Hektar Real Estate Investment Trust · MYX:HEKTAR
Hektar Real Estate Investment Trust — Q1 2020 Earnings Presentation
19 slides from Hektar Real Estate Investment Trust's earnings presentation, May 22, 2020
Slide 1: Hektar Real Estate Investment Trust 1Q 2020 Results Presentation
Creating The Places People Love HEKTAR REAL ESTATE INVESTMENT TRUST 1Q 2020 RESULTS PRESENTATION 22 May 2020
Slide 2: Hektar REIT – Malaysia's First Retail-Focused REIT
Hektar REIT – Malaysia’s First Retail-Focused REIT 2 Organisation Diverse Portfolio CORNERSTONE UNITHOLDERS Frasers Centrepoint Strategic Partner MANAGER TRUSTEE Hektar Asset MTrustee Bhd Management Sdn Bhd PROPERTY MANAGER HEKTAR PORTFOLIO Hektar Property Services Sdn Bhd DISCLAIMER: The material t
Slide 3: COVID-19 Impact
COVID-19 Impact 3 Government Movement Control Order (MCO) Impact for 1Q2020 ▪ MCO Start: 18 March • Mandatory government order designed to minimise spread of COVID-19 • Only essential services open (supermarkets, pharmacies, food supply, others) ▪ Conditional MCO Start: 4 May • All other tenants cat
Slide 4: Financial Summary
Hektar REIT Financial Summary 4 First Quarter 2020 (1Q20) January – March 2020 / 3 Months Financial Performance vs. Previous Period 1Q20 Gross Revenue: RM30.7 million, -7.9% 1Q20 Net Property Income: RM15.7 million, -15.4% 1Q20 Realised Income: RM7.1 million, -20.6% New Financier: CIMB refinanced Ce
Slide 5: Dividend Policy
Dividend Policy 5 Hektar REIT Dividend Deferment during Moratorium Period ▪ Hektar REIT granted temporary deferment of interest / profit payment on financing facilities by Malayan Banking Berhad and Maybank Islamic Berhad ▪ Moratorium Period for 6 months from 1 April to 30 September 2020 ▪ Condition
Slide 6: Portfolio Performance
Overall Occupancy at ~91.3% ► Rental Reversions -30% for 1Q20 ► Expiry Profile: 33% NLA expires in 2020 ► Portfolio Performance
Slide 7: Portfolio Occupancy
Hektar REIT Portfolio Occupancy 7 Average portfolio occupancy steady at 91.3% Portfolio Occupancy 2007- 1Q 2020 Property '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '1Q20 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% 88.3% Mahkota Parade 96.5% 93.6% 96.1
Slide 8: Portfolio Occupancy
Hektar REIT Portfolio Occupancy 8 Subang Parade and Segamat Central occupancy still fluctuating due to Asset Enhancement planning & repositioning ▪ Portfolio Average at 91.3% for 1Q 2020
Slide 9: Rental Reversions
Hektar REIT Rental Reversions 9 First Quarter Rental Reversions negative (-30.0%) 12.1% ▪ Positive reversions for all 3 tenants ▪ Represented by 5.1% of NLA ▪ Weighed down by Subang Parade due to planning and positioning for new mini-anchors 7.9% ▪ Positive reversion were recorded for Wetex ▪ Only 2
Slide 10: Expiry Profile
Hektar REIT Expiry Profile 10 Tenancy Expiry by Property Period End Tenancies Expiring NLA Expiring NLA as % of Monthly Mar Expiring (sq ft) % of Total NLA Rental Income* 2020 52 121,641 23% 36% 2021 30 211,640 41% 41% 2022 32 101,053 19% 23% 2023 1 26,375 5% 0% Period End Tenancies Expiring NLA Exp
Slide 11: Expiry Profile
Hektar REIT Expiry Profile 11 Tenancy Expiry by Property Period End Tenancies Expiring NLA Expiring NLA as % of Monthly Mar Expiring (sq ft) % of Total NLA Rental Income* 2020 25 49,637 16% 23% 2021 20 188,179 61% 60% 2022 8 39,887 13% 16% 2023 1 468 0% 1% Period End Tenancies Expiring NLA Expiring
Slide 12: Expiry Profile
Hektar REIT Expiry Profile 12 Tenancy Expiry for Portfolio 2020-2023 ▪ For FY 2020, the total amount of tenancies due for expiry was 205 which represented 680,602 sq. ft. or 33% of Total NLA. ▪ For 1Q 2020, a total of 28 tenancies covering 103,307 sq. ft. were renewed, representing 5.1% of Total NLA
Slide 13: Financial Results
1Q20 Revenue fell 7.9% from preceding period ► 1Q20 Net Property Income lower by 15.4% ► Financing Renewed: 92% of Debt expires in 2024-2025 ► Financial Results
Slide 14: Income Statement: Quarter Comparative
Hektar REIT Income Statement: Quarter Comparative 14 The Movement Control Order has impacted operations ▪ Revenue slightly down by 7.9% ▪ Net Property Income lower by 15.4% Income Statement 1Q20 1Q19 Variance First Quarter 2020 (unaudited) (RM '000) (RM '000) (%) Revenue 30,714 33,349 -7.9% Direct C
Slide 15: Balance Sheet
Hektar REIT Balance Sheet 15 Balance Sheet As at 31.3.2020 As at 31.12.2019 (Unaudited) (RM '000) (RM '000) Unit Price Statistics Non-Current Assets As at 31 March 2020 Investment Properties 1,236,500 1,236,500 Plant & Equipment 99 113 No. of Units Capital Work in Progress 1,486 1,158 461,960,178 Fi
Slide 16: Debt Profile
Hektar REIT Debt Profile 16 Hektar granted temporary deferment of interest / profit payment on financing facilities by Maybank from April to September 2020 Debt Summary March 2020 Facilities Amount % Total ▪ Facilities: Al-Murabahah, Term Loan (TL), # Facility (RM'000) Debt Security Expiry Cost Shor
Slide 17: Portfolio Updates
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Slide 18: Outlook 2H 2020
Outlook 2H 2020 18 Comprehensive Plan post-MCO ▪ Public Health Initiatives: health checks and monitoring of traffic at key entry points ▪ Social Distancing Measures: applied to all applicable businesses ▪ Marketing: Recovery campaigns shift to sales-focused tenant promotions ▪ Subang Parade: Superma
Slide 19: 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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