KUALA LUMPUR, September 26 – Hektar Asset Management Sdn. Bhd., the Manager of Hektar Real Estate Investment Trust (“Hektar REIT”), has announced a robust performance for the second quarter ended 30 June 2023 (“2Q 2023”). The REIT achieved revenue of RM27.2 million and Net Property Income (“NPI”) of RM15.5 million. Notably, NPI recorded substantial growth of 13% compared to the same quarter in the previous year, with an impressive NPI margin of 56.9%, reflecting effective financial management. For 2Q 2023, the Realised Net Income stood at RM6.9 million, an almost 6% increase compared to the same quarter in the preceding year.
Hektar REIT has declared an interim income distribution of 2.70 sen per unit for the six months ended 2Q 2023, totaling RM13.4 million. This strong performance can be attributed to Hektar REIT’s commitment to enhancing profitability and financial resilience. The REIT has actively pursued group-wide cost optimization programs, resulting in a healthy margin despite challenges such as electricity tariff hikes and mandatory minimum wage increases. The prudent reduction of debt has further strengthened the REIT’s financial position, lowering the overall gearing ratio to 44.1%.
The results underscore the strength of Hektar REIT’s strategy, positioning it as a prominent player in the retail sector with potential for sustained growth. Hektar REIT’s malls have demonstrated remarkable improvement in occupancy rates, marking a resilient and adaptable brand. The overall portfolio occupancy increased to 85.7%, with specific malls such as Mahkota Parade & Wetex Parade registering over 90%, and Kulim Central reaching nearly 97%. These impressive numbers reflect the REIT’s commitment to a proactive leasing strategy in a dynamic and competitive retail landscape.
The recent influx of new tenancies, including international brands, has contributed to the vibrancy and diversity of their centers. These leasing strategies cater to the demands of various demographics, with increased offerings in the F&B category and entertainment centers to appeal to different age groups. Hektar REIT is also focusing on repositioning its properties for an enhanced shopping experience. Subang Parade, their first property, is undergoing a transformation to become a community favorite with modern elements.
Segamat Central, their most recent acquisition, is set for exciting changes, with plans to introduce new mini anchors and key tenants. In recognition of its dedication to Corporate Social Responsibility (CSR) and Sustainability, Hektar REIT received the “Company of the Year – Best in Sustainability Reporting & Community Support” award at the Sustainability & CSR Malaysia Awards 2023. This award highlights Hektar REIT’s exemplary contributions to the community’s well-being and transparent reporting. It reaffirms their commitment to sustainable business practices and socially responsible conduct, showcasing their industry leadership and role in shaping a more sustainable future.
En. Johari Shukri bin Jamil, Chief Executive Officer of Hektar Asset Management Sdn. Bhd., expressed his satisfaction with the quarter’s performance. He noted that retail activities remained strong, positioning their malls as neighborhood and community hubs. Hektar REIT’s focus on improving tenancy mix and occupancies has resulted in improved occupancy rates across the board. Their strategic financial management, such as reduced gearing ratios and cost optimization programs, contributed to a robust NPI margin.
Johari Shukri Jamil emphasized their commitment to initiatives that enhance visitor footfall and encourage higher customer spending, ultimately delivering stable returns to their Unitholders. He highlighted their dedication to ESG initiatives, emphasizing their desire to leave behind a better world for future generations. Hektar REIT aims to make their malls places where business thrives, communities feel proud, and every step taken is a step forward for the planet.
