Hektar Real Estate Investment Trust · MYX:HEKTAR
Hektar Real Estate Investment Trust — Q4 2023 Earnings Presentation
23 slides from Hektar Real Estate Investment Trust's earnings presentation, Feb 22, 2024
Slide 1: Hektar REIT 4Q 2023 Results Presentation
Creating The Places People Love HEKTAR REAL ESTATE INVESTMENT TRUST 4Q 2023 RESULTS PRESENTATION 22 February 2024
Slide 2: Hektar REIT: Malaysia's First Retail-Focused REIT
Hektar REIT: Malaysia’s First Retail-Focused REIT 2 ORGANISATION GEOGRAPHICALLY WELL-DIVERSIFIED DISCLAIMER: The material that follows is a presentation of general background information about the activities of Hektar REIT (including Hektar REIT’s any other affiliates) as at the date of this Present
Slide 3: Table of Contents
Table of Contents 3 01 Financial Summary 02 Performance Summary 03 Portfolio Performance 04 Financial Results 05 Portfolio Updates 06 Corporate Social Responsibility 07 Subang Parade Asset Enhancement Initiatives 08 Tenant Remixing Strategy
Slide 4: Hektar REIT Financial Summary FY2023
Hektar REIT Financial Summary FY2023 4 Financial Performance (FY2023) vs Previous Year (FY2022) Gross Revenue RM111.5 million (-5.0% Y-o-Y) Net Property Income RM60.0 million (+2.3% Y-o-Y) Dividend Per Unit FY2023 Debt Maturity Profile 84.2% of Debt expires from 2027 onwards 2Q 2023: 2.70 sen Cost o
Slide 5: Performance Summary
Performance Summary 5 4th Quarter 2023 (4Q23): Oct-Dec 2023 | 3 Months YTD 2023: Jan-Dec 2023 | 12 Months 1.3% 5.1% 125,000 117,446 30,000 111,497 27,534 27,892 100,000 2.3% 20,000 75,000 39.0% 60,046 58,687 13,954 31.0% 50,000 10,042 36,389 10,000 -18.0% 25,112 25,000 2,110 2,573 0 0 Revenue Net pr
Slide 6: Financial Results
a a KULIM. WScrGan SUBANG' 2 CEM aL S@ SEGAMAT PI Si Pocel
Slide 7: Balance Sheet
Balance Sheet 7 As at As at BALANCE SHEET 31.12.2023 31.12.2022 UNIT PRICE STATISTICS as at 31 Dec 2023 (RM,000) (RM,000) Non-current assets Property, plant and equipment 414 46 No. of Units 581,415,073 Investment properties 1,232,700 1,206,080 1,233,114 1,206,126 Current assets Trade receivables 3,
Slide 8: Income Statement
Income Statement 8 Income Statement FY23 FY22 Variance Y-o-Y comparison (RM '000) (RM '000) (%) Revenue 111,497 117,446 -5.1% Direct cost & Property expenses (51,451) (58,759) -12.4% Net property income (NPI) 60,046 58,687 2.3% Interest & Other income 2,261 3,367 -33% Trust fees & Expenses (11,008)
Slide 9: Debt Expiries well-distributed
Debt Expiries well-distributed 9 EXPIRY PROFILE 2024-2026 DEBT SUMMARY As at 31 December 2023 473.3 ▪ Al-Murabahah Overdraft (MOD) ▪ Term Financing (TF) Facilities ▪ Commodity Murabahah Term 53.0 32.9 Financing-i (CMTF-i) 3.0 ▪ Credit Guarantee & Investment Facility 2024 2025 2026 2027 - 2033 HLB MB
Slide 10: Portfolio Performance
10 Portfolio Performance Improved Occupancy at 86.7% ► Positive Rental Reversion ► Increased Footfall at 23.2 million ►
Slide 11: Average Portfolio Occupancy improved to 86.7%
Average Portfolio Occupancy improved to 86.7% 11 92.5% 88.4% 87.3% 86.7% 84.9% 82.0% Previous Occupancy Actual Occupancy FY23 Committed Occupancy FY23 Occupancy (%) FY19 FY20 FY21 FY22 FY23 Subang Parade 93.9% 83.7% 82.5% 70.3% 74.3% Mahkota Parade 96.4% 92.5% 87.1% 86.9% 93.8% Wetex Parade 96.2% 94
Slide 12: Increased Visitor Footfall by 10% compared to FY2022
Increased Visitor Footfall by 10% compared to FY2022 12 FY23 23.2 (10% y-o-y increase) FY22 21.1 Covid-19 FY21 13.3 Pandemic FY20 19.2 FY19 32.3 FOOTFALL (millions) FY19 FY20 FY21 FY22 FY23 Subang Parade 7.60 4.86 3.97 4.74 4.49 Mahkota Parade 8.40 4.55 2.82 6.01 6.81 Wetex Parade 4.20 2.49 1.94 2.8
Slide 13: 4Q23 rental reversions at 0.2%
13 4Q23 rental reversions at 0.2% • 36 new/renewed tenancies comprising 4.2% of total NLA for the quarter ended 31 December 2023. • Positive reversions recorded at all malls except Subang Parade and Wetex Parade No. of New % Increase / Quarter Ended 31 December Tenancies / NLA % of (Decrease) Over 2
Slide 14: FY23 rental reversions at 0.2%
14 FY23 rental reversions at 0.2% • 212 new/renewed tenancies comprising 28.6% of total NLA for the year ended 31 December 2023. • Positive reversions recorded at Mahkota Parade, Kulim Central and Segamat Central. No. of New % Increase / Quarter Ended 31 December Tenancies / NLA % of (Decrease) Over
Slide 15: Portfolio's Lease Expiry Profile
Portfolio’s Lease Expiry Profile 15 • 1,052,729 sq. ft. or about 51.7% of total NLA expiring in 2024. PORTFOLIO TENANCY EXPIRY PROFILE 2024-2026 % of Total NLA % of Total Monthly Rental Income* 53.8% Period Ending Number of Expiring NLA 51.7% December Tenancies Expiring (Sq. Ft.) 2024 192 1,052,729
Slide 16: Portfolio Updates
16 Portfolio Updates
Slide 17: Refreshed Retail Offerings at Hektar Malls
Refreshed Retail Offerings at Hektar Malls 17 Audrey, Wetex Parade Sushi Go, Kulim Central Anakku, Wetex Parade Realme, Kulim Central Mr Magic, Wetex Parade The Green Party, Mahkota Parade Zus Coffee, Mahkota Parade Gatti, Kulim Central Kappa, Mahkota Parade
Slide 18: Marketing Initiatives
Marketing Initiatives 18 Amazing Pet Party, Subang Parade Christmas Caroling, Mahkota Parade Halloween with Leo Club, Wetex Parade Cosplay & Anime Festival, Mahkota Parade Deepavali Kolam Making Contest, Central FunEat Food Festival, Segamat Central Square
Slide 19: Corporate Social Responsibility
Corporate Social Responsibility Subang Parade, Subang Jaya, Selangor
Slide 20: Social: CSR Activities
Social: CSR Activities 20 Law Awareness Campaign, Mahkota Parade Health & Safety Exhibition, Mahkota Parade Christmas Zumba, Subang Parade Recycle costume competition, Kulim Central Breast Cancer Awareness, Kulim Central Health Carnival with Lion Club, Segamat Central
Slide 21: Subang Parade Asset Enhancement Initiatives (AEIs)
Subang Parade Asset Enhancement Initiatives (AEIs) 21 Major refurbishment to rejuvenate Subang Parade to its pre-pandemic era will be executed in phases over 2-3 years. AEIs to be executed but not limited to:- • Exterior Intervention:- o Façade Upgrade of all entrances o Repainting o Placemaking Spa
Slide 22: Tenant Remixing Strategy
Tenant Remixing Strategy 22 Po s i t i o n i n g – T h e P re f e r re d N e i g h b o u r h o o d C o m m u n i t y M a l l Subang Parade Central Square Segamat Central Leisure / Entertainment, Edutainment, Sport & Fitness Emphasis on Gym / Yoga / Pilates / Indoor Theme Park are ideal for surroundi
Slide 23: Investor Communications
23 Creating The Places People Love Investor Communications Hektar Asset Management Sdn Bhd Tel: +6 03 6205 5570 Web: www.HektarREIT.com Email: ir@HektarREIT.com
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