Hektar Real Estate Investment Trust · MYX:HEKTAR

Hektar Real Estate Investment Trust — FY2011 Earnings Presentation

22 slides from Hektar Real Estate Investment Trust's earnings presentation, Feb 13, 2012

  1. Slide 1: Financial Year 2011 Financial Results Presentation

    FINANCIAL YEAR 2011 FINANCIAL RESULTS PRESENTATION 13 FEBRUARY 2012 HEKTAR ASSET MANAGEMENT SDN BHD

  2. Slide 2: Disclaimer

    PRIVATE & CONFIDENTIAL 2 Disclaimer 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 s

  3. Slide 3: Financial Summary

    PRIVATE & CONFIDENTIAL 3 Financial Summary Financial Year 2011 1 January 2011 – 31 December 2011 Commentary  FY2011 Dividend Per Unit: 10.50 sen (up 1.95%)  Five Years Track Record of Positive Results Operational & Financial Performance (Full Year) Dividend Distribution  Portfolio Occupancy: ~ 97

  4. Slide 4: Hektar REIT Annual DPU Positive Growth Since IPO

    PRIVATE & CONFIDENTIAL 4 Distribution Details Hektar REIT Annual DPU Positive Growth Since IPO Current Dividend Distribution Details Fourth Quarter 2011  Distribution Period: 1 October – 31 December 2011  Quarterly DPU: 3.0 sen  Notice of Entitlement: 13 February 2012  Ex-Dividend Date: 2 March

  5. Slide 5: Hektar REIT Dividend Yield at approximately 8.0%

    PRIVATE & CONFIDENTIAL 5 Comparative Yields - Malaysia Hektar REIT Dividend Yield at approximately 8.0%  Traded at a 380 bps spread over MGS 10-year Hektar REIT Unit Price Change Hektar REIT Comparative Yields FY2011 (12 months) Unit Price RM 1.32 30 Dec 2011 9% 1.40 8.0% 1.35 8% 1.30 7% 380 bps 1.

  6. Slide 6: Portfolio Performance

    PRIVATE & CONFIDENTIAL 6 Portfolio Performance Overall Occupancy at ~97.5% ► Visitor Traffic to Portfolio Hits 22.1 million ► Rental Reversions +20% for FY2011 ► Diversified Portfolio Tenancy Mix ► Top Ten Tenants Contribute 27.6% of Monthly Rental Income ► Tenancy Expiry Profile ► Portfolio Tenancy

  7. Slide 7: Overall Portfolio Occupancy at ~97.5%

    PRIVATE & CONFIDENTIAL 7 Hektar REIT Portfolio - Occupancy Overall Portfolio Occupancy at ~97.5% Hektar REIT Portfolio Occupancy As at 30 As at 31 As at 31 As at 30 As at 31 As at 31 As at 31 As at 31 As at 31 June As at 30 As at 31 Property Dec 2004 Dec 2005 Sept 2006 Dec 2007 Dec 2008 Dec 2009 Dec

  8. Slide 8: Hektar REIT Properties Recorded 22.1 million Visits in 2011

    PRIVATE & CONFIDENTIAL 8 Hektar REIT Portfolio - Traffic Hektar REIT Properties Recorded 22.1 million Visits in 2011  Tracked by Footfall, camera-based system installed in each centre  Overall traffic edged higher by 9.0% in 2011 v 2010  Subang Parade traffic up 6.0% over previous year  Mahkota

  9. Slide 9: Hektar REIT Portfolio – Rental Reversions

    PRIVATE & CONFIDENTIAL 9 Hektar REIT Portfolio – Rental Reversions Rental Reversions +20% for the year  4Q 11: 27 new tenancies / renewals at 25% higher average rental rate  Subang Parade recorded significant increases due to opening of new retail space for Cube. Excluding the new retail space ren

  10. Slide 10: Hektar Portfolio – Tenant Mix

    PRIVATE & CONFIDENTIAL 10 Hektar Portfolio – Tenant Mix Diversified Portfolio Tenant Mix  Fashion, Footwear, F&B are largest sectors within overall portfolio Hektar Portfolio Tenant Mix Fashion & Footwear By Rental Income* By NLA Food & Beverage / Food Court 4.2% 2.8% 3.5% 3.8% 1.8% Department Stor

  11. Slide 11: Top Ten Tenants Contribute 26.3% of Monthly Rental Income

    PRIVATE & CONFIDENTIAL 11 Hektar Portfolio – Tenant Diversity Top Ten Tenants Contribute 26.3% of Monthly Rental Income  Concentration Risk: Parkson contributes ~11.1% of total monthly rental income to REIT Hektar REIT Top Ten Tenants by Monthly Rental Income As at 31 December 2011 % of Monthly Ten

  12. Slide 12: Tenancy Expiry Profile by Property

    PRIVATE & CONFIDENTIAL 12 Hektar REIT Portfolio – Tenancy Expiry Profile Hektar REIT Tenancy Expiry Profile by Property Hektar REIT Tenancy Expiry Profile by Property As At 31 December 2011 Subang Parade No. of NLA of Tenancies NLA of Tenancies % of Total Monthly 39% For Year Ending Tenancies Expiri

  13. Slide 13: Tenancy Portfolio Expiry Profile 2012 – 2015

    PRIVATE & CONFIDENTIAL 13 Hektar REIT Portfolio – Tenancy Expiry Profile Tenancy Portfolio Expiry Profile 2012 – 2015  FY2012 108 tenancy expiries account for approximately 24% of monthly rental income* Hektar REIT Tenancy Expiry Profile – Overall Portfolio As At 31 December 2011 Overall Portfolio

  14. Slide 14: Hektar Portfolio Tenancy Provisions in 2011

    PRIVATE & CONFIDENTIAL 14 Hektar Portfolio – Tenancy Provisions Hektar Portfolio Tenancy Provisions in 2011  Turnover Rent provisions present in 98% of all tenancies  Step-Up Rent provisions present in 58% of all tenancies Hektar REIT Tenancy Provisions Hektar REIT Tenancy Provisions Turnover Rent

  15. Slide 15: Financial Results

    PRIVATE & CONFIDENTIAL 15 Financial Results 4Q2011 Net Income (Realised) down 4% from previous period ► Year-To-Date 2011 Net Income (Realised) up 2% from previous period ► Hektar REIT Average Cost of Debt at 4.21% ► Centre Breakdown ► Valuations ►

  16. Slide 16: Income Statement – Quarter Comparative

    PRIVATE & CONFIDENTIAL 16 Income Statement – Quarter Comparative 4Q2011 Net Income up >100% vs corresponding quarter 4Q2010  Fair Value Adjustment of RM47.7 million in 4Q11 Income Statement 4Q11 4Q10 Variance Fourth Quarter 2011 (Unaudited) (RM '000) (RM '000) (%) Revenue 24,255 24,036 + 0.9% Direc

  17. Slide 17: Income Statement – Year-To-Date Comparative

    PRIVATE & CONFIDENTIAL 17 Income Statement – Year-To-Date Comparative FY2011 up >100% vs FY2010 For Period 1 January – 31 December 2011 (versus previous comparable period) Income Statement FY11 FY10 Variance Year-To-Date 2011 (Unaudited) (RM '000) (RM '000) (%) Revenue 94,881 90,873 + 4.4% Direct Co

  18. Slide 18: Hektar REIT's Balance Sheet for FY2011

    PRIVATE & CONFIDENTIAL 18 Balance Sheet Hektar REIT’s Balance Sheet for FY2011 Unit Price Statistics Balance As at As at 31 December 2011 Sheet 31.12.2011 As at 31.12.2010 No. of Units Outstanding (Unaudited) (RM '000) (RM '000) 320,001,000 Non-Current Assets Investment Properties 822,000 752,000 Ne

  19. Slide 19: Debt Profile

    PRIVATE & CONFIDENTIAL 19 Debt Profile Debt Profile for FY 2011 Debt Expiry Profile As at 31 December 2011 Debt Information As at 31 December 2011 450 400 RM million  Total Debt: RM363.48 million 350 300  Weighted Cost of Debt: 4.2% 250 200  Gearing Ratio1: 41.9% 150 100  Interest Cover2: 7.8 50

  20. Slide 20: Subang Parade remains Hektar REIT's flagship shopping centre

    PRIVATE & CONFIDENTIAL 20 Centre Breakdown Subang Parade remains Hektar REIT’s flagship shopping centre Revenue By Property Net Property Income (NPI) By Property FY 2011 FY 2010 Change FY 2011 FY 2011 FY 2010 Change FY 2011 By Property RM Mn RM Mn FY11 v FY10 Share By Property RM Mn RM Mn FY11 v FY1

  21. Slide 21: Hektar REIT Valuations

    PRIVATE & CONFIDENTIAL 21 Valuation Hektar REIT Valuations Stable Net Asset Value Audited Book Acquisition / Unaudited Book Latest Market Revaluation Value (Divestment) / Capital Value Share Property Valuation Surplus 1 Jan 2011 Expenditure in 2011 as at 31 Dec 2011 (%) RM ('000) RM ('000) RM ('000)

  22. Slide 22: Creating The Places Where People Love To Shop

    PRIVATE & CONFIDENTIAL 22 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 6201 1011  Fax: +6 03 6201 0012  Web: www.HektarREIT.com Please visit our webs

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