Hektar Real Estate Investment Trust · MYX:HEKTAR

Hektar Real Estate Investment Trust — FY2008 Earnings Presentation

26 slides from Hektar Real Estate Investment Trust's earnings presentation, Feb 4, 2009

  1. Slide 1: Hektar REIT Full Year 2008 Financial Results Presentation

    HEKTAR REIT HEKTAR REIT FULL YEAR 2008 FINANCIAL RESULTS PRESENTATION HEKTAR ASSET MANAGEMENT SDN BHD 4 FEBRUARY 2009 PRIVATE & CONFIDENTIAL

  2. Slide 2: Disclaimers

    PRIVATE & CONFIDENTIAL 2 Disclaimers The material that follows is a presentation of general background information about the activities of Hektar Real Estate Investment Trust (Hektar REIT) as at the date of this Presentation. The information contained herein is given in summary form solely to provid

  3. Slide 3: Financial Summary – Full Year 2008

    PRIVATE & CONFIDENTIAL 3 Financial Summary – Full Year 2008 ƒ 1 JJanuary 2008 – 31 D December b 2008 Full Year 2008 ƒ 12 Months ƒ Portfolio Occupancy: ~95 ~95.8% 8% ƒ Rent Reversions: +8% Operational ƒ Net Income per Unit: 11.32 sen Performance ƒ Net Income +7% over previous comparable year1 and +25

  4. Slide 4: Financial Summary – Full Year 2008: Dividend up 3.2%

    PRIVATE & CONFIDENTIAL 4 Financial Summary – Full Year 2008 Hektar REIT Dividend up 3.2% in FY2008 FY08 FY07 12 months 13 months Net Income ‐ Realised (RM '000) 36,238 36,682 Fair Value Gain on Investment Properties 24,115 43,842 Net Income Before Tax 60,353 80,524 Net Income Per Unit (sen) 18.86 25

  5. Slide 5: Distribution Details

    PRIVATE & CONFIDENTIAL 5 Distribution Details Hektar REIT Quarterly Dividend Distributions ƒ Current Dividend Distribution Details: 4th Quarter 2008 FY08 DPU + 3.2% Distribution Period 1 October – 31 December 2008 Quarterly DPU 3.00 sen Notice of Entitlement 5 February 2009 4Q 4Q Ex-Dividend Date 18

  6. Slide 6: Comparative Yields - Malaysia

    PRIVATE & CONFIDENTIAL 6 Comparative Yields - Malaysia Hektar FY2008 Dividend Yield at 13.25% ƒ Traded at a 1003 bps p spread p over MGS 10-year y 1003 bps spread Sources: Bloomberg (9 January 2009) , The Star. Hektar REIT yield based on closing price of RM0.77 on 31 December 2008 and FY2008 DPU of

  7. Slide 7: Portfolio Performance

    PRIVATE & CONFIDENTIAL 7 Portfolio Performance

  8. Slide 8: Hektar Portfolio - Occupancy

    PRIVATE & CONFIDENTIAL 8 Hektar Portfolio - Occupancy Portfolio Occupancy at ~95.8% for 2008 *Approximate average weighted by Net Lettable Area.

  9. Slide 9: Hektar Portfolio – Visitor Traffic

    PRIVATE & CONFIDENTIAL 9 Hektar Portfolio – Visitor Traffic Slight Dip in Visitor Traffic to Portfolio ƒ Tracked by y Footfall,, camera-based system y installed in each centre ƒ Overall visitor traffic up 14.5% in 2007, down 4.3% in 2008 for Subang and Mahkota Parade ƒ Wetex W t Parade P d traffic t

  10. Slide 10: Hektar Portfolio – Tenant Mix

    PRIVATE & CONFIDENTIAL 10 Hektar Portfolio – Tenant Mix Diversified Portfolio Tenant Mix Hektar Portfolio Key / Legend By Rental Income* By NLA Subang g Parade Mahkota Parade Wetex Parade By Rental Income* By Rental Income* By Rental Income* * Based on monthly rental income for December 2008. NLA =

  11. Slide 11: Hektar Portfolio – Tenant Diversity

    PRIVATE & CONFIDENTIAL 11 Hektar Portfolio – Tenant Diversity Hektar Top Ten Tenants by Rental Income ƒ Top p 10 Tenants Contribute 27.5% of REIT’s Monthly y Rental Income • Retailer Dependency: only Parkson contributes ~11.0% of total monthly rental income to REIT, no other tenant contributes more

  12. Slide 12: Hektar Portfolio – Rental Reversions

    PRIVATE & CONFIDENTIAL 12 Hektar Portfolio – Rental Reversions FY2008 – Rental Reversions up 8% ƒ 4Q08: 36 new tenancies / renewals at an average 14% higher rental rate ƒ FY2008: total 101 new tenancies / renewals at average 8% higher rate *Average Weighted by NLA. Figures as of 31 December 2008. NL

  13. Slide 13: Hektar’s Portfolio – Tenancy Expiry Profile by Property

    PRIVATE & CONFIDENTIAL 13 Hektar’s Portfolio – Tenancy Expiry Profile Hektar’s Tenancy Expiry Profile 2008 – 2012 ƒ By y Property p y ((as at 31 December 2008)) * Based on monthly rental income for December 2008.

  14. Slide 14: Hektar’s Portfolio – Tenancy Expiry Profile

    PRIVATE & CONFIDENTIAL 14 Hektar’s Portfolio – Tenancy Expiry Profile Portfolio Tenancy Expiry Profile 2008 – 2012 ƒ Relatively Distributed Expiry Portfolio as at 31 December 2008 • FY2009 expires account for no more than 23% of monthly rental income* * Based on monthly rental income for December 20

  15. Slide 15: Hektar’s Portfolio – Step-Up & Turnover

    PRIVATE & CONFIDENTIAL 15 Hektar’s Portfolio – Step-Up & Turnover Hektar Portfolio Tenancy Provisions ƒ Turnover Rent Provisions: Portfolio average g of 72% of tenancies ƒ Step-Up Rent Provisions: Portfolio average 63% of tenancies ƒ Wetex Parade: implementing provisions for new tenancies / renewals

  16. Slide 16: Financial Results

    PRIVATE & CONFIDENTIAL 16 Financial Results

  17. Slide 17: Revenues & Expenses

    PRIVATE & CONFIDENTIAL 17 Revenues & Expenses Gross Revenue up 23.9% over Budget For Period 1 October 2008 – 31 December 2008 Note: Budget based on FY2008 figures from Hektar REIT’s Initial Public Offering Prospectus dated 15 November 2006.

  18. Slide 18: Income Statement – Quarter

    PRIVATE & CONFIDENTIAL 18 Income Statement – Quarter Fourth Quarter 2008 Net Income exceeds Budget by 12.4% For Period 1 October 2008 – 31 December 2008 (versus Budget) Note: Budget based on FY2008 figures from Hektar REIT’s Initial Public Offering Prospectus dated 15 November 2006.

  19. Slide 19: Income Statement – Quarter Comparative

    PRIVATE & CONFIDENTIAL 19 Income Statement – Quarter Comparative 4Q08 Net Income exceeds 4Q07 by 5.8% For Period 1 October 2008 – 31 December 2008 (versus Previous Comparable Quarter)

  20. Slide 20: Income Statement – FY2008

    PRIVATE & CONFIDENTIAL 20 Income Statement – FY2008 FY 2008 Net Income is 25.7% over Budget For period 1 January – 31 December 2008 (12 months) Note: Budget based on FY2008 figures from Hektar REIT’s Initial Public Offering Prospectus dated 15 November 2006.

  21. Slide 21: Income Statement – Yearly Comparative

    PRIVATE & CONFIDENTIAL 21 Income Statement – Yearly Comparative FY2008 v FY2007 Comparative ƒ Different comparative period: 12 months v 13 months ƒ Excluding December 2006, FY2008 net income is 7% higher than FY2007

  22. Slide 22: Balance Sheet

    PRIVATE & CONFIDENTIAL 22 Balance Sheet No. of Units 320,001,000 Net Asset Value Per Unit 1.257 Unit Price, 31 Dec 2008 0.77 Premium / (Discount) NAV (39%)

  23. Slide 23: Debt Profile

    PRIVATE & CONFIDENTIAL 23 Debt Profile Debt Structure Hektar REIT’s Long-term Debt Structure Al-Murabahah / OD ƒ Fixed Term Tenure Annual Floating Rate Fixed Term Loan ƒ Total Debt: RM301.5 million Annual Floating Rate Rate: Cost of Funds +0.75% ƒ Weighted Average Cost of Capital: 4.70% Tranche 1 ƒ

  24. Slide 24: Centre Breakdown

    PRIVATE & CONFIDENTIAL 24 Centre Breakdown Subang Parade remains Hektar REIT’s largest shopping centre Revenue FY08 Centre Revenue By Centre, RM million As % of Revenue FY08 NPI FY08 Centre NPI By Centre, RM million As % of NPI FY08 Note: Wetex Parade & Classic Hotel was acquired in May 2008: result

  25. Slide 25: Valuation

    PRIVATE & CONFIDENTIAL 25 Valuation Hektar REIT Portfolio Revalued up 5% in 2008 Note: As per Bursa Malaysia announcement dated 13 January 2009 based on independent valuation Property Value Net Asset Value RM million RM + 39% + 22% since since IPO IPO Annualised Annualised + 19% + 10%

  26. Slide 26: Contact Us

    PRIVATE & CONFIDENTIAL 26 Contact Us Investor Relations H kt A Hektar Assett M Managementt Sd Sdn Bhd Block C-0-5, Plaza Damas 60 Jalan Sri Hartamas 1 Sri Hartamas 50480 Kuala Lumpur MALAYSIA ℡ +6 03 6201 1011 +6 6 03 6201 0012 www.HektarREIT.com “CREATING THE PLACES WHERE PEOPLE LOVE TO SHOP”

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