When a REIT returns a positive RM144 million in 2Q 2021. Real Estate Investment Trust (REIT) is one of those ways where we could invest into a commercial property we think highly of, for example Petronas Twin Towers and yet we do not need to worry about managing it. We can just invest an amount we are comfortable with as well.
In 2Q 2021, KLCC REIT achieved higher net profit when compared to the 2Q 2020. Just need to also note that 2Q 2020 was also the weakest quarter for many companies because that was the start of our lockdown due to Covid-19. It started on 18th March and lasted till 3rd May 2020. However, what this tells us is that there are brands who wants a premium space and they do not close down just because of lockdowns.
Article in nst.com.my KLCC Real Estate Investment Trust’s (REIT) net profit rose to RM144.01 million in the second quarter ended June 30, 2021 (Q2 2021) from RM140.46 million in the same quarter a year ago.
The better Q2 performance came from the retail segment and improved hotel performance in April prior to the resurgence of COVID-19 cases in May and the subsequent full movement control order (FMCO) which started on June 1, 2021.
The office segment, comprising Petronas Twin Towers, Menara 3 Petronas, Menara ExxonMobil, and Menara Dayabumi is backed by its locked-in, long-term tenancies and the triple net lease (TNL) on Petronas Twin Towers and Menara 3 Petronas. Suria KLCC has continued to revitalise its offerings by bringing in eight new tenants, which included Sandro, Maje, Duboyo, and Empire Sushi. Please read the full article here: Article in nst.com.my
Office Space is definitely going to be needed
There are companies where branding remains very important. It is definitely not true when people say that after this pandemic, everyone would work from home and demand for office space will reduce. In fact, there’s every possibility that demand for office will increase because of the need for social distancing and even the possibility of having two separate offices nearby versus the whole company all operating from the same office.
We will see. Here’s an earlier article about some happenings in more advanced countries. Work from home? Lower pay, maybe. (click to read)
Retail is also a therapy, not just to sell things
Many says that shopping in malls will be replaced by online shopping. As someone who shopped online so much until Shopee gave me an extra RM3,000 to spend now and pay later (I did not use by the way), I disagree with this assessment.
Imagine buying a luxury brand for the very first time, would you pay thousands if you have only seen the brand online? Without feeling the luxurious environment in the real shop, being served by a retail staff dressed very nicely and also having that feeling that the cashier knows you are rich?
Imagine buying a facial cream which says it is the best in the world, online. Would you buy this, versus actually going to the shop, test it, smell it, feel it and knowing that if something were to happen, you do have a shop to complain to? It’s your face… by the way.
Online shopping will be complemented by actual retail shops. It has happened in all advanced countries where the online shopping has already evolved into buy now, arrive in one hour. Malaysia is not going to be the first country where everyone buys online and all the malls would close shop. We are not that special yeah.
Last but not least, shopping in a mall is also a therapy. After a couple of hours of going from shop to shop, buying things we may not need (haha), we may just want to sit down, enjoy a slice of cake and a latte with a friend. Yeah, that wefie of us with the food and our friend(s), that can only happen in a nice mall too. Happy knowing and happy shopping again in the near future in a real mall.
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