Hektar Real Estate Investment Trust · MYX:HEKTAR
Hektar Real Estate Investment Trust — Q4 2019 Earnings Presentation
33 slides from Hektar Real Estate Investment Trust's earnings presentation, Feb 26, 2020
Slide 1: 4Q/FY 2019 Results Presentation
Creating The Places People Love HEKTAR REAL ESTATE INVESTMENT TRUST 4Q/FY 2019 RESULTS PRESENTATION 26 February 2020
Slide 2: 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: Hektar REIT Financial Summary
Hektar REIT Financial Summary 3 Fourth Quarter 2019 (4Q19) / Financial Year 2019 (FY19) October – December 2019 (3 months) / 12 Months 2019 Dividend Per Unit FY19 Financial Performance vs. Previous Period 1Q 2019 : 1.93 sen 2Q 2019 : 2.00 sen FY19 Gross Revenue RM 137 million, +1.5% 3Q 2019 : 1.84 s
Slide 4: Dividend Details
Hektar REIT Dividend Details 4 Distribution Details Fourth Quarter 2019 Distribution Period: 1 October 2019 – 31 December 2019 Quarterly DPU: 2.00 sen Notice of Entitlement: 26 February 2020 Ex-Dividend Date: 11 March 2020 Book Closure Date: 12 March 2020 Payment Date: 9 April 2020 Dividend Track Re
Slide 5: Comparative Yield
Comparative Yield 5 Hektar REIT offers a competitive 7.85% dividend yield for FY2019 ▪ FY 2019 DPU: 7.77 sen ▪ Dividend Yield based on FY2019 closing price of RM0.99 Dividend Per Unit FY19 Comparative Yields 1Q 2019 : 1.93 sen 2Q 2019 : 2.00 sen 3Q 2019 : 1.84 sen 4Q 2019 : 2.00 sen Total DPU : 7.77
Slide 6: Portfolio Performance
6 Overall Occupancy at ~92.5% ► Visitor Traffic 32.3 million ► Rental Reversions +0.5% for FY19 ► Expiry Profile: 39% NLA expires in 2020 ► Portfolio Performance
Slide 7: Portfolio Occupancy
Hektar REIT Portfolio Occupancy 7 Average portfolio occupancy steady at 92.5% Portfolio Occupancy 2008-2019 Property '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 Subang Parade 99.8% 100.0% 94.8% 99.9% 99.8% 100.0% 99.3% 94.7% 93.0% 90.9% 88.2% 93.9% Mahkota Parade 96.5% 93.6% 96.1% 94.5% 96.1% 97
Slide 8: Portfolio Occupancy
Hektar REIT Portfolio Occupancy 8 Central Square and Segamat Central occupancy still fluctuating due to Asset Enhancement planning & repositioning ▪ Portfolio Average at 92.5% for December 2019
Slide 9: Visitor Traffic
Hektar REIT Visitor Traffic 9 Portfolio visitor traffic reached 32.3 million in FY19 ▪ Tracked by computerised counting systems installed in all 6 malls Visitor Traffic 2015-2019 Visitor Traffic 2010-2019 Property '15 '16 '17 '18 '19 Subang Parade 9.8 million 9.2 million 9.9 million 7.8 million 7.6
Slide 10: Visitor Traffic
Hektar REIT Visitor Traffic 10 Strong performance by the Northern malls (Kedah) ▪ Kulim recorded a +15% increase, it was refurbished in 2017
Slide 11: Rental Reversions
Hektar REIT Rental Reversions 11 +29.9% Fourth Quarter Rental Reversions flat (-0.1%) ▪ Positive reversions for all 5 tenants ▪ Represented by 7.1% of NLA ▪ Key Renewed/New Tenants: Texas Chicken & Sushi King ▪ Weighed down by Subang Parade ▪ Positive performance from 5 other malls +15.3% ▪ Strong p
Slide 12: Rental Reversions
Hektar REIT Rental Reversions 12 Portfolio Rental Reversions was +0.5% in FY2019 ▪ Strongest performer: Wetex Parade +24.8% ▪ Kulim Central (+15.6%), Segamat Central (+10.6%) and Central Square (+9.2%) ▪ Subang Parade reversions down due to Asset Enhancement planning for new mini-anchor ▪ Five of th
Slide 13: Expiry Profile
Hektar REIT Expiry Profile 13 Tenancy Expiry by Property, Year End December Period End Tenancies Expiring NLA Expiring NLA as % of Monthly December Expiring (sq ft) % of Total NLA Rental Income* 2020 65 188,373 36% 45% 2021 29 211,256 41% 37% 2022 26 90,274 17% 18% Period End Tenancies Expiring NLA
Slide 14: Expiry Profile
Hektar REIT Expiry Profile 14 Tenancy Expiry by Property Period End Tenancies Expiring NLA Expiring NLA as % of Monthly September Expiring (sq ft) % of Total NLA Rental Income* 2020 28 51,951 17% 25% 2021 20 188,179 61% 60% 2022 7 38,548 12% 15% Period End Tenancies Expiring NLA Expiring NLA as % of
Slide 15: Expiry Profile
Hektar REIT Expiry Profile 15 Tenancy Expiry for Portfolio 2020-2022 ▪ For 2020, a total of 233 tenancies expire, representing 48% of monthly rental income or 39% of NLA Portfolio Expiry Profile 2020-2022 Period End Tenancies Expiring NLA Expiring NLA as % of Monthly December Expiring (sq ft) % of T
Slide 16: Tenancy Provisions
Hektar REIT Tenancy Provisions 16 Hektar adopts step-up and turnover rent provisions ▪ Step-Up Provisions for fixed rental increase are present in 15% of all tenancies ▪ Turnover Rent provisions exist in 89% of all tenancies ▪ Data for NLA-tenants only (483 in December 2019) Step-Up Provisions Turno
Slide 17: Top Ten Tenants
Hektar REIT Top Ten Tenants 17 Top 10 Tenants contributed 31.0% of the total monthly rental income ▪ Top 2 anchors: Parkson contributed 9.5% and The Store contributed 5.9% ▪ No other tenant contributes more than 3.2% of monthly rental income NLA % of Total % of Monthly Tenant Sector (sq. ft.) NLA Re
Slide 18: Financial Results
18 4Q19 Gross Revenue up 2.9% from preceding period ► 4Q19 NPI down 2.7% from preceding period ► FY2019 Net Income (Realised) down 15.1% from preceding period► Financing Renewed: 92% of Debt expires in 2024-2025 ► Financial Results
Slide 19: Income Statement: Quarter Comparative
Hektar REIT Income Statement: Quarter Comparative 19 Revenue up by 2.9% in 4Q19 ▪ Net Property Income lower by 2.7% ▪ Realised Income declined 23.4% vs previous quarter due to higher trust fees & expenses Income Statement 4Q19 4Q18 Variance Fourth Quarter 2019 (unaudited) (RM '000) (RM '000) (%) Rev
Slide 20: Income Statement: Year-To-Date Comparative
Hektar REIT Income Statement: Year-To-Date Comparative 20 For Period 1 January – 31 December 2019 (versus previous comparable period) Income Statement FY19 FY18 Variance Year-To-Date (unaudited) (RM '000) (RM '000) (%) Revenue 137,089 135,107 1.5% Direct Cost & Property Expenses -61,653 -56,391 -9.3
Slide 21: Balance Sheet
Hektar REIT Balance Sheet 21 Balance Sheet As at 31.12.2019 As at 31.12.2018 (Unaudited) (RM '000) (RM '000) Unit Price Statistics Non-Current Assets As at 31 December 2019 Investment Properties 1,236,500 1,221,500 Plant & Equipment 113 141 No. of Units Outstanding Capital Work in Progress 1,158 6,1
Slide 22: Debt Profile
Hektar REIT Debt Profile 22 Debt Summary Feburary 2020 Facilities Amount % Total ▪ Facilities: Al-Murabahah, Term Loan (TL), # Facility (RM'000) Debt Security Expiry Cost Short-Term Revolving Credit (STRC) 1 MOD 1 184,000 32.7% Subang Parade Feb-24 4.70% ▪ Financier: Maybank, CIMB 2 MOD 2 150,000 26
Slide 23: Valuation
Hektar REIT Valuation 23 Portfolio valuation reached RM1.237 billion Portfolio Asset Size 2007-2019 (RM ‘000) in FY 2019 ▪ Increase of 1.2% from FY2018 ▪ Overall Property Yield at 6.1% ▪ Valuation at RM605 per square foot ▪ Subang Parade remains the largest component at 36% of portfolio total ▪ Port
Slide 24: Portfolio Updates
SUBANG’ MAHKOTA ‘eeeWETEX Sl CENTRAL wy SY KULIM WE PARADE SAS PARADE “PARADE 4S SQUARE Ke TRAL oF ERAT Ws Our Placet PEER It’s Our Place! I's Our Place! yOu Pace!
Slide 25: Subang Parade Anchor Transformation
Subang Parade Anchor Transformation 25 Over 186,000 sq ft of revitalised anchor spaces: Parkson, Best Denki and Village Grocer ▪ Best Denki to relocate to new area by 2Q 2020 (20k sq ft) ▪ Parkson to refurbish by 3Q 2020 (140k sq ft) ▪ Village Grocer to open by 3Q 2020 (26k sq ft)
Slide 26: Subang Parade Anchor Transformation
Subang Parade Anchor Transformation 26 Through its mantra, “Passion to Delight”, premium supermarket Village Grocer is committed to bringing customers high quality products from all over the world Note: Visuals are based on artist impressions
Slide 27: Subang Parade
Subang Parade 27 Farmer’s Bar: Craft microbrewery opened in December 2019
Slide 28: Mahkota Parade
Mahkota Parade 28 Year End Events: Festivities and Performances
Slide 29: Wetex Parade
Wetex Parade 29 New Retailers Texas Chicken & Gong Cha and Year End Christmas
Slide 30: Central Square
Central Square 30 CSR Christmas Movie Night with MBO and 115 orphans
Slide 31: Kulim Central
Kulim Central 31 Mini-Anchor: Giant Re-Launch in November 2019
Slide 32: Segamat Central
Segamat Central 32 Christmas Events & “Snow Show”
Slide 33: 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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