Hektar REIT 3Q net property income surge by 77%

HEKTAR Real Estate Investment Trust (Hektar REIT) net property income (NPI) for the third quarter ended Sep 30, 2022 (3Q22) increased by 77.2% to RM18.31 million compared to RM10.33 million in the same quarter last year.

The higher NPI was mainly due to higher revenue and an improved NPI margin of RM8 million, as well as the reversal of impairment losses of trade receivables of RM2.56 million in 2022.

It told the stock exchange today that its net income was RM13.5 million, a notable increase of 861.8% compared to RM1.4 million for the same quarter in the preceding year.

Hektar REIT recorded revenue of RM31.06 million, a substantial increase of 62.4% compared to RM19.12 million in the same quarter of the previous year.

The higher revenue is attributed to the increased rental income, including higher turnover rent, increased car park income and higher hotel occupancy.

Hektar REITs performance for the first nine months (9M22) showed that its net property income rose 40.4% to RM48.64 million compared with RM34.63 million in the same period last year, while the realised net income grew by 256% to RM33.82 million compared with RM9.50 million.

Meanwhile, its revenue increased by 25% to RM89.55 million compared to RM71.62 million in the corresponding period of 2021 as the retail landscape showed steady recovery as it inches back to the pre-pandemic levels.

“Retail activities remained strong in the quarter under review. Recovery in consumer-related subsectors, including leisure, international tourism and hospitality, continued to aid in the overall performance of the retail industry,” Hektar Asset Management Sdn Bhd CEO Johari Shukri Jamil said.

Despite the Malaysian economy’s strong performance, he said, the group remains cautious of the outlook for the coming quarters given the volatile economic landscape driven by hawkish monetary policy in response to inflationary pressure, uncertain consumer sentiments as well as lingering supply-chain and logistics issues stemming from geopolitical concerns.

“We will continue adopting prudent financial management, cost optimisation and enhancing our asset efficiencies to help cushion the impact,” he said. ― TMR/pic source: www.hectarreit.com