Hektar Asset Management Sdn Bhd, the Manager of Hektar Real Estate Investment Trust (“Hektar REIT”), today announced its financial results for the second quarter ended 30 June 2026 (“Q2 FY2026”), recording stronger underlying property performance as continued improvements in occupancy, tenancy remixing and cost optimisation translated into higher Net Property Income (“NPI”) and improved margins.
For Q2 FY2026, Hektar REIT recorded revenue of approximately RM32.0 million, similar to last year showcasing its income stability. NPI, however, increased 9.5% YoY to RM17.4 million from RM15.9 million, reflecting improved operational efficiency across the portfolio. NPI margin strengthened significantly to 54.4% from 49.6% a year earlier.
The portfolio’s leasing momentum remained encouraging. Overall, Hektar REIT recorded a positive rental reversion of 11.3% in Q2 FY2026 over previous contracted rents. Segamat Central led the portfolio with a positive rental reversion of 167%, supported by the introduction of new tenant Target Supermarket. Subang Parade also recorded a positive rental reversion of 12.3%, driven by stronger demand. The leasing momentum at Segamat Central was accompanied by a strong improvement in shopper traffic, with footfall increasing 58.1% YoY following the opening of Target Supermarket. The stronger footfall and tenant mix demonstrate the benefits of targeted tenancy remixing in enhancing asset performance and customer engagement
For the six-month period ended 30 June 2026 (“1H FY2026”), NPI increased 5.8% YoY to RM32.64 million from RM30.86 million, while NPI margin improved to 51.9%. The improvement was driven by higher occupancy levels, successful tenancy remixing initiatives and enhanced cost optimisation efforts.
Realised income for 1H FY2026 stood at RM8.23 million, compared with RM8.82 million in the preceding corresponding period. The lower realised income was primarily attributable to approximately RM2.5 million in one-off administrative expenses incurred in connection with several corporate initiatives during the reporting period. Excluding the impact of these non-recurring expenses, the underlying operating performance of the portfolio remained encouraging.
The completion of the acquisition of Penang Factory and the adjacent land of Kolej Yayasan Saad (“KYS”) marks another step in Hektar REIT’s portfolio diversification strategy. These acquisitions are expected to lift non-retail NPI contribution closer to 20% of Hektar REIT’s total NPI by the end of Q4 2026. The enlarged non-retail contribution is expected to broaden the REIT’s income base and complement the ongoing performance improvements across its retail assets.
Zainal Iskandar, Executive Director and Chief Executive Officer of Hektar Asset Management, said, “The improvement in our NPI and operating margins demonstrates that the initiatives we have been implementing across the portfolio are translating into tangible results. Higher occupancy, active tenant remixing and disciplined cost management have strengthened the underlying performance of our assets, with our Q2 NPI margin improving meaningfully to 54.4%.”
He added, “At the same time, we are entering the next phase of Hektar REIT’s growth strategy. The recent completion of our non-retail acquisitions further diversifies our portfolio and creates additional recurring income streams. As these assets progressively contribute lease income in the coming quarters, we expect them to complement the ongoing improvements within our existing portfolio and strengthen the resilience of Hektar REIT’s overall income base.”
For 1H FY2026, the Board of Directors of the Manager recommended, and the Trustee approved, an interim income distribution of 1.21 sen per unit, representing a 15.2% YoY increase from the 1H FY2025 interim distribution of 1.05 sen per unit.
As at 30 June 2026, Hektar REIT’s total assets increased to RM1.53 billion from RM1.46 billion in the previous year, while Net Asset Value (“NAV”) per unit improved to RM1.0533.
Looking ahead, the Manager remains cautiously optimistic on the operating environment. Hektar REIT’s enlarged and increasingly diversified portfolio, recurring rental income and continued focus on strategic tenant remixing, rental reversions, targeted asset enhancement initiatives and disciplined cost management are expected to support sustainable growth. The recently completed acquisitions are expected to progressively contribute lease income in the coming quarters, while the higher contribution from non-retail assets is expected to further strengthen the resilience and diversification of Hektar REIT’s earnings base.
