Hektar Real Estate Investment Trust · MYX:HEKTAR

Hektar Real Estate Investment Trust — Q1 2017 Earnings Presentation

16 slides from Hektar Real Estate Investment Trust's earnings presentation, May 22, 2017

  1. Slide 1: First Quarter 2017 Financial Results Presentation

    FIRST QUARTER 2017 FINANCIAL RESULTS PRESENTATION 22 MAY 2017 HEKTAR ASSET MANAGEMENT SDN BHD

  2. Slide 2: Disclaimer / About Hektar

    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 First Quarter FY 2017

    PRIVATE & CONFIDENTIAL 3 Financial Summary First Quarter FY 2017 1 Jan 2017 – 31 Mar 2017 Commentary ▪ 1Q2017 Interim Distribution Per Unit: 2.3 sen ▪ Realised Net Income for the period down 1.1% due to increased cost ▪ Retail business in Malaysia continues to remain a challenge in 2017, especially

  4. Slide 4: Distribution Details

    PRIVATE & CONFIDENTIAL 4 Distribution Details DPU reduced in line with soft retail outlook, focus on AEI and external growth Current Distribution Details Hektar REIT First Quarter 2017 Distribution Policy Barring unforeseen circumstances, Hektar ▪ Distribution Period: 1 Jan 2017 – 31 Mar 2017 REIT w

  5. Slide 5: Comparative Yields - Malaysia

    PRIVATE & CONFIDENTIAL 5 Comparative Yields - Malaysia Hektar REIT Distribution Yield at approximately 5.6% ▪ Traded at a 178 bps spread over MGS 10-year ▪ Unit Price increased by 4.9% since beginning of the year Hektar REIT Unit Price Change Hektar REIT Comparative Yields 1Q 2017 (3 months) Unit Pr

  6. Slide 6: Portfolio Performance

    PRIVATE & CONFIDENTIAL 6 Portfolio Performance Overall Occupancy at ~96.4% ► Rental Reversions -7.0% for 1Q17 ► Tenancy Expiry Profile ► 48% of Portfolio Tenancy Rental Income Expiries in 2017 ►

  7. Slide 7: Hektar REIT Portfolio - Occupancy

    PRIVATE & CONFIDENTIAL 7 Hektar REIT Portfolio - Occupancy Overall Portfolio Occupancy at ~96.4% Wetex Parade maintains full occupancy 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 31 Dec 31 Dec 30 Sep 31 Dec 31 Dec 31 Dec 31 Dec

  8. Slide 8: Rental Reversions -7% for 1Q 2017

    PRIVATE & CONFIDENTIAL 8 Hektar REIT Portfolio – Rental Reversions Rental Reversions -7% for 1Q 2017 ▪ Positive reversion recorded at Wetex Parade and Landmark Central Hektar REIT Rental Reversions: Quarter Mahkota Parade : First Quarter No. of New % 1) Rental reduction (3 months) Tenancies / NLA In

  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 31 Mar 2017 Subang Parade No. of NLA of Tenancies NLA of Tenancies For Year Ending Tenancies Expiring Expiring as % of Total % of Total Monthly 49% Subang Parade 31 December E

  10. Slide 10: Tenancy Portfolio Expiry Profile 2017 – 2019

    PRIVATE & CONFIDENTIAL 10 Hektar REIT Portfolio – Tenancy Expiry Profile Tenancy Portfolio Expiry Profile 2017 – 2019 ▪ FY2017 - 198 tenancy expiries account for approximately 48% of monthly rental income* Hektar REIT Tenancy Expiry Profile – Overall Portfolio As at 31 March 2017 Portfolio No. of NL

  11. Slide 11: Financial Results

    PRIVATE & CONFIDENTIAL 11 Financial Results 1Q2017 Gross Revenue down 2.4%; NPI down 5.3% from preceding year ► 1Q2017 Net Income down 10.1% from preceding year ►

  12. Slide 12: Income Statement – Quarter Comparative

    PRIVATE & CONFIDENTIAL 12 Income Statement – Quarter Comparative 1Q2017 Net Income down 10.1% vs corresponding quarter 1Q2016 Income Statement 1Q17 1Q16 Variance First Quarter 2016 (Unaudited) (RM '000) (RM '000) (%) Revenue 30,857 31,603 - 2.4% Direct Cost & Property Expenses (13,170) (12,929) + 1.

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

    PRIVATE & CONFIDENTIAL 13 Income Statement – Year-To-Date Comparative For Period 1 January – 31 March 2017 (versus previous comparable period) Income Statement 1Q17 1Q16 Variance Year-To-Date (Unaudited) (RM '000) (RM '000) (%) Revenue 30,857 31,603 - 2.4% Direct Cost & Property Expenses (13,170) (1

  14. Slide 14: Balance Sheet

    PRIVATE & CONFIDENTIAL 14 Balance Sheet Hektar REIT’s Balance Sheet for 1Q 2017 Balance Sheet As at 31.03.2017 As at 31.12.2016 (Unaudited) (RM '000) (RM '000) Unit Price Statistics Non-Current Assets As at 31 Mar 2017 Investment Properties 1,092,450 1,092,450 Capital Work in Progress 1,168 162 No.

  15. Slide 15: Debt Profile

    PRIVATE & CONFIDENTIAL 15 Debt Profile Debt Profile for 1Q 2017 Debt Expiry Profile As at 31 Mar 2017 Debt Information 600 As at 31 Mar 2017 550 500 ▪ Total Debt: RM million RM508 million 450 400 ▪ Weighted Cost of Debt: 4.6% 350 300 ▪ Gearing Ratio1: 45.1% 250 200 150 ▪ Interest Cover2: 2.71 100 50

  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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