Hektar Real Estate Investment Trust · MYX:HEKTAR

Hektar Real Estate Investment Trust — Q2 2009 Earnings Presentation

29 slides from Hektar Real Estate Investment Trust's earnings presentation, Aug 11, 2009

  1. Slide 1: Second Quarter 2009 Financial Results Presentation

    HEKTAR REIT HEKTAR REIT SECOND QQUARTER 2009 FINANCIAL RESULTS PRESENTATION HEKTAR ASSET MANAGEMENT SDN BHD 11 AUGUST 2009 PRIVATE & CONFIDENTIAL

  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 Group (including Hektar REIT and any other affiliates) as at the date of this Presentation. Presentation The information contained herein is given in s

  3. Slide 3: Financial Summary

    PRIVATE & CONFIDENTIAL 3 Financial Summary Second Quarter 2009 1 April 2009 – 30 June 2009 Three months Commentary ƒ Asset A t EEnhancement h tCCommencing i att Mahkota M hk t PParade d ƒ Hektar REIT trading at 29%

  4. Slide 4: Hektar REIT Pays Quarterly Dividend Per Unit (DPU)

    PRIVATE & CONFIDENTIAL 4 Distribution Details Hektar REIT Pays Quarterly Dividend Per Unit (DPU) Current Dividend Distribution Details Second Quarter 2009 ƒ Distribution Period: 1 April – 30 June 2009 ƒ Quarterly DPU: 2.40 sen ƒ Notice of Entitlement: 11 August 2009 ƒ Ex‐Dividend Date: 25 August 200

  5. Slide 5: Hektar DPU Dividend Yield at annualised 10.7%

    PRIVATE & CONFIDENTIAL 5 Comparative Yields - Malaysia Hektar DPU Dividend Yield at annualised 10.7% ƒ Traded at a 632 bps spread over MGS 10-year Hektar REIT Unit Price Change H kt REIT Comparative Hektar C ti Yields Yi ld First Half 2009 Unit Price RM 0 0.90 90 30 June 2009 632 bps spread % Ch Cha

  6. Slide 6: Portfolio Performance

    PRIVATE & CONFIDENTIAL 6 Portfolio Performance Overall Occupancy at ~97.0% ► Diversified Portfolio Tenancy Mix ► Top Ten Tenants Contribute 26.5% of Monthly Rental Income ► Rental Reversions down 9% ► T Tenancy Expiry E i Profile P fil b by P Property t ► 90% of Portfolio Tenancy Rental Income Locke

  7. Slide 7: Overall Portfolio Occupancy at ~97.0%

    PRIVATE & CONFIDENTIAL 7 Hektar Portfolio - Occupancy Overall Portfolio Occupancy at ~97.0% 97.0% Hektar REIT Portfolio Occupancy As at 31 As at 31 As at 31 As at 30 As at 31 As at 31 As at 30 December December December September December December June Property 2003 2004 2005 2006 2007 2008 2009 Sub

  8. Slide 8: Diversified Portfolio Tenant Mix

    PRIVATE & CONFIDENTIAL 8 Hektar Portfolio – Tenant Mix Diversified Portfolio Tenant Mix ƒ Fashion, Footwear, F&B are largest sectors within overall portfolio Hektar Portfolio Tenant Mix Key / Legend By Rental Income* By NLA S b Subang P Parade d TTenantt Mix Mi M hk t Parade Mahkota P d T Tenantt Mi

  9. Slide 9: Top Ten Tenants Contribute 26.5% of Monthly Rental Income

    PRIVATE & CONFIDENTIAL 9 Hektar Portfolio – Tenant Diversity Top Ten Tenants Contribute 26.5% of Monthly Rental Income ƒ Default Risk: Parkson contributes ~10.6% of total monthly rental income to REIT and no other tenant contributes more than ~2.9% Hektar REIT Top Ten Tenants by Monthly Rental Incom

  10. Slide 10: Rental Reversions down 9%

    PRIVATE & CONFIDENTIAL 10 Hektar Portfolio – Rental Reversions Rental Reversions down 9% ƒ 2Q 09: 25 new tenancies / renewals at an average 9% lower rental rate ƒ Year-To-Date rental reversions at -2% Hektar REIT Rental Reversions Second Quarter No. of New % of % ((3 months)) Tenancies / NLA Total I

  11. Slide 11: Hektar's Tenancy Expiry Profile by Property

    PRIVATE & CONFIDENTIAL 11 Hektar Portfolio – Tenancy Expiry Profile Hektar’s Hektar s Tenancy Expiry Profile by Property Hektar REIT Tenancy Expiry Profile by Property As At 30 June 2009 Subang Parade No. of NLA of tenancies NLA of tenancies % of Total For Year Ending Tenancies expiring expiring as

  12. Slide 12: 90% of Portfolio Tenancy Rental Income Locked-in for 2009

    PRIVATE & CONFIDENTIAL 12 Hektar Portfolio – Tenancy Expiry Profile 90% of Portfolio Tenancy Rental Income Locked-in Locked in for 2009 ƒ Remaining FY2009 tenancy expiries account for no more than 10% of monthly rental income* Hektar REIT Tenancy Expiry Profile – Overall Portfolio As At 30 June 2009

  13. Slide 13: Hektar Portfolio Tenancy Provisions

    PRIVATE & CONFIDENTIAL 13 Hektar Portfolio – Step-Up & Turnover Hektar Portfolio Tenancy Provisions ƒ Turnover Rent Provisions: Portfolio average of 89% of tenancies ƒ Step-Up Rent Provisions: Portfolio average of 75% of tenancies ƒ Wetex Parade: implementing provisions for f new tenancies / renewal

  14. Slide 14: Financial Results

    PRIVATE & CONFIDENTIAL 14 Financial Results Gross Revenue up 19.4% over budget ► Second Quarter 2009 Net Income exceeds Budget by 15.4% ► Second Quarter ‘09 Net Income down from previous quarter by 5.9% ► Year-To-Date Net Income down from previous period by 0.9% ► H kt ttrading Hektar di att a 29% d

  15. Slide 15: Gross Revenue up 19.4% over Budget

    PRIVATE & CONFIDENTIAL 15 Revenues & Expenses Gross Revenue up p 19.4% over Budget g For Period 1 April – 30 June 2009 Revenue & Expense Actual Budget Variance Second Quarter 2009 (Unaudited) (RM '000) 000) (RM '000) 000) (%) Rental Income Revenue from Tenancy 20,041 16,874 + 18.8% Car Park 1 809 1,

  16. Slide 16: Second Quarter '09 Net Income exceeds Budget by 15.4%

    PRIVATE & CONFIDENTIAL 16 Income Statement – Quarter Second Quarter ‘09 09 Net Income exceeds Budget by 15.4% For Period 1 April – 30 June 2009 (versus Budget) Income Statement Actual Budget Variance Second Quarter 2009 (Unaudited) (RM '000) (RM '000) (%) Revenue 21,850 18,304 + 19.4% Direct Cost &

  17. Slide 17: Second Quarter '09 Net Income down 5.9% v previous quarter

    PRIVATE & CONFIDENTIAL 17 Income Statement – Quarter Comparative Second Quarter ‘09 09 Net Income down 5.9% v previous quarter For Period 1 April – 30 June 2009 (versus previous comparable period) Income Statement 2Q09 2Q08 Variance Second Quarter 2009 (Unaudited) (RM '000) (RM '000) (%) Revenue 21,

  18. Slide 18: Year-To-Date Net Income down 0.9% v previous year

    PRIVATE & CONFIDENTIAL 18 Income Statement – Year To Date Comparative Year-To-Date Year To Date Net Income down 0.9% v previous year For Period 1 January – 30 June 2009 (versus previous comparable period) Income Statement 1H09 1H08 Variance Year‐To‐Date 2009 (Unaudited) (RM '000) (RM '000) (%) Reven

  19. Slide 19: Hektar trading at a 29% discount to NAV as at end 2Q09

    PRIVATE & CONFIDENTIAL 19 Balance Sheet Hektar trading at a 29% discount to NAV as at end 2Q09 Balance Sheet As at 31.06.2009 As at 31.12.2008 Unit Price Statistics in RM '000 (Unaudited) (Audited) As at 30 June 2009 Non‐Current Non Current Assets No. of Units Outstanding Investment Properties 716,9

  20. Slide 20: Asset Enhancement

    PRIVATE & CONFIDENTIAL 20 Asset Enhancement Mahkota Parade gets a Make-Over ► Timeline: Third Quarter 2009 – First Quarter 2010 ► Refurbishment Exercise: Off-Hours ► Business As Usual: Centre to Remain Open During Normal Hours ►

  21. Slide 21: Revitalisation of 15-year old Shopping Centre

    PRIVATE & CONFIDENTIAL 21 Refurbishment of Mahkota Parade Revitalisation of 15-year 15 year old Shopping Centre Operations ƒ Business As Usual – Centre Remains Open ƒ Phased Refurbishment f Work: 10pm– 7am ƒ Communications Programme: Focus on Safety ƒ Shopper pp Promotional Campaigns p g Continued W

  22. Slide 22: Proposed Ground Floor

    PRIVATE & CONFIDENTIAL 22 Refurbishment of Mahkota Parade Proposed Ground Floor Brighter, enhanced central podium with new look and feel Ground Floor Plan Guest Services Counter Central Podium White Finishes Illustrations: Artists’ impression

  23. Slide 23: Proposed First Floor

    PRIVATE & CONFIDENTIAL 23 Refurbishment of Mahkota Parade Proposed First Floor Compressed marble flooring and simple floor columns for cleaner finish First Floor Plan Lifts & Lift Lobbies First Floor & Balustrades Compressed Co p essed Marble a b e Flooring oo g Illustrations: Artists’ impression

  24. Slide 24: Proposed Second Floor

    PRIVATE & CONFIDENTIAL 24 Refurbishment of Mahkota Parade Proposed Second Floor Carpeted floor to improve shopping ambience and comfort Second Floor Plan Telephone Booth Amenities Corridor & Concourse Ceilings Second Seco d Floor oo Ca Carpeting pet g Illustrations: Artists’ impression

  25. Slide 25: Entrance Statement & Car Park

    PRIVATE & CONFIDENTIAL 25 Refurbishment of Mahkota Parade Entrance Statement & Car Park Car park capacity increased by 12% - from 955 to 1,074 car park bays Improved Car Park Access New Billboard / Entrance Statement Designated Taxi Stand Pylon Signage(s) Illustrations: Artists’ impression

  26. Slide 26: Timeline & Budget

    PRIVATE & CONFIDENTIAL 26 Refurbishment of Mahkota Parade Timeline & Budget Complete Communications Programme Capital Budget : RM30.4 million Timeline : July 2009 – April 2010 Duration : 9 months Phase 1 : Julyy 2009 – October 2009 Phase 2 : November 2009 – January 2010 Phase 3 : January 2010 – Apri

  27. Slide 27: Project Management Track Record

    PRIVATE & CONFIDENTIAL 27 Track Record with Subang Parade Project Management Track Record ƒ Mahkota Parade Refurbishment to be managed by same Hektar Group team experienced with Subang Parade’s refurbishment. ƒ Subang Parade Parade’ss refurbishment commenced in 2006, 2006 marked a first, first as al

  28. Slide 28: Track Record – Revitalising Subang Parade (2006)

    PRIVATE & CONFIDENTIAL 28 Track Record with Subang Parade Track Record – Revitalising Subang Parade (2006) Before After

  29. Slide 29: Contact

    PRIVATE & CONFIDENTIAL 29 Contact “C “Creating ti The Th Places Pl Where Wh People P l Love L To T Shop” Sh ” Investor Relations Hektar Asset Management Sdn Bhd Block C C‐0‐5, 0 5 Plaza Damas 60 Jalan Sri Hartamas 1 Sri Hartamas 50480 Kuala Lumpur MALAYSIA ℡ +6 03 6201 1011 +6 03 6201 0012 www.Hekta

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