Hektar Real Estate Investment Trust · MYX:HEKTAR
Hektar Real Estate Investment Trust — Q4 2021 Earnings Presentation
42 slides from Hektar Real Estate Investment Trust's earnings presentation, Feb 25, 2022
Slide 1: Hektar REIT 4Q 2021 Results Presentation
Creating The Places People Love HEKTAR REAL ESTATE INVESTMENT TRUST 4Q 2021 RESULTS PRESENTATION 25 February 2022
Slide 2: Hektar REIT: Malaysia's First Retail-Focused REIT
Hektar REIT: Malaysia’s First Retail-Focused REIT 2 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 4Q21 Overview 2 Portfolio Performance 3 Financial Results 4 Portfolio Updates 5 Sustainability 6 Prospects 7 Corporate Proposal
Slide 4: 4Q21 Overview
4Q21 Overview Subang Parade, Subang, Selangor
Slide 5: 4Q21 Material Events
4Q21 Material Events 5 Hektar REIT's shopping malls have complied and continue to observe the Government and regulatory directives during the various Movement Control Order ("MCO") periods. The Government introduced the National Recovery Plan (“NRP”) and the thresholds for transitioning from one pha
Slide 6: Performance Summary Fourth Quarter 2021
Performance Summary 6 Fourth Quarter 2021 (4Q21): October – December 2021 / 3 Months Financial Performance Gross Revenue for 4Q21 was lower than the preceding year by ▼ 16.2% 16% or RM4.8 million in tandem with the decrease of 9% in footfall 4Q20 experienced by all malls. This was partially mitigate
Slide 7: Hektar REIT offers 4.96% dividend yield for FY2021
7 Dividend Details Hektar REIT offers 4.96% dividend yield for FY2021 Dividend Per Unit FY21 Distribution Details Fourth Quarter 2021 Total FY 2021 DPU : 2.53 sen DPU Yield* : 4.96% Distribution Period: 1 October 2021 – 31 December 2021 Quarterly DPU: 2.53 sen * Based on DPU of 2.53 sen on closing p
Slide 8: Portfolio Performance
Portfolio Performance Overall Occupancy at ~84.9% ► Visitor Traffic 13.2 million for FY2021 ► Rental Reversions -7.0% for FY2021 ► Expiry Profile: 34.2% NLA expires in 2022 ► Central Square, Sungai Petani, Kedah
Slide 9: Portfolio Occupancy
Portfolio Occupancy 9 Average portfolio occupancy has dropped by 3.5% as compared to the preceding quarter to 84.9%. Despite the challenging retail environment, the occupancy rate remained healthy with Kulim Central being more than 90% and Wetex Parade being close to 90% occupied. 95.8% 95.8% 95.5%
Slide 10: Portfolio Occupancy
Portfolio Occupancy 10 Kulim Central’s occupancy remained strong at above 90% while other malls remained occupancies above 80% except for Segamat Central. Hektar REIT continues to implement rental reviews and rebate offers to support eligible tenants and implement strategic marketing initiatives to
Slide 11: Visitor Traffic
Visitor Traffic 11 Portfolio visitor traffic dropped to 13.2 million in FY21 due to the implementation of various Movement Control Order (MCOs) and the introduction of National Recovery Plan (NRP), which came with its own set of SOPs including mobility restrictions & categories of businesses that we
Slide 12: Visitor Traffic
Visitor Traffic 12 Mall visitor traffic dropped relatively lower compared to the preceding year, showing signs of recovery. However, the recent surge in COVID-19 infection rates are expected to slow down the retail sector recovery for the year 2022. 20% 20% 7.6% 0% -4.3% -2.3% -2.3% 1.2% -3.2% -2.6%
Slide 13: Rental Reversions
Rental Reversions 13 Fourth Quarter ▲ 0.1% Rental Reversions at -15.2% Key Renewed Tenants: Carlo Rino, Popular Bookstore, Bata, Switch, Guardian, Sasa, Rightway & Sony Centre 40 new/renewed tenancies consisting of 5.0% of total New Tenant: Gatti NLA for the quarter ended 31 December 2021. ▼ -15.2
Slide 14: Tenancy Expiry for Portfolio 2022-2024
Expiry Profile 14 Tenancy Expiry for Portfolio 2022-2024 A total of 291 tenancies are expiring in FY2022 which represents 698,353 sq. ft. or about 34.2% of total NLA. Overall, a total of 121 tenancies covering 801,299 sq. ft. have been renewed as at Year-to-Date (YTD) December 2021, representing
Slide 15: Expiry Profile
Expiry Profile 15 % of Total NLA % of Total Monthly Rental Income* 60.5% 32.6% 35.7% 28.8% 14.2% 10.7% 2022 2023 2024 59.2% 45.2% 35.2% 30.5% 10.3% 6.7% 2022 2023 2024 59.2% 43.2% 39.4% 18.1% 17.3% 12.6% 2022 2023 2024 *Based on monthly rental income for December 2021. Figures may not round to 100%
Slide 16: Expiry Profile
Expiry Profile 16 % of Total NLA % of Total Monthly Rental Income* 47.6% 42.5% 35.7% 28.6% 14.9% 16.8% 2022 2023 2024 59.8% 37.4% 35.4% 26.5% 21.3% 13.7% 2022 2023 2024 60.0% 33.2% 28.2% 18.3% 20.8% 6.8% 2022 2023 2024 *Based on monthly rental income for December 2021. Figures may not round to 100%
Slide 17: Tenancy Provisions
Tenancy Provisions 17 Hektar adopts step-up and turnover rent provisions Step-Up Provisions for fixed rental increase are present in 20% of all tenancies Turnover Rent provisions exist in 91% of all tenancies Note: Data for NLA-tenants only (384 in December 2021) Step-Up Provisions Turnover Rent
Slide 18: Portfolio Top Ten Tenants
Portfolio Top Ten Tenants 18 Top 10 Tenants contributed 37.7% of the total monthly rental income Top 2 anchors: Parkson and The Store contributes 11.7% and 8.8%, respectively No other tenant contributes more than 5% of monthly rental income NLA % of Total % of Monthly Tenant Trade Sector (sq. ft
Slide 19: Financial Results
Financial Results 4Q21 Revenue lower by 16.2% ► 4Q21 Net Property Income higher by 0.2% ► FY2021 Realised Net Income lower by 10.6% from preceding period ► 97% of Debt expires in 2024-2026 ► Kulim Central, Kulim, Kedah
Slide 20: Income Statement: Quarter Comparative
Income Statement: Quarter Comparative 20 1 2 3 4 Note: Please refer to the Quarterly Results Announcement for further details. 1 Mainly due to lower tenancy, SAC/RMU and casual leasing . 2 Mainly due to lower property maintenance, utilities and marketing & promotion. 3 Mainly due to provision for do
Slide 21: Income Statement: Year-to-Date Comparative
Income Statement: Year-to-Date Comparative 21 1 2 3 4 Note: Please refer to the Quarterly Results Announcement for further details. 1 Mainly due to lower tenancy, SAC/RMU, casual leasing and carpark income 2 Savings mainly due to lower property maintenance cost and marketing & promotion. 3 Mainly du
Slide 22: Balance Sheet
Balance Sheet 22 Unit Price Statistics As at 31 December 2021 No. of Units 471, 260, 178 Net Asset Value Per Unit RM 1.16 Unit Price RM 0.51 Market Capitalisation RM 237, 986, 390 Premium / Discount to NAV -56.0% Note: Please refer to the Quarterly Results Announcement for further details.
Slide 23: Debt Profile
Debt Profile 23 Debt Summary December 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%-1.50%) Weighted Cost : 3.27% Gearing Ratio1 : 47.
Slide 24: Unit Price Performance FY2021
Unit Price Performance FY2021 24 Comparative Price Performance as at 31 December 2021 5.00% % Change 0.00% -5.00% -10.00% FBM KLCI -15.00% REIT Index Hektar REIT -20.00% -25.00% -30.00% Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Performance statistics Total R
Slide 25: Portfolio Updates
Portfolio Updates Mahkota Parade, Melaka
Slide 26: Portfolio Updates
Portfolio Updates 26 Original Classic, Segamat Central 18 October 2021 The Coffee Bean & Tea Leaf, Kulim Central 3 November 2021
Slide 27: Portfolio Updates
Portfolio Updates 27 7 Eleven, Central Square 10 December 2021 Switch, Segamat Central 18 December 2021 Boost Juice, Wetex Parade 24 December 2021
Slide 28: Sustainability
Sustainability FY2021 Total CO2e Emission lower by 11.6% ► FY2021 Building Energy Intensity improved by 11.3% ► Wetex Parade, Muar, Johor
Slide 29: Climate Change Management
Climate Change Management 29 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 30: Climate Change Management: Scope Emissions
Climate Change Management 30 Scope 1 Emissions 10 9 C02-e Emissions (tonnes) 8 8 CO2 emissions from the consumption of diesel were 6 derived from the emission factor published by the IPCC 4 Guidelines for National Greenhouse Gas Inventories. 2 1 0 2019 2020 2021 Scope 2 Emissions 30,000 25,374 25,00
Slide 31: Climate Change Management: Scope Emissions
Climate Change Management 31 Scope 3 Emissions 500 460 GHG emissions resulting from employee commuting 450 consisted of both fuel and mileage claims for 400 106 employee-owned vehicles: C02-e Emissions (tonnes) 350 308 300 Mileage claims for employee-owned vehicles were 51 250 193 calculated using
Slide 32: Climate Change Management: Emissions Intensity
Climate Change Management 32 Emissions Intensity Emissions intensity, or carbon intensity, is a better measure of the emissions efficiency of our assets. It is expressed as the amount of CO2e emitted per gross floor area (kgCO2e/sq.ft.). CO2e Emissions Intensity CO2e Emissions Intensity by Mall
Slide 33: Energy Consumption Management
Energy Consumption Management 33 Energy Consumption and Building Energy Intensity (BEI) 2017-2021 A significant decrease in energy consumption was attributed mainly to the closure of some retail outlets during the various phases of movement control orders to combat the COVID-19 pandemic. However, we
Slide 34: Water Management
Water Management 34 Water Usage and Water Use Intensity (WUI) We advocate the responsible use and management of water and improve efficiency across all properties. Working with property managers, we educate tenants and raise awareness of its conservation as they consume most water. The water consump
Slide 35: Waste Management
Waste Management 35 Waste Generation 2,500.00 2291.68 Majority of waste generated at our malls and 2204.27 hotel is domestic waste from day-to-day activities with authorised third-party 2,000.00 1740.68 contractors collecting and disposing of the waste accordingly. Our solid waste disposed Solid Was
Slide 36: CSR Activities: Blood Donation Drives
CSR Activities 36 Several blood donation drives were held during the quarter at Wetex Parade, Kulim Central and Segamat Central, organised by various associations and hospitals like Tabung Darah Hospital Muar, Hospital Kulim and Hospital Segamat. Wetex Parade managed to receive 239 donors, Kulim Cen
Slide 37: CSR Activities
CSR Activities 37 On the 31st of October, Wetex Parade had partnered with YB Syed Saddiq, the MP of Muar, to distribute its food bank collection to needy families around Muar. The food bank were donated by shoppers in Wetex Parade through a public dropbox to help “Lets Share Because We Care” familie
Slide 38: Prospects
Prospects Classic Hotel, Muar, Johor
Slide 39: Prospects
Prospects 39 The Malaysian economy is projected to grow between 5.5% and 6.5% in 2022*. This is largely attributable to the easing of restrictions such as allowing all sectors of the economy & retail sector to operate, permitting inter-state travel for leisure and opening up of borders for internati
Slide 40: Corporate Proposal
Corporate Proposal Kulim Central, Kulim, Kedah
Slide 41: Corporate Proposal
Corporate Proposal 41 The Manager had on 15 November 2021 made an announcement to Bursa Malaysia that Hektar REIT proposes to undertake a private placement of up to 23,098,000 new units of Hektar REIT (“Proposed Private Placement)”, representing up to 5% of its total issued Units of 461,960,178 Unit
Slide 42: Investor Communications
Creating The Places People Love Investor Communications Hektar Asset Management Sdn Bhd D1-U3-10, Solaris Dutamas No. 1, 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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