Hektar Real Estate Investment Trust · MYX:HEKTAR
Hektar Real Estate Investment Trust — Q4 2022 Earnings Presentation
32 slides from Hektar Real Estate Investment Trust's earnings presentation, 2023
Slide 1: Hektar Real Estate Investment Trust 4Q 2022 Results Presentation
Creating The Places People Love HEKTAR REAL ESTATE INVESTMENT TRUST 4Q 2022 RESULTS PRESENTATION
Slide 2: Hektar REIT: Malaysia's First Retail-Focused REIT
Hektar REIT: Malaysia’s First Retail-Focused REIT 2 ORGANISATION PORTFOLIO DISCLAIMER: The material that follows is a presentation of general background information about the activities of Hektar REIT (including Hektar REIT’s any other affiliates) as at the date of this Presentation. The information
Slide 3: Table of Contents
Table of Contents 01 Key Highlights 02 Financial Performance 03 Portfolio Updates 04 Sustainability 05 Moving Forward Segamat Central, Segamat
Slide 4: Key Highlights FY2022
KEY HIGHLIGHTS FY2022 IMPROVED OVERALL PERFORMANCE & RECOGNITION FOR ENHANCED ESG PRACTICES FINANCIAL OPERATIONAL ESG • Upgraded ESG 4-star rating • Revenue higher by 21.6% • Portfolio occupancy rates by FTSE Russell on the remained stable at 82.0%. FTSE4Good Bursa Malaysia • NPI higher by 24.8% Ind
Slide 5: Financial Performance
5 Financial Performance Wetex Parade ,Muar
Slide 6: Financial Highlights
Financial Highlights 6 Fourth Quarter 2022 (4Q22) Financial Year 2022 (FY22) RM '000 RM '000 Jan-Dec 2022 | 12 Months ▲ 11.7% Oct-Dec 2022 | 3 Months ▲ 21.6% 140,000 FY22 4Q22 117,446 30,000 4Q21 27,892 120,000 24,979 EPU: 0.54 sen FY21 EPU: 7.72 sen 25,000 100,000 96,599 ▲ 24.8% 20,000 ▼18.9% 80,00
Slide 7: Dividend Details
Dividend Details 7 Hektar REIT offers 11.4% dividend yield for FY2022 DISTRIBUTION DETAILS WITH DIVIDEND RE-INVESTMENT PLAN Fourth Quarter 2022 Quarterly DPU: 5.30 sen Dividend Per Unit FY22 Notice of Entitlement: 10 January 2023 Total FY 2022 DPU : 8.00 sen Ex-Dividend Date: 25 January 2023 DPU Yie
Slide 8: Balance Sheet Highlights (as of 31 December 2022)
Balance Sheet Highlights (as of 31 December 2022) 8 Investment Properties Trade & other payables RM1,206.1 mil RM28.8 mil RM1,164.5 mil as of 31 Dec 2021 RM44.8 mil as of 31 Dec 2021 Cash & Bank Tenancy Deposits RM23.2 mil RM29.1 mil RM59.1 mil as of 31 Dec 2021 RM31.9 mil as of 31 Dec 2021 Trade Re
Slide 9: Debt Profile
Debt Profile 9 EXPIRY PROFILE 2022-2026 DEBT SUMMARY December 2022 RM RM551.4 million million 84.1% Total Debt 500.00 463.89 [FY2021: RM581.1 million] 400.00 300.00 3.67% Effective Cost 200.00 [FY2021: 3.27%] 9.1% 1.6% 5.2% 100.00 50.00 9.00 28.55 0.00 44.6% 2023 2024 2025 2026 Gearing Ratio1 [FY202
Slide 10: Comparative Price Performance Trend
Comparative Price Performance Trend 10 50.00% Discount to NAV: 44.9% 40.00% NAV per unit (as at 31 December): RM1.27 30.00% 20.00% FBM KLCI 10.00% REIT Index 0.00% Hektar REIT -10.00% -20.00% Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 PERFORMANCE STATISTICS T
Slide 11: Corporate Development Update: Private Placement
CORPORATE DEVELOPMENT UPDATE 11 Private Placement Involve issuance of new type/class of No securities? Types of corporate proposal Private Proposal Details of corporate proposal Private placement of up to 23,098,000 new units in Hektar REIT, representing up to 5% of its total issued units ("Private
Slide 12: Corporate Development Update: Income Distribution Reinvestment Plan
12 CORPORATE DEVELOPMENT UPDATE Income Distribution Reinvestment Plan (“IDRP”) Overview The IDRP will provide Unitholders with an opportunity to reinvest in whole or in part, their Income Distribution in new Units, in lieu of receiving cash. In relation to any future Income Distribution declared, th
Slide 13: Corporate Development Update: IDRP Rationale and Justifications
13 CORPORATE DEVELOPMENT UPDATE Income Distribution Reinvestment Plan (“IDRP”) Rationale and justifications Provides an opportunity for Unitholders to exercise the Provides the Manager with Potentially improve the liquidity Electable Portion into new Units flexibility in managing and of Units throug
Slide 14: Portfolio Updates
14 Portfolio Updates Subang Parade, Subang
Slide 15: Portfolio Occupancy
Portfolio Occupancy 15 ▪ Hektar REIT’s overall portfolio occupancy remained stable at 82.0% at end FY2022. ➢ Committed/Signed occupancy rate as at 15 February 2023: 83.5% ▪ As of end December 2022, Kulim Central achieved occupancy rate of 96.4% while Mahkota Parade, Wetex Parade, Central Square main
Slide 16: 4Q2022 Rental Reversions at -6.9%
4Q2022 Rental Reversions at -6.9% 16 • 58 new/renewed tenancies consisting of 9% of total NLA for the quarter ended 31 December 2022. • 9 new tenancies were secured during the quarter with new tenants such as Anta Sports at Mahkota Parade, Myeongdong Topokki at Kulim Central and Ayam Penyet Best at
Slide 17: FY2022 Rental Reversions at -11.0%
FY2022 Rental Reversions at -11.0% 17 • Overall, a total of 178 tenancies covering 466,357 sq. ft. have been renewed as of 31 December 2022, representing 22.8% of total NLA. • The overall portfolio rental reversion rate for the FY 2022 was a negative 11%, reflecting our strategy in balancing rental
Slide 18: Tenancies Expiry
Tenancies expiry 18 • For FY2022, majority of the tenancies expiring in the year have been renewed with only 6.9% remaining under negotiation which will be carried forward to 2023. • A total of 213 tenancies will expire in 2023 representing approximately 47.1% of NLA and 57.5% of monthly rental inco
Slide 19: Top 10 Tenants Contributed 39.9% of Monthly Rental Income
19 Top 10 Tenants contributed 39.9% of the total monthly rental income • Top 2 anchors: Parkson and The Store contributes 13.0% and 9.2%, respectively. • Parkson’s tenancies at Subang Parade and Mahkota Parade were renewed in 2021 and 2022 respectively. • No other tenant contributes more than 5% of
Slide 20: Improvement in Footfall and Vehicle Count
20 Improvement in footfall and vehicle count as shoppers return to Hektar malls Footfall 4Q22 vs 4Q21 ('000) 7,000 ▲34.7% 6,000 5,000 4,000 3,000 ▲82.1% 2,000 ▼23.6% ▲26.3% ▲127.7% ▲68.9% ▲111.7% 1,000 0 Subang Parade Mahkota Parade Wetex Parade Central Square Kulim Central Segamat Central Total 4Q2
Slide 21: Footfall Traffic Increased 60% YOY to 21.1 Million for FY2022
Footfall traffic increased 60% YOY to 21.1 million for FY2022 21 32.1 32.3 35.0 29.4 Overall footfall traffic increased to 21.1 million visits in 2022 as we 30.0 intensified our marketing initiatives including sales-driven 25.0 19.2 60% 21.1 promotional campaigns at all our malls within the portfoli
Slide 22: Tenant Sales Back at Pre-Covid Level
Tenant sales back at pre-Covid level 22 Visitor traffic pacing towards recovery & Tenant sales have almost returned to pre-Covid level Visitor Traffic & Tenant Sales vs 2019 Average 120% 100% Pre-Covid Level (2019) 97% 80% 75% 60% 40% 20% 0% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 VISITOR TRAFFIC TE
Slide 23: Improvement in Portfolio Valuation
Improvement in Portfolio Valuation 23 Valuation (RM Million) Property 2021 Valuation As of 31 Dec 2022 % Subang Parade 423.0 417.0 -1.4% Mahkota Parade 323.5 338.5 4.6% Wetex Parade & Classic Hotel 142.0 156.6 10.3% Central Square 90.0 91.0 1.1% Kulim Central 129.0 138.0 7.0% Segamat Central 57.0 65
Slide 24: Refreshed Retail Offerings at Hektar Malls
Refreshed retail offerings at Hektar Malls 24 Ayam Penyet Best, Subang Parade Younghearts, Mahkota Parade Anta Sports, Mahkota Parade Energized, Mahkota Parade Madam Croffle, Mahkota Parade Yole Yogurt, Wetex Parade Premium Store, Wetex Parade A Sama Thai Food, Central Square Myeongdong Topokki, Kul
Slide 25: Marketing Campaigns and Initiatives to Drive Visitor Footfall
25 Marketing campaigns and initiatives to drive visitor footfall Football Fever Campaign KYS String Orchestra Performance Deepavali Kolam Decoration Santa Meet & Greet Event Hari Sukan Negara Fun Run Pets and Hobbies Fiesta
Slide 26: Classic Hotel: Significant Improvements
Classic Hotel: Significant Improvements 26 Overall Occupancy & Average Room Rate (ARR) • Overall Occupancy Rate in 2022 increased to 46% from 23% in 2021. • ARR increased by about 4.6% to RM137 from RM131.
Slide 27: Sustainability
Sustainability Hektar REIT received two Silver Awards at The Edge Malaysia ESG Awards 2022
Slide 28: Hektar's ESG Milestones
28 Hektar’s ESG Milestones ENVIRONMENTAL SOCIAL GOVERNANCE • Reduction of 11% in CO2e emissions Continuously organise CSR activities for • Maintained at least 30% of women • Reduction of 10% in electricity usage our shoppers and employees. Directors in the Board. • Reduction of 9% in water usage • M
Slide 29: Continuous Engagement with Our Communities
Continuous engagement with our communities 29 Orkids Down Syndrome Awareness Campaign Subang Parade collaborated with ORKIDS (Persatuan Kebajikan Anak-anak Istimewa Selangor) to create awareness among the public on Down Syndrome as well as to promote inclusion in the society in conjunction with Down
Slide 30: Moving Forward
30 Moving Forward Kulim Central, Kulim
Slide 31: Moving Forward
Moving Forward 31 Asset Enhancement Capital Management • Rejuvenation of Subang Parade on track. Stronger • Adopt prudent financial management, cost focus on our customers and the community optimization initiatives, and enhancing our asset through the exploration and introduction of relevancy & effi
Slide 32: 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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