KUALA LUMPUR (April 16): Hektar Asset Management Sdn Bhd, the manager of Hektar Real Estate Investment Trust (REIT), expects to maintain a strong portfolio management in 2015.
According to Hektar REIT chairman and chief executive officer Datuk Jaafar Abdu Hamid, its asset enhancement initiative (AEI) for its Central Square, Sungai Petani mall undertaken in 2014 would be one of the drivers towards a strong portfolio.
“This AEI has been completed and we look forward to higher rental income from refurbished rental space,” he told reporters after the group’s annual general meeting today.
Hektar REIT currently owns malls in the Southern and Northern regions of Peninsular Malaysia, namely Wetex Parade in Muar, Johor Bahru; Mahkota Parade in Melaka; Subang Parade in Selangor; Central Square and Landmark Central in Kulim, Kedah.
“The five malls are collectively valued at RM1.06 billion, and serve as a market catchment of more than three million Malaysians,” said Jaafar.
For its financial year ended Dec 31, 2014 Hektar REIT had maintained its income distribution of 10.5 sen per unit despite a 4.1% dip in realised earnings per unit to 11.05 sen from 11.52 sen in 2013.
The REIT will continue its policy of paying out at least 90% of its distributable net income to unitholders with quarterly distribution.
“Our earnings shortfall in FY2014 was partially due to the renovation and upgrading work at Central Square last year which necessitated the closing of the 5th floor and some stand-alone counters,” said Jaafar.