Hektar Real Estate Investment Trust · MYX:HEKTAR
Hektar Real Estate Investment Trust — Q3 2019 Earnings Presentation
27 slides from Hektar Real Estate Investment Trust's earnings presentation, Nov 27, 2019
Slide 1: Hektar Real Estate Investment Trust 3Q 2019 Results Presentation
Creating The Places People Love HEKTAR REAL ESTATE INVESTMENT TRUST 3Q 2019 RESULTS PRESENTATION 27 Nov 2019
Slide 2: Hektar REIT – Malaysia's First Retail-Focused REIT
Hektar REIT – Malaysia’s First Retail-Focused REIT 2 Organisation Diverse Portfolio CORNERSTONE UNITHOLDERS Frasers Centrepoint Strategic Partner MANAGER TRUSTEE Hektar Asset MTrustee Bhd Management Sdn Bhd PROPERTY MANAGER HEKTAR PORTFOLIO Hektar Property Services Sdn Bhd DISCLAIMER: The material t
Slide 3: Hektar REIT Financial Summary
Hektar REIT Financial Summary 3 Third Quarter 2019 (3Q19) July – September 2019 / 3 Months Dividend Per Unit Financial Performance vs. Previous Period 1Q 2019 : 1.93 sen 2Q 2019 : 2.00 sen 3Q19 Gross Revenue: RM34.1 million, +2.1% 3Q 2019 : 1.84 sen 3Q19 Realised Income: RM8.5 million, -11.0% 4Q 201
Slide 4: Dividend Details
Hektar REIT Dividend Details 4 Distribution Details Third Quarter 2019 Distribution Period: 1 July 2019 – 30 September 2019 Quarterly DPU: 1.84 sen Notice of Entitlement: 27 November 2019 Ex-Dividend Date: 11 December 2019 Book Closure Date: 12 December 2019 Payment Date: 9 January 2020
Slide 5: Comparative Yield
Comparative Yield 5 Hektar REIT offers a competitive 7.81% dividend yield for 3Q 2019 ▪ Dividend Yield based on annualised average DPU and 3Q 2019 closing price of RM0.985 Dividend Per Unit Comparative Yields 1Q 2019 : 1.93 sen 2Q 2019 : 2.00 sen 3Q 2019 : 1.84 sen 4Q 2019 :- DPU Yield* : 7.81% * Ba
Slide 6: Portfolio Performance
6 Overall Occupancy at ~91.9% ► Rental Reversions +5.4% for 3Q19 ► Expiry Profile: 31% NLA expires in 2019 ► Portfolio Performance
Slide 7: Portfolio Occupancy
Hektar REIT Portfolio Occupancy 7 Average portfolio occupancy steady at 91.9% Portfolio Occupancy 2007-2019 Property '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 3Q19 Subang Parade 93.4% 98.3% 98.5% 99.9% 99.8% 100.0% 94.8% 99.9% 99.8% 100.0% 99.3% 94.7% 93.0% 90.9% 88.2% 91.6% Mahkot
Slide 8: Portfolio Occupancy
Hektar REIT Portfolio Occupancy 8 Subang Parade and Segamat Central occupancy still fluctuating due to Asset Enhancement planning & repositioning ▪ Portfolio Average at 91.9% for 3Q 2019
Slide 9: Rental Reversions
Hektar REIT Rental Reversions 9 +16.4% Third Quarter Rental Reversions positive (+5.4%) ▪ Positive reversion for all 2 tenants ▪ Represented by 6% of NLA ▪ Key Renewed/New Tenant Categories: Popular Bookstore and KFC ▪ Weighed down by Subang Parade and Central Square +15.7% ▪ Strong performance by K
Slide 10: Rental Reversions
Hektar REIT Rental Reversions 10 Portfolio Rental Reversions YTD was a +0.8% in 9M2019 ▪ Strongest performer: Wetex Parade +24.0% ▪ Kulim Central (+15.7%), Segamat Central (+13.1%) and Central Square (+11.6%) ▪ Subang Parade reversions down due to Asset Enhancement planning for new mini-anchor ▪ Fou
Slide 11: Expiry Profile
Hektar REIT Expiry Profile 11 Tenancy Expiry by Property Period End Tenancies Expiring NLA Expiring NLA as % of Monthly September Expiring (sq ft) % of Total NLA Rental Income* 2019 41 113,340 22% 26% 2020 31 84,015 16% 25% 2021 28 210,651 41% 37% 2022 21 62,842 12% 12% Period End Tenancies Expiring
Slide 12: Expiry Profile
Hektar REIT Expiry Profile 12 Tenancy Expiry by Property Period End Tenancies Expiring NLA Expiring NLA as % of Monthly September Expiring (sq ft) % of Total NLA Rental Income* 2019 12 24,069 8% 13% 2020 23 47,936 15% 21% 2021 19 184,561 59% 54% 2022 6 27,237 9% 12% Period End Tenancies Expiring NLA
Slide 13: Expiry Profile
Hektar REIT Expiry Profile 13 Tenancy Expiry for Portfolio 2019-2022 ▪ For FY 2019, the total amount of tenancies due for expiry was 136 which represented 476,942 sq. ft. or 23% of Total NLA. ▪ For 3Q 2019, a total of 43 tenancies covering 121,711 sq. ft. were renewed, representing 5.4% of Total NLA
Slide 14: Financial Results
14 3Q19 Gross Revenue up 2.1% from preceding period ► 3Q19 NPI down 3.1% from preceding period ► Financing Renewed: 92% of Debt expires in 2024 ► Financial Results
Slide 15: Income Statement: Quarter Comparative
Hektar REIT Income Statement: Quarter Comparative 15 Revenue up by 2.1% in 3Q19 ▪ Net Property Income lower by 3.1% ▪ Realised Income declined 11% vs previous quarter due to higher trust fees & expenses Income Statement 3Q19 3Q18 Variance Third Quarter 2019 (unaudited) (RM '000) (RM '000) (%) Revenu
Slide 16: Income Statement: Year-To-Date Comparative
Hektar REIT Income Statement: Year-To-Date Comparative 16 For Period 1 January – 30 September 2019 (versus previous comparable period) Income Statement 9M19 9M18 Variance Year-To-Date 2019 (unaudited) (RM '000) (RM '000) (%) Revenue 102,224 101,226 1.0% Direct Cost & Property Expenses -46,501 -42,77
Slide 17: Balance Sheet
Hektar REIT Balance Sheet 17 Balance Sheet As at 30.9.2019 As at 31.12.2018 (Unaudited) (RM '000) (RM '000) Unit Price Statistics Non-Current Assets As at 30 September 2019 Investment Properties 1,236,500 1,221,500 Plant & Equipment 111 141 Capital Work in Progress - 6,129 No. of Units Outstanding F
Slide 18: Debt Profile
Hektar REIT Debt Profile 18 Debt Summary November 2019 Facilities Amount % Total ▪ Facilities: Al-Murabahah, Term Loan (TL), # Facility (RM'000) Debt Security Expiry Cost Short-Term Revolving Credit (STRC) 1 MOD 1 184,000 32.7% Subang Parade Feb-24 4.80% ▪ Financier: Maybank 2 MOD 2 150,000 26.6% Ma
Slide 19: Valuation
Hektar REIT Valuation 19 Portfolio valuation reached RM1.237 billion Portfolio Asset Size 2007-2019 (RM ‘000) in 3Q 2019 ▪ Increase of 1.2% from FY2018 ▪ Overall Property Yield at 6.0% ▪ Valuation at RM609 per square foot ▪ Subang Parade remains the largest component at 36% of portfolio total ▪ Port
Slide 20: Portfolio Updates
SUBANG MAHKOTA ‘ee WETEX. SZ CENTRAL KULIM | WEG SZ PARADE SZPARADE | PARADE IN SQUARE WC Saka FINAL Ws OurPlacet ieGnileet It’s Our Place! I's Our Place! Ou Place!
Slide 21: Portfolio Updates: New Tenants
Hektar REIT Portfolio Updates 21 New Tenants
Slide 22: Portfolio Updates: New Tenants
Hektar REIT Portfolio Updates 22 New Tenants
Slide 23: New Supermarket Anchor: Family Store
Hektar REIT Portfolio Updates 23 New Supermarket Anchor: Family Store ▪ Opened October 2019
Slide 24: Marketing: Piala Hektar Choral Speaking Competition 2019
Hektar REIT Portfolio Updates 24 Marketing: Piala Hektar Choral Speaking Competition 2019 ▪ Signature Hektar marketing event featuring participation of all 6 malls’ marketing initiatives ▪ Inter-city competition featuring 42 schools and over 1,100 students across 6 Hektar malls ▪ 6 schools competed
Slide 25: Awards
Hektar Awards 25 Hektar REIT honours continued in second half 2019 with awards in Thailand ▪ ASEAN Energy Awards 2019 (Bangkok, Thailand) • First Runner Up, ASEAN “Energy Efficient Building (Retrofitted Building)” • Sustainability Efforts related to Subang Parade energy efficiency ▪ Asia Corporate E
Slide 26: Awards
Hektar Awards 26 Hektar REIT wins at The Edge Malaysia Centurion Club 2019 Awards ▪ “Highest Return on Equity over Three Years” Award for REIT category ▪ 34 awards presented to 25 companies across 12 different sectors The Edge Centurion Club 2019 Second from left: Dato’ Hisham bin Othman, Chief Exec
Slide 27: Investor Communications
Creating The Places People Love Investor Communications 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 Email: ir@HektarREIT.com
Hektar Real Estate Investment Trust — Q3 2019 Earnings Presentation on 6ix