Hektar Real Estate Investment Trust · MYX:HEKTAR

Hektar Real Estate Investment Trust — Q2 2013 Earnings Presentation

25 slides from Hektar Real Estate Investment Trust's earnings presentation, Aug 2, 2013

  1. Slide 1: Second Quarter 2013 Financial Results Presentation

    SECOND QUARTER 2013 FINANCIAL RESULTS PRESENTATION 2 AUGUST 2013 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 2013

    PRIVATE & CONFIDENTIAL 3 Financial Summary Second Quarter FY 2013 1 April 2013 – 30 June 2013 Commentary  2Q2013 Interim Distribution Per Unit: 2.6 sen  Six Years Track Record of Positive Results Operational & Financial Performance (Second Quarter) Distribution and Yield  Portfolio Occupancy: ~ 9

  4. Slide 4: Distribution Details

    PRIVATE & CONFIDENTIAL 4 Distribution Details Hektar REIT Annual DPU Positive Growth Since IPO Current Distribution Details Second Quarter 2013  Distribution Period: 1 Apr – 30 Jun 2013  Quarterly DPU: 2.6 sen  Notice of Entitlement: 2 Aug 2013  Ex-Dividend Date: 19 Aug 2013  Book Closure Date:

  5. Slide 5: Comparative Yields - Malaysia

    PRIVATE & CONFIDENTIAL 5 Comparative Yields - Malaysia Hektar REIT Distribution Yield at approximately 6.6%  Traded at a 314 bps spread over MGS 10-year  Unit Price increased by 7.5% since beginning of the year Hektar REIT Unit Price Change Hektar REIT Comparative Yields FY2013 (6 months) Unit Pri

  6. Slide 6: Portfolio Performance

    PRIVATE & CONFIDENTIAL 6 Portfolio Performance Overall Occupancy at ~94.2% ► Rental Reversions +8.9% for 2Q13 ► Tenancy Expiry Profile ► 38% of Portfolio Tenancy Rental Income Expires in 2014 ►

  7. Slide 7: Hektar REIT Portfolio - Occupancy

    PRIVATE & CONFIDENTIAL 7 Hektar REIT Portfolio - Occupancy Central Square prepares itself for the AEI via remixing and rezoning exercises. Overall Portfolio Occupancy at ~94.2% 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 31 Dec 31 Dec 30 Sep 31 D

  8. Slide 8: Hektar REIT Portfolio – Rental Reversions

    PRIVATE & CONFIDENTIAL 8 Hektar REIT Portfolio – Rental Reversions Rental Reversions +8% for 1H 2013  2Q 13: 19 new tenancies / renewals at 9% reversion rate  Landmark Central recorded high reversion due to its strong market position Hektar REIT Rental Reversions: Quarter Second Quarter No. of New

  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 2013 No. of NLA of Tenancies NLA of Tenancies % of Total Subang Parade 45% For Year Ending Tenancies Expiring Expiring as % of Monthly Rental 33% 37% 32% 31 December E

  10. Slide 10: Tenancy Portfolio Expiry Profile 2013 – 2016

    PRIVATE & CONFIDENTIAL 10 Hektar REIT Portfolio – Tenancy Expiry Profile Tenancy Portfolio Expiry Profile 2013 – 2016  FY2014 - 167 tenancy expiries account for approximately 38% of monthly rental income* Hektar REIT Tenancy Expiry Profile – Overall Portfolio As at 30 June 2013 Portfolio No. of NLA

  11. Slide 11: Financial Results

    PRIVATE & CONFIDENTIAL 11 Financial Results Gross Revenue up 22.0% and NPI up 21.3% from preceding year ► 2Q2013 Net Income (Realised) up 16.5% from preceding year ► Hektar REIT Average Cost of Debt at 4.5% ►

  12. Slide 12: Income Statement – Quarter Comparative

    PRIVATE & CONFIDENTIAL 12 Income Statement – Quarter Comparative 2Q2013 Net Income (Realised) up 16.5% vs corresponding quarter 2Q2012  Due to contribution from the enlarged portfolio Income Statement 2Q13 2Q12 Variance Second Quarter 2013 (Unaudited) (RM '000) (RM '000) (%) Revenue 29,657 24,309 +

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

    PRIVATE & CONFIDENTIAL 13 Income Statement – Year-To-Date Comparative For Period 1 January – 30 June 2013 (versus previous comparable period) Income Statement 1H13 1H12 Variance Year-To-Date FY13 (Unaudited) (RM '000) (RM '000) (%) Revenue 59,735 48,764 + 22.5% Direct Cost & Property Expenses (23,50

  14. Slide 14: Hektar REIT’s Balance Sheet for 2Q2013

    PRIVATE & CONFIDENTIAL 14 Balance Sheet Hektar REIT’s Balance Sheet for 2Q2013 Balance Sheet As at 30.06.2013 As at 31.12.2012 (Unaudited) (RM '000) (RM '000) Non-Current Assets Unit Price Statistics Investment Properties 1,028,970 1,028,970 As at 28 June 2013 Capital Work in Progress 3,078 533 No.

  15. Slide 15: Debt Profile for 2Q 2013

    PRIVATE & CONFIDENTIAL 15 Debt Profile Debt Profile for 2Q 2013 Debt Expiry Profile As at 30 June 2013 Debt Information As at 30 June 2013 500 RM million 450 400  Total Debt: RM436 million 350 300  Weighted Cost of Debt: 4.5% 250 200  Gearing Ratio1: 40.9% 150 100  Interest Cover2: 3.28 50 0 1 G

  16. Slide 16: 2013 / 2014 – Value Creation in Hektar REIT

    PRIVATE & CONFIDENTIAL 16 2013 / 2014 –Value Creation in Hektar REIT

  17. Slide 17: Central Square AEI

    PRIVATE & CONFIDENTIAL 17 Central Square AEI Hektar REIT will be commencing Asset Enhancement Initiatives (AEI) at Central Square amounting to RM 23 million by 3Q2013. Key refurbishment refurbishment areas areas:-:- 1. Expansion of cinema from 3 screens to 9 screens 2. Conversion of low footfall are

  18. Slide 18: Central Square AEI Mechanics

    PRIVATE & CONFIDENTIAL 18 Central Square AEI Mechanics of the AEI Mechanics :- AEI :- Rationale for the AEI :-  The cost of the AEI will be funded via bank To improve and re-establish Central borrowings Square’s position in the market  As Hektar only owns 85% of the share unit To improve shopper F

  19. Slide 19: Central Square AEI – Façade

    PRIVATE & CONFIDENTIAL 19 Central Square AEI – Façade Perforated metal claddings Modern façade Organised signage space

  20. Slide 20: Central Square AEI - Entrance

    PRIVATE & CONFIDENTIAL 20 Central Square AEI - Entrance Proper drop-off area Raised driveway for leveled entrance

  21. Slide 21: Central Square AEI – Centre Podium

    PRIVATE & CONFIDENTIAL 21 Central Square AEI – Centre Podium Modern balustrate and pillars Clean lines, bright ambience Improved lighting

  22. Slide 22: Central Square AEI – Guest Service Counter and ATM

    PRIVATE & CONFIDENTIAL 22 Central Square AEI – Guest Service Counter and ATM New Guest Service Counter New ATM Area

  23. Slide 23: Central Square AEI – Toilets and New Mother’s Room

    PRIVATE & CONFIDENTIAL 23 Central Square AEI – Toilets and New Mother’s Room New Toilets Mother’s Room Mother’s Room

  24. Slide 24: Central Square AEI – Carpark and Ramp

    PRIVATE & CONFIDENTIAL 24 Central Square AEI – Carpark and Ramp Brighter Carparks Modern Ramp Design

  25. Slide 25: Contact – Investor Relations

    PRIVATE & CONFIDENTIAL 25 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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