Hektar Real Estate Investment Trust · MYX:HEKTAR
Hektar Real Estate Investment Trust — Q1 2024 Earnings Presentation
26 slides from Hektar Real Estate Investment Trust's earnings presentation, May 23, 2024
Slide 1: Hektar REIT 1Q24 Results Presentation
Creating The Places People Love HEKTAR REAL ESTATE INVESTMENT TRUST 1Q24 Results Presentation 23 May 2024
Slide 2: Hektar REIT: Malaysia's First Retail-Focused REIT
Hektar REIT: Malaysia’s First Retail-Focused REIT 2 ORGANISATION GEOGRAPHICALLY WELL-DIVERSIFIED DISCLAIMER: The material that follows is a presentation of general background information about the activities of Hektar REIT (including Hektar REIT’s any other affiliates) as at the date of this Present
Slide 3: Table of Contents
Table of Contents 3 01 Financial Highlights 02 Portfolio Performance 03 Portfolio Updates 04 Sustainability 05 2024 Key Initiatives
Slide 4: 01. Financial Highlights
4 01. Financial Highlights
Slide 5: Performance Summary
Performance Summary 5 1Q24: Jan-Mar 2024 | 3 Months RM '000 -1.9% 35,000 1Q23 1Q24 30,000 28,945 28,406 25,000 -5.5% 20,000 15,213 14,382 -44.8% 15,000 9,207 10,000 5,083 5,000 0 Gross Revenue Net Property Income Realised Net Income OPERATIONAL PERFORMANCE As at 31 March 2024 Portfolio Occupancy 87.
Slide 6: Debt Expiries well-distributed
Debt Expiries well-distributed 6 EXPIRY PROFILE 2024-2033 DEBT SUMMARY As at 31 March 2024 RM502.8 MIL ▪ Al-Murabahah Overdraft (MOD) ▪ Term Financing (TF) Facilities ▪ Commodity Murabahah Term Financing-i (CMTF-i) RM54.2 MIL RM4.2 MIL RM33.5 MIL ▪ Credit Guarantee & Investment Facility 2024 2025 20
Slide 7: Income Statement
Income Statement 7 Income Statement 1Q24 1Q23 Variance First Quarter 2024 (Unaudited) (RM '000) (RM '000) (%) Revenue 28,406 28,945 (1.9%) Direct cost & Property expenses (14,024) (13,732) (2.1%) Net property income (NPI) 14,382 15,213 (5.5%) Interest & Other income 889 648 37.2% Trust fees & Expens
Slide 8: Balance Sheet
Balance Sheet 8 Balance Sheet As at As at Unit Statistics As at 31 March 2024 31.03.2024 31.12.2023 (Unaudited) (RM '000) (RM '000) Non current Assets Investment properties 1,232,700 1,232,700 Plant & Equipment 394 414 No. of Unit 706,812,567 Capital work In Progress 457 0 1,233,551 1,233,114 Curren
Slide 9: 02. Portfolio Performance
9 02. Portfolio Performance Improved Occupancy at 87.2% ► Positive Rental Reversion of 3.5% ►
Slide 10: Average Portfolio Occupancy improved to 87.2%
Average Portfolio Occupancy improved to 87.2% 10 88.5% 88.4% 84.9% 86.7% 87.2% 82.0% Previous Occupancy Actual Occupancy 1Q24 Committed Occupancy 1Q24 Occupancy FY20 FY21 FY22 FY23 1Q24 Subang Parade 83.7% 82.5% 70.3% 74.3% 75.0% Mahkota Parade 92.5% 87.1% 86.9% 93.8% 94.8% Wetex Parade 94.5% 89.9%
Slide 11: 1Q24 rental reversions at 3.5%
1Q24 rental reversions at 3.5% 11 • 34 new/renewed tenancies comprising 9.5% of total NLA for the year ended 31 March 2024. • Positive reversions recorded at all malls No. of New % Increase / Quarter Ended 31 December Tenancies / NLA % of (Decrease) Over 2023 Renewals (sq ft) Total NLA Previous Rent
Slide 12: Tenancies expiry well distributed
Tenancies expiry well distributed 12 • 874,250 sq. ft. or about 42.9% of total NLA expiring in 2024 as 31 March 2024. Most of these expiring NLA consists of anchor tenants such as Parkson, MM2 Cinema, The Store & Giant SuperStore which we expect positive outcome from it. • In 1Q24, a total of 34 ten
Slide 13: Portfolio Performance
Portfolio Performance 13 OCCUPANCY RATE Occupancy Rate 87.2% • Occupancy rate increased to 87.2% (3.4 Y-o-Y ▲) • Committed Occupancy to date is 88.5% (4.7%▲) 83.8% • Occupancy rate will continue to increase in tandem with the growth in economy and ongoing strategies and initiatives undertaken. 1Q23
Slide 14: 03. Portfolio Updates
14 03. Portfolio Updates
Slide 15: Refreshed Retail Offerings at Hektar Malls
15 Refreshed Retail Offerings at Hektar Malls Flyproject, Subang Parade Bangkok-Bangkok, Subang Parade Focus Point, Mahkota Parade Empire Sushi, Kulim Central Vern’s, Mahkota Parade Cocomelon, Mahkota Parade Hand Pulled Noodle, Subang Parade Llao llao, Kulim Central
Slide 16: Marketing initiatives
16 Marketing initiatives CNY Performance, Mahkota Parade Kompang dan Kuda, Kulim Central Dragon Dance Performance, Wetex Parade Gamelan Musical Peformance, Central CNY Ethnic Dance, Segamat Central CNY Performance, Subang Parade Square
Slide 17: 04. Sustainability
04. Sustainability Subang Parade, Subang Jaya, Selangor
Slide 18: Corporate CSR
18 Corporate CSR Blood Donation Drive, Kulim Central Earth Hour, Mahkota Parade Lion’s Eye Clinic, Subang Parade Majlis Berbuka Puasa Bersama Anak-anak Together Gather Raya Bersama SR Arab Jaim Bubur Lambuk giveaway, all Hektar Tahfiz Ibnu Sina, Kulim Central Merlimau Pasir, Mahkota Parade Malls
Slide 19: 05. 2024 Key Initiatives
05. 2024 Key Initiatives
Slide 20: Subang Parade Asset Enhancement Initiatives (AEIs)
Subang Parade Asset Enhancement Initiatives (AEIs) 20 Major refurbishment to rejuvenate Subang Parade to its pre-pandemic era will be executed in phases over 2-3 years. AEIs to be executed but not limited to:- • Exterior Intervention:- o Façade Upgrade of all entrances o Repainting o Placemaking Spa
Slide 21: Subang Parade Asset Enhancement Initiatives (AEIs)
Subang Parade Asset Enhancement Initiatives (AEIs) 21
Slide 22: Subang Parade Asset Enhancement Initiatives (AEIs)
Subang Parade Asset Enhancement Initiatives (AEIs) 22 Replacement of lifts and escalators are being done in phases, with Phase 1 nearing completion. Refreshed Bubble Lift Installation of new lift landing doors, lift systems and structures Installation of modernized escalators
Slide 23: Subang Parade Enhanced Leasing Strategies
Subang Parade Enhanced Leasing Strategies 23 CONTENT CREATION ENHANCED AMENITIES KIDS VILLAGE UPGRADED PARENTS’ ROOM UPCOMING TENANTS Edutainment Park ARTISANAL MARKETPLACE Enhanced F&B offerings
Slide 24: Tenant Remixing Strategy
Tenant Remixing Strategy 24 Po s i t i o n i n g – T h e P re f e r re d C o m m u n i t y M a l l w i t h m u l t i - generational emphasis Subang Parade Central Square Segamat Central Leisure / Entertainment, Edutainment, Sport & Fitness Emphasis on Fitness centres / Yoga / Pilates /Enrichment cen
Slide 25: Hektar's Branding Initiatives (Loyalty Program)
25 Hektar’s Branding • Curation of Loyalty app to reward customers with various discounts and Initiatives (Loyalty promotions throughout our six (6) retail malls Program) • Points can be redeemed between different malls • Brand loyalty and Customer retention • Data collection & analysis • Personaliz
Slide 26: Investor Communications
26 Creating The Places People Love Investor Communications Hektar Asset Management Sdn Bhd Tel: +6 03 6205 5570 Web: www.HektarREIT.com Email: ir@HektarREIT.com
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