KUALA LUMPUR: Hektar Asset Management Sdn Bhd, the manager of Hektar Real Estate Investment Trust (Hektar REIT), recorded a revenue of RM29.37 million for the second quarter (Q2) ended 30 June 2022 (FY22), an increase of 14.2 per cent compared to the RM25.71 million recorded in the same quarter last year.
The higher revenue is attributed to increased rental and car park income and higher hotel occupancy.
Hektar REIT registered a net property income of RM13.70 million, an increase of 34.3 per cent compared to RM10.20 million in Q2 FY21, while the realised net income was RM6.57 million, a substantial increase of 317.3 per cent compared to the same period last year.
Earnings per unit rose significantly by 311.8 per cent to 1.40 sen for Q2 FY22 compared with the same quarter in the previous year.
Based on the financial performance for the current Q2, Hektar REIT has declared an interim income distribution of 2.70 sen per unit, amounting to RM12.72 million, to be made on 26 September 2022.
Hektar REIT's performance for the six months ended 30 June 2022 (1H 2022) showed an increase in revenue of 11.4 per cent to RM58.49 million compared with RM52.49 million registered last year.
The net property income of RM30.33 million exhibited an increase of 24.8 per cent compared with RM24.30 million in 1H 2021, while the realised net income grew by 151.0 per cent to RM20.32 million compared with RM8.10 million recorded in 1H 2021.
The company noted that after two straight years of the Covid-19 pandemic, the retail landscape is going through normalisation and the early phases of recovery.
The portfolio of malls under Hektar REIT has experienced a 58 per cent year-on-year (YoY) increase in visitor footfall and a 50 per cent higher vehicle count.
This is in tandem with the considerable improvement in the tenant sales performance at its malls.
Despite the improved performance, Hektar REIT has adopted a cautious outlook for the coming quarters in light of inflationary pressure and an uncertain global economic outlook that may affect domestic economic activities.
Hektar Asset Management chief executive officer Johari Shukri Jamil said that as part of the company's sustainable business strategy, it would continue adopting prudent financial management, cost optimisation initiatives, and enhance asset efficiencies to help cushion the impact of increasing interest rates and the rising cost of inflation.
"Furthermore, we continue to increase our engagement with all stakeholders, including tenants, to offer them competitive rental rates to facilitate their recovery.
"At the same time, for our shoppers and loyal patrons, we are continuously working on enhancing our existing facilities at our shopping malls to provide a great retail experience.
"For our valued unitholders, we remain committed to distributing at least 90 per cent of Hektar REIT's realised net income for the financial year ending 31 December 2022," he said in a statement.
Hektar REIT's assets under management (AUM) comprise five established neighbourhood-focused malls and one regional shopping mall, which play a key role in serving as a community hub.