Hektar Real Estate Investment Trust · MYX:HEKTAR

Hektar Real Estate Investment Trust — Q2 2016 Earnings Presentation

16 slides from Hektar Real Estate Investment Trust's earnings presentation, Aug 1, 2016

  1. Slide 1: Second Quarter 2016 Financial Results Presentation

    SECOND QUARTER 2016 FINANCIAL RESULTS PRESENTATION 1 AUGUST 2016 HEKTAR ASSET MANAGEMENT SDN BHD

  2. Slide 2: Disclaimer

    PRIVATE & CONFIDENTIAL 2 Disclaimer The material that follows is a presentation of general background information about the activities of the Hektar REIT (including Hektar REIT’s any other affiliates) as at the date of this Presentation. The information contained herein is given in summary form sole

  3. Slide 3: Financial Summary Second Quarter FY 2016

    PRIVATE & CONFIDENTIAL 3 Financial Summary Second Quarter FY 2016 1 April 2016 – 30 June 2016 Commentary  2Q2016 Interim Distribution Per Unit: 2.6 sen  Net Income for the period down 12.1% due to higher borrowing cost Operational & Financial Performance (Second Quarter) Distribution and Yield  P

  4. Slide 4: Distribution Details

    PRIVATE & CONFIDENTIAL 4 Distribution Details Hektar REIT Annual DPU Positive Growth Since IPO Current Distribution Details Hektar REIT Second Quarter 2016 Distribution Policy Barring unforeseen circumstances, Hektar  Distribution Period: 1 Apr 2016 – 30 Jun 2016 REIT will pay distributions equival

  5. Slide 5: Comparative Yields - Malaysia

    PRIVATE & CONFIDENTIAL 5 Comparative Yields - Malaysia Hektar REIT Distribution Yield at approximately 6.9%  Traded at a 293 bps spread over MGS 10-year  Unit Price reduced by 1.3% since beginning of the year Hektar REIT Unit Price Change Hektar REIT Comparative Yields 2Q 2016 (6 months) Unit Pric

  6. Slide 6: Portfolio Performance

    PRIVATE & CONFIDENTIAL 6 Portfolio Performance Overall Occupancy at ~96.5% ► Rental Reversions -12.1% for 2Q16 ► Tenancy Expiry Profile ► 30% of Portfolio Tenancy Rental Income Expiries in 2016 ►

  7. Slide 7: Hektar REIT Portfolio - Occupancy

    PRIVATE & CONFIDENTIAL 7 Hektar REIT Portfolio - Occupancy Overall Portfolio Occupancy at ~96.5% Occupancy rate at Central Square continues to improve Hektar REIT Portfolio Occupancy As at As at As at As at As at As at As at As at As at As at As at As at As at As at As at As at As at 31 Dec 31 Dec 3

  8. Slide 8: Hektar REIT Portfolio – Rental Reversions

    PRIVATE & CONFIDENTIAL 8 Hektar REIT Portfolio – Rental Reversions Rental Reversions -12.1% for 2Q 2016  Negative reversion recorded at Subang Parade, Mahkota Parade and Central Square Subang Parade : Hektar REIT Rental Reversions: Quarter 1) Lower rental provided to fill up long Second Quarter No.

  9. Slide 9: Hektar REIT Portfolio – Tenancy Expiry Profile

    PRIVATE & CONFIDENTIAL 9 Hektar REIT Portfolio – Tenancy Expiry Profile Hektar REIT Tenancy Expiry Profile by Property as at 30 June 2016 Subang Parade No. of NLA of Tenancies NLA of Tenancies 35% 38% 38% For Year Ending Tenancies Expiring Expiring as % of % of Total Monthly 28% 28% 17% 31 December

  10. Slide 10: Tenancy Portfolio Expiry Profile 2016 – 2019

    PRIVATE & CONFIDENTIAL 10 Hektar REIT Portfolio – Tenancy Expiry Profile Tenancy Portfolio Expiry Profile 2016 – 2019  FY2016 - 124 tenancy expiries account for approximately 30% of monthly rental income* Hektar REIT Tenancy Expiry Profile – Overall Portfolio As at 30 June 2016 Portfolio No. of NLA

  11. Slide 11: Financial Results

    PRIVATE & CONFIDENTIAL 11 Financial Results 2Q2016 Gross Revenue flatish (-0.1%); NPI down 3.9% from preceding year ► 2Q2016 Net Income (Realised) down 12.1% from preceding year ►

  12. Slide 12: Income Statement – Quarter Comparative

    PRIVATE & CONFIDENTIAL 12 Income Statement – Quarter Comparative 2Q2016 Net Income down 12.1% vs corresponding quarter 2Q2015 Income Statement 2Q16 2Q15 Variance Second Quarter 2016 (Unaudited) (RM '000) (RM '000) (%) Revenue 30,941 30,980 - 0.1% Direct Cost & Property Expenses (12,051) (11,327) + 6

  13. Slide 13: Income Statement – Year-To-Date Comparative

    PRIVATE & CONFIDENTIAL 13 Income Statement – Year-To-Date Comparative For Period 1 January – 31 December 2016 (versus previous comparable period) Income Statement 1H16 1H15 Variance Year-To-Date (Unaudited) (RM '000) (RM '000) (%) Revenue 62,544 62,191 +0.6% Direct Cost & Property Expenses (24,980)

  14. Slide 14: Hektar REIT’s Balance Sheet for 2Q2016

    PRIVATE & CONFIDENTIAL 14 Balance Sheet Hektar REIT’s Balance Sheet for 2Q2016 Balance Sheet As at 30.6.2016 As at 31.12.2015 (Unaudited) (RM '000) (RM '000) Non-Current Assets Unit Price Statistics Investment Properties 1,086,910 1,086,580 As at 30 June 2016 Capital Work in Progress 1,949 335 Fixed

  15. Slide 15: Debt Profile

    PRIVATE & CONFIDENTIAL 15 Debt Profile Debt Profile for 2Q 2016 Debt Expiry Profile As at 30 June 2016 Debt Information 600 As at 30 June 2016 500  Total Debt: RM million RM497 million 400  Weighted Cost of Debt: 4.8% 300  Gearing Ratio1: 45.0% 200  Interest Cover2: 2.83 100 1 Gearing ratio calc

  16. Slide 16: Contact

    PRIVATE & CONFIDENTIAL 16 Contact “Creating The Places Where People Love To Shop” Investor Relations Hektar Asset Management Sdn Bhd D1-U3-10, Solaris Dutamas No1, Jalan Dutamas 1 50480 Kuala Lumpur MALAYSIA Tel: +6 03 6205 5570  Fax: +6 03 6205 5571  Web: www.HektarREIT.com Please visit our webs

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