▪ Higher Revenue at RM135.1M, up 7.6%
▪ Net Property Income Increased to RM78.7M, up 6.8%

KUALA LUMPUR, March 1 (Bernama) -- Hektar Real Estate Investment Trust (“Hektar REIT”) announced its annual results for Financial Year 2018 (“FY18”) with revenue rising to RM135.1 million, up 7.6% higher compared to the same period in the preceding year, while Net Property Income (NPI) climbed to RM78.7 million, a 6.8% increase. For the twelve months ended 31 December 2018, the Realised Income was recorded at RM42.3 million which was 5.3% higher than FY2017. Overall, the market valuation of the Hektar portfolio increased by RM26.9 million in 2018. The positive result is supported by strong portfolio performances, particularly from assets outside the Klang Valley, buoyed by the post-refurbishment asset enhancement initiatives in the Kedah malls and positive rental reversion growth in Melaka and Muar.
 
For the fourth quarter ended 31 December 2018, the REIT recorded higher revenue of RM33.9 million, an increase of 1.3% compared to the corresponding period in 2017 (“4Q17”). Net Property Income recorded was RM20.3 million, a small variation from the RM20.9 million in 4Q17. The Realised Income before taxation grew to RM12.0 million, showing a marginal increase of 1.8% from 4Q17.
 
Hektar REIT declared a final income distribution per unit (“DPU”) of 2.31 sen for the fourth quarter ended 31 December 2018. Based on the closing price of RM1.11 on 31 December 2018, the annualised DPU for the year represented a DPU yield of approximately of 8.1%.
 
“Hektar’s solid track record for occupancy, year-on-year increase in revenues and also net property income remains steadfast. It was a very busy year for us as we focused on improving our shopping centres under our portfolio which included asset enhancement initiatives, energy saving initiatives, extensive tenancy remixing and reconfiguration of space on top of taking over the operations of Classic Hotel, the hotel adjoining Wetex Parade in Muar. We strive to make sure that we achieve our goals in ensuring we deliver value to our unitholders. For the last 12 months period, the REIT has declared a total distribution of RM41.6 million or 9.01 sen. We are proud that the REIT has and continues to deliver returns to the unitholders and stakeholders despite the challenging market condition and growing competition,” said Chief Executive Officer, Dato’ Hisham bin Othman.

Source: Perspective Strategies

FOR MORE INFORMATION, PLEASE CONTACT:
Name: Charmaine Jeeva
Senior Consultant
Tel: +6012-610 4802

--BERNAMA