Hektar REIT focuses on growth amidst market challenges

Hektar Asset Management Sdn Bhd CEO Johari Shukri Jamil

KUALA LUMPUR: Hektar Real Estate Investment Trust (Hektar REIT) will continue adopting prudent financial management, cost optimisation and enhancing its asset efficiencies to help cushion the impact.

“Hektar REIT remains positive & resilient in achieving growth backed by increased occupancy rates and improving rental reversions for properties under the portfolio,” it said in a filing with Bursa Malaysia.

In the first quarter ended March 31, Hektar REIT posted a lower net profit of RM5.08mil compared with RM9.2mil last year, translating into an earring per share of 0.86 sen against 1.94 sen a year ago.

Revenue for the quarter fell marginally to RM28.4mil from RM28.9mil last year.

Its net property income fell to RM14.4mil from RM15.2mil previously, due to the ongoing tenancy remixing initiative and heightened utility cost respectively. It achieved a realised net income of RM5.1mil thanks to effective operational management.

For the first quarter, Hektar REIT’s portfolio achieved a portfolio occupancy rate of 87.2%, while the secured occupancy rate is at 88.5%.

It said the numbers resulted from Hektar REIT’s continuous asset enhancement initiatives (AEI) and enhanced leasing strategy which will lead to better reversion this year onwards.

Hektar REIT said Subang Parade is currently undergoing an extensive repositioning exercise which entails the introduction of new key tenants from entertainment/leisure and health & fitness categories, replacement of older lift and escalators, and interior uplift which is expected to be completed by the first half of 2025 and followed by facade upgrading and placemaking initiatives.

"Our recent diversification strategy is aligned with our objective to deliver attractive returns to our unitholders by injecting assets with accretive yield into Hektar REIT. We are actively looking to build up our investment pipeline to increase the revenue and assets under management (AUM) for long-term sustainable growth of Hektar REIT,” Hektar Asset Management Sdn Bhd chief executive officer Johari Shukri Jamil said in a statement.

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