Hektar Asset Management, the manager for Hektar Real Estate Investment Trust (Hektar REIT) held its 11th annual general meeting virtually for investors and unitholders today for the financial year ended 31 December 2022. The unitholders are pleased with the strong financial performance and returns delivered by Hektar REIT.
For financial year 2022, Hektar REIT’s Revenue increased by 21.6% to RM117.5 million compared with RM96.6 million for financial year 2021 on increased rental income, including higher turnover rent, increased car park income and higher occupancy with an increase in the average room rates for Classic Hotel in Muar, Johor. Hektar REIT registered a 24.8% gain in net property income to RM58.7 million compared with a net property income of RM47 million in the preceding year.
Realised net income jumped 187% to RM36.4 million compared to financial year 2021. As part of a prudent financial and capital management strategy, Hektar REIT reduced its borrowings, consequently reducing its gearing ratio to 44.6% in financial year 2022 compared to 47.2% in financial year 2021.
To reward the unitholders, Hektar REIT announced and paid an attractive dividend of 8 sen with an impressive dividend yield of 11.4%, which was higher than financial year 2019 with a significant 60.8% annual return based on share price performance. There was also a notable increase in the portfolio valuation by RM41.6 million, increasing the value of assets under management to RM1.206 billion.
2022 was the year of recovery for the retail sector after two straight years of the pandemic, which brought various movement control orders and mobility restrictions. Despite the uneven recovery, Hektar REIT’s portfolio performance registered an overall portfolio occupancy rate of 82%. The management successfully attracted 178 new and existing tenants, covering 22.8% of the total net lettable area equivalent to 466,357 sq ft.
The visitor footfall traffic of 21.1 million in financial year 2022 experienced a massive jump of 60% compared to the previous year on the back of intensified marketing initiatives, sales-driven promotional campaigns and various events & activities for our loyal patrons, including corporate social responsibility related events to serve the needs of the respective communities where we operate.
Hektar REIT embarked on its environmental, social and governance initiatives in 2017 and, since then, has implemented various energy optimisation initiatives across its portfolio as part of its commitment towards sustainability and upholding the core pillars of environmental, social and governance to reduce the carbon footprint. Hektar REIT was upgraded from a 3-star environmental, social and governance rating to a 4-star by FTSE Russell in its evaluation in June 2022.
Hektar Asset Management Chairman Hasli bin Hashim said, “I am pleased with Hektar REIT’s progress where we have achieved a remarkable financial performance and become Malaysia’s highest yielding REIT among M-REITs.”
Hektar Asset Management Chief Executive Officer Johari Shukri bin Jamil said, “We are planning on repositioning Subang Parade to enhance and further improve the tenancy mix. We also believe that there is a potential upside for Segamat Central after the opening of the electric train service station opposite the mall.”
