KLCC Property (HOLD) - Maintaining The Status Quo

Stock Name: KLCCP
Company Name: KLCC PROPERTY HOLDINGS BHD

Research House: HLG

Price Call: HOLD

Target Price: 3.46

KLCC Property (HOLD)

Maintaining The Status Quo

• KLCC Property hosted their Corporate Day last Friday, and we came withthe following key takeaways:  
• No new updates on the RCULS or the possibility of a REIT creation,despite numerous probing.
• PETRONAS Towers 1, 2 and 3 will have their respective head leaseagreements finalised soon, between KLCC Property and PETRONAS.  We havealready factored in rental step ups in our forecasts, hence no change to ournumbers.
• In terms of pipeline, Menara Dayabumi will see an extra 500k sft of NLAunder Ph. 3 of its refurbishment programme, while we gathered that there areanother 7 parcels of land within the KLCC locale, making up 370,000 sft(including Lot D1) for further development.
• All in all, we see KLCC Property as maintaining the status quo bothoperationally and strategically.  Maintain HOLD call and TP at RM 3.46(15% discount to RNAV).

HLIB Research - 2 April 2012