Hektar Real Estate Investment Trust · MYX:HEKTAR
Hektar Real Estate Investment Trust — Q4 2020 Earnings Presentation
30 slides from Hektar Real Estate Investment Trust's earnings presentation, Feb 25, 2021
Slide 1: Hektar REIT 4Q/FY 2020 Results Presentation
Creating The Places People Love HEKTAR REAL ESTATE INVESTMENT TRUST 4Q/FY 2020 RESULTS PRESENTATION 25 Feb 2021
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 mate
Slide 3: Financial Summary
Hektar REIT Financial Summary 3 Fourth Quarter 2020 (4Q20) / Financial Year 2020 (FY20) October – December 2020 / 3 Months / 12 Months 2020 Dividend Per Unit FY20 Financial Performance vs. Previous Period 4Q 2019 : 0.90 sen Total DPU : 0.90 sen FY20 Gross Revenue: RM111.1 million, -19% 4Q20 Gross Re
Slide 4: Dividend Details
Hektar REIT Dividend Details 4 Distribution Details Fourth Quarter 2020 Distribution Period: 1 October 2020 – 31 December 2020 Quarterly DPU: 0.90 sen Notice of Entitlement: 29 January 2021 Ex-Dividend Date: 15 February 2021 Book Closure Date: 16 February 2021 Payment Date: 26 February 2021 Dividend
Slide 5: Comparative Yield
Comparative Yield 5 Hektar REIT offers 1.4% dividend yield for FY2020 ▪ FY 2020 DPU: 0.90 sen ▪ Dividend Yield based on FY2020 closing price of RM0.63 Dividend Per Unit FY20 Comparative Yields Total FY 2020 DPU : 0.90 sen DPU Yield* : 1.43% * Based on DPU of 0.90 sen on closing price of RM0.63 on 31
Slide 6: Portfolio Performance
Portfolio Performance Overall Occupancy at ~88.4% ► Visitor Traffic 19.2 million ► Rental Reversions -28.2% for FY20 ► Expiry Profile: 63% NLA expires in 2021 ►
Slide 7: Portfolio Occupancy
Hektar REIT Portfolio Occupancy 7 Average portfolio occupancy steady at 88.4% Portfolio Occupancy 2008-2020 Property '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Subang Parade 99.8% 100.0% 94.8% 99.9% 99.8% 100.0% 99.3% 94.7% 93.0% 90.9% 88.2% 93.9% 83.7% Mahkota Parade 96.5% 93.6% 96.1% 94.5
Slide 8: Portfolio Occupancy
Hektar REIT Portfolio Occupancy 8 Mahkota Parade, Wetex Parade and Kulim Central occupancies remain stable at above 90% ▪ Portfolio Average at 88.4% for December 2020
Slide 9: Visitor Traffic
Hektar REIT Visitor Traffic 9 Portfolio visitor traffic dropped to 19.2 million in FY20 due to the implementation of various mobility restrictions throughout 2020 to curb the COVID-19 pandemic Visitor Traffic 2016-2020 Visitor Traffic 2011-2020 Property '16 '17 '18 '19 '20 Subang Parade 9.2 million
Slide 10: Visitor Traffic
Hektar REIT Visitor Traffic 10 Mall visitor traffic dropped from 35% - 46% due to the various movement controls implemented by the Government in 2020
Slide 11: Rental Reversions
Hektar REIT Rental Reversions 11 Fourth Quarter Rental Reversions (-24.6%) +11.5% ▪ 31 tenants were renewed in 4Q 2020, representing ▪ Key Renewed/New Tenants: Sunday, Sorella & Chempaka 10.2% of NLA Busana ▪ Subang Parade: Lower rental rates due to positioning for new anchor-tenant -7.4% ▪ Mahkota
Slide 12: Rental Reversions
Hektar REIT Rental Reversions 12 Portfolio Rental Reversions was -28.2% in FY2020 due to interim rental assistance provided by the REIT to support eligible tenants ▪ Strongest performer: Wetex Parade (+8.1%) and Kulim Central (+0.6%) Portfolio Rental Reversions FY2020 Annual Rental Reversions FY2007
Slide 13: Expiry Profile
Hektar REIT Expiry Profile 13 Tenancy Expiry by Property, Year End December Period End Tenancies Expiring NLA Expiring NLA as % of Monthly Dec Expiring (sq ft) % of Total NLA Rental Income* 2021 64 264,119 51% 65% 2022 31 92,598 18% 26% 2023 8 71,935 14% 9% Period End Tenancies Expiring NLA Expiring
Slide 14: Expiry Profile
Hektar REIT Expiry Profile 14 Tenancy Expiry by Property, Year End December Period End Tenancies Expiring NLA Expiring NLA as % of Monthly Dec Expiring (sq ft) % of Total NLA Rental Income* 2021 37 231,448 75% 80% 2022 8 39,480 13% 17% 2023 4 1,915 1% 3% Period End Tenancies Expiring NLA Expiring NL
Slide 15: Expiry Profile
Hektar REIT Expiry Profile 15 Tenancy Expiry for Portfolio 2020-2023 ▪ For 2021, a total of 307 tenancies expire, representing 69% of monthly rental income or 63% of NLA Portfolio Expiry Profile 2020-2023 Period End Tenancies Expiring NLA Expiring NLA as % of Monthly Dec Expiring (sq ft) % of Total
Slide 16: Tenancy Provisions
Hektar REIT Tenancy Provisions 16 Hektar adopts step-up and turnover rent provisions ▪ Step-Up Provisions for fixed rental increase are present in 14% of all tenancies ▪ Turnover Rent provisions exist in 90% of all tenancies ▪ Data for NLA-tenants only (434 in December 2020) Step-Up Provisions Turno
Slide 17: Top Ten Tenants
Hektar REIT Top Ten Tenants 17 Top 10 Tenants contributed 33.7% of the total monthly rental income ▪ Top 2 anchors: Parkson and The Store contributes 11.0% and 6.7% respectively ▪ No other tenant contributes more than 5% of monthly rental income NLA % of Total % of Monthly Tenant Sector (sq. ft.) NL
Slide 18: Financial Results
18 Financial Results 4Q20 Gross Revenue down 14% from preceding period ► 4Q20 NPI down 37% from preceding period ► FY2020 Net Income (Realised) down 60% from preceding period► Financing Renewed: 92% of Debt expires in 2024-2025 ►
Slide 19: Income Statement: Quarter Comparative
Hektar REIT Income Statement: Quarter Comparative 19 Revenue declined by 14% in 4Q20 ▪ Net Property Income lower by 37% ▪ Realised Income declined 88% vs previous quarter due to Movement Control Order Income Statement 4Q20 4Q19 Variance Fourth Quarter 2020 (unaudited) (RM '000) (RM '000) (%) Revenue
Slide 20: Income Statement: Year-To-Date Comparative
Hektar REIT Income Statement: Year-To-Date Comparative 20 For The Financial Year Ended 31 December 2020 (versus previous financial year) Income Statement FY20 FY19 Variance Year-To-Date (unaudited) (RM '000) (RM '000) (%) Revenue 111,139 137,089 (19%) Property Operating Expenses -58,168 -61,654 6% N
Slide 21: Balance Sheet
Hektar REIT Balance Sheet 21 Balance Sheet As at 31.12.2020 As at 31.12.2019 Unit Price Statistics (Unaudited) (RM '000) (RM '000) Non-Current Assets As at 31 December 2020 Investment Properties 1,207,000 1,236,500 Plant & Equipment 91 113 No. of Units Outstanding Capital Work in Progress 1,380 1,15
Slide 22: Debt Profile
Hektar REIT Debt Profile 22 Debt Summary December 2020 Facilities Amount % Total ▪ Facilities: Al-Murabahah, Term Loan (TL), # Facility (RM'000) Debt Security Expiry Cost Short-Term Revolving Credit (STRC) 1 MOD 1 184,000 31.7% Subang Parade Feb-24 3.83% ▪ Financiers: Maybank, CIMB 2 MOD 2 150,000 2
Slide 23: Valuation
Hektar REIT Valuation 23 Portfolio valuation was RM1.207 billion in Portfolio Asset Size 2007-2020 (RM ‘000) FY 2020 ▪ Decline of 2.4% from FY2019 ▪ Overall Property Yield at 4.4% ▪ Valuation at RM592 per square foot ▪ Subang Parade remains the largest component at 37% of portfolio total ▪ Portfolio
Slide 24: Portfolio Updates
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Slide 25: Portfolio Updates
Hektar REIT Portfolio Updates 25 Restoran Nelayan opened on 1st December 2020
Slide 26: Portfolio Updates
Hektar REIT Portfolio Updates 26 Fino Piza opened on 2nd December 2020
Slide 27: Portfolio Updates
Hektar REIT Portfolio Updates 27 Eco Shop opened on 31th December 2020
Slide 28: Portfolio Updates
Hektar REIT Portfolio Updates 28 Jom A-Look opened on 23th December 2020 and Empire Sushi opened on 24th December 2020
Slide 29: Portfolio Updates
Hektar REIT Portfolio Updates 29 Mine Bakery opened on 24th September 2020 and Muzaina Collection opened on 1st December 2020.
Slide 30: Investor Communications
Creating The Places People Love Investor Communications Hektar Asset Management Sdn Bhd D1-U3-10, Solaris Dutamas No1, 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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