Hektar Real Estate Investment Trust · MYX:HEKTAR

Hektar Real Estate Investment Trust — Q1 2009 Earnings Presentation

21 slides from Hektar Real Estate Investment Trust's earnings presentation, May 18, 2009

  1. Slide 1: First Quarter 2009 Financial Results Presentation

    HEKTAR REIT HEKTAR REIT FIRST Q QUARTER 2009 FINANCIAL RESULTS PRESENTATION HEKTAR ASSET MANAGEMENT SDN BHD 18 MAY 2009 PRIVATE & CONFIDENTIAL

  2. Slide 2: Disclaimer

    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. Presentation The information contained herein is given in s

  3. Slide 3: Financial Summary First Quarter 2009

    PRIVATE & CONFIDENTIAL 3 Financial Summary First Quarter 2009 1 January 2009 – 31 March 2009 Three months Operational & Financial Performance Dividend Distribution ƒ Portfolio f l Occupancy: ~ 95.9% Firstt Q Fi Quarter t ƒ Rent Reversions: + 3% Dividend Per Unit ƒ Net Income per Unit: 2.85 sen (DPU)

  4. Slide 4: Hektar REIT Pays Quarterly Dividend Per Unit (DPU)

    PRIVATE & CONFIDENTIAL 4 Distribution Details Hektar REIT Pays Quarterly Dividend Per Unit (DPU) Current Dividend Distribution Details First Quarter 2009 ƒ Distribution Period: 1 January – 31 March 2009 ƒ Quarterly DPU: 2.40 sen ƒ Notice of Entitlement: 18 May 2009 ƒ Ex‐Dividend Date: 2 June 2009 ƒ

  5. Slide 5: Hektar DPU Dividend Yield at annualised 11%

    PRIVATE & CONFIDENTIAL 5 Comparative Yields - Malaysia Hektar DPU Dividend Yield at annualised 11% ƒ Traded at a 717 bps spread over MGS 10-year Hektar REIT Unit Price Change H kt REIT Comparative Hektar C ti Yields Yi ld First Quarter 2009 Unit Price 717 bps spread % Ch Change Sources: Bloomberg (2

  6. Slide 6: Portfolio Performance

    PRIVATE & CONFIDENTIAL 6 Portfolio Performance Overall Occupancy at ~95.9% ► Diversified Portfolio Tenancy Mix ► Top Ten Tenants Contribute 26.8% of Monthly Rental Income ► Rental Reversions up 3% ► T Tenancy Expiry E i Profile P fil b by P Property t ► 84% of Portfolio Tenancy Rental Income Locked-

  7. Slide 7: Overall Portfolio Occupancy at ~95.9%

    PRIVATE & CONFIDENTIAL 7 Hektar Portfolio - Occupancy Overall Portfolio Occupancy at ~95.9% 95.9% Hektar REIT Top Ten Tenants by Monthly Rental Income As at 31 As at 31 As at 31 As at 30 As at 31 As at 31 As at 31 December December December September December December March Property 2003 2004 2005 2

  8. Slide 8: Diversified Portfolio Tenant Mix

    PRIVATE & CONFIDENTIAL 8 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 S b Subang P Parade d TTenantt Mix Mi M hk t Parade Mahkota P d T Tenantt Mi

  9. Slide 9: Top Ten Tenants Contribute 26.8% of Monthly Rental Income

    PRIVATE & CONFIDENTIAL 9 Hektar Portfolio – Tenant Diversity Top Ten Tenants Contribute 26.8% of Monthly Rental Income ƒ Default Risk: Parkson contributes ~10.7% of total monthly rental income to REIT and no other tenant contributes more than 3.0% Hektar REIT Top Ten Tenants by Monthly Rental Income

  10. Slide 10: Rental Reversions up 3%

    PRIVATE & CONFIDENTIAL 10 Hektar Portfolio – Rental Reversions Rental Reversions up 3% ƒ 1Q 09: 40 new tenancies / renewals at an average 3% higher rental rate Hektar REIT Rental Reversions First Quarter No. of New % of % (3 months) Tenancies / NLA Total Increase / (Decrease) Over (Ended 31 March) R

  11. Slide 11: Tenancy Expiry Profile by Property

    PRIVATE & CONFIDENTIAL 11 Hektar Portfolio – Tenancy Expiry Profile Hektar’s Hektar s Tenancy Expiry Profile by Property Hektar REIT Tenancy Expiry Profile by Property As At 31 March 2009 Subang Parade No. of NLA of tenancies NLA of tenancies % of Total For Year Ending Tenancies expiring expiring as

  12. Slide 12: 84% of Portfolio Tenancy Rental Income Locked-in for 2009

    PRIVATE & CONFIDENTIAL 12 Hektar Portfolio – Tenancy Expiry Profile 84% of Portfolio Tenancy Rental Income Locked-in Locked in for 2009 ƒ Remaining FY2009 tenancy expiries account for no more than 16% of monthly rental income* Hektar REIT Tenancy Expiry Profile – Overall Portfolio As At 31 March 200

  13. Slide 13: Hektar Portfolio Tenancy Provisions

    PRIVATE & CONFIDENTIAL 13 Hektar Portfolio – Step-Up & Turnover Hektar Portfolio Tenancy Provisions ƒ Turnover Rent Provisions: Portfolio average of 85% of tenancies ƒ Step-Up Rent Provisions: Portfolio average of 72% of tenancies ƒ Wetex Parade: implementing provisions for f new tenancies / renewal

  14. Slide 14: Financial Results

    PRIVATE & CONFIDENTIAL 14 Financial Results Gross Revenue up 24.7% over budget ► First Quarter 2009 Net Income exceeds Budget by 33.8% ► First Quarter ‘09 Net Income exceeds previous quarter by 4.5% ► Hektar trading at a 31% discount to NAV as at end 1Q09 ► H kt REIT faces Hektar f no refinancing fi

  15. Slide 15: Gross Revenue up 24.7% over Budget

    PRIVATE & CONFIDENTIAL 15 Revenues & Expenses Gross Revenue up p 24.7% over Budget g For Period 1 January – 31 March 2009 Revenue & Expense Actual Budget Variance First Quarter 2009 (Unaudited) ((RM '000)) ((RM '000)) ((%)) Rental Income Revenue from Tenancy 19,991 16,075 + 24.4% Car Park 1,777 1,38

  16. Slide 16: First Quarter 2009 Net Income exceeds Budget by 33.8%

    PRIVATE & CONFIDENTIAL 16 Income Statement – Quarter First Quarter 2009 Net Income exceeds Budget by 33.8% For Period 1 January – 31 March 2009 (versus Budget) Income Statement Actual Budget g Variance First Quarter 2009 (Unaudited) (RM '000) (RM '000) (%) Revenue 21,768 17,457 + 24.7% Direct Cost &

  17. Slide 17: First Quarter 2009 Net Income exceeds previous quarter by 4.5%

    PRIVATE & CONFIDENTIAL 17 Income Statement – Quarter Comparative First Quarter ‘09 09 Net Income exceeds previous quarter by 4.5% For Period 1 January – 31 March 2009 (versus Previous Comparable Quarter) Income Statement 1Q09 1Q08 Variance First Quarter 2009 (Unaudited) (RM '000) (RM '000) (%) Reven

  18. Slide 18: Hektar trading at a 31% discount to NAV as at end 1Q09

    PRIVATE & CONFIDENTIAL 18 Balance Sheet Hektar trading at a 31% discount to NAV as at end 1Q09 Balance Sheet As at 31.03.2009 As at 31.12.2008 Unit Price Statistics in RM '000 (Unaudited) (Audited) As at 31 March 2009 Non‐Current Non Current Assets No. of Units Outstanding Investment Properties 716,

  19. Slide 19: Debt Profile

    PRIVATE & CONFIDENTIAL 19 Debt Profile Hektar REIT faces no refinancing risk in 2009 Debt Information At A Glance Debt Expiry Profile As at 1 May 2009 As at 1 May 2009 ƒ Total Debt: RM301.5 million ƒ Weighted Cost of Debt: 4.06% M million ƒ Gearing Ratio1: 40.9% RM ƒ Interest Cover2: 3.85 ƒ Unencumb

  20. Slide 20: Asset Enhancement: Mahkota Parade 2009-2010

    PRIVATE & CONFIDENTIAL 20 Asset Enhancement: Mahkota Parade 2009-2010 Transforming Mahkota Parade to maintain market leadership ƒ Mahkota Parade • Leading shopping centre in Melaka serving ~300,000 residents p • Opened in 1994 – 15 y years old ƒ Refurbishment Rationale • Setting the Standard: Mainta

  21. Slide 21: Contact

    PRIVATE & CONFIDENTIAL 21 Contact “C “Creating ti The Th Places Pl Where Wh People P l Love L To T Shop” Sh ” Investor Relations Hektar Asset Management Sdn Bhd Block C C‐0‐5, 0 5 Plaza Damas 60 Jalan Sri Hartamas 1 Sri Hartamas 50480 Kuala Lumpur MALAYSIA ℡ +6 03 6201 1011 +6 03 6201 0012 www.Hekta

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