Challenging business: Hektar REIT receives lower revenue from Subang Parade.

PETALING JAYA: Hektar Real Estate Investment Trust (Hektar REIT) saw a 12.1% decline in net profit to RM10.43mil for the second quarter ended June 30 compared with the corresponding quarter last year due mainly to the increase in interest expenses and lower revenue from Subang Parade.

For the quarter in review, its total revenue fell marginally to RM30.94mil from RM30.98mil previously. Its earnings per unit fell to 2.6 sen from 2.96 sen previously.

Hektar REIT has declared a second interim dividend of 2.6 sen per unit.

It said the operating enviroment is expected to be challenging.

“Retail business in Malaysia continues to remain a challenge in 2016, especially in light of the slowing economy,” it said.

“Following the completion of the asset enhancement initiatives (AEI) in Central Square, positive contribution is expected in the foreseeable future,” it explained, adding that the AEI for Landmark Central was currently underway.

For the cumulative first-half of 2016, Hektar REIT’s net income fell 8% to RM21.14mil, or 5.28 sen per unit, from RM22.96mil, or 5.73 sen per unit in the previous corresponding period.

Its total revenue rose 0.6% to RM62.54mil from RM62.19mil previously.