Hektar REIT’s Portfolio Benefits from Retail Recovery – Press Release

NPI Goes up by 77% & Realised Net Income Increased by 862% in 3Q 2022
– For 3Q 2022, Revenue recorded a substantial increase of 62%
– For YTD September 2022, NPI goes up by 40% and Realised Net Income by 256%
– Earnings supported by a continued recovery in the retail sector

KUALA LUMPUR, Nov 15, 2022 – (ACN Newswire) – Hektar Asset Management Sdn. Bhd., the Manager of Hektar Real Estate Investment Trust (Hektar REIT), today announced the third quarter results ended 30 September 2022 (3Q 2022). Hektar REIT recorded revenue of RM31.06 million, a substantial increase of 62.4% compared with RM19.12 million in the same quarter of the previous year. The higher revenue is attributed to the increased rental income, including higher turnover rent, increased car park income and higher hotel occupancy. Hektar REIT registered a net property income of RM18.31 million, an increase of 77.2% compared with RM10.33 million in 3Q 2021, while the realised net income was RM13.50 million, a notable increase of 861.8% compared with RM1.40 million for the same quarter in the preceding year.

En. Johari Shukri, CEO of Hektar Asset Management

Hektar REIT’s performance for the nine months ended 30 September 2022 (9M 2022) showed an increase in revenue by 25% to RM89.55 million compared with RM71.62 million in the corresponding period of 2021. The net property income rose 40.4% to RM48.64 million in 9M 2022 compared with RM34.63 million in the same period for last year, while the realised net income grew by 256% to RM33.82 million compared with RM9.50 million.

The Malaysian retail landscape showed steady recovery as it inches back to the pre-pandemic levels, and it is evident across Hektar REIT’s portfolio. The shopping malls recorded a higher footfall of 269% year-on-year (y-o-y), along with a 152% higher vehicle count y-o-y. This is in tandem with the continuous improvement in tenants’ sales performance at our malls, providing headroom for rental growth.

En. Johari Shukri bin Jamil, Chief…