Hektar Real Estate Investment Trust · MYX:HEKTAR
Hektar Real Estate Investment Trust — Q3 2017 Earnings Presentation
18 slides from Hektar Real Estate Investment Trust's earnings presentation, Nov 24, 2017
Slide 1: Third Quarter 2017 Financial Results Presentation
THIRD QUARTER 2017 FINANCIAL RESULTS PRESENTATION 24 NOVEMBER 2017 HEKTAR ASSET MANAGEMENT SDN BHD
Slide 2: Disclaimer
PRIVATE & CONFIDENTIAL 2 Disclaimer The material that follows is a presentation of general background information about the activities of the Hektar REIT (including Hektar REIT’s any other affiliates) as at the date of this Presentation. The information contained herein is given in summary form sole
Slide 3: Financial Summary 3Q FY 2017
PRIVATE & CONFIDENTIAL 3 Financial Summary 3Q FY 2017 1 July 2017 – 30 September 2017 Commentary Realised Net Income for the period down 13.7% due to lower revenue and increased cost Retail business in Malaysia continues to remain a challenge in 2017, especially in light of the sluggish economy.
Slide 4: Distribution Details
PRIVATE & CONFIDENTIAL 4 Distribution Details Hektar REIT Cummulative Distribution Details for FY2017 Distribution Policy 9-Months 2017 Barring unforeseen circumstances, Hektar REIT will pay distributions equivalent to at Distribution Period :1 January 2017 – 31 September 2017 least 90% of distrib
Slide 5: Comparative Yields - Malaysia
PRIVATE & CONFIDENTIAL 5 Comparative Yields - Malaysia Hektar REIT Distribution Yield at approximately 7.4% Traded at a 305 bps spread over MGS 10-year Unit Price decreased by 17% since beginning of the year Hektar REIT Unit Price Change Hektar REIT Comparative Yields 3Q 2017 (9 months) RM 1.27
Slide 6: Portfolio Performance
PRIVATE & CONFIDENTIAL 6 Portfolio Performance Overall Occupancy at ~94% ► Rental Reversions -3% for 3Q17 ► Tenancy Expiry Profile ► 37% of Portfolio Tenancy Rental Income Expiries in 2017 ►
Slide 7: Hektar REIT Portfolio - Occupancy
PRIVATE & CONFIDENTIAL 7 Hektar REIT Portfolio - Occupancy Overall Portfolio Occupancy at ~93.9% Wetex Parade maintains full occupancy Hektar REIT Portfolio Occupancy As at As at As at As at As at As at As at As at As at As at As at As at As at As at As at As at 31 Dec 31 Dec 30 Sep 31 Dec 31 Dec 31
Slide 8: Hektar REIT Portfolio – Occupancy (Continued)
PRIVATE & CONFIDENTIAL 8 Hektar REIT Portfolio – Occupancy (Continued) Hektar REIT Portfolio Occupancy Central Square Occupancy (%) Kulim Central Occupancy (%) Segamat Central Occupancy (%) 100% 100% 100% 90% 90% 90% 80% 80% '13 14 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 80% '13 14 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 9: Hektar REIT Portfolio – Rental Reversions
PRIVATE & CONFIDENTIAL 9 Hektar REIT Portfolio – Rental Reversions Rental Reversions -3.4% for 3Q 2017 Subang Parade : 1) Good reversion rates between 8- Positive reversion recorded at Kulim Central; 15% and two lower reversion. 2) One of the negative reversion Flattish reversion at Wetex Parade
Slide 10: Hektar REIT Portfolio – Tenancy Expiry Profile
PRIVATE & CONFIDENTIAL 10 Hektar REIT Portfolio – Tenancy Expiry Profile Hektar REIT Tenancy Expiry Profile by Property as at 30 September 2017 Subang Parade Subang Parade No. of NLA of Tenancies NLA of Tenancies % of Total 32% 36% 31% For Year Ending Tenancies Expiring Expiring as % of Monthly Rent
Slide 11: Hektar REIT Portfolio – Tenancy Expiry Profile
PRIVATE & CONFIDENTIAL 11 Hektar REIT Portfolio – Tenancy Expiry Profile Hektar REIT Tenancy Expiry Profile by Property as at 30 September 2017 Central Square Central Square No. of NLA of Tenancies NLA of Tenancies For Year Ending Tenancies Expiring Expiring as % of Total % of Total Monthly 49% 31 D
Slide 12: Tenancy Portfolio Expiry Profile 2017 – 2020
PRIVATE & CONFIDENTIAL 12 Hektar REIT Portfolio – Tenancy Expiry Profile Tenancy Portfolio Expiry Profile 2017 – 2020 FY2017 - 96 tenancy expiries account for approximately 37% of monthly rental income* Hektar REIT Tenancy Expiry Profile – Overall Portfolio As at 30 September 2017 Portfolio No. of
Slide 13: Financial Results
PRIVATE & CONFIDENTIAL 13 Financial Results 3Q2017 Gross Revenue down 1.3%; NPI down 5.2% from preceding year ► 3Q2017 Net Realised Income down 13.7% from preceding year ►
Slide 14: Income Statement – Quarter Comparative
PRIVATE & CONFIDENTIAL 14 Income Statement – Quarter Comparative 3Q2017 Net Realised Income down 13.7% vs corresponding quarter 3Q2016 Income Statement 3Q17 3Q16 Variance Third Quarter 2016 (Unaudited) (RM '000) (RM '000) (%) Revenue 30,458 30,860 - 1.3% Direct Cost & Property Expenses (13,362) (12,
Slide 15: Income Statement – Year-To-Date Comparative
PRIVATE & CONFIDENTIAL 15 Income Statement – Year-To-Date Comparative For Period 1 January – 30 September 2017 (versus previous comparable period) Income Statement 9M17 9M16 Variance Year-To-Date (Unaudited) (RM '000) (RM '000) (%) Revenue 92,102 93,404 - 1.4% Direct Cost & Property Expenses (39,277
Slide 16: Balance Sheet
PRIVATE & CONFIDENTIAL 16 Balance Sheet Hektar REIT’s Balance Sheet for 3Q 2017 Balance Sheet As at 30.09.2017 As at 31.12.2016 (Unaudited) (RM '000) (RM '000) Unit Price Statistics Non-Current Assets As at 30 September 2017 Investment Properties 1,194,569 1,092,450 Plant & Equipment 69 No. of Units
Slide 17: Debt Profile
PRIVATE & CONFIDENTIAL 17 Debt Profile Debt Profile for 3Q 2017 Debt Information Financing Details As at 30 September 2017 Al-Murabahah / OD Fixed Term Loan, Annual Floating Rate with Partial Hedging Total Debt: RM596 million Structure: Cost of Funds + 0.70% Weighted Cost of Debt: 4.4% Tranche 1
Slide 18: Contact
PRIVATE & CONFIDENTIAL 18 Contact “Creating The Places Where People Love To Shop” Investor Relations 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 Please visit our webs
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