Hektar Real Estate Investment Trust’s (Hektar REIT) saw its net profit dropped by 36% to RM26 million in the fourth quarter ended 31 December 2023 (4QFY23) from 40.8 million the same period last year.
In a statement, the REIT’s manager Hektar Asset Management Sdn Bhd said its revenue dipped marginally by about 5% to RM111.5 million compared to RM117.5 million last year.
“However, the net property income of RM60 million recorded was marginally higher by 2% than the preceding year due to the ongoing repositioning and tenancy remixing strategies at Subang Parade and the extensive cost optimisation efforts carry out throughout the year.”
Hektar Asset Management Sdn Bhd chief executive officer Johari Shukri Jamil said the past year has underscored the REIT’s resilience and adaptability amidst challenging market conditions.
“With our enhanced occupancy rates, positive rental reversions, and diligent financial management, we are poised to continue our growth trajectory.
“Our ongoing efforts to deliver sustainable value to our unitholders and enrich the community-centric experiences at our malls remain our top priority,” he said.
Hektar REIT manager added that the REIT, in FY2023, reached 86.7% overall portfolio occupancy, with robust performance from Mahkota Parade at 94% occupancy rate, Kulim Central at 97%, and Wetex Parade nearing 98%.
“Its rental reversion, shifting positively to 0.2%, a significant improvement from a decline by 11.0% recorded in FY2022,” it added.
With a realised net income of RM25.1 million, Hektar REIT declared a total of 5 sen income distribution per unit (DPU) for FY2023.
“Based on the closing price of RM0.65 on 29 December 2023, the annualised DPU for the year represented a distribution yield of 7.7%. This is a testament to its strong fundamentals and continued commitment to deliver attractive returns to our unitholders,” it said.
The net asset value (NAV) per unit for FY2023 after the income distribution was at RM1.13 with a discount to NAV of 42.7%. Overall, the market valuation of the Hektar portfolio increased by RM26.6 million in 2023.
Hektar REIT’s current assets under management (AUM) consist of six shopping malls and a hotel, spread across Peninsular Malaysia.
“The REIT has decided to pursue asset portfolio diversification, and in January 2024, REIT’s unitholders had approved the amendment with a target of having at least 20% of the portfolio to consist of non-retail assets in the next 5 years.”
Upon completion of the proposed acquisition of Kolej Yayasan Saad Melaka, its AUM size will be RM1.38 billion.
