INTEGRATED ANNUAL REPORT 2022

LETTER FROM THE CHAIRMAN

DEAR SHAREHOLDERS,

The year 2022 began with optimism after two long years of being engulfed in the pandemic that saw many unprecedented events in our lives. As we sailed through the year, we saw 2022 as a year of opportunity and recovery.

TAN SRI AHMAD NIZAM BIN SALLEH

Chairman

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A CONVERSATION WITH THE CEO

A change is always difficult but nevertheless, it is a journey, and I am confident that with the talents we have, we will be able to move far and beyond.

DATUK MD. SHAH BIN MAHMOOD

Chief Executive Officer

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OUR INVESTMENT PROPOSITION

HIGH QUALITY INVESTMENT

portfolio with resilient earnings visibility

STRONG BALANCE SHEET

with RM 18.1 billion in total assets

ROBUST GOVERNANCE STRUCTURE

& strong leadership in ethical conduct

ESG AT THE HEART

on our value creation

FOCUSED ON DRIVING MEANINGFUL CHANGES

to future-proof the business

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  • Revenue

    RM 1.5 bil

    (2021: RM 1.2 billion)

    Profit for the year

    RM 0.9 bil

    (2021: RM 0.5 billion)

    Property Value

    RM 15.7 bil

    (2021: RM 15.6 billion)

    Net Asset Value per Stapled Security

    RM 7.27

    (2021: RM 7.21)

    Distribution per Stapled Security

    38.00 sen

    (2021: 33.60 sen)

  • OFFICE

    100%

    occupancy
    since establishment of the Stapled Securities

    88%

    Tenant Satisfaction
    score

    HOTEL

    44%

    Occupancy

    87%

    Guest Satisfaction score

    RETAIL

    Record tenant sales,
    surpassed pre-pandemic levels by

    9.5%

    16

    new tenants, some are first and exclusive to Suria KLCC

    MANAGEMENT SERVICES

    Secured additional

    1,604

    car parking bays at various locations in Putrajaya

    Installed

    35

    Electric Vehicle (EV) chargers at car parks within KLCC Precinct, bringing total to

    57

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OUR STRATEGIC VALUE CREATION

Swipe to read more.

Our Three-Pronged Growth Strategy

Maximising
Cash
Generators

Expanding
Core
Business

Stepping
Out

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  • OUR CAPITALS AND INPUTS

    STRONG FINANCIAL POSITION
    • Total equity attributable to holders of Stapled Securities RM13.1 bil
    • Total financing RM2.4 bil
    • Total assets RM18.1 bil
    PORTFOLIO OF DIVERSE, ICONIC ASSETS AND MANAGEMENT SERVICES
    • Iconic and high-quality asset
      - 5 Offices (2 GBI Certified)
      - 2 Retails
      - 1 Hotel
    • Property Value RM15.7 bil
    DEEP KNOWLEDGE AND STRONG CAPABILITIES
    • Deep Real Estate Experience
    • Digital Enablers to create value through innovation
    • Specialised facilities management expertise
    • Strong capital management expertise
    • Deep industry knowledge of Boards and management team
    ENGAGED AND INSPIRED EMPLOYEES
    • Total Employees
      - 946 permanent
      - 20 contract
    • High performing talents and future driven culture
    NATURAL RESOURCES
    • 50 acres of KLCC Park (green lung) with 1,700 trees
    • 1,062,818 m3 of water consumed in our buildings
    • 99,076,000 kWh of electricity consumed in our buildings
    TRUSTED RELATIONSHIPS WITH STAKEHOLDERS
    • High integrity, trust and transparent communication with our key stakeholders

  • OUTPUTS

    STRONG FINANCIAL POSITION
    • RM1.5 bil Revenue
    • RM0.9 bil Profit for the year
    • 38.00 sen Distribution per Stapled Security
    PORTFOLIO OF DIVERSE, ICONIC ASSETS AND MANAGEMENT SERVICES
    • Office: 5.6 mil sq. ft. NLA
    • Retail: 1.1 mil sq. ft. NLA
    • Hotel: 629 rooms
    • Facilities managed: 25
    • Car park bays managed: 14,815
    DEEP KNOWLEDGE AND STRONG CAPABILITIES
    • Strong governance structure and transparency
    • Right Board composition, balance of independence and diversity in effectively discharging responsibilities
    • Enhanced employee skillset and capabilities
    ENGAGED AND INSPIRED EMPLOYEES
    • Initiatives on employee compensation and wellbeing
    • Improvement on safety performance
    NATURAL RESOURCES
    • Minimised environmental impact
    • Achievement of sustainability roadmap 2022 targets
    • Crafting Climate Change aspiration
    • Strategic collaboration towards green mobility and renewable
    TRUSTED RELATIONSHIPS WITH STAKEHOLDERS
    • Focused engagements with key stakeholders towards survivability and growth
    • Community wellbeing and positive social impact

  • OUTCOMES AND VALUE CREATION

    STRONG FINANCIAL POSITION
    • Ranked 1st in the MREITs industry
      • By market capitalisation:
        RM12.1 bil
      • By property value: RM15.7 bil
    • 13.1% Distribution per Stapled Security growth
    • Annual total return: 8.1%
    • AAA/Stable rating reaffirmed by RAM Ratings for KLCC REIT and Suria KLCC Sukuk Murabahah Programme
    PROSPERITY: Advancing Economic Resilience
    PORTFOLIO OF DIVERSE, ICONIC ASSETS AND MANAGEMENT SERVICES
    • Average occupancy rate
      - Office: 100%
      - Retail: 92%
      - Hotel: 44%
    • Retail tenant sales growth outperformed pre-Covid levels
    • Secured 7 new car park locations with 1,604 car park bays
    PROSPERITY: Advancing Economic Resilience
    DEEP KNOWLEDGE AND STRONG CAPABILITIES
    • 50% Women Directors on Boards
    • 63% Independent Non-Executive Directors on Boards
    • 95% Managers upskilled with enhance leadership competencies
    • 81% senior management upskilled with enhanced leadership competencies
    • Recognised with awards and accolades by the industry
      - 18 awards
    PEOPLE: Progressing Our Social Agenda
    PEACE: Embodying Good Governance
    ENGAGED AND INSPIRED EMPLOYEES
    • 92% employee retention rate
    • 26,970 employee training hours
    • Invested RM1.0 mil on staff learning and development
    • Upgraded mental health treatment coverage from RM1,000 to RM3,000 to include dependents
    • Implemented increase in maternity leave to 98 days
    PEOPLE: Progressing Our Social Agenda
    NATURAL RESOURCES
    • 33% reduction in GHG Emission from 2015 (base year)
    • 52% waste diversion rate in hotel
    • RM2.0 mil Energy cost savings from the solar panels at the rooftop of Suria KLCC mall (since 2014)
    • Installed 35 EV charging points at KLCC Precinct, bringing total to 57
    PLANET: Protecting Our Environment
    TRUSTED RELATIONSHIPS WITH STAKEHOLDERS
    • Analyst report coverage: 11
    • No. of shareholders/unitholders: 8,686
    • RM17.0 mil Spent on corporate social investment and rental assistance to retail partners
    • 87% organisational culture survey score on integrity
    PEOPLE: Progressing Our Social Agenda

  • TRADE-OFFS

    STRONG FINANCIAL POSITION

    Financial capital is applied to enable us to execute our growth strategy and in mitigating risks to sustain performance typically with positive impact on Portfolio, Employees, Knowledge and Relationships capitals. This however may impact our Portfolio capital with reduced financial allocation towards capital expenditure and investments.

    PORTFOLIO OF DIVERSE, ICONIC ASSETS AND MANAGEMENT SERVICES

    Investing in asset enhancement initiatives and reducing the environmental footprint will benefit the Natural, Knowledge, Employees and Relationships capitals, but comes at a cost to Financial capital. However, in the long-term, these investments expand our business capacities, valuation and brand equity.

    DEEP KNOWLEDGE AND STRONG CAPABILITIES

    Investment in leadership capabilities development, ongoing business processes and digital technology lead to positive impact on the Portfolio, Employees, Natural and Relationships capitals that may reduce the Financial capital. However, this will benefit all our six capitals in the longer term.

    ENGAGED AND INSPIRED EMPLOYEES

    Investing Financial capital in upskilling employees is key for the future workplace growth and employee retention. In the longer term, this provides benefits to Employees, Knowledge and Portfolio capitals.

    NATURAL RESOURCES

    Our investments to minimise carbon footprint have preserved our Natural capital and positively impact our Portfolio, Knowledge capitals in exchange for Financial capital.

    TRUSTED RELATIONSHIPS WITH STAKEHOLDERS

    Strong Relationships with our stakeholders will improve all capitals. Contribution and support assistance may impact Financial capital but will improve Relationships, Employees and Portfolio capitals in the longer term.

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KLCCP & KLCC REIT ANNUAL GENERAL MEETINGS

DATE

Thursday, 6 April 2023

TIME

10.30 a.m.

MEETING PLATFORM

https://tiih.online
The Boards of Directors of KLCC Real Estate Investment Trust (KLCC REIT) and KLCC Property Holdings Berhad (Company) wish to inform that the 10th Annual General Meeting of KLCC REIT and the 20th Annual General Meeting of the Company (AGMs) will be held concurrently and FULLY VIRTUAL via TIIH Online website at https://tiih.online.
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