Hektar Real Estate Investment Trust · MYX:HEKTAR
Hektar Real Estate Investment Trust — Q3 2007 Earnings Presentation
20 slides from Hektar Real Estate Investment Trust's earnings presentation, Nov 7, 2007
Slide 1: Hektar Real Estate Investment Trust Third Quarter 2007 Financial Results
HEKTAR REAL ESTATE INVESTMENT TRUST THIRD QUARTER 2007 FINANCIAL RESULTS 7 NOVEMBER 2007 (AMENDED)
Slide 2: Disclaimers
Disclaimers The material that follows is a presentation of general background information about the Hektar Group’s activities current as at the date of this Presentation. The information contained herein is given in summary form solely to provide an understanding of the business of the Hektar Group
Slide 3: Financial Summary
Financial Summary PRIVATE & CONFIDENTIAL 3
Slide 4: Financial Summary – Third Quarter 2007
Financial Summary – Third Quarter 2007 1 July 2007– 30 September 2007 3rd Quarter Period (3 Months) REIT Outperformance REIT 3Q Net Income Exceeds Forecast by 25.3% 2.4 sen 3rd Quarter Dividend (FY 2007 forecast of 9.6sen) (DPU)* 6.1% yield* * Annualised, as per RM1.45 closing price on 28 September
Slide 5: Distribution Details
Distribution Details Hektar REIT Quarterly Dividend Timeline Distribution Period 1 July – 30 September 2007 Quarterly DPU Forecast* 2.4 sen Notice of Entitlement 8 November 2007 Ex-Dividend Date 21 November 2007 Book Closure Date 23 November 2007 Distribution Payment Date 30 November 2007 *As per He
Slide 6: Hektar REIT Unit Price Performance
Hektar REIT Unit Price Performance YTD: 1 January – 30 September 2007 1 Jan – 30 Sep 2007 41% Unit Price Appreciation Hektar REIT + 40.8% Outperformed KLCI YTD 2007 KLCI Index + 22.5% YTD Total Return: 48%* 70 60 % Change in Unit Price / Index 50 40 30 20 10 0 -10 -20 1-Jan 15-Jan 29-Jan 4-Jun
Slide 7: Hektar REIT Financials-At-A-Glance FY2007
Hektar REIT Financials-At-A-Glance FY2007 Financials (FY2007-13 months) RM (‘000) Annualised Ratios (FY2007) Gross Revenues 74,580 Price / Earnings 15.1 Net Property Income (EBIT) 45,842 Price / Net Tangible Assets 1.39 Interest Expense 10,764 EBIT Margin 61.5% Net Income 30,810 ROE 9.6% Dividend Pe
Slide 8: Comparative Yields - Malaysia
Comparative Yields - Malaysia Hektar REIT Yield Spread Traded at a 238bps spread over MGS 10-year as at 28 Sep-07 9.00 8.00 238 7.00 6.13 bps spread Yield (%) (% 6.00 5.15 5.00 Yield 3.75 3.61 3.85 3.60 4.00 3.00 2.00 1.00 0.00 Hektar 10-year 5-year KLCI 12-month EPF REIT MGS MGS Dividend Deposits
Slide 9: Portfolio Performance
Portfolio Performance PRIVATE & CONFIDENTIAL 9
Slide 10: Hektar’s Portfolio - Occupancy
Hektar’s Portfolio - Occupancy Portfolio occupancy remains steady As of As of December As of December As of December As of September September 30 Property 31, 2003 31, 2004 31, 2005 30, 2006 2007 Subang Parade 97.7% 93.4% 98.3% 98.5% 99.1% Mahkota Parade - 86.8% 96.9% 94.9% 93.9% Total / Overall 97.
Slide 11: Hektar’s Portfolio – Rental Reversions
Hektar’s Portfolio – Rental Reversions Third Quarter Rental Reversions Trend Positive 21 new tenancies / renewals @ 10% average rental increase 1H 2007 No. of New % (7 months) Tenancies / NLA % of Increase / (Decrease) Over (Ending 30 Jun) Renewals (sq ft) Total NLA Previous Rent Rates Subang Para
Slide 12: Hektar’s Portfolio – Lease Expiry Profile
Hektar’s Portfolio – Lease Expiry Profile Hektar’s Lease Expiry Profile 2007 – 2010 By Property (as of 30 September 2007) Subang Parade No. of NLA of tenancies NLA of tenancies % of Total For Year Ending Tenancies expiring expiring as % of Monthly Rental 31 December Expiring (sq ft) total NLA Inco
Slide 13: Hektar’s Portfolio – Lease Expiry Profile
Hektar’s Portfolio – Lease Expiry Profile Portfolio Lease Expiry Profile 2007 – 2010 Combined Portfolio (as of 30 September 2007) Portfolio No. of NLA of tenancies NLA of tenancies % of Total For Year Ending Tenancies expiring expiring as % of Monthly Rental 31 December Expiring (sq ft) total NLA
Slide 14: Hektar’s Portfolio – Step-Up & Turnover
Hektar’s Portfolio – Step-Up & Turnover Hektar Tenancy Provisions Turnover Rent reported by 88% of tenancies vs 86% at IPO Step-Up provisions in 60% of tenancies vs 58% at IPO Substantial progress from 0% when implemented 3 years ago 100.0% 90.0% 80.0% 70.0% 60.0% 3Q 2007 50.0% IPO 40.0% 30.0%
Slide 15: Financial Results
Financial Results PRIVATE & CONFIDENTIAL 15
Slide 16: Profit & Loss Statement
Profit & Loss Statement Gross Revenues continues to exceed forecast For Period 1 July 2007 – 30 September 2007 Actual Budget Variance (RM) (RM) (%) Gross Rental Income Revenue from Tenancy 16,789,461 15,788,308 6.3% Car Park 1,542,426 1,422,462 8.4% Gross Revenues 18,331,887 17,210,769 6.5% Direct C
Slide 17: Profit & Loss Statement Summary – 3Q
Profit & Loss Statement Summary – 3Q 3rd Quarter net income is 25.3% over forecast For Period 1 July 2007 – 30 September 2007 Actual Budget Variance Third Quarter (RM) (RM) (%) Gross Revenue 18,331,887 17,210,769 4.9% Direct Cost & Property Expenses (6,588,666) (6,631,846) -0.5% Net Property Income
Slide 18: Profit & Loss Statement Summary - YTD
Profit & Loss Statement Summary - YTD YTD 2007 net income is 20.8% over forecast For Period 1 Dec 2006 (IPO) – 30 September 2007 (10 months) YTD Actual YTD Budget Variance Year-To-Date (RM) (RM) (%) Gross Revenue 59,977,931 57,369,231 3.5% Direct Cost & Property Expenses (21,984,115) (22,106,154) -0
Slide 19: Balance Sheet (as of 30 September 2007)
Balance Sheet (as of 30 September 2007) RM Non Current Assets No. of Units Property Investment 515,447,553 320,001,000 Current Assets Accounts Receivable 1,049,349 Net Asset Value Per Unit W ork In Progress 3,515,144 1.0429 Other Debtor / Prepayment 4,977,094 Cash at Bank 19,426,867 Unit Price, 28 S
Slide 20: Thank You
Thank You CREATING THE PLACES WHERE PEOPLE LOVE TO SHOP Hektar Asset Management Sdn Bhd Block A-2-4, Plaza Damas 60 Jalan Sri Hartamas 1 Sri Hartamas 50480 Kuala Lumpur MALAYSIA ℡ +6 03 6201 1011 +6 03 6201 0012 www.HektarREIT.com PRIVATE & CONFIDENTIAL 20
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