Hektar Asset Management Sdn Bhd, the Manager of Hektar Real Estate Investment Trust (“Hektar REIT”), today announced its financial results for the first quarter ended 31 March 2025 (“Q1 FY2025”), demonstrating continued resilience across its asset portfolio and improved operational efficiency.
For Q1 FY2025, Hektar REIT recorded total revenue of RM30.9 million, an increase of 8.9% year-on-year (YoY) from RM28.4 million in Q1 FY2024, primarily supported by income contributions from the newly acquired Kolej Yayasan Saad (“KYS”) education asset and improved performance from its retail properties. Net Property Income (“NPI”) rose 4.4% YoY to RM15.0 million, while Net Realised Income stood at RM4.2 million, lower than the RM5.1 million in the same quarter last year due to the absence of one-off fund placement income recognized in prior period and slightly higher administrative and financing expenses.
In alignment with its ESG ambitions, Hektar REIT entered into a landmark partnership with Samaiden Group Berhad to implement solar project at five of its shopping centres. The initiative is projected to deliver long-term energy cost savings of approximately RM2.05 million annually or RM41.3 million over 20 years and reduce carbon emissions by an estimated 98,640 tonnes, equivalent to planting over a total of 1,972,800 trees over 20 years. This initiative underscores Hektar REIT’s commitment to sustainable operations and climate impact mitigation.
Furthermore, a comprehensive Asset Enhancement Initiative (AEI) is underway at Subang Parade, with Phase 1 interior upgrades targeted for completion by Q1 2026. These efforts aim to uplift tenant value, customer experience, and asset performance. The Manager reported positive improvements in visitor traffic and rental reversion, since the announcement and execution of the Asset Enhancement Initiative (AEI) for Subang Parade, showcasing enhanced Tenants and customers’ confidence. The opening of new tenants such as Game on by Next Gen, Oriental Parade, Mokky’s Pizza, The Farm & Chan Rak BBQ, Little Ninja Dojo, Padi House, Fly Cycle Project have certainly contributed to higher footfall. The Manager looks forward to welcome more brands this year including CC Roasters, Paolo Paolo Gelato and Chagee among other tenants.
Zainal Iskandar, Executive Director and Chief Executive Officer of Hektar Asset Management commented, “We are encouraged by the positive start to FY2025, supported by the strategic diversification of our portfolio and prudent cost management. Our retail assets are now consistently recording positive rental reversions, while our education asset continues to provide consistent income. These results reflect our continued discipline in maintaining stable returns and strengthening the resilience of our portfolio.”
Looking ahead, the Manager remains optimistic on the value enhancements to be generated by its retail assets upon completion of AEIs and strategic leasing initiatives. Early gains are already seen in elevated occupancy rate which currently stands at 85.6%, positive rental reversions and higher footfall, boosting yields across Hektar Malls. Additionally, the acquisition of a 15-year master-leased industrial asset in Bayan Lepas Free Industrial Zone is progressing as planned and is poised to further diversify and strengthen the REIT’s income profile.
Hektar REIT’s total assets stood at RM1.44 billion as at 31 March 2025, while the net asset value per unit was RM1.0396.
