Kedah shopping malls boost Hektar REIT net profit


PETALING JAYA: Hektar Real Estate Investment Trust’s (REIT) net profit increased 16.54% to RM10.81mil on the back of a 22% increase in revenue to RM29.66mil for the second quarter to June 30, on the back of the opening of two of its new shopping malls in Kedah. Earnings per share dropped slightly to 2.7 sen from 2.9 sen previously. The company also announced a dividend of 2.6 sen for the period.

For the six-month period, net profit was up 15.1% to RM21.87mil on a 22.5% increase in revenue to RM59.74mil. For the period, the company had cash and cash equivalents of RM25.08mil from RM18.06mil previously. Cumulatively, the company has given out 5.46 sen in dividend as compared with 5.94 sen in the previous six months.

The two new malls acquired by Hektar in Kedah are Central Square in Sungai Petani and Landmark Central in Kulim.

Although the company is investing more cash to upgrade its malls, it has pledged to shareholders that it would at least maintain its dividend per unit.

Based on its dividend payout of 10.5 sen per share last year, it is still giving a commendable yield and is among the top-yielding REITs on Bursa Malaysia. At its closing price of RM1.54, that historical payout of 10.5 sen would have translated into a yield of some 6.8%.

This is among the highest yielding when compared with the other REITs focused on the retail sector.

Hektar currently has a total net lettable area of 1.7 million sq ft, with an occupancy rate of 96.3% coming from 506 tenants throughout its malls.

It derives 40% of its net property income from its flagship mall Subang Parade. The rest is from Mahkota Parade, Wetex Parade and the two new Kedah malls.

The company continues to be on expansion mode and is on the lookout for more acquisition opportunities.

– Malaysia Real Estate News

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