business

Hektar REIT achieved lower revenue of RM26.78mil for Q1

KUALA LUMPUR: Hektar Asset Management Sdn Bhd, which manages Hektar Real Estate Investment Trust (Hektar REIT) achieved lower revenue of RM26.78 million for the first quarter (Q1) ended March 31, 2021 from RM30.71 million a year ago.

Hektar REIT said the reported revenue fell mainly due to lower rental income, carpark income and lower hotel occupancy, consistent with other retail and hospitality that are affected because of the pandemic and implementation of mobility restrictions.

The firm registered 10.3 per cent lower net property income of RM14.09 million for the quarter compared to RM15.71 million recorded previous year.

Realised income for the quarter was RM6.52 million, which is 7.9 per cent lower than the RM7.08 million recorded previously.

Earnings per unit (EPU) of 1.41 sen was recorded for Q1.

Hektar REIT executive director and chief executive officer Datuk Hisham Othman said the retail front continues to be challenging due to the rise in Covid-19 infections.

He said the recent imposition of the third movement control order (MCO) is expected to further affect the retail sales growth with restrictions on no dine-in for food and beverages (F&B) outlets and closure of beauty services and entertainment outlets.

"However, we expect economic recovery to accelerate as consumer sentiment improves over the second half of 2021 as more people get vaccinated.

"We will continue following the stringent standard operating procedure (SOPs) by the government and engage with our tenants across the portfolio to help promote their business while ensuring the health and safety of all visitors, tenants and employees remain our top priority," he said.

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