Hektar Real Estate Investment Trust · MYX:HEKTAR
Hektar Real Estate Investment Trust — Q3 2024 Earnings Presentation
25 slides from Hektar Real Estate Investment Trust's earnings presentation, Nov 26, 2024
Slide 1: Hektar REIT 3Q24 Results Presentation
Creating The Places People Love HEKTAR REAL ESTATE INVESTMENT TRUST 3Q24 Results Presentation 26 November 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 3Q24
Financial & Operational Highlights 3Q24 5 Financial Performance (3Q24) vs Previous Year (3Q23) Gross Revenue RM29.8 million (+7.1% Y-o-Y) Net Property Income RM14.9 million (-2.9% Y-o-Y) Dividend Per Unit FY2024 Realised Net Income RM4.3 million (-37.2% Y-o-Y) 1H 2024: 1.90 sen Debt Maturity Profile
Slide 6: Performance Summary
Performance Summary 6 3Q24: Jul – Sep 2024 | 3 Months 3Q24 YTD: Jan-Sep 2024 | 9 Months 12.9% RM '000 RM' '000 7.1% 3Q23 3Q23 40,000 100,000 94,762 83,963 3Q24 29,799 3Q24 8.6% 80,000 30,000 27,811 -2.9% 60,000 50,041 -16.0% 20,000 -37.2% 46,092 15,392 14,946 40,000 22,986 10,000 6,823 19,302 4,287
Slide 7: Debt Expiries well-distributed
Debt Expiries well-distributed 7 EXPIRY PROFILE 2024-2033 DEBT SUMMARY As at 30 Sep 2024 RM500.0 MIL ▪ Al-Murabahah Overdraft (MOD) ▪ Term Financing (TF) Facilities ▪ Commodity Murabahah Term Financing-i (CMTF-i) RM54.2 MIL RM19.2 MIL RM34.1 MIL ▪ Credit Guarantee & Investment Facility 2024 2025 202
Slide 8: Income Statement
Income Statement 8 Income Statement 3Q23 3Q24 Variance Second Quarter 3024 (Unaudited) (RM '000) (RM '000) (%) Revenue 27,811 29,799 7.1% Direct cost & Property expenses (12,419) (14,853) 19.6% Net property income (NPI) 15,392 14,946 (2.9%) Interest & Other income 113 406 294.2% Reversal Gain / (Imp
Slide 9: Balance Sheet
Balance Sheet 9 As at As at Balance Sheet 31.12.2023 30.09.2024 Unit Statistics As at 30 Sep 2024 (Unaudited) (RM '000) (RM '000) Non-current Assets Investment properties 1,232,700 1,232,700 Plant & Equipment 414 476 No. of Unit 706,812,657 Capital work In Progress 0 5,755 Fixed deposit with a licen
Slide 10: Portfolio Performance
10 Portfolio Performance Secured Occupancy at 88.8% ► Positive Rental Reversion of 7.2% ►
Slide 11: Average Portfolio Secured Occupancy at 88.8%
Average Portfolio Secured Occupancy at 88.8% 11 88.8% 87.2% 87.2% 86.7% 85.6% 82.0% Previous Occupancy Actual Occupancy 3Q24 Committed Occupancy 3Q24 Occupancy FY22 FY23 1Q24 2Q24 3Q24 Subang Parade 70.3% 74.3% 75.0% 75.5% 77.5%▲ Mahkota Parade 86.9% 93.8% 94.8% 95.0% 95.5%▲ Wetex Parade 88.1% 97.6%
Slide 12: 3Q24 rental reversions at 7.2% against previous rent
12 3Q24 rental reversions at 7.2% against previous rent • 39 new/renewed tenancies consisting of 8.6% of total NLA for the quarter ended 30 September 2024. • Strong Positive reversions recorded at all malls except Mahkota Parade due to several key tenants as part of strategy for tenancy remixing wit
Slide 13: Tenancies expiry well distributed
Tenancies expiry well distributed 13 • 592,757 sq. ft. or about 29.1% of total NLA expiring in 2024, of which 434,785 sf sq. ft / 21.4% of NLA has been renewed / added as of 30 September 2024. Most of these remaining expiring NLA consists of anchor tenants such as Parkson, MM2 Cinema, and Ipoh Bowl,
Slide 14: Refreshed retail offerings at Hektar Malls
Refreshed retail offerings at Hektar Malls 14 Oriental Parade, Subang Parade Original Classic, Kulim Central Sushi Kazoku, Subang Parade Moto Guzzi, Mahkota Parade Yomaro, Mahkota Parade Chagee, Mahkota Parade Camille, Subang Parade Dubuyo, Mahkota Parade
Slide 15: Upcoming Notable New tenants in 4Q24 (Subang Parade)
Upcoming Notable New tenants in 4Q24 (Subang Parade) 15 Game On, Subang Parade • New indoor entertainment / theme park mini anchor (21,646 sf) to offer an unforgettable experience and endless fun for visitor of all ages. Game On, Subang Parade
Slide 16: Upcoming Notable New tenants in 4Q24 (Subang Parade)
Upcoming Notable New tenants in 4Q24 (Subang Parade) 16 The Farm & Chan Rak BBQ, Subang Parade • Farm to dining experience in a modern, nature-inspired space with rustic ambience filled with lush greenery. The Farm & Chan Rak BBQ, Subang Parade Swet Fitness, Subang Parade • New gym tenant to cater t
Slide 17: Marketing initiatives
Marketing initiatives 17 Hari Pengakap , Central Square Food Culture, Subang Parade Hobbies Festival, Mahkota Parade Pertandingan Ratu Kebaya, Segamat Central Art Exhibition, Wetex Parade Deepavali, Central Square
Slide 18: Portfolio Performance
Portfolio Performance 18 OCCUPANCY RATE Occupancy Rate 88.8% • Occupancy rate decrease to 85.6%% (-0.1% Y-o-Y ) 85.7% due to tenancy remixing which is a temporary effect. 85.6% • Committed Occupancy (CO) to date is 88.8% (3.1% Y- o-Y▲) as part of our active leasing strategy. The temporary drop in oc
Slide 19: ESG Awards
PRIVATE & CONFIDENTIAL 19 ESG Awards • Hektar REIT has been awarded the Highest Returns to Shareholders Over Three Years under the Real Estate Investment Trust (“REIT”) sector at The Edge Malaysia Centurion Club Awards 2024.
Slide 20: 2024 Key Initiatives
2024 Key Initiatives
Slide 21: Subang Parade (Project Update)
Subang Parade (Project Update) 21 • Phase 1 upgrades has concluded and marks the beginning of Phase 2 upgrades. • 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 & Escalator
Slide 22: Subang Parade Asset Enhancement Initiatives (AEIs)
Subang Parade Asset Enhancement Initiatives (AEIs) 22 Phase 1 lift and escalators upgrades reached completion in Q3 2024. Installation of new bubble lifts and lift systems Installation of modernized escalators
Slide 23: Business Development (Acquisition)
Business Development (Acquisition) 23 REQUIREMENTS FOR ACQUISITION Retail • 6.5% - 7.0% yield • < 15 years of building age • ≥ 90% occupancy rate PENANG & KEDAH • Industrial Industrial • Education • Average 8.0% yield • Triple Net Lease • ≥ 15 years lease PERAK • Retail • Step-up rental Education •
Slide 24: Hektar's Branding Initiatives (Loyalty Program)
24 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 25: Investor Communications
25 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 — Q3 2024 Earnings Presentation on 6ix