Occupancy Rate and Rental Reversions are Positive
– RM28.9 million revenue recorded with Net Property Income of RM15.2 million
– NPI Margin of 52% indicating healthy financial performance
– Gearing ratio decreased to 44.3% due to effective financial strategy
– Portfolio occupancy rate improved to 83.8%
In Kuala Lumpur, on May 25, 2023, Hektar Asset Management Sdn. Bhd., the Manager of Hektar Real Estate Investment Trust (Hektar REIT), announced that Hektar REIT had registered a revenue of RM28.9 million for the first quarter of 2023 ending on March 31st. The Net Property Income (NPI) for the quarter under review stood at RM15.2 million, benefiting from higher utility costs due to the electricity tariff hike, adjustments in the Imbalance Cost Pass-Through (ICPT) mechanism, and the increase in minimum wages. Realised Net Income for 1Q 2023 stood at RM9.2 million due to higher finance costs in line with the increase of Overnight Policy Rates (OPR) set by Bank Negara Malaysia.
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| En. Johari Shukri Bin Jamil, Chief Executive Officer of Hektar Asset Management Sdn Bhd |
Hektar REIT achieved a robust NPI Margin of 52%, indicating a healthy financial performance throughout the Assets Under Management (AUM). The Gearing Ratio improved to 44.3% due to prudent financial management.
Hektar REIT’s portfolio also showed considerable improvement, with portfolio occupancy improving to 83.8% and a significant positive rental reversion for this quarter with 78 new and renewed tenancies, consisting of 14.0% of the total Net Lettable Area (NLA) of 287,298 sq. ft. Mahkota Parade & Wetex Parade’s occupancy rates improved tremendously, recording more than 90%, while Kulim Central recorded close to 96%. Moreover, all malls under the portfolio experienced an uptrend in visitor traffic, showing positive signs of a return in shoppers’ confidence at Hektar malls. Overall visitor footfall count for 1Q 2023 increased to 5.6 million, a massive jump of 33% compared to the same quarter in the preceding year. The Management will continue to focus on retaining key tenants, reviewing current mall strategies, and attracting innovative and creative retailers to improve occupancies and visitor numbers.
En. Johari Shukri bin Jamil, the CEO of Hektar Asset Management Sdn. Bhd., highlighted the strong retail activities in this quarter and the malls’ position as neighbourhood and community malls. Management aims to continuously improve the overall tenancy mix and occupancies at the malls, planning for Subang Parade’s Repositioning exercise this year, remixing tenancies by bringing in new tenants to complement existing offerings and match loyal patrons’ expectations, benefitting retailers and the company in the long run. The committed overall portfolio occupancy is currently 85.4% and will be realised in the subsequent quarters this year. The Management is in discussions with prominent and notable tenants to further improve the overall occupancy and tenancy mix.
For more information about Hektar REIT, visit http://www.hektarreit.com/
Source: Hektar REIT
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