Hektar REIT Posts Rm26.78 Million Revenue in 1Q
24 May 2021 - 1:00PM
JCN Newswire
Hektar Asset Management Sdn. Bhd., the Manager for Hektar Real
Estate Investment Trust ("Hektar REIT"), today announced the first
quarter results ended 31 March 2021 ("1Q 2021").
Hektar REIT recorded revenue of RM26.78 million, which is 12.8%
lower than the RM30.71 million recorded in the same quarter of the
preceding year. The reported revenue fell mainly due to the rental
income, carpark income and lower hotel occupancy, consistent with
other retail and hospitality REITs that were affected because of
the pandemic outbreak and implementation of mobility restrictions.
Net property income of RM14.09 million for the quarter decreased by
10.3% compared to the RM15.71 million recorded in 1Q 2020. Realised
income for the quarter was RM6.52 million, which is 7.9% lower than
the RM7.08 million recorded in 1Q 2020. Earnings Per Unit ("EPU")
of 1.41 sen was recorded for the first quarter.
Dato' Hisham bin Othman, Chief Executive Officer of Hektar Asset
Management Sdn. Bhd, commented: "The retail front continues to be
really challenging due to the rise in COVID-19 infections. Despite
most businesses being allowed to operate under the second movement
control order ("MCO") from mid-January to early March, a
combination of movement restrictions and fear of infection has
affected visitor footfall in malls."
"Retail sales growth has also been affected due to the second MCO,
with Retail Group Malaysia estimating sales growth of 4.1% for 2021
compared to the earlier estimate of 4.9%. With the rise in COVID-19
cases, the Government published the first list of premises flagged
as potential COVID-19 hotspots that were identified through the
Hotspots Identification for Dynamic Engagement ("HIDE") system.
Many prominent shopping malls in the Klang Valley, which included
Subang Parade, were listed under HIDE and were required to
temporarily close for 3 days to undergo sanitisation upon the
directive from the Government from 9 May to 11 May 2021. The recent
imposition of the third MCO is expected to further affect the
retail sales growth with restrictions on no dine-in for F&B
outlets and closure of beauty services and entertainment
outlets."
"However, we expect economic recovery to accelerate as consumer
sentiment improves over the second half of 2021 as more people get
vaccinated. We will continue following the stringent SOPs by the
Government and engage with our tenants across the portfolio to help
promote their business while ensuring the health and safety of all
visitors, tenants and employees remain our top priority".
About Hektar Real Estate Investment Trust
Hektar Real Estate Investment Trust ("Hektar REIT") is Malaysia's
first listed retail-focused REIT. The primary objectives of Hektar
REIT are to provide unitholders with sustainable dividend income
and to achieve long-term capital appreciation of the REIT. Hektar
REIT was listed on the Main Market of Bursa Malaysia Securities
Berhad on 4 December 2006 and currently owns 2 million square feet
of retail space in 4 states with assets valued at RM1.2 billion as
at 31 December 2020. The REIT's strategic partner is Frasers
Centrepoint Trust, part of Frasers Property Ltd, headquartered in
Singapore. Hektar REIT is managed by Hektar Asset Management Sdn
Bhd and the property manager is Hektar Property Services Sdn Bhd.
Hektar REIT's portfolio of commercial properties includes Subang
Parade in Subang Jaya, Selangor; Mahkota Parade in Melaka; Wetex
Parade & Classic Hotel in Muar, Johor; Central Square in Sungai
Petani, Kedah; Kulim Central in Kulim, Kedah and Segamat Central in
Segamat, Johor. For more information, please visit
www.HektarREIT.com
Contact:
Muhammad Hakim
Swan Consultancy
M: +60 12 318- 5410
E: h.juraimi@swanconsultancy.biz
Copyright 2021 JCN Newswire . All rights reserved.