On behalf of the Board, I am delighted to present the Annual Report of KLCC Property Holdings Berhad Group (the Group) for the financial year ended 31 December 2012.
F I N A NC I A L PE RFOR M A NCE
I am pleased to report another strong result for the Group where for the year ended 31 December 2012, the Group achieved profit attributable to the equity holders of the Company of RM1,464 million. This is inclusive of fair value gain on investment properties and associate amounting to RM1,391 million which had no impact on the Group’s cash flows. Removing the effect of the fair value gain, profit attributable to the equity holders of KLCCP stood at RM382 million.
This year saw a significant increase in the office segment with the full year contribution from the Office Tower of Menara 3 PETRONAS complemented by the 15 year lease renewal for the PETRONAS Twin Towers. The retail segment continued to deliver strong growth arising from lease renewals and new leases secured. Together with the contribution from the hotel and management services segments, there was a healthy improvement in the Group’s performance for the year ended 31 December 2012.
DI V ID EN D S
The Company is committed to ensuring that its shareholders gain attractive and sustainable returns from their investments. In this respect, the Board of Directors approved four interim dividend payments totaling 16.5% per share for the financial year ended 31 December 2012.
C OR P OR A T E UP D A T E
Over the past year, the Company embarked on a corporate exercise for the proposed creation of Stapled Securities comprising units in an Islamic Real Estate Investment Trust (REIT) to be stapled together with the existing ordinary shares of the Company, to be listed and quoted on the Main Market of Bursa Malaysia Securities Berhad (Bursa Malaysia).
Our first ever shariah-compliant stapled REIT structure in Malaysia is now the single largest owner of stabilised assets in Malaysia.
I am proud to announce that on 9 May 2013, KLCC Stapled Group was successfully listed on Bursa Malaysia as the first ever shariah-compliant stapled REIT structure in Malaysia. With this, KLCC Stapled Group is now the single largest owner of stabilised assets in Malaysia.
O U T LOO K & P RO S PEC T S
The long term office tenancies will continue to anchor the performance of the Group in the coming year with improvement expected from the full year impact of the renewed lease for the PETRONAS Twin Towers. As for the retail segment, we will continue to strive to deliver its year on year improvement in results. However, the hotel segment is expected to continue to trade in a challenging environment.
As for adding to the current portfolio of properties, we are always looking for opportunities to achieve sustainable growth and value for all shareholders. The listing of KLCC Stapled Group will
provide such a platform for the Group to unlock the value of its remaining assets which have yet to be transferred to the REIT namely Kompleks Dayabumi and the vacant Lot D1.
With the new KLCC Stapled Group structure in place, you, the shareholders, are expected to benefit considerably from the significant accretion in distribution as the Company has committed to distribute 95.0% of the Overall Distributable Income for the financial years 2013 and 2014 effective from the date of establishment of the KLCC Stapled Group.
T H A N K Y O U
The last financial year has been challenging yet exciting with the achievements of the Group culminating with the listing of the KLCC Stapled Group on 9 May 2013. On behalf of the Board, I would like to extend my heartfelt appreciation for the invaluable support from all stakeholders namely shareholders, customers, business partners and regulatory authorities who have made this possible.
I would also like to extend a special mention to the shareholders whose strong support at the Extraordinary General Meeting held on 8 April 2013 led to the successful listing of the KLCC Stapled Group on Bursa Malaysia on 9 May 2013.
I am very grateful and acknowledge the contribution of my Board for their engagement and commitment over the past year in ensuring that the Group maintains a high standard of governance.
In closing, on behalf of the Board, I would like to thank the management and staff of the KLCCP Group of Companies for their efforts, commitment and dedication towards the continuous achievements of the Group.
Krishnan C K Menon