- Stricter movement restrictions in 3Q adversely impacts mall business.
- Business gradually recovering with easing of restrictions and reopening of economy.
- Rise in consumer sentiment a good sign for malls and the economy.
Kuala Lumpur, Nov 27: Hektar Asset Management Sdn Bhd, the Manager of Hektar Real Estate Investment Trust has announced that for the third quarter ended Sept 30, Hektar REIT recorded revenue of RM19.1 million, which is a decrease of 26.4 per cent compared to the RM26 million recorded in the corresponding quarter of the previous year.
Hektar REIT registered net property income of RM10.3 million for the quarter under review, which decreased 20.1 per cent compared to the RM12.9 million recorded in 3Q 2020, while realised income for 3Q 2021 was 69 per cent lower at RM1.4 million compared to the RM4.5 million recorded in 3Q 2020.
Earnings per unit stood at 0.30 sen as at 3Q 2021 compared to 0.98 sen in the same quarter of the previous year.
The dip in gross revenue and NPI (net profits interest) compared to the previous year is due to the strict containment measures in early 3Q 2021 due to the implementation of the National Recovery Plan, with states being under phase one for a prolonged period until they met certain criteria to transition to other phases.
The prolonged COVID-19 pandemic leading to the imposition of more stringent movement restrictions from May to mid-August 2021 had an adverse impact on the business in the quarter under review.
However, Hektar REIT is now seeing more visitors to its malls with the easing of restrictions in tandem with the reopening of the economy.
Hektar REIT expects its business to gradually recover as almost all sectors of the economy are now allowed to open while allowing dine-ins and inter-state travel have also been beneficial to the REIT and other mall operators.
Hektar REIT is maintaining a cautious outlook for its business given all that has happened in the past 20 months and in light of the emergence of COVID-19 variants of concern, such as the Delta-plus variant that is highly transmissible.
In line with the government’s efforts to transition the country towards endemicity, the REIT will continue to prioritise the adherence to strict standard operating procedures to ensure the continued safety of visitors, tenants, vendors and employees.
The operating landscape continues to be challenging despite the rebound in economic activities, but the REIT is hopeful of stronger momentum in the quarters ahead, given that consumer sentiment tracked by the Malaysian Institute of Economic Research has surged past the 100-point critical threshold to 101.7 in 3Q 2021, the first time since 3Q 2018 the gauge has gone above 100 and the highest since 3Q 2013.
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