Hektar Real Estate Investment Trust · MYX:HEKTAR

Hektar Real Estate Investment Trust — FY2009 Earnings Presentation

27 slides from Hektar Real Estate Investment Trust's earnings presentation, Feb 2, 2010

  1. Slide 1: Hektar REIT Financial Year 2009 Financial Results Presentation

    HEKTAR REAL ESTATE INVESTMENT TRUST FINANCIAL YEAR 2009 FINANCIAL RESULTS PRESENTATION 2 FEBRUARY 2010 HEKTAR ASSET MANAGEMENT SDN BHD

  2. Slide 2: Disclaimer / About Hektar

    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 2009 (FY09) 1 January 2009 – 31 December 2009 Twelve (12) months Commentary ƒ FY09 Dividend Per Unit: 10.30 sen ƒ Income Stability & Growth Trend Since IPO ƒ Mahkota Parade refurbishment limited financial impact on FY09 Operational & Financia

  4. Slide 4: Hektar REIT Core Earnings Positive

    PRIVATE & CONFIDENTIAL 4 Financial Summary Hektar REIT Core Earnings g Positive FY09 FY08 FY07 12 months 12 months 13 months Nett IIncome ‐ Realised N R li d (RM '000) 36,736 36 736 36,238 36 238 36,682 36 682 Hektar REIT Fair Value Gain on Investment Properties 401 24,115 43,842 Portfolio Valuation

  5. Slide 5: Hektar REIT Annual DPU Growth Positive Since IPO

    PRIVATE & CONFIDENTIAL 5 Distribution Details Hektar REIT Annual DPU Growth Positive Since IPO Current Dividend Distribution Details Final Dividend 2009 ƒ Distribution Di t ib ti P Period: i d 1OOctober t b – 31 DDecember b 2009 ƒ Quarterly DPU: 3.10 sen ƒ Notice of Entitlement: 2 February 2010 ƒ Ex

  6. Slide 6: Hektar REIT DPU Dividend Yield at annualised 9.2%

    PRIVATE & CONFIDENTIAL 6 Comparative Yields - Malaysia Hektar REIT DPU Dividend Yield at annualised 9.2% ƒ Traded at a 493 bps spread over MGS 10-year Hektar REIT Unit Price Change Hektar REIT Comparative Yields FY2009 (12 months) Unit Price RM 1.12 31 December 2009 493 bps spread 1 Jan 31 Dec YTD +

  7. Slide 7: Portfolio Performance

    PRIVATE & CONFIDENTIAL 7 Portfolio Performance Overall Occupancy at ~95.8% ► Diversified Portfolio Tenancy Mix ► Visitor Traffic to Portfolio Hits 21.3 million ► Top Ten Tenants Contribute 27 27.2% 2% of Monthly Rental Income ► Rental Reversions down 5% for FY2009 ► Tenancy Expiry Profile by Propert

  8. Slide 8: Overall Portfolio Occupancy at ~95.8%

    PRIVATE & CONFIDENTIAL 8 Hektar REIT Portfolio - Occupancy Overall Portfolio Occupancy at ~95.8% Hektar REIT Portfolio Occupancy As at 31 As at 31 As at 31 As at 30 As at 31 As at 31 As at 31 December December December September December December December Property 2003 2004 2005 2006 2007 2008 2009

  9. Slide 9: Hektar REIT Properties Recorded 21.3 million Visits in 2009

    PRIVATE & CONFIDENTIAL 9 Hektar REIT Portfolio – Visitor Traffic Hektar REIT Properties Recorded 21.3 million Visits in 2009 ƒ Tracked by Footfall, camera-based system installed in each centre ƒ Subang Parade traffic up 1.8% over previous year ƒ Mahkota Parade traffic down 5.3% over previous year, i

  10. Slide 10: Diversified Tenant Mix Portfolio

    PRIVATE & CONFIDENTIAL 10 Hektar REIT Portfolio – Tenant Mix Diversified Tenant Mix Portfolio ƒ Fashion, Footwear, F&B are largest sectors within overall portfolio Hektar Portfolio Tenant Mix Key / Legend By Rental Income* By NLA Subang Parade Tenant Mix Mahkota Parade Tenant Mix Wetex Parade Tenant

  11. Slide 11: Top Ten Tenants Contribute 27.2% of Monthly Rental Income

    PRIVATE & CONFIDENTIAL 11 Hektar REIT Portfolio – Tenant Diversity Top Ten Tenants Contribute 27.2% of Monthly Rental Income ƒ Default Risk: Parkson contributes ~11.1% of total monthly rental income to Hektar REIT and no other tenant contributes more than ~3.0% Hektar REIT Top Ten Tenants by Monthly

  12. Slide 12: Rental Reversions down 5% for the year

    PRIVATE & CONFIDENTIAL 12 Hektar REIT Portfolio – Rental Reversions Rental Reversions down 5% for the year ƒ 4Q 09: 30 new tenancies / renewals at an average 8% lower rental rate ƒ Mahkota Parade rental reversions impacted by refurbishment exercise ƒ Year-To-Date rental reversions at -5% Hektar REIT

  13. Slide 13: Hektar REIT Tenancy Expiry Profile by Property

    PRIVATE & CONFIDENTIAL 13 Hektar REIT Portfolio – Tenancy Expiry Profile Hektar REIT Tenancy Expiry Profile by Property Hektar REIT Tenancy Expiry Profile by Property As At 31 December 2009 Subang Parade No. of NLA of Tenancies NLA of Tenancies % of Total For Year Ending Tenancies Expiring Expiring

  14. Slide 14: Tenancy Portfolio Expiry Profile 2010 – 2013

    PRIVATE & CONFIDENTIAL 14 Hektar REIT Portfolio – Tenancy Expiry Profile Tenancy Portfolio Expiry Profile 2010 – 2013 ƒ FY2010 tenancy expiries account for approximately 28% of monthly rental income* Hektar REIT Tenancy Expiry Profile – Overall Portfolio As At 31 December 2009 Portfolio No. of NLA o

  15. Slide 15: Hektar REIT Portfolio Tenancy Provisions in 2009

    PRIVATE & CONFIDENTIAL 15 Hektar REIT Portfolio – Tenancy Provisions Hektar REIT Portfolio Tenancy Provisions in 2009 ƒ Turnover Rent provisions present in 91% of all tenancies ƒ Step-Up Rent provisions present in 75% of all tenancies Hektar REIT Tenancy Provisions Hektar REIT Tenancy Provisions Tur

  16. Slide 16: Financial Results

    PRIVATE & CONFIDENTIAL 16 Financial Results Gross Revenue up 16.4 over Budget ► Fourth Quarter 2009 Net Income exceeds Budget by 17.1% ► Fourth Quarter 2009 Net Income up 7.7% from previous quarter ► FY2009 Net Income up from previous period by 1 1.4% 4% ► Hektar REIT trading at a 13% discount to NA

  17. Slide 17: Gross Revenue up 16.4% over Budget

    PRIVATE & CONFIDENTIAL 17 Revenues & Expenses Gross Revenue up 16.4% over Budget For Period 1 October – 31 December 2009 Revenue & Expense Actual Budget Variance Fourth Quarter 2009 (Unaudited) (RM '000) (RM '000) (%) Rental R t l Income I Revenue from Tenancy 19,670 16,908 + 16.3% Car Park 1,860 1,

  18. Slide 18: Fourth Quarter '09 Net Income exceeds Budget by 17.1%

    PRIVATE & CONFIDENTIAL 18 Income Statement – Quarter Fourth Quarter ‘09 Net Income exceeds Budget by 17.1% For Period 1 October – 31 December 2009 (versus Budget) Income Statement Actual Budget Variance Fourth Quarter 2009 (Unaudited) (RM '000) (RM '000) (%) Revenue 21,530 18,496 + 16.4% Direct Cost

  19. Slide 19: Fourth Quarter '09 Net Income up 7.7% vs previous quarter

    PRIVATE & CONFIDENTIAL 19 Income Statement – Quarter Comparative Fourth Quarter ‘09 Net Income up 7.7% vs previous quarter For Period 1 October – 31 December 2009 (versus previous comparable period) Income Statement 4Q09 4Q08 Variance Fourth Quarter 2009 (Unaudited) (RM '000) (RM '000) (%) Revenue 2

  20. Slide 20: FY2009 Net Income up 23.8% over budget

    PRIVATE & CONFIDENTIAL 20 Income Statement – FY2009 FY2009 Net Income up 23.8% over budget For Period 1 January – 31 December 2009 (versus previous comparable period) Income Statement YTD Actual YTD Budget Variance Year‐To‐Date 2009 ((Unaudited)) ((RM '000)) ((RM '000)) ((%)) Revenue 87,712 72,247 +

  21. Slide 21: FY2009 Net Income up 1.4% over previous year

    PRIVATE & CONFIDENTIAL 21 Income Statement – FY2009 Comparative FY2009 Net Income up 1.4% over previous year For Period 1 January – 31 December 2009 (versus previous comparable period) Income Statement FY09 FY08 Variance Year‐To‐Date 2009 (Unaudited) (RM '000) (RM '000) (%) Revenue 87,712 84,092 + 4

  22. Slide 22: Hektar REIT trading at a 13% discount to NAV as at end FY09

    PRIVATE & CONFIDENTIAL 22 Balance Sheet Hektar REIT trading at a 13% discount to NAV as at end FY09 Balance Sheet As at 31.12.2009 As at 31.12.2008 Unit Price Statistics in RM '000 (Unaudited) (Audited) As at 31 December 2009 Non‐Current Assets No. of Units Outstanding p Investment Properties 720,00

  23. Slide 23: Hektar REIT Debt Profile

    PRIVATE & CONFIDENTIAL 23 Hektar REIT Debt Profile Debt Profile for FY2010 Debt Information Debt Expiry Profile As at 31 December 2009 As at 31 December 2009 ƒ Total Debt: RM334 million ((RM mn)) ƒ Weighted Cost of Debt: 3.28% RM million ƒ Gearing Ratio1: 43% ƒ Interest Cover2: 4.08 ƒ Unencumbered A

  24. Slide 24: Subang Parade remains Hektar REIT's flagship shopping centre

    PRIVATE & CONFIDENTIAL 24 Centre Breakdown Subang g Parade remains Hektar REIT’s flagship g p shopping pp g centre Revenue By Property Net Property Income (NPI) By Property FY 2009 FY 2008 Change FY 2009 FY 2009 FY 2008 Change FY 2009 Byy Property p y RM Mn RM Mn FY09 v FY08 Share Byy Property p y R

  25. Slide 25: Hektar REIT Valuation Stable

    PRIVATE & CONFIDENTIAL 25 Valuation Hektar REIT Valuation Stable No material impact on Net Asset Value following Revaluation Audited Book Unaudited Acquisition / Capital Book Value Revaluation Revaluation Value Share Change Property Expenditure in 2009 as at 31 D Dec 30 Oct 2009 Surplus 31 Dec 2008

  26. Slide 26: Mahkota Parade Refurbishment Update

    PRIVATE & CONFIDENTIAL 26 Mahkota Parade Refurbishment Mahkota Parade Refurbishment Update ƒ Refurbishment on Track ƒ Positive Retailer & Customer Feedback ƒ Phase 1 & 2: Central Area & West Wing Complete ƒ Phase 3: January 2010 – April 2010 Second Floor Carpeted Area Areas: External Car Park, Front

  27. Slide 27: Contact

    PRIVATE & CONFIDENTIAL 27 Contact “Creating Creating The Places Where People Love To Shop” Shop Investor Relations Hektar Asset Management Sdn Bhd Block C‐0‐5, Plaza Damas 60 Jalan Sri Hartamas 1 Sri Hartamas 50480 Kuala Lumpur MALAYSIA ℡ +6 03 6201 1011 +6 03 6201 0012 www.HektarREIT.com Please vis

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