MKH Annual Report 2018

24 MKH Berhad Annual Report 2018 MANAGEMENT DISCUSSION AND ANALYSIS REPORT Hotel and Property Investment For FY2018, this division recorded revenue and PBT of RM33.0 million (FY2017: RM33.9 million) and RM11.8 million (FY2017: RM15.1 million) representing a decline of 2.7% and 22.0% respectively, mainly due to lower rental rates and absence of gain on changes in fair value of investment properties in the current year (FY2017 recorded gain on changes in fair value of investment properties of RM3.0 million). This was however mitigated by a gain on disposal of investment in an associated company of RM2.0 million. Contributing to the Group’s earnings with average rental yield of 5% per year, this segment comprises principally a hotel, and two (2) shopping complexes located in Kajang, namely Plaza Metro Kajang (with net lettable area of about 270,000 sq. ft.) and Metro Point Complex (with net lettable area of about 160,000 sq. ft.), as well as four (4) parcels of commercial land in Kajang and Semenyih, which are leased to two (2) hypermarkets, two (2) leading fast- food restaurants, and Ra esia International School. Other properties included in this segment are four (4) lots of o ce cum car park bays, three (3) lots of 2-storey shops and car park bays, and one (1) lot of 6-storey shop at MKH Avenue in Kajang. In operations since 2007, Metro Point Complex o ers various entertainment such as bowling and karaoke to the Kajang community, in addition to a wide range of food and beverage outlets MKH Avenue is the first commercial development in Kajang town that o ers new retail opportunities via small-o ce-flexible-o ces (SoFo) Plaza Metro Kajang is our first shopping complex that has been serving the Kajang community with a variety of lifestyle essentials and entertainment since 1996