Hektar Real Estate Investment Trust · MYX:HEKTAR

Hektar Real Estate Investment Trust — Q1 2007 Earnings Presentation

20 slides from Hektar Real Estate Investment Trust's earnings presentation, Apr 23, 2007

  1. Slide 1: Hektar Real Estate Investment Trust First Quarter 2007 Financial Results

    HEKTAR REAL ESTATE INVESTMENT TRUST FIRST QUARTER 2007 FINANCIAL RESULTS 23 APRIL 2007 (AMENDED)

  2. Slide 2: Disclaimers

    Disclaimers The material that follows is a presentation of general background information about the Hektar Group’s activities current as at the date of this Presentation. The information contained herein is given in summary form solely to provide an understanding of the business of the Hektar Group

  3. Slide 3: Financial Summary

    Financial Summary PRIVATE & CONFIDENTIAL 3

  4. Slide 4: Financial Summary – First Quarter 2007

    Financial Summary – First Quarter 2007 From 1 December 2006 (IPO) First Quarter Period – 31 March 2007 (4 Months) REIT Outperformance REIT Net Income Exceeded Forecast by 18.6% 4 dividend payouts per year Quarterly Dividend Policy In line with International Best Practices 2.4 sen First Quarter Divid

  5. Slide 5: Hektar REIT Unit Price Performance

    Hektar REIT Unit Price Performance Source: Bloomberg, 18 April 2007 PRIVATE & CONFIDENTIAL 5

  6. Slide 6: Hektar REIT Financials-At-A-Glance FY2007

    Hektar REIT Financials-At-A-Glance FY2007 Financials (FY2007-13 months) RM (‘000) Annualised Ratios (FY2007) Gross Revenues 74,580 Price / Earnings 11.8 Net Property Income (EBIT) 45,842 Price / Net Tangible Assets 1.0 Interest Expense 10,764 EBIT Margin 61.5% Net Income 30,810 ROE 9.6% Dividend Per

  7. Slide 7: Attractive Yield with Capital Upside

    Attractive Yield with Capital Upside Comparative Yields, Malaysia 9.00 8.20 8.00 7.00 471 bps Yield (%) 6.00 spread 5.15 5.00 4.47 3.49 3.42 3.70 4.00 3.00 2.00 1.00 0.00 Hektar 10-yr 5-yr MGS EPF KLSE 12-month REIT MGS Dividend Dividend Maybank (2006) (FY2007) FD Hektar REIT yield based on closing

  8. Slide 8: Distribution Details

    Distribution Details Hektar REIT will Distribute Quarterly Dividends ƒ Dividends will be distributed 4 times a year ƒ In line with international best practices Distribution Period 1 December – 31 March 2007 Quarterly DPU Forecast* 2.4 sen Notice of Entitlement 20 April 2007 Ex-Dividend Date 7 May 20

  9. Slide 9: Portfolio Performance

    Portfolio Performance PRIVATE & CONFIDENTIAL 9

  10. Slide 10: Hektar’s Portfolio - Occupancy

    Hektar’s Portfolio - Occupancy The Hektar Portfolio continues to enjoy near- full occupancy as of 31 March 2007 ƒ Subang Parade : 98.5% ƒ Mahkota Parade : 94.1% ƒ Hektar Portfolio : 96.3% 98.3% 98.5% 98.5% 100% 97.7% 93.4% Subang Parade 96.9% 90% 94.9% 94.1% Mahkota Parade 86.8% 80% 70% 60% 50% 2003

  11. Slide 11: Hektar’s Portfolio – Rental Reversions

    Hektar’s Portfolio – Rental Reversions Hektar’s Rental Rates Increases ƒ Period from IPO to 31 March 2007 ƒ Portfolio Average – 24 @ 50% average increase ƒ Subang Parade – 11 @ 17% average increase ƒ Mahkota Parade – 13 @ 124% average increase. Increases mainly due to Asset Enhancement exercise on L

  12. Slide 12: Hektar’s Portfolio – Asset Enhancement

    Hektar’s Portfolio – Asset Enhancement Asset Enhancement – Mahkota Parade Ex-G79 ƒ Previously, large low-yielding 28,460 sq ft space ƒ Opportunity to create zone with higher-yielding lots Re-Configuration of 28,460 sq ft NLA Mahkota Parade Ground Floor Opened November 2006 Revenue (Net of loss of re

  13. Slide 13: Hektar’s Portfolio – Lease Expiry 2007

    Hektar’s Portfolio – Lease Expiry 2007 Hektar’s Lease Expiry Profile as at 31 Mar 2007 ƒ Subang Parade has 41 tenancies expiring in 2007 ƒ Mahkota Parade has 45 tenancies expiring during 2007 ƒ Hektar’s leasing policy of 3 year terms • Options only granted to key tenants with extensive fit-outs % of

  14. Slide 14: Hektar’s Portfolio – Lease Expiry 2007-2010

    Hektar’s Portfolio – Lease Expiry 2007-2010 Hektar’s Lease Expiry Profile as at 31 March 2007 NLA of NLA of % of total No. of tenancies tenancies m onthly Year Ending Tenancies expiring expiring as % rental 31 Decem ber Expiring (sq ft) of total NLA incom e* FY 2007 86 263,780 28% 35% FY 2008 84 537

  15. Slide 15: Hektar’s Portfolio – Step-Up & Turnover

    Hektar’s Portfolio – Step-Up & Turnover Hektar continues to improve step-up and turnover rent provisions in tenancies ƒ Turnover Rent provisions in force with 90% of tenancies vs 86% at IPO ƒ Step-Up provisions in 61% of tenancies vs 58% at IPO ƒ Substantial progress from 0% when first implemented 3

  16. Slide 16: Financial Results

    Financial Results PRIVATE & CONFIDENTIAL 16

  17. Slide 17: Profit & Loss Statement

    Profit & Loss Statement Gross Revenues exceeded Forecast For Period 1 December 2006 – 31 March 2007 Actual Budget Variance (RM) (RM) (%) Gross Rental Income Revenue from Tenancy 21,468,664 21,051,077 2.0% Car Park 2,115,021 1,896,615 11.5% 2.8% Gross Revenues 23,583,685 22,947,692 2.8% Direct Cost &

  18. Slide 18: Profit & Loss Statement Summary

    Profit & Loss Statement Summary Hektar REIT’s net income is 18.6% over forecast For Period 1 December 2006 – 31 March 2007 Actual Budget Variance (RM) (RM) (%) Gross Revenue 23,583,684 22,947,692 2.8% Direct Cost & Property Expenses (8,720,866) (8,842,462) -1.4% Net Property Income (NPI) 14,862,818

  19. Slide 19: Balance Sheet

    Balance Sheet As at 31 March 2007 RM Non Current Assets 514,922,362 Net Asset Value Per Unit Current Assets 26,758,955 1.04 Current Liabilities* 25,929,407 Unit Price, 30 Mar 2007 Net current assets/(liabilities) 829,548 1.01 515,751,909 Premium / (Discount) NAV Financed by: (2.9%) Unitholders' capi

  20. Slide 20: Thank You

    Thank You CREATING THE PLACES WHERE PEOPLE LOVE TO SHOP Hektar Asset Management Sdn Bhd Block A-2-4, Plaza Damas 60 Jalan Sri Hartamas 1 Sri Hartamas 50480 Kuala Lumpur MALAYSIA ℡ +6 03 6201 1011 +6 03 6201 0012 www.HektarREIT.com PRIVATE & CONFIDENTIAL 20

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