KUALA LUMPUR: Hektar Real Estate Investment Trust’s (Hektar REIT) net property income increased 17.9% to RM16.62mil in the first quarter ended March 31 (1Q22) against RM14.09mil recorded a year prior.
Its realised income in the first quarter rose 110.7% to RM13.74mil compared with RM5.52 million in 1Q 2021.
Revenue rose 8.7% to RM29.11mil from RM26.78mil in the same quarter last year due to an increase in rental income, car park income and higher hotel occupancy, consistent with other retail and hospitality REITs.
“The overall retail sentiment for this quarter remained positive as it was supported by the increase in retail sales due to the pent-up demand from last quarter,” Hektar Asset Management Sdn Bhd, the manager of Hektar REIT said in a statement.
It said Hektar REIT’s overall portfolio occupancy rate has remained steady at 84.8% in the quarter under review.
“Anchor support for Hektar’s malls remains positive as Golden Screen Cinemas (GSC), our anchor tenant at Subang Parade, Central Square and Kulim Central, has started operating their business. The commitment by such an anchor tenant is a testament to the confidence in the long-term prospects of the malls.
“Hektar REIT is cautiously optimistic that there will be a gradual recovery as the country transitions into an endemic phase with the lifting of restrictions and reopening of the international borders,” it added.
Despite the improved performance of Hektar REIT, the manager has decided to adopt a prudent approach by moving from quarterly to semi-annual income distribution as part of its long-term strategy to enhance the REIT’s capital management.
“Moving forward, subject to the financial performance of the REIT, the manager intends to make distributions to the unitholders of Hektar REIT on a semi-annual basis for each six-month period ending June 30 and Dec 31 each year, unless otherwise determined and/or varied by the manager at its sole discretion.
“However, the manager remains committed to distribute at least 90% of Hektar REIT’s distributable income for the financial year ending Dec 31, 2022,” Hektar Asset said.