Hektar Real Estate Investment Trust · MYX:HEKTAR
Hektar Real Estate Investment Trust — Q2 2022 Earnings Presentation
24 slides from Hektar Real Estate Investment Trust's earnings presentation, Aug 29, 2022
Slide 1: Hektar Real Estate Investment Trust 2Q 2022 Results Presentation
Creating The Places People Love HEKTAR REAL ESTATE INVESTMENT TRUST 2Q 2022 RESULTS PRESENTATION 29 August 2022
Slide 2: Hektar REIT: Malaysia's First Retail-Focused REIT
Hektar REIT: Malaysia’s First Retail-Focused REIT 2 ORGANISATION DIVERSIFICATION STRATEGIC PARTNER UNITHOLDERS Frasers Centrepoint Strategic Partner MANAGER TRUSTEE Hektar Asset MTrustee Bhd Management Sdn Bhd PROPERTY MANAGER Hektar Property HEKTAR PORTFOLIO Services Sdn Bhd DISCLAIMER: The materia
Slide 3: Table of Contents
Table of Contents 01 Key Highlights 02 Financial Performance 03 Portfolio Updates 04 Sustainability 05 Key Takeaways
Slide 4: Key Highlights 2Q 2022
KEY HIGHLIGHTS 2Q 2022 POSITIVE OUTLOOK WITH IMPROVEMENT IN OVERALL PERFORMANCE & RECOGNITION FOR ENHANCED ESG PRACTICES FINANCIAL • Revenue is higher by 14% • NPI up by 34%. • Realized Income up by 317%. • Interim income distribution of 2.70 sen declared, translating to annualised dividend yield of
Slide 5: Financial Performance
5 Financial Performance Mahkota Parade, Melaka
Slide 6: Financial Highlights
Financial Highlights 6 Second Quarter 2022 (2Q22) First Half 2022 (1H22) April-June 2022 | 3 Months RM '000 Jan-June 2022 | 6 Months RM '000 ▲ 14.2% ▲ 11.4% 70,000 35,000 1H22 2Q22 29,372 60,000 1H21 58,488 30,000 2Q21 52,491 25,710 50,000 25,000 ▲ 24.8% 20,000 ▲ 34.3% 40,000 1H22 2Q22 1H21 30,334 ▲
Slide 7: Debt Profile
Debt Profile 7 EXPIRY PROFILE 2022-2026 DEBT SUMMARY June 2022 RM million RM563.0 million 83.1% Total Debt 500.0 468.0 [FY2021: RM581.1 million] 400.0 300.0 3.35% Effective Cost [FY2021: 3.27%] 200.0 8.9% 5.3% 100.0 2.7% 50.0 15.0 30.0 46.7% 0.0 Gearing Ratio1 2022 2024 2025 2026 [FY2021: 47.2%] ▪ T
Slide 8: Hektar REIT's fund size remained at 471,260,178 units
Hektar REIT’s fund size remained at 471,260,178 units 8 DETAILS OF CORPORATE PROPOSAL Private placement of up to 23,098,000 new units in Hektar REIT, representing up Details of corporate proposal to 5% of its total issued units ("Private Placement") No. of shares issued under this corporate proposal
Slide 9: Comparative 6-Months Price Performance Trend
Comparative 6-Months Price Performance Trend 9 30.00% Discount to NAV: 50.9% NAV per unit (as at 30 June): RM1.18 NAV per unit (after distribution): RM1.15 20.00% FBM KLCI 10.00% REIT Index Hektar REIT 0.00% -10.00% Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 PERFORMANCE STATISTICS TOTAL RETURN Openin
Slide 10: Portfolio Updates
10 Portfolio Updates Asiari @ Subang Parade, Subang Jaya
Slide 11: Portfolio Highlights
Portfolio Highlights 11 OCCUPANCY RATE ▲ 0.2% in 2Q 2022 • Stable occupancy rate of 84.8% as at June 2022. 84.8% • Historically, our occupancy rate has been maintained at 84% and above since inception of Hektar REIT in 2006. 84.6% • Occupancy rate will continue to increase in tandem with the growth
Slide 12: Portfolio Highlights
Portfolio Highlights 12 FOOTFALL ▲ 58% in 2Q 2022 ▲ 24% in 1H 2022 ('000) ('000) • Higher footfall y-o-y 9,410 6,000 10,000 2Q: 58% ▲ [1H: 24% ▲]. 5,193 5,000 7,572 • Gradual improvement in 8,000 footfall i.e. 64% towards pre- 4,000 3,294 6,000 pandemic levels. 3,000 4,000 • To enhance mall activiti
Slide 13: Tenancies expiry well distributed
Tenancies expiry well distributed 13 • 599,068 sq. ft. or about 29.3% of total NLA expiring in 2022. • Overall, a total of 82 tenancies covering 187,221 sq. ft. have been renewed as at 30 June 2022, representing 9.2% of total NLA. PORTFOLIO TENANCY EXPIRY PROFILE 2022-2025 1 2 % of Total NLA % of To
Slide 14: Classic Hotel: Significant Improvements in Overall Occupancy & ARR
Classic Hotel: Significant Improvements 14 in Overall Occupancy & Average Room Rate (ARR) • Overall Occupancy Rate for 1H2022 increased to 44% from 17% for 1H2021. • ARR increased by about 10% to RM138.54 from RM128.80. 60% 150.00 145.00 50% 140.00 40% Occupancy Rate (%) 135.00 ARR (RM) 30% 130.00 1
Slide 15: Refreshed retail offerings at Hektar Malls
Refreshed retail offerings at Hektar Malls 15 Asiari, Subang Parade Johnson Fitness, Subang Parade Rollney, Mahkota Parade Osim, Wetex Parade Mi Store, Wetex Parade Samsung Store, Segamat Central Machines, Central Square Daboba Go, Kulim Central
Slide 16: Marketing campaigns and initiatives
Marketing campaigns and initiatives 16
Slide 17: Sustainability
Sustainability Hektar REIT awarded “Company of the Year for Stakeholder & Community Engagement Initiatives” @ The Sustainability & CSR Malaysia Awards 2022
Slide 18: Hektar REIT Awarded Company of the Year for Stakeholder & Community Engagement
Hektar REIT Awarded “Company of the Year for 18 Stakeholder & Community Engagement Initiatives” at the Sustainability & CSR Malaysia Awards 2022 held on 18 August 2022. Hektar continuously undertakes various initiatives for the underprivileged or vulnerable groups. Continuously engage with the commu
Slide 19: Hektar REIT Awarded for Its ESG's Commitment
Hektar REIT Awarded for Its ESG’s Commitment 19 Hektar REIT has achieved an upgraded Environmental, Social and Governance (ESG) rating of 4-star on the FTSE4Good Bursa Malaysia Index (F4GBMI) in the latest June 2022 evaluation. Reducing carbon Energy optimization initiatives since 2017 for all Hekta
Slide 20: Social: CSR Activities
Social: CSR Activities 20 Program Ziarah Ramadhan In conjunction with their Raya Campaign, Segamat Central donated 10 grocery bags of daily necessities to OKU students and their families along with some duit raya for them to celebrate Hari Raya Aidilfitri. Bubur Lambuk Giveaway Following the end of
Slide 21: Social: CSR Activities
Social: CSR Activities 21 JCI Malacca City Entrepreneur (MCE) Little Boss Carnival 4.0 To provide solutions on the financial illiteracy among the society for young children aged 5 - 12 years old, JCI MCE successfully held their flagship event, Little Boss Carnival 4.0 at Mahkota Parade. Re-fabricate
Slide 22: Key Takeaways
22 Key Takeaways Mahkota Parade, Melaka
Slide 23: Key Takeaways
Key Takeaways 23 Summary Moving Forward • 2Q22 Revenue & NPI increased by 14.2% and 34.3% y-o-y respectively. • Adopting prudent financial management, cost Asset • 2Q22 Realised Net Income higher by optimization initiatives, and enhancing our asset relevancy Enhancement & efficiencies to ensure sust
Slide 24: Investor Communications
Creating The Places People Love Investor Communications Hektar Asset Management Sdn Bhd D1-U3-10, Solaris Dutamas No. 1, 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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