Hektar Real Estate Investment Trust · MYX:HEKTAR

Hektar Real Estate Investment Trust — Q2 2007 Earnings Presentation

22 slides from Hektar Real Estate Investment Trust's earnings presentation, Aug 6, 2007

  1. Slide 1: Second Quarter 2007 Financial Results

    HEKTAR REAL ESTATE INVESTMENT TRUST SECOND QUARTER 2007 FINANCIAL RESULTS 6 AUGUST 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 – Second Quarter 2007

    Financial Summary – Second Quarter 2007 1 April 2007– 30 June 2007 2nd Quarter Period (3 Months) REIT Outperformance REIT 2Q Net Income Exceeds Forecast by 19.3% New Cornerstone Frasers Centrepoint Trust Investor Acquired 27% Stake in REIT 2.4 sen 2nd Quarter Dividend (FY 2007 forecast of 9.6sen) (D

  5. Slide 5: Distribution Details

    Distribution Details Hektar REIT Quarterly Dividend Timeline Distribution Period 1 April – 30 June 2007 Quarterly DPU Forecast* 2.4 sen Notice of Entitlement 7 August 2007 Ex-Dividend Date 17 August 2007 Book Closure Date 21 August 2007 Distribution Payment Date 30 August 2007 *As per Hektar REIT Pr

  6. Slide 6: Hektar REIT Unit Price Performance

    Hektar REIT Unit Price Performance YTD: 1 January – 30 June 2007 1 January – 30 June 2007 ƒ 50% Unit Price Appreciation Hektar REIT + 50.5% ƒ Outperformed KLCI in 1H 2007 KLCI Index + 23.6% 70 60 % Change in Unit Price / Index 50 40 30 20 10 0 -10 -20 1-Jan 8-Jan 15-Jan 22-Jan 29-Jan 4-Jun 11-Jun 18

  7. Slide 7: 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 17.4 Net Property Income (EBIT) 45,842 Price / Net Tangible Assets 1.49 Interest Expense 10,764 EBIT Margin 61.5% Net Income 30,810 ROE 9.6% Dividend Pe

  8. Slide 8: Comparative Yields - Malaysia

    Comparative Yields - Malaysia Hektar REIT Yield Spread ƒ Trades at a 207bps spread over MGS 10-year ƒ 226bps spread over MGS 5-year 9.00 8.00 7.00 207 Yield (%) 5.74 bps spread (% 6.00 5.15 5.00 Yield 3.67 3.48 3.61 4.00 3.29 3.00 2.00 1.00 0.00 Hektar 10-year 5-year KLCI 12-month EPF REIT MGS MGS D

  9. Slide 9: Portfolio Performance

    Portfolio Performance PRIVATE & CONFIDENTIAL 9

  10. Slide 10: Hektar's Portfolio - Occupancy

    Hektar’s Portfolio - Occupancy Portfolio continues to enjoy near-full occupancy As of As of December As of December As of December As of September June 30 Property 31, 2003 31, 2004 31, 2005 30, 2006 2007 Subang Parade 97.7% 93.4% 98.3% 98.5% 99.6% Mahkota Parade - 86.8% 96.9% 94.9% 94.1% Total / Ov

  11. Slide 11: Hektar's Portfolio – Tenant Mix

    Hektar’s Portfolio – Tenant Mix A Well-Diversified Tenant Mix ƒ Combined Portfolio as of 30 June 2007 By Rental Income* By NLA 1.7% 1.9% 3.6% 1.9% 0.9% 8.2% 7.1% 17.3% 31.0% 11.0% 6.6% 4.3% 11.6% 16.5% 10.6% 13.4% 22.0% 30.4% Fashion & Footwear Food & Beverage / Food Court Department Store / Superma

  12. Slide 12: Hektar's Portfolio – Tenant Diversification

    Hektar’s Portfolio – Tenant Diversification Hektar’s Top Ten Tenants ƒ Top 10 Tenants Contribute 28% of Total Monthly Rental Income % of Total NLA % of Total Monthly Rental Tenant Trade Sector (sq ft) NLA Income* 1 Parkson Grand Department 254,009 26.9% 12.2% 2 The Reject Shop Fashion 17,695 1.9% 2.

  13. Slide 13: Hektar's Portfolio – Rental Reversions

    Hektar’s Portfolio – Rental Reversions FY2007 YTD Strong Overall Rental Reversions ƒ 43 new tenancies / renewals @ 33% average rental increase First Quarter No. of New % (4 months) Tenancies / NLA % of Total Increase / (Decrease) Over (Ending 31 Mar) Renewals (sq ft) NLA Previous Rent Rates Subang P

  14. Slide 14: Hektar's Portfolio – Lease Expiry Profile

    Hektar’s Portfolio – Lease Expiry Profile Hektar’s Lease Expiry Profile 2007 – 2010 ƒ By Property (as of 30 June 2007) Subang Parade No. of NLA of tenancies NLA of tenancies % of Total For Year Ending Tenancies expiring expiring as % of Monthly Rental 31 December Expiring (sq ft) total NLA Income* F

  15. Slide 15: Hektar's Portfolio – Lease Expiry Profile

    Hektar’s Portfolio – Lease Expiry Profile Portfolio Lease Expiry Profile 2007 – 2010 ƒ Combined Portfolio (as of 30 June 2007) Portfolio No. of NLA of tenancies NLA of tenancies % of Total For Year Ending Tenancies expiring expiring as % of Monthly Rental 31 December Expiring (sq ft) total NLA Incom

  16. Slide 16: Hektar's Portfolio – Step-Up & Turnover

    Hektar’s Portfolio – Step-Up & Turnover Hektar Tenancy Provisions ƒ Turnover Rent reported by 91% of tenancies vs 86% at IPO ƒ Step-Up provisions in 62% of tenancies vs 58% at IPO ƒ Substantial progress from 0% when implemented 3 years ago 100.0% 90.0% 80.0% 70.0% 60.0% 2Q 2007 50.0% IPO 40.0% 30.0%

  17. Slide 17: Financial Results

    Financial Results PRIVATE & CONFIDENTIAL 17

  18. Slide 18: Profit & Loss Statement

    Profit & Loss Statement Gross Revenues exceeded Forecast For Period 1 April 2007 – 30 June 2007 Actual Budget Variance (RM) (RM) (%) Gross Rental Income Revenue from Tenancy 16,456,633 15,788,308 4.2% Car Park 1,605,727 1,422,462 12.9% Gross Revenues 18,062,360 17,210,769 4.9% Direct Cost & Property

  19. Slide 19: Profit & Loss Statement Summary – 2Q

    Profit & Loss Statement Summary – 2Q 2nd Quarter net income is 19.3% over forecast For Period 1 April 2007 – 30 June 2007 Actual Budget Variance Second Quarter (RM) (RM) (%) Gross Revenue 18,062,360 17,210,769 4.9% Direct Cost & Property Expenses (6,674,584) (6,631,846) -0.5% Net Property Income (NP

  20. Slide 20: Profit & Loss Statement Summary - YTD

    Profit & Loss Statement Summary - YTD First Half 2007 net income is 18.9% over forecast For Period 1 Dec 2006 (IPO) – 30 June 2007 (7 months) YTD Actual YTD Budget Variance Year-To-Date (RM) (RM) (%) Gross Revenue 41,646,044 40,158,462 3.5% Direct Cost & Property Expenses (15,395,450) (15,474,308) -

  21. Slide 21: Balance Sheet

    Balance Sheet As at 30 June 2007 RM Non Current Assets 514,922,362 Net Asset Value Per Unit 1.04 Current Assets 28,314,240 Unit Price, 29 June 2007 Current Liabilities* 26,679,176 1.55 Premium / (Discount) NAV Net current assets/(liabilities) 1,635,064 516,557,426 49% Financed by: Unitholders' capit

  22. Slide 22: 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 22

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