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Hektar REIT produced Rm26.78 million in revenue

In the first quarter, Hektar REIT produced Rm26.78 million in revenue.

PropertyfindsAsia.com | In the first quarter Hektar REIT produced Rm26.78 million in revenue | KUALA LUMPUR, May 24, 2021 – (ACN Newswire) – Hektar Asset Management Sdn. Bhd., the Manager for Hektar Real Estate Investment Trust (“Hektar REIT”), today announced the first quarter results ended 31 March 2021 (“1Q 2021”).

Hektar REIT reported revenue of RM26.78 million, down 12.8% from the RM30.71 million reported in the same period the previous year. Rental profits, carpark income, and lower hotel occupancy all contributed to lower sales, as did other retail and hospitality REITs impacted by the pandemic outbreak and introduction of mobility restrictions. The quarter’s net property income of RM14.09 million was down 10.3% from the RM15.71 million posted in the first quarter of 2020. The quarter’s realized income was RM6.52 million, down 7.9% from the RM7.08 million posted in the first quarter of 2020. For the first quarter, earnings per unit (“EPU”) were 1.41 sen.

“The retail front continues to be very challenging due to the increase in COVID-19 infections,” said Dato’ Hisham bin Othman, Chief Executive Officer of Hektar Asset Management Sdn. Bhd. Despite the fact that most businesses were permitted to operate under the second movement control order (“MCO”) from mid-January to early March, visitor footfall in malls was affected by a combination of movement restrictions and fear of infection.”

“The second MCO has also hampered retail sales growth, with Retail Group Malaysia forecasting sales growth of 4.1 percent in 2021, down from 4.9 percent previously. The government released the first list of possible COVID-19 hotspots detected via the Hotspots Identification for Dynamic Engagement (“HIDE”) framework in response to the increase in COVID-19 cases. Many prominent shopping malls in the Klang Valley, including Subang Parade, were put on the HIDE list and were forced to close for three days to undergo sanitization due to a government order from 9 to 11 May 2021. With restrictions on no dine-in for F&B outlets and the closure of beauty services and entertainment outlets, the recent imposition of the third MCO is expected to have a further negative impact on retail sales growth.”

“However, as more people get vaccinated, we expect economic growth to accelerate in the second half of 2021 as consumer confidence improves.” We will continue to obey the government’s strict SOPs and communicate with our tenants across the portfolio to help them promote their businesses, all the while ensuring the health and safety of all guests, tenants, and employees is our top priority.