Hektar Real Estate Investment Trust · MYX:HEKTAR
Hektar Real Estate Investment Trust — Q1 2019 Earnings Presentation
29 slides from Hektar Real Estate Investment Trust's earnings presentation, May 23, 2019
Slide 1: Hektar REIT 1Q 2019 Results Presentation
Creating The Places People Love HEKTAR REAL ESTATE INVESTMENT TRUST 1Q 2019 RESULTS PRESENTATION 23 May 2019
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: Financial Summary
Hektar REIT Financial Summary 3 First Quarter 2019 (1Q19) January – March 2019 / 3 Months Dividend Per Unit Financial Performance vs. Previous Period 1Q 2019 : 1.93 sen 2Q 2019 :- 1Q19 Gross Revenue: RM33.3 million, -1.8% 3Q 2019 :- 1Q19 Realised Income: RM8.9 million, -14.4% 4Q 2019 :- Net Property
Slide 4: Dividend Details
Hektar REIT Dividend Details 4 Distribution Details First Quarter 2019 Distribution Period: 1 January 2019 – 31 March 2019 Quarterly DPU: 1.93 sen Notice of Entitlement: 23 May 2019 Ex-Dividend Date: 10 June 2019 Book Closure Date: 11 June 2019 Payment Date: 10 July 2019 Note: FY07 represented a 13-
Slide 5: Comparative Yield
Comparative Yield 5 Hektar REIT offers a competitive 6.8% dividend yield for 1Q 2019 ▪ Dividend Yield based on annualised DPU and FY2018 closing price of RM1.14 Dividend Per Unit Comparative Yields 8% 1Q 2019 : 1.93 sen 6.80% 7% 2Q 2019 :- 6.15% 6% 3Q 2019 :- 5% 4Q 2019 :- 3.77% 4% 3.30% 3.10% DPU Y
Slide 6: Portfolio Performance
6 Overall Occupancy at ~90.8% ► Rental Reversions -4.2% for 1Q19 ► Expiry Profile: 38% NLA expires in 2019 ► Portfolio Performance
Slide 7: Portfolio Occupancy
Hektar REIT Portfolio Occupancy 7 Average portfolio occupancy steady at 90.8% Portfolio Occupancy 2007-2019 Property '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 1Q19 Subang Parade 99.8% 100.0% 94.8% 99.9% 99.8% 100.0% 99.3% 94.7% 93.0% 90.9% 88.2% 85.5% Mahkota Parade 96.5% 93.6% 96.1% 94.5% 96.1% 9
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 90.8% for 1Q 2019 100% 100% 100% 80% 80% 80% 94.4% 95.6% 85.5% 60% 60% 60% 40% 40% 40% 20% 20% 20% 0% 0% 0% '07 '11 '15 '07 '11 '15
Slide 9: Rental Reversions
Hektar REIT Rental Reversions 9 First Quarter Rental Reversions negative (-4.2%) +57.5% ▪ Positive reversions for all 3 tenants ▪ Represented by only 3.1% of NLA ▪ Key Renewed/New Tenants: Super Fun Toys Enterprise ▪ Weighed down by Subang Parade due to Asset Enhancement planning and positioning +50
Slide 10: Expiry Profile
Hektar REIT Expiry Profile 10 Tenancy Expiry by Property Period End Tenancies Expiring NLA Expiring NLA as % of Monthly 43% 39% March Expiring (sq. ft.) % of Total NLA Rental Income* 30% 32% 25% 2019 60 152,178 30% 43% 17% 2020 30 85,388 17% 25% 2021 22 199,077 39% 32% 2019 2020 2021 51% 48% Period
Slide 11: Expiry Profile
Hektar REIT Expiry Profile 11 Tenancy Expiry by Property 58% Period End Tenancies Expiring NLA Expiring NLA as % of Monthly 49% March Expiring (sq. ft.) % of Total NLA Rental Income* 35% 25% 2019 26 76,616 25% 35% 13% 16% 2020 20 41,113 13% 16% 2021 16 181,480 58% 49% 2019 2020 2021 51% 42% Period E
Slide 12: Expiry Profile
Hektar REIT Expiry Profile 12 Tenancy Expiry for Portfolio 2019-2022 ▪ As at 31 March 2019, the total amount of tenancies due for expiry was 227 which represented 727,810 sq. ft. or 36% of Total NLA. ▪ For 1Q 2019, a total of 18 tenancies covering 62,555 sq. ft. were renewed, representing 3.1% of To
Slide 13: Financial Results
13 1Q19 Gross Revenue fell -1.8% from preceding period ► 1Q19 Net Property Income up lower by -4.4% ► Financing Renewed: 92% of Debt expires in 2024 ► Financial Results
Slide 14: Income Statement: Quarter Comparative
Hektar REIT Income Statement: Quarter Comparative 14 Revenue slightly down by 1.8% in 1Q19 ▪ Net Property Income lower by 4.4% ▪ Realised Income declined 14.4% vs previous quarter due to higher trust fees & expenses and interest fees Please refer to the Quarterly Results Announcement for further det
Slide 15: Balance Sheet
Hektar REIT Balance Sheet 15 Unit Price Statistics As at 31 March 2019 No. of Units Outstanding 461,960,178 Net Asset Value Per Unit RM 1.37 Unit Price RM 1.14 Market Capitalisation RM526,634,603 Premium / Discount to NAV -16.8% Please refer to the Quarterly Results Announcement for further details.
Slide 16: Debt Profile
Hektar REIT Debt Profile 16 Debt Summary February 2019 Facilities Amount % Total ▪ Facilities: Al-Murabahah, Term Loan (TL), # Facility (RM'000) Debt Security Expiry Cost Short-Term Revolving Credit (STRC) 1 MOD 1 1 84,000 32.7% Subang Parade Feb-24 4.74% ▪ Financier: Maybank 2 MOD 2 1 50,000 26.6%
Slide 17: Portfolio Updates
SUBANG’ 63, MAHKOTA Sex WETEX, Sz CENTRAL \ fc PARADE SRSPARADE “PARADE A/S SQUARE Ql CEN Secu ’ I's Our Place! Is Our Place Ws Our Place Ws Our Place!
Slide 18: Wetex Parade – New Tenants
18 WEEE eer La LIANG : ‘Sandwich Bar s Wetex Parade — New Tenants
Slide 19: Classic Hotel @ Wetex Parade
Classic Hotel @ Wetex Parade 19 Progress of Classic Hotel continues to improve ▪ Opened since December 2018 ▪ First Quarter 2019 occupancy ranging from 39-41% ▪ Average room rate range from RM100- RM121 ▪ Total available rooms: 156 ▪ Average F&B per pax up from RM21 to RM28 ▪ Business plan initiativ
Slide 20: Classic Hotel @ Wetex Parade
Classic Hotel @ Wetex Parade 20 Online Customer Rating Positive & Improving
Slide 21: Classic Hotel @ Wetex Parade
Classic Hotel @ Wetex Parade 21 Little Muar Café opened in January 2019
Slide 22: Segamat Central – Anchor Update
Segamat Central – Anchor Update 22 Hektar’s Latest Acquisition Under Research & Planning ▪ Acquisition Completed in 2017 ▪ New Anchor: TF Value Mart in late 2018 TF Value-Mart Opened in late 2018 ▪ Market Research currently being analysed ▪ New anchor driving retailer interest
Slide 23: Central Square – New Food Court
Central Square – New Food Court 23 Seleria Food Court opened April 2019 ▪ 13 New F&B Tenants serving a wide variety of cuisines ▪ 100% Tenanted Seleria Food Court Central Square – Opened April 2019
Slide 24: Mahkota Parade – New Tenants Performing Well
Mahkota Parade – New Tenants Performing Well 24
Slide 25: Subang Parade – New & Upcoming Tenants
Subang Parade – New & Upcoming Tenants 25 New in Subang Parade Opening 2H 2019 Opening Soon Opening 2H 2019 Opening Soon
Slide 26: Subang Parade – Refurbished Tenants
Subang Parade – Refurbished Tenants 26
Slide 27: Subang Parade – MBO New Hall
Subang Parade – MBO New Hall 27 MBO Upgraded! KECIL - Children & family-oriented cinema hall – opened 2Q 2019
Slide 28: Portfolio Anchor Strategy Review
Hektar Portfolio Anchor Strategy Review 28 Hektar is pursuing a review of its portfolio anchor strategies ▪ Subang Parade: New Supermarket Mini-Anchor to be Announced Soon ▪ Mahkota Parade: In Planning ▪ Wetex Parade: Refurbished Classic Hotel, MR. D.I.Y. ▪ Central Square: Revitalised Food Court to
Slide 29: 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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