Kuala Lumpur, Aug 23: Hektar Real Estate Investment Trust (REIT) has reported a strong financial performance for the second quarter of FY2024, ending June 30, driven by its recently acquired education asset, Kolej Yayasan Saad (KYS), and robust operational management.
The REIT’s gross revenue surged by 34.4 per cent year-on-year to RM36.6 million, while Net Property Income (NPI) increased by 33.7 per cent to RM20.7 million.
The Net Realised Income saw a significant boost of 42.8 per cent, reaching RM9.9 million, compared to RM6.96 million in the same period last year.
The positive financial results were underpinned by strong performances across Hektar Malls, which recorded a 6.4 per cent positive rental reversion and nearly 90 per cent overall committed occupancy. These factors contributed to Hektar REIT’s decision to declare an interim income distribution of 1.9 sen per unit for Q2 FY2024, totalling RM13.4 million, with an annualised dividend yield of 6.4 per cent.
Sabrina Halim, Chief Operating Officer of Hektar Asset Management Sdn. Bhd., highlighted the success of their diversification strategy with the acquisition of KYS, marking the REIT’s first non-retail asset.
She emphasised that this strategic move broadens their portfolio and enhances resilience against market fluctuations.
Looking ahead, Hektar REIT is targeting to double its portfolio size to RM3 billion by 2027.
The Manager is focusing on expanding its core retail assets while also exploring opportunities in education and light industrial properties to create a well-balanced and resilient portfolio.
The REIT is also prioritising the rejuvenation of Subang Parade, with a three-year project set to commence in Q1 2025, aimed at improving occupancy levels and property valuation.
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