CHAIRMAN’S STATEMENT
On behalf of my fellow Directors, it gives me great pleasure to present the Annual Report of KLCC Property Holdings Berhad group (the Group) for the fi nancial period ended 31 December 2011.
As previously announced, the Group had changed its fi nancial year end to 31 December effective fi nancial period beginning 1 April 2011. As such, the period under review covered only nine months.
As in previous years, the long term tenancies of the offi ce segment continued to underpin the overall performance of the Group through its stable revenue stream. The irrevocable undertaking given by PETRONAS to renew the long term leases for the Twin Towers upon expiry in September 2012 and also to enter into a long term lease for Tower 3 further cemented the position of this segment as the major contributor for years to come. The Group’s performance is further complemented by strong contributions from both the retail and hotel segments as well as continuous cost management efforts group wide.
For the period ended 31 December 2011, the Group achieved profi t attributable to the equity holders of the Company of RM658 million. This is inclusive of fair value adjustment (net of tax) amounting to RM449 million which had no impact on the Group’s cash fl ows. Stripping off the effect of the fair value adjustment, profit attributable to the equity holders of KLCCP stood at RM209 million.
The Group is continuously in pursuit of sustainable growth. The completion of Lot C office in December 2011, which was renamed Tower 3 PETRONAS,is further testament to this.
Given the continued strong performance of the Group, the Board of Directors had approved two interim dividends totaling 10% per share for the fi nancial period ended 31 December 2011. The first and second interim dividends, of 5% per share each, were paid on 20 December 2011 and 23 March 2012 respectively. To this end, the Group is committed to ensuring attractive and sustainable returns to the shareholders after taking into consideration fi nancial needs for future expansion as well as other operational requirements.
In upholding the commitment to the shareholders, the Group is continuously in pursuit of sustainable growth. The completion of Lot C offi ce in December 2011, which was renamed Tower 3 PETRONAS, is further testament to this.
It is expected that Tower 3 offi ce and retail would provide a signifi cant improvement to the Group’s revenue and profitability in the coming years. Apart from developing new assets, the Group has also embarked on a programme to upgrade existing assets to ensure optimum revenue generation over the long term.
The last fi nancial period has been challenging yet rewarding to the Group. The continuous support from all stakeholders, namely the shareholders, customers, business associates and the relevant authorities have made it possible for us to continue with our strong performance. Therefore, on behalf of the Board of Directors, I would like to extend my appreciation to all stakeholders.
Finally, I would like to record my utmost appreciation to the management and staff of the KLCCP Group of Companies who are the backbone of the Group’s success. Their unwavering support, dedication, commitment and contribution have resulted in continuous realisation of the Company’s goals and objectives.
Krishnan C K Menon
Chairman