Hektar Real Estate Investment Trust · MYX:HEKTAR
Hektar Real Estate Investment Trust — Q4 2017 Earnings Presentation
18 slides from Hektar Real Estate Investment Trust's earnings presentation, Feb 12, 2018
Slide 1: Fourth Quarter 2017 Financial Results Presentation
FOURTH QUARTER 2017 FINANCIAL RESULTS PRESENTATION 12 FEBRUARY 2018 HEKTAR ASSET MANAGEMENT SDN BHD
Slide 2: Disclaimer / About Hektar
PRIVATE & CONFIDENTIAL 2 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 contained herein is given in summary form solely t
Slide 3: Financial Summary 4Q FY2017
PRIVATE & CONFIDENTIAL 3 Financial Summary 4Q FY 2017 1st October 2017 – 31st December 2017 Commentary Final dividend per unit (DPU) of 3.30sen Realised Net Income for the period grew 13.7% Retail business in Malaysia picked up in the last quarter of 2017, especially in light of the sluggish econ
Slide 4: Distribution Details
PRIVATE & CONFIDENTIAL 4 Distribution Details Current Distribution Details for FY2017 Hektar REIT Fourth Quarter 2017 Distribution Policy Barring unforeseen circumstances, Hektar Distribution Period: 1 September 2017 – 31 Dec 2017 REIT will pay distributions equivalent to at Quarterly DPU: 3.30 se
Slide 5: Comparative Yields - Malaysia
PRIVATE & CONFIDENTIAL 5 Comparative Yields - Malaysia Hektar REIT Distribution Yield at approximately 7.4% Traded at a 350 bps spread over MGS 10-year Unit Price decreased by 15% since beginning of the year Hektar REIT Comparative Yields Hektar REIT Unit Price Change in Unit 2017 Price RM 1.30
Slide 6: Portfolio Performance
PRIVATE & CONFIDENTIAL 6 Portfolio Performance Overall Occupancy at ~95% ► Rental Reversions 1% for 4Q17 ► Tenancy Expiry Profile ►
Slide 7: Hektar REIT Portfolio - Occupancy
PRIVATE & CONFIDENTIAL 7 Hektar REIT Portfolio - Occupancy Overall Portfolio Occupancy at ~95.1% Overall Portfolio Track Record of above 90% since 2004 Hektar REIT Portfolio Occupancy As at As at As at As at As at As at As at As at As at As at As at As at As at As at As at As at As at 31 Dec 31 Dec
Slide 8: Hektar REIT Portfolio – Occupancy (Continued)
PRIVATE & CONFIDENTIAL 8 Hektar REIT Portfolio – Occupancy (Continued) Hektar REIT Portfolio Occupancy Central Square Occupancy (%) Kulim Central Occupancy (%) Segamat Central Occupancy (%) 100.0% 100% 100% 90% 90.0% 90% 80% 80% 80.0% '13 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 1
Slide 9: Hektar REIT Portfolio – Rental Reversions
PRIVATE & CONFIDENTIAL 9 Hektar REIT Portfolio – Rental Reversions Rental Reversions 1% for 4Q 2017 Subang Parade : 1) More than half of the tenancies Positive reversion recorded at Mahkota Parade, Wetex Parade, Kulim Central renewed at positive reversion rates of up to 109%, 1 newly and Segamat C
Slide 10: Hektar REIT Portfolio – Tenancy Expiry Profile
PRIVATE & CONFIDENTIAL 10 Hektar REIT Portfolio – Tenancy Expiry Profile Hektar REIT Tenancy Expiry Profile by Property as at 31 December 2017 Subang Subang Parade Parade For Year No. of NLA of Tenancies NLA of Tenancies Ending Tenancies Expiring Expiring as % of Total % of Total Monthly 31 Dec 17 E
Slide 11: Hektar REIT Portfolio – Tenancy Expiry Profile
PRIVATE & CONFIDENTIAL 11 Hektar REIT Portfolio – Tenancy Expiry Profile Hektar REIT Tenancy Expiry Profile by Property as at 31 December 2017 Central Square Central Square For Year No. of NLA of Tenancies Ending Tenancies NLA of Tenancies Expiring Expiring as % of % of Total Monthly 71% 70% 31 Dec
Slide 12: Tenancy Portfolio Expiry Profile 2018 – 2020
PRIVATE & CONFIDENTIAL 12 Hektar REIT Portfolio – Tenancy Expiry Profile Tenancy Portfolio Expiry Profile 2018 – 2020 FY2018 – 282 tenancy expiries account for approximately 60% of monthly rental income* Hektar REIT Tenancy Expiry Profile – Overall Portfolio As at 31 December 2017 Portfolio No. of
Slide 13: Financial Results
PRIVATE & CONFIDENTIAL 13 Financial Results 4Q2017 Gross Revenue up 7.3%; NPI up 11.7% from preceding year ► 4Q2017 Realised Income up 13.7% from preceding year ►
Slide 14: Income Statement – Quarter Comparative
PRIVATE & CONFIDENTIAL 14 Income Statement – Quarter Comparative 4Q2017 NPI up 11.7%, Realised Income increase 13.7% vs corresponding quarter 4Q2016 Income Statement 4Q17 4Q16 Variance Fourth Quarter 2016 (Unaudited) (RM '000) (RM '000) (%) Revenue 33,441 31,167 + 7.3% Direct Cost & Property Expense
Slide 15: Income Statement – Year-To-Date Comparative
PRIVATE & CONFIDENTIAL 15 Income Statement – Year-To-Date Comparative For Period 1 January – 31 December 2017 (versus previous comparable period) Income Statement FY17 FY16 Variance Year-To-Date (Unaudited) (RM '000) (RM '000) (%) Revenue 125,543 124,571 +0.8% Direct Cost & Property Expenses (51,805
Slide 16: Balance Sheet
PRIVATE & CONFIDENTIAL 16 Balance Sheet Hektar REIT’s Balance Sheet for 4Q 2017 Balance Sheet As at 31.12.2017 As at 31.12.2016 (Unaudited) (RM '000) (RM '000) Non-Current Assets Investment Properties 1,194,569 1,092,450 Plant & Equipment 94 - Unit Price Statistics Capital Work in Progress 15,359 16
Slide 17: Debt Profile
PRIVATE & CONFIDENTIAL 17 Debt Profile Debt Profile for 4Q 2017 Financing Details Al-Murabahah / OD Debt Information Fixed Term Loan, Annual Floating Rate with Partial Hedging As at 31 December 2017 Structure: Cost of Funds + 0.70% Tranche 3 Total Debt: RM557 million Tranche 1 Tranche 2 Term: 5
Slide 18: Creating The Places Where People Love To Shop
PRIVATE & CONFIDENTIAL 18 Contact “Creating The Places Where People Love To Shop” Investor Relations 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 Please visit our webs
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