Hektar Real Estate Investment Trust · MYX:HEKTAR

Hektar Real Estate Investment Trust — FY2007 Earnings Presentation

24 slides from Hektar Real Estate Investment Trust's earnings presentation, Feb 4, 2008

  1. Slide 1: Hektar REIT Full Year 2007 (13-Months) Financial Results

    HEKTAR REIT HEKTAR REIT FULL YEAR 2007 (13-MONTHS) FINANCIAL RESULTS HEKTAR ASSET MANAGEMENT SDN BHD 4 FEBRUARY 2008 PRIVATE & CONFIDENTIAL

  2. 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

  3. Slide 3: Financial Summary

    Financial Summary PRIVATE & CONFIDENTIAL 3

  4. Slide 4: Financial Summary – Full Year 2007

    Financial Summary – Full Year 2007 1 Dec 2006 – 31 Dec 2007 Full Year 2007 (13 Months) Final Dividend Per Unit Final DPU: 3.51 sen (DPU) (4th Quarter 2007) FY 2007 Total DPU: 10.71sen DPU Annualised DPU: 9.89 sen Exceeds Forecast Exceeds DPU Forecast by 11.2% Total Return FY2007 Total Return: 54%* *

  5. Slide 5: Dividend Distribution: FY 2007 Dividends Exceeds Forecast by 11.2%

    Dividend Distribution FY 2007 Dividends Exceeds Forecast by 11.2% ƒ Actual DPU of 10.7 sen (13 Months), Annualised DPU of 9.9 sen* FY2007 Actual Budget Variance Change (%) Net Income - Realised RM ('000) 36,682 30,811 5,872 + 19.1% Net Income Per Unit - Realised sen 11.46 9.63 1.83 + 19.1% Dividend

  6. Slide 6: Distribution Details: Hektar REIT Final Dividend Timeline

    Distribution Details Hektar REIT Final Dividend Timeline Distribution Period 1 October – 31 December 2007 Final DPU 3.51 sen Notice of Entitlement 4 February 2008 Ex-Dividend Date 19 February 2008 Book Closure Date 21 February 2008 Distribution Payment Date 4 March 2008 PRIVATE & CONFIDENTIAL 6

  7. Slide 7: Hektar REIT Unit Price Performance

    Hektar REIT Unit Price Performance FY2007: 4 December 2006 – 31 December 2007 ƒ Capital Appreciation + 43.8% ƒ Dividend Yield + 10.2% ƒ Total Return since IPO + 54%* 70 31 Dec 07 60 RM1.51 % Change in Unit Price / Index 50 4 Dec 06 – 31 Dec 07 40 Hektar REIT + 43.8% KLCI Index + 33.8% 30 IPO Price 2

  8. Slide 8: Comparative Yields - Malaysia

    Comparative Yields - Malaysia Hektar REIT Yield Spread (DY2007) ƒ Traded at a 344 bps spread over MGS 10-year as at 31 January 2008 9.00 8.00 344 7.10 bps spread 7.00 Yield (%) (% 6.00 5.15 Yield 5.00 4.09 3.66 3.48 3.67 4.00 3.00 2.00 1.00 0.00 Hektar 10-year 5-year KLCI 12-month EPF REIT MGS MGS D

  9. Slide 9: Portfolio Performance

    Portfolio Performance PRIVATE & CONFIDENTIAL 9

  10. Slide 10: Hektar's Portfolio - Occupancy

    Hektar’s Portfolio - Occupancy Portfolio occupancy holding well in 2007 As of 31 As of 31 As of 31 As of 30 As of 31 December December December September December Property 2003 2004 2005 2006 2007 Subang Parade 97.7% 93.4% 98.3% 98.5% 99.9% Mahkota Parade 86.8% 96.9% 94.9% 93.9% Total / Overall 97.7

  11. Slide 11: Hektar's Portfolio - Traffic

    Hektar’s Portfolio - Traffic Steady Visitor Traffic in Hektar’s Portfolio ƒ Overall visitor traffic up 14.5% in 2007 ƒ Tracked by Footfall, camera-based system installed in each centre ƒ Subang Parade’s traffic up 32.6% in 2007 after 2006 refurbishment No. of Visits No. of Visits No. of Visits Prope

  12. Slide 12: Hektar's Portfolio – Tenant Mix

    Hektar’s Portfolio – Tenant Mix Tenant Mix Remains well-diversified ƒ Combined Portfolio as of 31 December 2007 By Rental Income* By NLA 1.7% 1.9% 1.9% 0.9% 3.4% 6.9% 16.8% 8.4% 30.3% 11.1% 7.6% 4.8% 16.8% 11.8% 10.6% 13.0% 22.0% 30.3% Fashion & Footwear Food & Beverage / Food Court Department Store

  13. Slide 13: Hektar's Portfolio – Tenant Diversification

    Hektar’s Portfolio – Tenant Diversification Hektar’s Top Ten Tenants ƒ Top 10 Tenants Contribute 28% of REIT’s Monthly Rental Income * Based on monthly rental income for December 2007. PRIVATE & CONFIDENTIAL 13

  14. Slide 14: Hektar's Portfolio – Rental Reversions

    Hektar’s Portfolio – Rental Reversions Overall Full Year 2007 – Strong Rental Reversions ƒ But reversions flat in central Melaka in 4Q07 (Mahkota Parade) ƒ 4Q07: 26 new tenancies / renewals @ 9% average rental increase ƒ FY07: 84 new tenancies / renewals @ 20% average rental increase Fourth Quarter

  15. Slide 15: Hektar's Portfolio – Tenancy Expiry Profile

    Hektar’s Portfolio – Tenancy Expiry Profile Hektar’s Tenancy Expiry Profile 2008 – 2011 ƒ By Property (as of 31 December 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 I

  16. Slide 16: Hektar's Portfolio – Tenancy Expiry Profile (Portfolio)

    Hektar’s Portfolio – Tenancy Expiry Profile Portfolio Tenancy Expiry Profile 2008 – 2011 ƒ Combined Portfolio (as of 31 December 2007) Portfolio No. of NLA of tenancies NLA of tenancies % of Total For Year Ending Tenancies expiring expiring as % of M onthly Rental 31 Decem ber Expiring (sq ft) total

  17. Slide 17: Hektar's Portfolio – Step-Up & Turnover

    Hektar’s Portfolio – Step-Up & Turnover Hektar Tenancy Provisions ƒ Turnover Rent reported by 91% of tenancies vs 86% at IPO ƒ Step-Up provisions in 65% of tenancies vs 58% at IPO ƒ Turnover Rent to be Reviewed and Assessed in 1Q 2008 100% 91% 90% 86% 80% 70% 65% 58% 60% At 31 Dec 2007 50% IPO 40% 3

  18. Slide 18: Financial Results

    Financial Results PRIVATE & CONFIDENTIAL 18

  19. Slide 19: Income Statement: Gross Revenues ahead of budget forecast

    Income Statement Gross Revenues ahead of budget forecast For Period 1 September 2007 – 31 December 2007 Actual Budget Variance (RM '000) (RM '000) (%) Gross Rental Income Revenue from Tenancy 16,709 15,788 + 5.8% Car Park 1,637 1,422 + 15.1% Gross Revenues 18,346 17,211 + 6.6% Direct Cost & Property

  20. Slide 20: Income Statement Summary – 4Q07

    Income Statement Summary – 4Q07 Fourth Quarter net income is 13.1% over budget For Period 1 September 2007 – 31 December 2007 Actual Budget Variance Fourth Quarter 2007 (RM '000) (RM '000) (%) Gross Revenue 18,346 17,211 + 6.6% Direct Cost & Property Expenses (7,068) (6,632) - 6.6% Net Property Inco

  21. Slide 21: Income Statement Summary – FY2007

    Income Statement Summary – FY2007 FY2007 DPU Exceeds Forecast by 11.2% For Period 1 December 2006 (IPO) – 31 December 2007 (13 months) YTD Actual YTD Budget Variance FY 2007 (RM '000) (RM '000) (%) Gross Revenue 78,331 74,580 + 5.0% Direct Cost & Property Expenses (29,052) (28,738) - 1.1% Net Proper

  22. Slide 22: Balance Sheet (as of 31 December 2007)

    Balance Sheet (as of 31 December 2007) R M ('0 0 0 ) N o n C u rre n t A s s e ts No. of Units P ro p e rty In v e s tm e n t 5 5 9 ,4 0 0 C u rre n t A s s e ts 320,001,000 A c c o u n ts R e c e iv a b le 890 Net Asset Value Per Unit W o rk In P ro g re s s 5 ,1 0 6 O th e r D e b to r / P re p a

  23. Slide 23: Valuation: Hektar Portfolio Recently Revalued

    Valuation Hektar Portfolio Recently Revalued ƒ Prior valuation based on unaudited book value at 30 September 2007 ƒ Date of current valuation at 30 November 2007 ƒ Increase in book value of 9% Book Value Valuation in 2007 Variance Change Property RM ('000) RM ('000) RM ('000) (%) Subang Parade 280,5

  24. Slide 24: Contact

    Contact 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.hektargroup.com PRIVATE & CONFIDENTIAL 24

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