Hektar Reit Reports Significant Improvement In Its Business

Hektar Reit says its NPI went up by 34% in 2Q 2022 & realised net income increased by 151% for 1H 2022

Hektar Reit Reports Significant Improvement In Its Business

KUALA LUMPUR, Aug 27, 2022 -  - Hektar Asset Management Sdn Bhd, the Manager of Hektar Real Estate Investment Trust, says it recorded revenue of RM29.37 million, an increase of 14.2% compared to the RM25.71 million recorded in the corresponding quarter of the previous year.

The higher revenue is attributed to increased rental & car park income and higher hotel occupancy.

Johari Shukri Jamil, Chief Executive Officer of Hektar Asset Management Sdn. Bhd. says, "As part of our sustainable business strategy, we will continue adopting prudent financial management, cost optimization initiatives, and enhancing our asset efficiencies to help cushion the impact of increasing interest rates and rising cost of inflation.

"Furthermore, we continue to increase our engagement with all stakeholders, including tenants, to offer them competitive rental rates to facilitate their recovery."

Hektar REIT registered a net property income of RM13.70 million, an increase of 34.3% compared to RM10.20 million in 2Q 2021, while the realised net income was RM6.57 million, a substantial increase of 317.3% compared to the same period in the preceding year.

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Hektar REIT Income Distribution

Earnings per unit rose significantly by 311.8% to 1.40 sen for 2Q 2022 compared with the same quarter in the previous year. Based on the financial performance for the current quarter, Hektar REIT has declared an interim income distribution of 2.70 sen per unit, amounting to RM12.72 million, to be made on 26 September 2022.

Hektar REIT's performance for the six months ended 30 June 2022 (1H 2022) showed an increase in revenue by 11.4% to RM58.49 million compared with RM52.49 million registered in the corresponding period of the previous year.

The net property income of RM30.33 million exhibited an increase of 24.8% compared with RM24.30 million in 1H 2021, while the realised net income grew by 151.0% to RM20.32 million compared with RM8.10 million recorded in 1H 2021.

After two straight years of the Covid-19 pandemic, the retail landscape is currently going through normalization & early phases of recovery. The portfolio of malls under Hektar REIT has experienced a 58% year-on-year (y-o-y) increase in visitor footfall and a 50% higher vehicle count y-o-y.

This is in tandem with the huge improvement in the tenant sales performance at our malls. Despite the improved performance, the Manager has adopted a cautious outlook for the coming quarters in light of inflationary pressure and uncertain global economic outlook that may affect domestic economic activities.

As part of our business sustainability measures to ensure that our malls have stable occupancy, we will continue to monitor and review our rental strategy.  (ACN Newswire)