KLCCP Stapled Group Financial Results 1 st Quarter ended 31 March - - PowerPoint PPT Presentation

22 May 2017

KLCCP Stapled Group

Financial Results

1st Quarter ended 31 March 2017

2

Q1FY2017 Results – Investor Presentation

These materials contain historical information of the Company which should not be regarded as an indication of future performance or results. These materials also contain forward-looking statements that are, by their nature, subject to significant risks and uncertainties. These forward-looking statements reflect the Company’s current views with respect to future events and are not a guarantee of future performance or results. Actual results, performance or achievements of the Company may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based

• n numerous assumptions regarding the Company’s present and future business

strategies and the environment in which the Company will operate in the future, and must be read together with such assumptions. No part of these materials shall form the basis of, or be relied upon in connection with, any investment decision whatsoever.

Disclaimer

KLCCP STAPLED GROUP

Q1FY2017 Results

• 1. KLCCP Stapled Group Key Highlights
• 2. Portfolio Performance
• 3. Capital Management
• 4. KLCCSS Outlook

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Q1FY2017 Results – Investor Presentation

Profits impacted by lease transition at Menara ExxonMobil and on-going tenant remixing at retail

Profit for the period (RM’m)

209.4 203.4 Q1 FY2016 Q1 FY2017

Revenue (RM’m) Distribution per stapled security (sen)

334.8 336.7 Q1 FY2016 Q1 FY2017

0.6% 2.8%

Q1 FY2017 vs Q1 FY2016 Financial Performance

8.60 8.60 Q1 FY2016 Q1 FY2017

Profit attributable to KLCCP & KLCC REIT holders (RM’m)

182.8 176.7 Q1 FY2016 Q1 FY2017

3.3%

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Q1FY2017 Results – Investor Presentation

147.7 145.7 120.6 118.8 36.6 39.1 29.9 33.1

Q1 FY2016 Q1 FY2017

Segmental Revenue (RM mil)

334.8 336.7

• 1.4%

+10.6%

• 1.5%

Release of 40% leased area in Menara ExxonMobil by ExxonMobil Exploration and Production Malaysia Inc. in January 2017

OFFICE

Lower occupancy in transition for retail mixing

RETAIL

Increased occupancy and room revenue contribution from leisure and group segments

HOTEL

Facility management services for properties in Kerteh and one-off facility management works

MANAGEMENT SERVICES

Improved contribution from hotel and management services segments

+6.9%

Office Retail Hotel Management Services

Composition to total KLCCP Stapled Group revenue (%)

43 35 12 10

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Q1FY2017 Results – Investor Presentation

Continue to deliver sustainable returns to holders of Stapled Securities

Distribution per stapled security (DPU) (sen) Q1 FY2017 Q1 FY2016

KLCCP 3.10 2.85 KLCC REIT 5.50 5.75 Distribution per stapled security 8.60 8.60 Ex dividend date 5th June 2017 Book closure date 7th June 2017 Distribution payment date 5th July 2017

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Q1FY2017 Results – Investor Presentation

NAV per stapled security (RM)

7.09 7.09 31-Dec-16 31-Mar-17

Equity attributable to KLCCP & KLCC REIT holders (RM’m)

12,794 12,793 31-Dec-16 31-Mar-17

Total Liabilities (RM’m)

3,004 3,024 31-Dec-16 31-Mar-17

Total Assets (RM’m)

17,782 17,800 31-Dec-16 31-Mar-17

Healthy balance sheet providing conducive business environment for future development and long term stability

0.1% 0.7%

Statement of Financial Position (31 Mar 17 vs 31 Dec 16)

KLCCP STAPLED GROUP

Q1FY2017 Results

• 1. KLCCP Stapled Group Key Highlights
• 2. Portfolio Performance
• 3. Capital Management
• 4. KLCCSS Outlook

9

Q1FY2017 Results – Investor Presentation

Office - Stable performance with lease transition at Menara ExxonMobil

PETRONAS TWIN TOWERS MENARA 3 PETRONAS MENARA EXXONMOBIL MENARA DAYABUMI

• Marginal decrease in revenue and PBT due to release of 40%

leased area of Menara Exxonmobil in January 2017, partially

• ffset by additional rental from the conversion of atrium

spaces in Menara Dayabumi

• Finalisation of lease agreement with potential tenant to
• ccupy remaining 40% at Menara ExxonMobil by Q2 FY2017
• 94% revenue contribution from KLCC REIT
• 97% average occupancy for office portfolio

Revenue (RM’m) Profit before tax (RM’m)

147.7 145.7

Q1 FY2016 Q1 FY2017

132.0 130.4

Q1 FY2016 Q1 FY2017

KLCC REIT KLCC PROPERTY

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Q1FY2017 Results – Investor Presentation

KLCC PROPERTY

Retail - Maintained resiliency with ongoing tenant remixing to better reflect customer preferences

 Higher rental rates from new tenants and lease renewals were offset against reduced occupancy in transition for retail mixing  10% growth in MAT-tenant sales, YoY mainly contributed by luxury fashion, houseware and beauty & skincare segments  Ongoing formation of luxury men’s and women’s zone on Level 1  4 new tenants and retailer upgrades contributing to continuous enhanced customer experience

Suria KLCC Menara 3 PETRONAS – Retail Podium

120.6 118.8

Q1 FY2016 Q1 FY2017

Revenue (RM’m)

92.1 90.3

Q1 FY2016 Q1 FY2017

Profit before tax (RM’m)

KLCC REIT

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Q1FY2017 Results – Investor Presentation

New tenants at Suria KLCC in Q1 FY2017

Brooks Brothers

Opened on 5th January 2017

Tory Burch

Opened on 6th Jan 2017

Hyper Gear

Opened on 14th January 2017

Sunglass Hut

Opened on 18th Feb 2017

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Q1FY2017 Results – Investor Presentation

KLCC PROPERTY

Mandarin Oriental, Kuala Lumpur

Revenue (RM’m) Profit before tax (RM’m)  6% increase in occupancy from YTD Mar 2016 from strategy shift in declining corporate oil and gas sector to alternative markets  5% room revenue growth, YoY mainly contributed from the Leisure & Group segments due to promotions and proactive e-commerce strategies  PBT impacted by higher manpower related costs from implementation of minimum wage order and the rising costs

• f imported goods

 First phase of guestroom renovation including Club rooms & Suites are on track for completion with target for re-launch in 2H FY2017

36.6 39.1

Q1 FY2016 Q1 FY2017

0.25 0.18

Q1 FY2016 Q1 FY2017

Hotel - Increased occupancy despite limited capacity from ongoing room renovations

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Q1FY2017 Results – Investor Presentation

Management Services - Upside from expansion of facility management services to properties in Kerteh

Revenue (RM’m) Profit before tax (RM’m)

29.9 33.1

Q1 FY2016 Q1 FY2017

11.7 8.5

Q1 FY2016 Q1 FY2017

 11% revenue growth, YoY from contribution of facilities management services for properties under KLCC Holdings in Kerteh, Terengganu which commenced in June 2016 and one-off facility management works  Reduced PBT due to lower interest income owing to the Overnight Policy Rate cut in mid July 2016

KLCCP STAPLED GROUP

Q1FY2017 Results

• 1. KLCCP Stapled Group Key Highlights
• 2. Portfolio Performance
• 3. Capital Management
• 4. KLCCSS Outlook

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Q1FY2017 Results – Investor Presentation

Prudent capital management with well-staggered debt maturity profile

As at 31 March 2017

Debt RM2,577 mil Gearing Ratio 20% Average Cost of Debt 4.49% Borrowings on Fixed Rate 85%

Debt Maturity Profile

Interest Rate Profile

Fixed 85% Floating 15%

2,577

KLCCP STAPLED GROUP

Q1FY2017 Results

• 1. KLCCP Stapled Group Key Highlights
• 2. Portfolio Performance
• 3. Capital Management
• 4. KLCCSS Outlook

17

Q1FY2017 Results – Investor Presentation

• Expected to remain stable
• n the back of locked-in

long term tenancies and high quality tenants

• To conclude lease of

vacated space at Menara ExxonMobil and minimize downtime

• Continue to strengthen

leasing capabilities and pursue aggressive initiatives to attract and retain quality tenants

• Expected to remain stable,

trading in difficult market conditions

• To complete dedicated

precincts of luxury men’s and women’s zones

• To bring in strategic

retailers to create customer experience

• Reconfiguration of layout

for better leasing

• pportunities
• Continue to operate in

challenging environment with intense competition from new hotels

• Pursue market outside its

traditional reliance

• Capitalise on re-launch of

renovated Club Rooms and Suites by mid-2017

• Innovate with new F&B
• fferings and leisure

promotions

OFFICE RETAIL HOTEL

Outlook Our Key Focus

Continue to re-position our assets to compete on our potential & quality and provide long term stable income

KLCCP STAPLED GROUP

Q1FY2017 Results

Thank You