Hektar Real Estate Investment Trust · MYX:HEKTAR
Hektar Real Estate Investment Trust — Q2 2021 Earnings Presentation
30 slides from Hektar Real Estate Investment Trust's earnings presentation, Aug 26, 2021
Slide 1: Hektar Real Estate Investment Trust 2Q 2021 Results Presentation
Creating The Places People Love HEKTAR REAL ESTATE INVESTMENT TRUST 2Q 2021 RESULTS PRESENTATION 26 August 2021
Slide 2: Hektar REIT: Malaysia's First Retail-Focused REIT
2 Hektar REIT: Malaysia’s First Retail-Focused REIT Organisation Diverse Portfolio STRATEGIC PARTNER UNITHOLDERS Frasers Centrepoint Strategic Partner MANAGER TRUSTEE Hektar Asset MTrustee Bhd Management Sdn Bhd PROPERTY MANAGER Hektar Property HEKTAR PORTFOLIO Services Sdn Bhd DISCLAIMER: The mater
Slide 3: Contents
Contents 3 1 2Q21 Overview 2 Portfolio Performance 3 Financial Results 4 Portfolio Updates 5 Sustainability 6 Prospects
Slide 4: 2Q21 Overview
2Q21 Overview Central Square, Sungai Petani, Kedah
Slide 5: 2Q21 Material Events
2Q21 Material Events 5 MCO 3.0 and FMCO Hektar REIT's shopping malls have complied and continue to observe the Government and regulatory directives during the various Movement Control Order (MCO) periods. With the rise in COVID-19 cases, the Government had announced MCO 3.0 nationwide from 12 May 20
Slide 6: Performance Summary Second Quarter 2021
Performance Summary 6 Second Quarter 2021 (2Q21): April – June 2021 / 3 Months Financial Performance Gross Revenue for 2Q21 increased by about 4.5% or RM1.1 million as compared to the previous corresponding quarter in 2020, in tandem with the increase of 17% in footfall experienced by all malls. Net
Slide 7: Portfolio Performance
Portfolio Performance Overall Occupancy at ~84.6% ► Rental Reversions -2.7% for 2Q21 ► Expiry Profile: 35% NLA expires in 2021 ► Kulim Central, Kulim, Kedah
Slide 8: Portfolio Occupancy
Portfolio Occupancy 8 Average portfolio occupancy has declined slightly in 2Q21 from 1Q21, falling by 3% to 84.6%. The drop is in accordance with the various restrictions under the Movement Control Orders since March 2020 that has impacted the economy and retail sector. P roperty '11 '12 '13 '14 '15
Slide 9: Portfolio Occupancy
Portfolio Occupancy 9 Subang Parade’s occupancy fell slightly to 84.4%. Wetex Parade and Kulim Central occupancies remain strong at above 90%. Overall, the occupancy rates of the malls has remained above 80%.
Slide 10: Rental Reversions
Rental Reversions 10 8.6% Second Quarter Rental Reversions at -2.7% 25 new/renewed tenancies consisting of 9.8% of total Key Renewed Tenants: Giant and KFC NLA. Overall reversions were marginally negative due to negative reversions at Subang Parade, Mahkota Parade, 4.9% Central Square & Segamat
Slide 11: Expiry Profile
Expiry Profile 11 Tenancy Expiry for Portfolio 2021-2024 Total amount of tenancies expiring in FY 2021 is 237 which represents 713,573 sq. ft. or about 35% of total NLA. Total of 25 tenancies covering 199,407 sq. ft. were renewed in 2Q 2021, representing 9.8% of total NLA. Portfolio Expiry Profi
Slide 12: Expiry Profile
Expiry Profile 12 *Based on monthly rental income for June 2021. Figures may not round to 100% due to misc. items
Slide 13: Expiry Profile
13 Expiry Profile *Based on monthly rental income for June 2021. Figures may not round to 100% due to misc. items
Slide 14: Financial Results
Financial Results 2Q21 Revenue rose 4.5% from preceding period ► 2Q21 Net Property Income lower by 14.8% ► 97% of Debt expires in 2024-2026 ► Wetex Parade, Muar, Johor
Slide 15: Income Statement: Quarter Comparative
Income Statement: Quarter Comparative 15 Income Statement 2Q21 2Q20 Variance Second Quarter 2021 (Unaudited) (RM '000) (RM '000) (%) Revenue1 25,710 24,601 4.5% 2 Direct cost & Property expenses -15,504 -12,628 -22.8% Net property income (NPI) 10,206 11,973 -14.8% Interest & Other income 116 127 -9.
Slide 16: Balance Sheet
Balance Sheet 16 Balance Sheet As at 30.06.2021 As at 31.12.2020 (Unaudited) (RM '000) (RM '000) Unit Price Statistics Non-Current Assets As at 30 June 2021 Investment properties 1,207,000 1,207,000 91 No. of Units Plant & Equipment 79 Capital work In progress 1,626 1,380 461,960,178 Fixed deposits
Slide 17: Debt Profile
Debt Profile 17 Debt Summary June 2021 Facilities Facilities Al-Murabahah Overdraft (MOD) Term Financing (TF) Short-Term Revolving Credit (STRC) Financiers : Maybank, CIMB Total Debt : RM581.1 million Cost Structure : Cost of Funds + (1.00%-1.25%) Weighted Cost : 3.26% Gearing Ratio1 : 46.2% I
Slide 18: Comparative 1H Performance
Unit Price 1H Performance 18 Comparative 1H Performance Performance statistics Total Return Opening Unit Price (4 Jan 2021) : RM0.63 Unit Price Change : -4.76% Closing Unit Price (30 June 2021) : RM0.60 DPU Yield (1H21) : 0.0% Highest Price : RM0.64 Total Return : -4.76% Lowest Price : RM0.55 Daily
Slide 19: Portfolio Updates
Portfolio Updates Segamat Central, Segamat, Johor
Slide 20: Marketing Activities
Marketing Activities 20 For the convenience of our shoppers, we are offering curbside pickup by participating stores and ”Pickup -n- Go” restaurants at the mall entrances for shoppers to collect their purchases and orders. The “Win-A-Car” contest was held by Segamat Central to encourage shoppers to
Slide 21: Sustainability
Sustainability Mahkota Parade, Melaka
Slide 22: Climate Change Management
Climate Change Management 22 Hektar REIT is committed towards ensuring that our business activities are performed to high standards of environmental, social and governance conduct. We have put in place various energy utilisation and optimisation initiatives since 2017 for all our shopping malls and
Slide 23: Energy Consumption Management
Energy Consumption Management 23 During the 1H of 2021, our shopping malls enjoyed considerable savings in electricity consumption due to the restrictions under the Movement Control Orders (MCO) and the nationwide lockdown imposed by the Government. During this time, only tenants offering essential
Slide 24: CSR Activities
CSR Activities 24 As an initiative to reduce textile waste, Subang Parade has partnered with DRB-HICOM “Re-Fabricate Recycle” and Kloth in offering shoppers the chance to recycle their unwanted clothes or fabric at the Kloth Bin located in Subang Parade’s basement carpark (view here on Instagram). S
Slide 25: CSR Activities
CSR Activities 25 Subang Parade has set up a food bank/essential item counter for the public to “Let’s Share because We Care” donate amidst the pandemic, a collaborative effort with YB Michelle Ng Sze, the ADUN of Subang Jaya. The items collected from the food bank will be distributed to the communi
Slide 26: CSR Activities
CSR Activities 26 Wetex Parade’s organized several blood donation campaigns in collaboration with Hospital Pakar Blood Donation Sultanah Fatimah Muar – Rasmi (view here on Facebook). Segamat Central meanwhile held several blood donation campaigns in collaboration with NGOs such as Pertubuhan Bistari
Slide 27: CSR Activities
CSR Activities 27 Wetex Parade and Classic Hotel organized a donation drive to collect necessity items for the elderly Tautan Mesra in Pusat Jagaan Sinar Kasih, Muar, Johor in collaboration with Moet Glory Services Sdn. Bhd. and Puan Shafinaz Abd Rahim (view here on Instagram). Contribution to As pa
Slide 28: Prospects
Prospects Subang Parade, Subang Jaya, Selangor
Slide 29: Prospects
Prospects 29 With the implementation of the MCO 3.0 in May this year, Retail Group Malaysia (RGM) has lowered its retail sales growth rate for 2021 to 4.0%, which was earlier estimated at 4.1%. Based on a recent survey by the Malaysian Retail Chain Association (MRCA), 91% of retail businesses have r
Slide 30: Creating The Places People Love
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
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