Kuala Lumpur, 26 February 2025 – Hektar Asset Management Sdn. Bhd., the Manager of Hektar Real Estate Investment Trust (“Hektar REIT”), is pleased to announce the financial results for the fourth quarter and full financial year ended 31 December 2024 (“FY2024”), showcasing steady revenue growth and resilience amid a dynamic economic environment.
For FY2024, Hektar REIT recorded a total revenue of RM124.8 million, reflecting an 11.9% year-on-year increase compared to RM111.5 million in FYE2023. This growth was primarily driven by the income contribution from Kolej Yayasan Saad (“KYS”) Melaka, following the completion of the acquisition, as well as consistent rental income from its retail portfolio. Net Property Income rose 4.7% to RM62.9 million, further strengthening Hektar REIT’s income-generating capabilities. Notwithstanding the topline achievements, Net Realised Income recorded a temporary decline Y-o-Y due to increased financing costs, gain on reversal of trade receivables recognised in prior year and one-off acquisition cost in relation to KYS acquisition. According to Hektar, this is a timing related impact rather than structural issue, and with the continued solid performance of our core assets, we anticipate a normalisation moving forward.
In line with its commitment to delivering stable returns, Hektar REIT declared a final income distribution of 1.25 sen per unit, bringing the total FY2024 distribution to 3.15 sen per unit which translates to a 5.7% dividend yield based on the year-end closing price. This reflects Hektar REIT’s commitment to maintain sustainable distributions despite cost challenges. The REIT expects the DPU in the incoming years to be further enhanced upon the realisation of full-year income from its new yield-accretive acquisitions.
Hektar REIT has ventured into portfolio diversification to enhance its resilience and reduce exposure to retail with the addition of KYS Melaka as its first education asset in its portfolio which has successfully provided a stable and recurring income stream to the REIT. Continuing from that Hektar has recently announced its maiden venture into industrial sector through the proposed acquisition in Bayan Lepas, Penang solidifying its diversified asset and income base. As part of its growth strategy, Hektar REIT is actively rebalancing its portfolio to reduce reliance on retail assets by refocusing on acquiring triple-net lease assets in the non-retail sectors aligned with our yield-accretive strategy, ensuring consistent income streams with minimal operational costs that will further enhance the REIT’s DPU.
Zainal Iskandar, Chief Executive Officer of Hektar Asset Management Sdn Bhd. commented, “The year 2024 has been transformative and was the most eventful yet for Hektar REIT, marked by significant achievements and strategic advancements. We kicked-off the year with a new mandate from Unitholders to venture into non-retail assets, a monumental milestone that substantially redefines the future direction of Hektar REIT towards aligning and meeting our goal of defensible growth and long-term sustainability. Looking ahead, we remain committed to delivering value to our unitholders by maintaining high occupancy rates, driving rental reversions, and executing accretive non-retail acquisitions to fortify our portfolio.”
Moving forward, Hektar REIT is accelerating its key initiatives, including:
- Expanding into yield-accretive non-retail asset acquisitions on a triple-net lease basis to secure stable, long-term rental income with minimal operational risk and intervention
- Strategic Repositioning of Subang Parade as the preferred neighborhood mall focusing on tenant remixing, effective space curation and infrastructure upgrade to enhance visitor experience and reinforcing its status as a vibrant community destination
- Implementation of solar panels across its portfolio to reduce energy costs and enhance environmental sustainability.
- Replacement of aging air conditioning systems to improve operational efficiency, reduce maintenance costs, and enhance the shopping experience.
- Securing of new tenancies – For FY2024, the management has secured renewed / secured 144 tenants ranging from Chagee, Oriental Parade, Game On, Padi House, Mokky’s Pizza, The Farm & Chan Rak BBQ, The Store (Segamat Central). For FY2024, the REIT recorded committed occupancy of 86% for its retail portfolio.
With an ongoing focus on operational efficiency, tenant mix improvement, and cost optimisation, Hektar REIT is well-positioned to navigate the evolving market landscape and sustain its growth trajectory in the coming year.
