Hektar REIT pays 2.3 sen DPU, 1Q NPI up 10%

KUALA LUMPUR (May 22): Hektar Real Estate Investment Trust (REIT)’s first quarter net property income (NPI) grew 9.81% year-on-year to RM19.42 million from RM17.69 million on the inclusion of its Segamat Central mall into its portfolio.

Quarterly revenue for the first financial quarter ended March 31, 2018 (1QFY18) climbed 10.06% to RM33.96 million from RM30.86 million a year ago, said Hektar REIT in a filing with Bursa Malaysia yesterday.

It declared the first interim distribution per unit (DPU) of 2.3 sen, amounting to RM10.63 million for the financial year ending Dec 31, 2018 (FY18), payable on June 22. The ex-date is June 4 and entitlement date is June 6.

Based on its closing share price of RM1.18 on March 30, 2018, the annualised DPU represented a distribution yield of 7.8%, said Hektar REIT, adding that it maintains a distribution policy of 90% of distributable net income.

In a separate statement, its chief executive officer Datuk Hisham Othman said 1QFY18 reached a rental revision of 7% due to the tenancy commencement of Kulim Central (post-refurbishment) and tenant remixing exercises in Mahkota Parade and Central Square.

“The recent acquisition of Segamat Central and our continuous effort in optimising our portfolio also contributed significantly. In six months, about 9% of the overall portfolio’s income is already generated by the mall, proving that it is on track to achieve the projected 10% contribution by the first year,” he added.

Hisham said Hektar REIT has started initiatives to reduce water, conserve resources and minimise carbon footprint to increase sustainability efforts.

“By installing a new energy-efficient air conditioning and mechanical ventilation system in Subang Parade, we managed to optimise overall consumption that will save electricity cost. This model will be replicated at selected malls in our portfolio and is expected to result in substantial savings overall,” he added.

Hektar REIT’s total portfolio amounts to two million square feet net lettable area in Selangor, Melaka, Johor and Kedah with assets valued at RM1.2 billion as at Sept 30, 2017. It has 94% occupancy.

Its share price closed unchanged at RM1.22 yesterday for a market capitalisation of RM563.59 million. — theedgemarkets.com

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