Hektar Asset Management chief executive officer Johari Shukri Jamil
KUALA LUMPUR: Hektar Asset Management Sdn Bhd, the manager for Hektar Real Estate Investment Trust (Hektar REIT), is targeting to achieve up to 86 per cent in its overall portfolio occupancy rates for the financial year 2023 (FY2023), against 82 per cent in FY2022 and 84.9 per cent in FY2021.
Hektar's chief executive officer Johari Shukri Jamil said the improvement would be supported by bringing in new and renowned brands based on the desired tenancy mixed and meeting the needs of local shoppers and community.
"The overall revenue in FY2022 increased by 21.6 per cent to RM117.5 million versus RM96.6 million for FY2021 on increased rental income including higher turnover rent, an increase in visitor footfall traffic by 60 per cent, increased car park income and higher occupancy with the increase in average room rates for Classic Hotel in Muar, Johor.
"Our FY2022 results have shown our strategies are yielding the desired results and we are confident that shopping malls will remain the preferred destinations for entertainment, social activities and shopping among Malaysians," he said in a press conference after holding its 11th annual general meeting here today.
He said Hektar is also working towards improving all its facilities and inculcating digitalisation by introducing some new initiatives and partnering with its tenants this year to enhance shoppers' experience.
Meanwhile, he said as recovery in the retail sector is still underway following the COVID-19 pandemic, Hektar REIT is working to rejuvenate Subang Parade by improving the building and facilities to enhance the overall shopping experience for local patrons.
"For Subang Parade and Segamat Central, we are in the midst of a tenancy remixing exercise and hope to improve the overall offering.
"We target to enhance and invest in the placemaking area. We are a neighbourhood focused mall and we want to maximise the benefits to our advantage," he said.
On the financial side, Johari Shukri said the key focus would include cost optimisation initiatives to mitigate the impact of the increase in the cost of utilities such as the Imbalance Cost Pass-Through (ICPT) in which the surcharge has increased from 3.7 sen per kWH to 20 sen per kWH and higher interest rates.
"While we are taking prudent measures to reduce the impact and provide attractive returns to our unitholders, we are also committed to sustainability and upholding the core pillars of environmental, social and governance (ESG).
"We intend to work on energy efficiency initiatives to reduce our carbon footprint and explore areas to conserve water and improve waste management. One of the plans is to install solar panels across our malls,” he said.
In FY2022, Hektar REIT registered a 24.8 per cent gain in net property income (NPI) to RM58.7 million compared with an NPI of RM47 million in the preceding year. Its realised net income jumped 187 per cent to RM36.4 million compared to FY2021.
To reward unitholders, he said Hektar REIT announced and paid a dividend of eight sen with a dividend yield of 11.4 per cent, which was higher than FY2019 with a significant 60.8 per cent annual return based on share price performance.
Hektar REIT currently owns two million square feet of retail space in four states with assets valued at RM1.2 billion as at Dec 31, 2022.
Hektar REIT’s portfolio of commercial properties includes Subang Parade in Selangor; Mahkota Parade in Melaka; Wetex Parade and Classic Hotel in Muar, Johor; Central Square in Sungai Petani, Kedah; Kulim Central in Kedah and Segamat Central in Johor. - Bernama
