· Revenue grew 4.2% year-on-year (“YoY”) to RM31.1 million, supported by stronger rental rates and improved tenancy mix
· Retail asset enhancement and modernisation initiatives remain on track, contributing to sustainable operational improvements.
· Solar Initiative on Track to Go Live by 1Q26, Delivering Major Cost and Sustainability Benefits
· Continued progress in Portfolio Diversification strategy.
· Maintains stable fundamentals with Net Asset Value (“NAV”) per unit rising to RM1.0519.
Hektar Asset Management Sdn Bhd, the Manager of Hektar Real Estate Investment Trust (“Hektar REIT”), today announced its financial results for the third quarter ended 30 September 2025 (“Q3 FY2025”), reflecting the REIT’s resilient performance amid ongoing economic headwinds and sustained cost pressures.
For Q3 FY2025, Hektar REIT recorded total revenue of RM31.1 million, a 4.2% increase compared to RM29.8 million in the corresponding period last year. The growth was supported by stronger rental income across key retail assets such as Subang Parade and Mahkota Parade. Net Property Income (“NPI”) remained stable at RM14.9 million, while net realised income stood at RM4.0 million, slightly lower year-on-year due to higher property operating expenses and lower other income recognised during the quarter.
On a year-to-date basis, Hektar REIT recorded revenue of RM94.0 million, marginally lower than the RM94.8 million achieved during the same period last year. The preceding year included a one-off education asset income of RM4.0 million, and excluding this, the REIT’s underlying performance remained encouraging amid current higher cost environment. NPI for the nine-month period amounted to RM45.8 million, while realised income totaled RM12.9 million.
The education asset, Kolej Yayasan Saad (“KYS”), delivered stable and predictable income under its triple-net lease structure, contributing 6.7% of revenue (RM6.3 million) and 13.7% of NPI. As at 30 September 2025, Hektar REIT’s total assets stood at RM1.45 billion, while Net Asset Value (“NAV”) per unit increased to RM1.052, underscoring the REIT’s consistent commitment to long-term value creation for unitholders.
Committed occupancy has strengthened to 86.9%, reflecting the positive traction of our tenant-mix enhancement strategy and the continued success of targeted leasing efforts across the portfolio. At Subang Parade, this momentum is supported by new and secured tenancies including The Farm & Chan Rak, Mimi Guksu, Korbi Grill, CC Roasters & Paolo Paolo, Chagee and Gajeto. In addition, Central Square will further benefit from the introduction of a new cinema operator, Dadi Cinema, which is expected to enhance footfall and overall asset vibrancy. Additionally, a total of 106 new/renewed tenancies have been secured YTD, with 84.0% of tenancies added/renewed recorded positive rental reversion. For Q3 2025, 49 new/renewed tenancies were secured, representing 24.8% of the total 2025 expiring NLA as reported in Q1 2025. Out of the 49 tenancies secured, 92% of the added/renewed tenancies recorded positive rental reversion.
The Manager continued to make progress in its multi-year asset enhancement and repositioning strategy across the retail portfolio. Modernisation works at Subang Parade, particularly the ongoing asset enhancement initiative works and the recent completion of lift and escalator replacement programme, are expected to significantly enhance overall shopper experience and operational efficiency.
Zainal Iskandar, Executive Director and Chief Executive Officer of Hektar Asset Management, said, “The third quarter marks another period of steady progress for Hektar REIT, with improved revenue and stronger occupancy levels across our retail assets. Despite external cost pressures, our underlying performance remains resilient, supported by aggressive leasing efforts, discipline capital management and ongoing asset enhancement initiatives. At the same time, our diversification strategy into education, industrial, and strategic ground lease continues to gain traction. These initiatives are designed to strengthen income visibility and create a more balanced, future-ready portfolio that supports long-term value creation for our unitholders.”
The Manager is also pleased to report significant progress on Hektar REIT’s rooftop solar initiatives across the portfolio, which are on schedule to be fully completed and operational by 1Q26. Once live, the solar installations are expected to supply a substantial share of the portfolio’s annual electricity needs with renewable energy, reducing dependence on conventional power sources. This initiative is projected to generate average energy cost savings of approximately RM2 million per year over the programme’s tenure while contributing meaningfully to carbon emissions avoidance.
All ongoing acquisitions are on track, and these assets are expected to be completed and begin contributing income by 1Q26, strengthening Hektar REIT’s revenue profile, enhancing diversification, and supporting greater income resilience for unitholders.
Looking forward, the Manager remains cautiously optimistic as persistent inflationary pressures and global trade tensions continue to weigh on the operating landscape. Domestic consumption, however, is expected to remain supportive, bolstered by Bank Negara Malaysia’s recent reduction in the Overnight Policy Rate, which is anticipated to stimulate retail spending. The Manager will sustain its focus on active asset management, cost optimisation, and disciplined capital deployment, while advancing its diversification strategy to deliver sustainable returns and stable distributions for unitholders.
