Hektar Real Estate Investment Trust · MYX:HEKTAR

Hektar Real Estate Investment Trust — FY2010 Earnings Presentation

21 slides from Hektar Real Estate Investment Trust's earnings presentation, Feb 17, 2011

  1. Slide 1: Financial Year 2010 Financial Results Presentation

    FINANCIAL YEAR 2010 FINANCIAL RESULTS PRESENTATION 17 FEBRUARY 2011 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 2010 1 January 2010 – 31 December 2010 Twelve (12) months Commentary ƒ FY2010 Dividend Per Unit: 10.30 sen ƒ Four Year Track Record of Positive Results Operational & Financial Performance (Full Year) Dividend Distribution ƒ Portfolio Occupanc

  4. Slide 4: Hektar REIT Annual DPU Growth Positive Since IPO

    PRIVATE & CONFIDENTIAL 4 Distribution Details Hektar REIT Annual DPU Growth Positive Since IPO Current Dividend Distribution Details Fourth Quarter 2010 ƒ Distribution Di t ib ti P Period: i d 1OOctober t b – 31 D December b 2010 ƒ Quarterly DPU: 2.80 sen ƒ Notice of Entitlement: 17 February 2011 ƒ

  5. Slide 5: Hektar REIT Dividend Yield at approximately 7.6%

    PRIVATE & CONFIDENTIAL 5 Comparative Yields - Malaysia Hektar REIT Dividend Yield at approximately 7.6% ƒ Traded at a 356 bps spread over MGS 10-year Hektar REIT Unit Price Change Hektar REIT Comparative Yields FY2010 (12 months) Unit Price RM 1.35 31 Dec 2010 356 b bps spread 1 Jan 31 Dec % Change

  6. Slide 6: Portfolio Performance

    PRIVATE & CONFIDENTIAL 6 Portfolio Performance Overall Occupancy at ~95.5% ► Visitor Traffic to Portfolio Hits 20.2 million ► Rental Reversions flat at -1% for FY2010 ► Diversified Portfolio Tenancy Mix ► Top Ten Tenants Contribute 27.4% of Monthly Rental Income ► Tenancy Expiry Profile ► Portfolio

  7. Slide 7: Overall Portfolio Occupancy at ~95.5%

    PRIVATE & CONFIDENTIAL 7 Hektar REIT Portfolio - Occupancy Overall Portfolio Occupancy at ~95.5% Hektar REIT Portfolio Occupancy As at 31 As at 31 As at 30 As at 31 As at 31 As at 31 As at 31 December December September December December December December Property 2004 2005 2006 2007 2008 2009 2010

  8. Slide 8: Hektar REIT Properties Recorded 20.2 million Visits in 2010

    PRIVATE & CONFIDENTIAL 8 Hektar REIT Portfolio - Traffic Hektar REIT Properties Recorded 20.2 million Visits in 2010 ƒ Tracked by Footfall, camera-based system installed in each centre ƒ Overall traffic down 5% in 2010 v 2009 ƒ Subang Parade traffic down 3% over previous year ƒ Mahkota Parade traffi

  9. Slide 9: Rental Reversions flat at -1% for the year

    PRIVATE & CONFIDENTIAL 9 Hektar REIT Portfolio – Rental Reversions Rental Reversions flat at -1% for the year ƒ 4Q 10: 46 new tenancies / renewals at 1% higher average rental rate ƒ Wetex Parade recorded significant increases due to opening of new retail zone, “The Quadrix” Hektar REIT Rental Revers

  10. Slide 10: Diversified Portfolio Tenant Mix

    PRIVATE & CONFIDENTIAL 10 Hektar Portfolio – Tenant Mix Diversified Portfolio Tenant Mix 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 Mix

  11. Slide 11: Top Ten Tenants Contribute 27.4% of Monthly Rental Income

    PRIVATE & CONFIDENTIAL 11 Hektar Portfolio – Tenant Diversity Top Ten Tenants Contribute 27.4% of Monthly Rental Income ƒ Default Risk: Parkson contributes ~11.3% of total monthly rental income to REIT and no other tenant contributes more than ~3.0% Hektar REIT Top Ten Tenants by Monthly Rental Inco

  12. Slide 12: Hektar REIT Tenancy Expiry Profile by Property

    PRIVATE & CONFIDENTIAL 12 Hektar REIT Portfolio – Tenancy Expiry Profile Hektar REIT Tenancy Expiry Profile by Property Hektar REIT Tenancy Expiry Profile by Property As At 31 December 2010 Subang Parade No. of NLA of Tenancies NLA of Tenancies % of Total For Year Ending Tenancies Expiring Expiring

  13. Slide 13: Tenancy Portfolio Expiry Profile 2011 – 2014

    PRIVATE & CONFIDENTIAL 13 Hektar REIT Portfolio – Tenancy Expiry Profile Tenancy Portfolio Expiry Profile 2011 – 2014 ƒ FY2011 tenancy expiries account for approximately 37% of monthly rental income* Hektar REIT Tenancy Expiry Profile – Overall Portfolio As At 31 December 2010 Portfolio No. of NLA o

  14. Slide 14: Hektar Portfolio Tenancy Provisions in 2010

    PRIVATE & CONFIDENTIAL 14 Hektar Portfolio – Tenancy Provisions Hektar Portfolio Tenancy Provisions in 2010 ƒ Turnover Rent provisions present in 97% of all tenancies ƒ Step-Up Rent provisions present in 70% of all tenancies Hektar REIT Tenancy Provisions Hektar REIT Tenancy Provisions Turnover Rent

  15. Slide 15: Financial Results

    PRIVATE & CONFIDENTIAL 15 Financial Results Fourth Quarter 2010 Net Income up 18.5% from previous period ► Year-To-Date 2010 Net Income up 5.5% from previous period ► Hektar REIT trading at a 2% premium to NAV as at 4Q10 ► Hektar REIT Average Cost of Debt at 3 3.71% 71% ► Centre Breakdown ► Valuatio

  16. Slide 16: Fourth Quarter 2010 Net Income up 18.5% vs previous quarter

    PRIVATE & CONFIDENTIAL 16 Income Statement – Quarter Comparative Fourth Quarter 2010 Net Income up 18.5% vs previous quarter ƒ For Period 1 October – 31 December 2010 (versus previous comparable period) ƒ Fair Value Adjustment of RM1 million in 4Q10 Income Statement 4Q10 4Q09 Variance Fourth Quarter

  17. Slide 17: FY2010 up 5.5% vs FY2009

    PRIVATE & CONFIDENTIAL 17 Income Statement – Quarter Year-To-Date Comparative FY2010 up 5.5% vs FY2009 For Period 1 January – 31 December 2010 (versus previous comparable period) Income Statement FY10 FY09 Variance Full Year (Unaudited) (RM '000) (RM '000) (%) Revenue 90,873 87,712 + 3.6% Direct Cos

  18. Slide 18: Balance Sheet

    PRIVATE & CONFIDENTIAL 18 Balance Sheet Hektar REIT’s Balance Sheet for FY2010 Balance Sheet As at 31.12.2010 As at 31.12.2009 Unit Price Statistics (Unaudited) (RM '000) (RM '000) As at 31 December 2010 Non-Current Assets No. of Units Outstanding Investment Properties 752,000 720,000 320,001,000 Ca

  19. Slide 19: Debt Profile

    PRIVATE & CONFIDENTIAL 19 Debt Profile Debt Profile for FY2010 Debt Information Debt Expiry Profile As at 31 December 2010 As at 31 December 2010 ƒ Total Debt: RM334 million ƒ Weighted Cost of Debt: RM million 3.71% ƒ Gearing Ratio1: 42.7% ƒ Interest Cover2: 4.86 ƒ Unencumbered Asset: Wetex Parade 1

  20. Slide 20: Subang Parade remains Hektar REIT's flagship shopping centre

    PRIVATE & CONFIDENTIAL 20 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 2010 FY 2009 Change FY 2010 FY 2010 FY 2009 Change FY 2010 By Property RM Mn RM Mn FY10 v FY09 Share By Property RM Mn RM Mn

  21. Slide 21: Contact

    PRIVATE & CONFIDENTIAL 21 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 ℡Tel: +6 03 6201 1011 Fax: +6 03 6201 0012 Web: www.HektarREIT.

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