 of 2016.
With this, KLCCP Stapled Group’s first half of 2017 performance has remained sustainable despite navigating the challenges in the industry segments.
For the second quarter ended 30 June 2017, KLCCP Stapled Group distributed 95% of its overall distributable income with a distribution per stapled security of 8.60 sen, consistent with the second quarter of financial year 2016. This brings the distribution per stapled security to 17.20 sen for the first half of 2017.
KLCCP Stapled Group, comprising KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust, expects the overall performance of the Group for the year to remain stable, primarily backed by the long term tenancy agreements of the office segment. The retail and hotel segments are expected to continue trading in challenging market conditions with the refurbishment of the hotel guestrooms still ongoing.