Hektar Real Estate Investment Trust · MYX:HEKTAR
Hektar Real Estate Investment Trust — Q3 2021 Earnings Presentation
37 slides from Hektar Real Estate Investment Trust's earnings presentation, Nov 26, 2021
Slide 1: Hektar Real Estate Investment Trust 3Q 2021 Results Presentation
Creating The Places People Love HEKTAR REAL ESTATE INVESTMENT TRUST 3Q 2021 RESULTS PRESENTATION 26 November 2021
Slide 2: Hektar REIT: Malaysia's First Retail-Focused REIT
Hektar REIT: Malaysia’s First Retail-Focused REIT 2 Organisation Diverse Portfolio 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 mater
Slide 3: Contents
Contents 3 1 3Q21 Overview 2 Portfolio Performance 3 Financial Results 4 Portfolio Updates 5 Sustainability 6 Prospects
Slide 4: 3Q21 Overview
3Q21 Overview Koi Thé @ Mahkota Parade, Bandaraya Melaka, Melaka
Slide 5: 3Q21 Material Events
3Q21 Material Events 5 Malaysia’s National Recovery Plan Hektar REIT's shopping malls have complied and continue to observe the Government and regulatory directives during the various Movement Control Order ("MCO") periods. The Government announced a four-phase National Recovery Plan (“NRP”) with ke
Slide 6: Performance Summary Third Quarter 2021
Performance Summary 6 Third Quarter 2021 (3Q21): July – September 2021 / 3 Months Financial Performance Gross Revenue for 3Q21 decreased by 26% or RM6.9 million in tandem with the decrease of 72% in footfall experienced by all malls. This was partially mitigated by a lower direct cost of 33% or RM4.
Slide 7: Portfolio Performance
Portfolio Performance Overall Occupancy at ~86% ► Rental Reversions -12% for 3Q21 ► Expiry Profile: 23% NLA expires in 2021 ► Subang Parade, Subang Jaya, Selangor Disclaimer: Picture was taken in 2019 before the COVID-19
Slide 8: Portfolio Occupancy
Portfolio Occupancy 8 Average portfolio occupancy has increased by 1% as compared to the preceding quarter to 85.6%. This slight increase is mainly due to the reopening of the economy as part of Malaysia’s National Recovery Plan (NRP), with Melaka, Selangor, Johor and Kedah entering Phase 2 in Septe
Slide 9: Portfolio Occupancy
Portfolio Occupancy 9 Subang Parade and Central Square’s occupancy rose by 0.6% and 7.6% respectively. Kulim Central’s occupancy remain strong at above 90%. Other malls experienced a slight decrease in occupancy due to the closure of economic sectors and physical stores during the Movement Control O
Slide 10: Rental Reversions
Rental Reversions 10 Third Quarter ▲ 1.9% Rental Reversions at -12.3% Key Renewed Tenants: Texas Chicken, 25 renewed tenancies consisting of 8.4% of total NLA. Case Zone, Black Fashion Overall reversions were negative due to negative ▼ -0.1% reversions at all malls except for Kulim Central. Key
Slide 11: Expiry Profile
Expiry Profile 11 Tenancy Expiry for Portfolio 2021-2024 A total of 195 tenancies are expiring in FY2021 which represents 463,643 sq. ft. or about 22.7% of total NLA. Overall, a total of 25 tenancies covering 171,739 sq. ft. has been renewed as at Year-to-Date (YTD) September 2021, representing
Slide 12: Expiry Profile
Expiry Profile 12 % of Total NLA % of Total Monthly Rental Income* 35.5% 31.9% 30.7% 27.2% 19.3% 16.0% 14.2% 10.3% 2021 2022 2023 2024 37.2% 34.5% 29.3% 28.4% 25.5% 21.4% 4.2% 5.0% 2021 2022 2023 2024 58.9% 42.9% 29.7% 13.0% 15.7% 12.6% 11.6% 5.3% 2021 2022 2023 2024 *Based on monthly rental income
Slide 13: Expiry Profile
Expiry Profile 13 % of Total NLA % of Total Monthly Rental Income* 48.7% 42.5% 19.2% 16.8% 15.6% 12.9% 12.7% 15.3% 2021 2022 2023 2024 44.6% 34.2% 30.9% 25.6% 21.3% 15.4% 14.3% 7.4% 2021 2022 2023 2024 63.1% 49.3% 23.6% 17.9% 13.4% 7.8% 2021 2022 2023 *Based on monthly rental income for June 2021. F
Slide 14: Financial Results
Financial Results 3Q21 Revenue lower by 26% ► 3Q21 Net Property Income lower by 20% ► 97% of Debt expires in 2024-2026 ► Central Square, Sungai Petani, Kedah Disclaimer: Picture was taken in 2019 before the COVID-19
Slide 15: Income Statement: Quarter Comparative
Income Statement: Quarter Comparative 15 Income Statement 3Q21 3Q20 Variance Third Quarter 2021 (Unaudited) (RM '000) (RM '000) (%) Revenue 1 19,129 26,005 -26.4% Direct cost & Property expenses 2 (8,794) (13,077) 32.8% Net property income (NPI) 10,336 12,928 -20.1% Interest & Other income 345 191 8
Slide 16: Balance Sheet
Balance Sheet 16 Balance Sheet As at 30.09.2021 As at 31.12.2020 (Unaudited) (RM '000) (RM '000) Non-Current Assets Unit Price Statistics Investment properties 1,207,000 1,207,000 As at 30 September 2021 Plant & Equipment 74 91 No. of Units Capital work In progress 1,684 1,380 461,960,178 Fixed depo
Slide 17: Debt Profile
Debt Profile 17 Debt Summary September 2021 Facilities Facilities Al-Murabahah Overdraft (MOD) Term Financing (TF) Short-Term Revolving Credit (STRC) Financiers : Maybank, CIMB Total Debt : RM581.1 million Cost Structure : Cost of Funds + (1.00%-1.50%) Weighted Cost : 3.26% Gearing Ratio1 : 45
Slide 18: Unit Price 9M Performance
Unit Price 9M Performance 18 Comparative 9M Price Performance 10.00% %Change 5.00% 0.00% -5.00% HEKTAR REIT -10.00% REIT Index -15.00% FBM KLCI Jan'21 Feb'21 Mar'21 Apr'21 May'21 Jun'21 Jul'21 Aug'21 Sep'21 Performance statistics Total Return Opening Unit Price (4 Jan 2021) : RM0.63 Unit Price Chang
Slide 19: Portfolio Updates
Portfolio Updates Kulim Central, Kulim, Kedah Disclaimer: Picture taken in 2019 before the COVID-19 pandemic
Slide 20: Original Classic opened at Subang Parade
Portfolio Updates 20 Original Classic (Lot F36) opened at Subang Parade on 25 September 2021
Slide 21: Marketing Activities
Marketing Activities 21 For the convenience of our shoppers, we are offering curbside pickup by participating stores and ”Pickup -n- Go” restaurants at the mall entrances for shoppers to collect their purchases and orders. Mahkota Parade held a Mid-Autumn Lantern Making Competition to celebrate the
Slide 22: Marketing Activities: Merdeka Campaign
Marketing Activities 22 Merdeka Campaign Merdeka was celebrated at the malls with photography contests and giveaways.
Slide 23: Marketing Activities: Welcome Back Campaign
Marketing Activities 23 Welcome Back campaign offered shoppers the chance to win vouchers and prizes Welcome Back Campaign through the "Spin & Win" contest or by sharing the campaign post on social media.
Slide 24: Sustainability
Sustainability Village Grocer @ Subang Parade, Subang Jaya, Selangor
Slide 25: Climate Change Management
Climate Change Management 25 Hektar REIT is committed towards ensuring that our business activities are performed to high standards of environmental, social and governance conduct. We have put in place various energy utilisation and optimisation initiatives since 2017 for all our shopping malls and
Slide 26: Climate Change Management
Climate Change Management 26 Data on our Scope 2 GHG emissions (recorded as CO2e1) as well as energy consumption for the past five years has been collected to facilitate regular monitoring with the intention of establishing long-term targets. Our Scope 2 emissions are as follows: Scope CO2e Emitted
Slide 27: Energy Consumption Management
Energy Consumption Management 28 5-Year Total Electricity Consumption and Building Energy Intensity (BEI) 60,000 14.00 11.88 12.00 50,000 9.81 9.46 10.00 Usage (kWh) ('000) 40,000 BEI (kWh/Sq. ft.) 7.62 8.00 30,000 4.85 6.00 20,000 4.00 10,000 2.00 48,684,551 44,981,988 43,374,532 34,951,734 22,257,
Slide 28: CSR Activities
CSR Activities 30 As an ongoing initiative to reduce textile waste, Subang Parade has partnered with DRB- “Re-Fabricate Recycle” HICOM and Kloth Cares in offering shoppers the chance to recycle their unwanted clothes or fabric at the Kloth Bin located in Subang Parade’s basement carpark since May 20
Slide 29: CSR Activities
CSR Activities 31 Subang Parade has set up a food bank/essential item counter for the public to “Let’s Share because We Care” donate amidst the pandemic, a collaborative effort with YB Michelle Ng Sze, the ADUN of Subang Jaya. As of to date, The items collected from the food bank has been distribute
Slide 30: CSR Activities
CSR Activities 32 In Central Square, a foodbank area was launched in July for the residents and community of “Jom Kongsi Dengan Sungai Petani, Kedah. Basic food and daily necessities can be donated and those who were in Keikhlasan” need were encouraged to take from the foodbank (view here on Faceboo
Slide 31: CSR Activities
CSR Activities 33 Several blood donation campaigns were organised throughout July to September by Wetex Parade, Central Blood Donation Square, Kulim Central and Segamat Central.
Slide 32: CSR Activities
CSR Activities 34 A Malaysia Day Charity Program held by Central Square in collaboration with Jabatan Bomba & Amal Hari Malaysia Penyelamat Negeri Kedah through the contributions of shoppers (view here on Facebook). 50 baskets of food were donated to taxi drivers around Kuala Muda at Central Square’
Slide 33: Prospects
Prospects Ipoh Bowl @ Central Square, Sungai Petani, Kedah
Slide 34: Prospects
Prospects 36 The Malaysian economy contracted by 4.5% in the third quarter of 2021 (2Q 2021: +16.1%)*. This was largely attributable to the strict containment measures, particularly in July, under Phase 1 of the National Recovery Plan (“NRP”). Economic activity subsequently picked up as more states
Slide 35: Corporate Proposal
Corporate Proposal Segamat Central, Segamat, Johor Disclaimer: Picture taken in 2019 before the COVID-19 pandem
Slide 36: Corporate Proposal
Corporate Proposal 38 The Manager had on 15 November 2021 made an announcement to Bursa Malaysia that Hektar REIT proposes to undertake a private placement of up to 23,098,000 new units of Hektar REIT (“Proposed Private Placement)”, representing up to 5% of its total issued Units of 461,960,178 Unit
Slide 37: Creating The Places People Love
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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