Hektar Real Estate Investment Trust · MYX:HEKTAR
Hektar Real Estate Investment Trust — Q2 2024 Earnings Presentation
28 slides from Hektar Real Estate Investment Trust's earnings presentation, Aug 22, 2024
Slide 1: Hektar REIT 2Q24 Results Presentation
Creating The Places People Love HEKTAR REAL ESTATE INVESTMENT TRUST 2Q24 Results Presentation 22 August 2024
Slide 2: Hektar REIT: Malaysia's First Retail-Focused REIT
Hektar REIT: Malaysia’s First Retail-Focused REIT 2 Diversifying while maintaining our retail-centered niche ORGANISATION GEOGRAPHICALLY WELL-DIVERSIFIED DISCLAIMER: The material that follows is a presentation of general background information about the activities of Hektar REIT (including Hektar RE
Slide 3: Table of Contents
Table of Contents 3 01 Financial & Portfolio Highlights 02 Portfolio Performance 03 Portfolio Updates 04 Sustainability 05 2024 Key Initiatives
Slide 4: Financial Highlights
4 Financial Highlights
Slide 5: Financial & Operational Highlights 2Q24
Financial & Operational Highlights 2Q24 5 Financial Performance (2Q24) vs Previous Year (2Q23) Dividend Per Unit FY2024 Gross Revenue RM36.6 million (+34.4% Y-o-Y) 1H 2024: 1.90 sen Net Property Income RM20.7 million (+33.7% Y-o-Y) Realised Net Income RM9.9 million (+42.8% Y-o-Y) Annualised DPU Yiel
Slide 6: Performance Summary
Performance Summary 6 2Q24: Apr-Jun 2024 | 3 Months 1H24: Jan-Jun 2024 | 6 Months RM '000 34.4% 15.7% RM' '000 40,000 2Q23 1H2023 36,557 70,000 64,963 2Q24 1H2024 35,000 33.7% 60,000 56,152 14.3% 30,000 27,207 50,000 25,000 42.8% -7.1% 20,713 40,000 35,095 20,000 15,487 30,700 30,000 15,000 9,933 10
Slide 7: Debt Expiries well-distributed
Debt Expiries well-distributed 7 EXPIRY PROFILE 2024-2033 DEBT SUMMARY As at 30 June 2024 RM501.1 MIL ▪ Al-Murabahah Overdraft (MOD) ▪ Term Financing (TF) Facilities ▪ Commodity Murabahah Term Financing-i (CMTF-i) RM54.2 MIL RM4.2 MIL RM34.1 MIL ▪ Credit Guarantee & Investment Facility 2024 2025 202
Slide 8: Income Statement
Income Statement 8 Income Statement 2Q24 2Q23 Variance Second Quarter 2024 (Unaudited) (RM '000) (RM '000) (%) Revenue 36,557 27,207 34.4% Direct cost & Property expenses (15,844) (11,720) (35.2%) Net property income (NPI) 20,713 15,487 33.7% Interest & Other income 335 799 (58.1%) Trust fees & Expe
Slide 9: Balance Sheet
Balance Sheet 9 As at As at Unit Statistics As at 30 June 2024 Balance Sheet 30.06.2024 31.12.2023 (Unaudited) (RM '000) (RM '000) Non-current Assets Investment properties 1,232,700 1,232,700 No. of Unit 706,812,657 Plant & Equipment 404 414 Capital work In Progress 4,291 0 Fixed deposit with a lice
Slide 10: Portfolio Performance
10 Portfolio Performance Improved Occupancy at 87.2% ► Positive Rental Reversion of 6.4% ►
Slide 11: Average Portfolio Occupancy improved to 87.2%
Average Portfolio Occupancy improved to 87.2% 11 89.3% 84.9% 86.7% 87.2% 87.2% 82.0% Previous Occupancy Actual Occupancy 2Q24 Committed Occupancy 2Q24 Occupancy FY21 FY22 FY23 1Q24 2Q24 Subang Parade 82.5% 70.3% 74.3% 75.0% 75.5% Mahkota Parade 87.1% 86.9% 93.8% 94.8% 95.0% Wetex Parade 89.9% 88.1%
Slide 12: 2Q24 rental reversions at 6.4%
2Q24 rental reversions at 6.4% 12 • 28 new/renewed tenancies comprising 3.2% of total NLA for the quarter ended 30 June 2024. • Positive reversions recorded at all malls except Subang Parade & Central Square (Less than -0.5% reversion) No. of New % Increase / Tenancies / NLA % of (Decrease) Over Qua
Slide 13: Tenancies expiry well distributed
Tenancies expiry well distributed 13 • 794,500 sq. ft. or about 39% of total NLA expiring in 2024, of which 259,676 sq. ft. representing 24.6% of this year’s expiry has been renewed as of 30 June 2024. Most of the remaining expiring NLA consists of anchor tenants which are under advanced stage of ne
Slide 14: Refreshed retail offerings at Hektar Malls
14 Refreshed retail offerings at Hektar Malls The Green Party, Central Square Mansor Nasi Ayam, Mahkota Parade Fly Project, Subang Parade Dessert Crush, Mahkota Parade LT Manicure, Mahkota Parade Game-On (Soon), Subang Parade
Slide 15: Marketing initiatives
15 Marketing initiatives Gamelan Musical Performance, Central Traditional Raya Musical Performance, Square Mahkota Parade Martial Arts Competition, Segamat Central Raya Outfit Competition, Kulim Central Treasure Hunt, Central Square Hari Raya Performance, Subang Parade
Slide 16: Corporate CSR
PRIVATE & CONFIDENTIAL 16 Corporate CSR Hari Raya Open House with Underprivileged Kids, Kulim Central Majlis Berbuka Puasa, Subang Parade Blood Donation Drive, Wetex Parade Program Kesedaran Sumber Air KESSA, Program Advokasi Kepenggunaan Kelab Mini Karnival Kerjaya, Central Square Mahkota Parade Pe
Slide 17: 2024 Key Initiatives
2024 Key Initiatives
Slide 18: Subang Parade Asset Enhancement Initiatives (AEIs)
Subang Parade Asset Enhancement Initiatives (AEIs) 18 AEIs targeted to be completed by 1H2027 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 2Q27 Detailed Design Development 3 months CURRENT STAGE Authority Approval Phase 1 - Interior Works Phase 2 - Common Space & Event Space Phase 3 -
Slide 19: Subang Parade Asset Enhancement Initiatives (AEIs)
Subang Parade Asset Enhancement Initiatives (AEIs) 19 AFTER AFTER
Slide 20: Subang Parade Enhanced Leasing Strategies
Subang Parade Enhanced Leasing Strategies 20 CONTENT CREATION ENHANCED AMENITIES KIDS VILLAGE UPGRADED PARENTS’ ROOM UPCOMING TENANTS Oriental Parade, Game On & Padi House ARTISANAL MARKETPLACE Enhanced F&B offerings
Slide 21: Subang Parade (Project Update)
Subang Parade (Project Update) 21 • Modernisation of Lift & Escalators in progress with targeted full completion by 1Q26 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 Phase 1 – Replacement of Lift & Escalators CURRENT STAGE Digital One Area (LG) Central Zone (LG) East Wing (LG) Phase 2
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: Project Update (Segamat Central)
Project Update (Segamat Central) 23 • Segamat Central is located at transportation hub with direct link bridge access to a bus station and directly adjacent to the newly renovated KTMB Station nearby with ETS link which will operate at the near future. Segamat Central (Minor Asset Enhancement Initia
Slide 24: Project Update (Segamat Central)
Project Update (Segamat Central) 24 • Minor asset enhancement initiatives completed in 1H2024, ranging from repainting of building façade, toilet uplift and replacement of outdoor pylon signages to improve customers’ experience and overall mall aesthetics. Repainted Building Facade Refreshed Toilets
Slide 25: Segamat Central June Marketing Event Highlights
Segamat Central June Marketing Event Highlights 25 • Curation of suitable marketing events to serve the community better. • Significant improvement in footfall recorded with enhanced marketing. Ohsem Food Festival Footfall Calendar Enhanced Usual Footfall Variance Marketing Daily Weekday 3,000 – 6,0
Slide 26: Business Development (Acquisition Pipeline)
Business Development (Acquisition Pipeline) 26 REQUIREMENTS FOR ACQUISITION Retail • Average 7.0% yield • < 15 years of building age • ≥ 90% occupancy rate PENANG & KEDAH • Industrial Industrial • Education • Average 7.0% yield • Triple Net Lease • ≥ 15 years lease PERAK • Retail • Step-up rental Ed
Slide 27: Hektar's Branding Initiatives (Loyalty Program)
27 Hektar’s Branding Appointment Full Initiatives of App Development Developer (Loyalty Program) IN PROGRESS Completion / Prototype Testing & • Curation of Loyalty app to reward Commissioning Development customers with various discounts and promotions throughout our six (6) retail malls • Points can
Slide 28: Investor Communications
28 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
Hektar Real Estate Investment Trust — Q2 2024 Earnings Presentation on 6ix