For the three month period ended 30 June 2015, Hektar Asset Management Sdn Bhd  announced that Hektar Real Estate Investment Trust recorded positive gross revenue of RM 30.9 million, up 2.6% from the previous year’s corresponding period (2Q14). Meanwhile, Net Property Income (NPI) has also increased by 5.6%, to RM 19.7 million. Realised net income reached RM 11.9 million, up 3.4% from the previous year’s corresponding quarter.

For the cumulative period ended 30 June 2015, realised net income is RM 23.0 million, 4.7% higher than the preceding year period. The six months gross revenue was RM 62.2 million, up 3.0% over the six months ended 30 June 2014. NPI has also improved by 5.7% to RM 38.3 million.

“With commencement of the tenancy with MBO in Central Square, the occupancy rate has now improved to 97%. This has brought about a healthy rental reversion of 21.4% where previous rental rates were suppressed prior to our tenant remixing exercise and asset enhancement initiative. We will be re-launching the shopping centre in September 2015, and
we are excited to see Central Square grow into a modern and family-friendly shopping centre,” said Hektar Asset Management Sdn Bhd chief executive officer Datuk Jaafar Abdul Hamid.

“There was a softening in the retail market, especially post-GST, in the month of April which led to negative reversion recorded at Mahkota Parade. We remain cautiously optimistic of the retail performance for this financial year and hope to see improvements in the following quarters,” he added.

Hektar REIT declared an interim distribution per unit  of 2.60 sen, maintained as per the distribution declared in the previous year’s corresponding quarter. The Book Closing Date is September 3, 2015 and payment of the distribution will be made on September 18, 2015. Based on the closing price of RM1.50 on June 30, 2015, DPU for the year represented
a distribution yield of approximately 6.9%.

Hektar REIT maintains a distribution policy of at least 90% of distributable net income, which typically excludes items such as capital allowances and revenue arising from Financial Reporting Standards 117, an accounting standard adopted in FY2010.

Hektar REIT’s portfolio of shopping malls include Subang Parade in Subang Jaya, Selangor, Mahkota Parade in Melaka, Wetex Parade in Muar, Johor, Central Square in Sungai Petani, Kedah and Landmark Central in Kulim, Kedah. The portfolio’s catchment serves a market size of 3.0 million shoppers. As at end of the preceding financial year, FY2014, the portfolio had an average occupancy of 94.3% and recorded over 30.8 million shopper visits.