KUALA LUMPUR: Hektar Real Estate Investment Trust
(Hektar REIT) recorded a 9.5% year-on-year increase in net property income (NPI) to RM17.4mil for the second quarter ended June 30, 2026 (2Q26), supported by higher occupancy, tenancy remixing and cost optimisation.
Quarterly revenue was largely unchanged at RM32mil, while its NPI margin improved to 54.4% from 49.6% a year earlier.
Hektar REIT, in a statement, said its portfolio recorded a positive rental reversion of 11.3% during the quarter, led by Segamat Central and Subang Parade.
Segamat Central recorded a positive rental reversion of 167%, supported by the opening of new anchor tenant Target Supermarket, while footfall rose 58.1% year-on-year. Subang Parade recorded a positive rental reversion of 12.3%.
For the first half ended June 30, NPI rose 5.8% to RM32.64mil from RM30.86mil a year earlier, with its NPI margin improving to 51.9%.
Realised income, however, fell to RM8.23mil from RM8.82mil previously, mainly due to about RM2.5mil in one-off administrative expenses related to several corporate initiatives.
Hektar REIT declared an interim income distribution of 1.21 sen per unit for the first half, up 15.2% from 1.05 sen per unit a year earlier.
Hektar Asset Management executive director and chief executive officer Zainal Iskandar Ismail said the improvement in NPI and operating margins reflected higher occupancy, active tenant remixing and cost management initiatives.
“Higher occupancy, active tenant remixing and disciplined cost management have strengthened the underlying performance of our assets, with our Q2 NPI margin improving meaningfully to 54.4%,” he added.
Meanwhile, Hektar REIT said the completed acquisitions of the Penang Factory and adjacent land of Kolej Yayasan Saad are expected to increase the contribution from non-retail assets to close to 20% of total NPI by the end of the fourth quarter of 2026.
As at June 30, Hektar REIT's total assets stood at RM1.53bil, up from RM1.46bil a year earlier, while net asset value per unit improved to RM1.0533.
The REIT said it remained cautiously optimistic on the operating environment, with its recently completed acquisitions expected to progressively contribute lease income in the coming quarters.
