- Stable Portfolio occupancy at 88.4%

- 3-star ESG rating by FTSE Russell

KUALA LUMPUR, Feb 25, 2021 - (ACN Newswire) - Hektar Asset Management Sdn. Bhd., the Manager for Hektar Real Estate Investment Trust ("Hektar REIT"), today announced Hektar REIT's annual results for Financial Year ended 31 December 2020 ("FY20") with revenue at RM111.1 million, down 18.9% compared to the same period in the preceding year. Property Operating Expenses reduced by RM3.5 million or savings of 5.7% compared to the previous year. Net Property Income (NPI) was reported at RM53.0 million, a decline of 29.8% from 2019. FY20 was a challenging year for the retail sector due to the COVID-19 pandemic and implementation of various mobility restrictions throughout the year, which resulted in a decline in income from rental, carpark and food court.

For the fourth quarter ended 31 December 2020 ("4Q 2020"), Hektar REIT posted revenue of RM29.8 million, which is 14.5% lower compared to the same quarter of the preceding year. NPI was RM12.4 million, a decline of 37.3% compared to the corresponding quarter of the previous year. However, when compared to the previous quarter, revenue increased by 14.7%. Despite the challenges to malls as a result of the COVID-19 pandemic on the retail sector, the REIT managed to attract new and secured existing tenants covering 10.2% of Hektar REIT's Net Lettable Area ("NLA") in this quarter. The REIT continually engages with tenants in all six shopping centres to ensure the sustainability of their business.

Dato' Hisham bin Othman, Chief Executive Officer of Hektar Asset Management Sdn. Bhd, commented, "We cannot deny that 2020 was a challenging year for our malls given the mobility restrictions and stringent standard operating procedures that had to be implemented to curb further spread of the COVID-19 virus. However, we strived to ensure that business remained sustainable for our tenants and us at all times."

"We expect consumer sentiment to improve over the second half of 2021 as more people get vaccinated and the economy recovers. To ensure that our portfolio of malls remain competitive and continue to attract visitors, we have also been busy with remixing & rejuvenating our tenant mix and reconfiguring of spaces along with other optimum asset enhancement initiatives".

Income Distribution

As earlier announced, Hektar REIT declared an income distribution of RM4.2 million for 4Q 2020, which is equivalent to 0.90 sen per unit. The COVID-19 pandemic has impacted the retail industry significantly and the REIT has also not been spared. However, we remain committed to steering our portfolio into recovery this year.

Positive Anchor Commitment at Subang Parade and Mahkota Parade

Anchor support for Hektar's two largest malls, Subang Parade and Mahkota Parade, remains positive. Subang Parade saw the introduction of premium supermarket Village Grocer. Parkson, our long-term anchor, refurbished their lower ground space at Subang Parade and renewed their tenancy at Mahkota Parade. A new mini-anchor, EcoShop, also opened at Subang Parade in December 2020. The commitment by these anchors is a testament to the confidence in the long-term prospects of the malls.

Click here to continue