Hektar Real Estate Investment Trust · MYX:HEKTAR

Hektar Real Estate Investment Trust — Q2 2008 Earnings Presentation

23 slides from Hektar Real Estate Investment Trust's earnings presentation, Aug 13, 2008

  1. Slide 1: Hektar REIT Second Quarter 2008 Financial Results Presentation

    HEKTAR REIT HEKTAR REIT SECOND QUARTER 2008 FINANCIAL RESULTS PRESENTATION HEKTAR ASSET MANAGEMENT SDN BHD 13 AUGUST 2008 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 the Hektar Group (including Hektar REIT and any other affiliates) as at the date of this Presentation. The information contained herein is given in summary form

  3. Slide 3: Financial Summary

    PRIVATE & CONFIDENTIAL 3 Financial Summaryy

  4. Slide 4: Financial Summary – Second Quarter 2008

    PRIVATE & CONFIDENTIAL 4 Financial Summary – Second Quarter 2008 Second Quarter ƒ 1 April 2008 – 30 June 2008 2008 ƒ 3 Months ƒ Portfolio Occupancy: ~97.4% ƒ Rent Reversions: +11% Operational ƒ Net Income per Unit: 2.94 sen Performance ƒ Net Income +10.9% over previous comparable quarter and +25.8%

  5. Slide 5: Distribution Details

    PRIVATE & CONFIDENTIAL 5 Distribution Details Hektar REIT Quarterly Dividend Distributions ƒ Current Dividend Distribution Details: 2nd Quarter 2008 Distribution Period 1 April 2008 – 30 June 2008 Quarterly DPU 2.40 sen Notice of Entitlement 14 August 2008 Ex-Dividend Date 25 August 2008 Book Closur

  6. Slide 6: Comparative Yields - Malaysia

    PRIVATE & CONFIDENTIAL 6 Comparative Yields - Malaysia Hektar REIT Dividend Yield Spread (FY2008) ƒ Traded at a 256 bps p spread p over MGS 10-year y 256 bps spread Sources: Bloomberg (August 2008) , The Star. Hektar REIT yield based on closing price of RM1.31 on 30 June 2008 and annualised DPU of 2

  7. Slide 7: Commentary

    PRIVATE & CONFIDENTIAL 7 Commentary General ƒ Market / Demographic-focus of shopping centres resilient against possible ibl consumer ddownturn ƒ Projected energy costs and inflation increases factored in budget Portfolio Updates ƒ Planned Selected Refurbishment of Mahkota Parade (Melaka) ƒ Tenant Re

  8. Slide 8: Portfolio Performance

    PRIVATE & CONFIDENTIAL 8 Portfolio Performance

  9. Slide 9: Hektar Portfolio - Occupancy

    PRIVATE & CONFIDENTIAL 9 Hektar Portfolio - Occupancy Portfolio Occupancy reached 97.4% in 2Q 2008 *Approximate average weighted by Net Lettable Area.

  10. Slide 10: Hektar Portfolio – Tenant Mix

    PRIVATE & CONFIDENTIAL 10 Hektar Portfolio – Tenant Mix Portfolio Tenant Mix Remains Well-Diversified Hektar e ta Portfolio oto o Key / Legend By Rental Income* By NLA Subang Parade Mahkota Parade Wetex Parade By Rental Income* By Rental Income* By Rental Income* * Based on monthly rental income for

  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 26.2% of REIT’s Monthly y Rental Income • Retailer Dependency: only Parkson contributes ~10.8% 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 Second Quarter 2008 – Rental Reversions up 11% ƒ 17 new tenancies / renewals at average 11% higher rental rate ƒ Wetex Parade undergoing tenant re-mixing process *Average Weighted by NLA. Figures as of 30 June 2008. Outstanding tenancies

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

    PRIVATE & CONFIDENTIAL 13 Hektar’s Portfolio – Tenancy Expiry Profile Hektar’s Tenancy Expiry Profile 2008 – 2011 ƒ By y Property p y ((as of 30 June 2008)) * Based on monthly rental income for March 2008.

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

    PRIVATE & CONFIDENTIAL 14 Hektar’s Portfolio – Tenancy Expiry Profile Portfolio Tenancy Expiry Profile 2008 – 2011 ƒ Relatively Distributed Expiry Portfolio as at 30 June 2008 • No expires accounting for more than 29% of monthly rental income in any year * Based on monthly rental income for June 200

  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 69% of tenancies ƒ Step-Up Rent Provisions: Portfolio average 51% 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 16.9% over budget For Period 1 April 2008 – 30 June 2008 Budget based on FY2008 figures from Hektar REIT Initial Public Offering Prospectus dated 15 November 2006.

  18. Slide 18: Income Statement – Quarter

    PRIVATE & CONFIDENTIAL 18 Income Statement – Quarter 2nd Quarter 2008 Net Income exceeds budget by 25.8% For Period 1 April 2008 – 30 June 2008 (versus Budget) Budget based on FY2008 figures from Hektar REIT Initial Public Offering Prospectus dated 15 November 2006.

  19. Slide 19: Income Statement – Quarter Comparative

    PRIVATE & CONFIDENTIAL 19 Income Statement – Quarter Comparative 2nd Quarter 2008 Net Income exceeds 2Q07 by 10.9% For Period 1 April 2008 – 30 June 2008 (versus Previous Comparable Quarter)

  20. Slide 20: Income Statement – Year-To-Date

    PRIVATE & CONFIDENTIAL 20 Income Statement – Year-To-Date First Half 2008 Net Income is 28.5% over Forecast For period 1 January – 30 June 2008 (6 months) ƒ Attributed to Higher Rentals at Subang & Mahkota Parade ƒ Inclusion of Wetex Parade’s two-months’ operations (acquisition completed in May 2008

  21. Slide 21: Income Statement – Year-To-Date Comparative

    PRIVATE & CONFIDENTIAL 21 Income Statement – Year-To-Date Comparative YTD Comparative: 1H08 v 1H07 Different comparative period: 6 months v 7 months ƒ 1H FY2007 from 1 December 2006 – 30 June 2007 (7-months) due to IPO ƒ Excluding December 2006, first half revenue and net income is 5% and 7% higher,

  22. Slide 22: Balance Sheet

    PRIVATE & CONFIDENTIAL 22 Balance Sheet No. of Units 320,001,000 Net Asset Value Per Unit 1.179 Unit Price, 30 June 2008 1.31 Premium / (Discount) NAV 11% Debt Structure Al-Murabahah / OD Gearing (Debt/GAV)* 42 5% 42.5% Interest Expense 4.95% (2008) *Gearing Limited for Malaysian REITs: 50% of GAV (

  23. Slide 23: Contact Us

    PRIVATE & CONFIDENTIAL 23 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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