From L-R: En. Hasli bin Hashim (Chairman), En. Johari Shukri bin Jamil (Executive Director & Chief Executive Officer), Pn. Zarina Halim (Chief Corporate Officer), Mr. Lim Kek Siang 林水成 (Senior General Manager, Finance)
Kuala Lumpur, 6 April 2023 – Hektar Asset Management Sdn Bhd (“Hektar”), the Manager for Hektar Real Estate Investment Trust (“Hektar REIT”) held its 11th Annual General Meeting virtually for investors & unitholders today for the financial year ended 31 December 2022 (“FY2022”). The unitholders are pleased with the strong financial performance and returns delivered by Hektar REIT.
For FY2022, Hektar REIT’s Revenue increased by 21.6% to RM117.5 million compared with RM96.6 million for FY2021 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 (NPI) to RM58.7 million compared with an NPI of RM47 million in the preceding year. Realised net income jumped 187% to RM36.4 million compared to FY2021. As part of a prudent financial & capital management strategy, Hektar REIT reduced its borrowings, consequently reducing its gearing ratio to 44.6% in FY2022 compared to 47.2% in FY2021. To reward the valuable unitholders, Hektar REIT announced and paid an attractive dividend of 8 sen with an impressive dividend yield of 11.4%, which was higher than FY2019 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 (“AUM”) 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 & existing tenants, covering 22.8% of the total Net Lettable Area (“NLA”), equivalent to 466,357 sq. ft. The visitor footfall traffic of 21.1 million in FY2022 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 (“CSR”) related events to serve the needs of the respective communities where we operate.
Hektar REIT embarked on its ESG 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 ESG Rating to a 4-star by FTSE Russell in its evaluation in June 2022. Being a neighbourhood-focused mall, Hektar REIT has always given great importance to the well-being & welfare of the community, especially the underprivileged or marginalised segment. In view of it, Hektar REIT’s efforts were recognised and was awarded “Company of the Year for Stakeholder and Community Engagement” at Sustainability & CSR Malaysia Awards 2022. Hektar REIT was also conferred two Silver Awards for “Most Improved Performance Over Three Years” and “Property & REIT Sector Award” at the inaugural The Edge Malaysia ESG Awards 2022. The Management team remains clear & committed to implementing initiatives and strategies that mitigate the climate change associated risks, positively impact the community, and uphold the best governance practices aligned with United Nations Sustainable Development Goals (“UNSDGs”).
En. Hasli bin Hashim, Chairman of Hektar Asset Management Sdn Bhd, 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.”
En. Johari Shukri bin Jamil, Chief Executive Officer of Hektar Asset Management Sdn. Bhd. said, “Our results for FY2022 have shown that our strategies are yielding the desired results. We will continue partnering with our tenants and other key stakeholders to improve the overall experience of shopping at our malls. We are confident and believe that shopping malls will remain the preferred destinations for entertainment, social activities and shopping amongst Malaysians as long as our malls stay relevant. In view of it, 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 (ETS) station opposite the mall. We are actively exploring avenues for growth by ensuring a strong portfolio of retail brands in our malls with the aim of achieving higher occupancy rates. We also remain committed to reducing our environmental footprint and increasing our responsibility towards our stakeholders by continuously undertaking several ESG initiatives because it is the right thing to do for ourselves and our communities.”
