Showing posts with label HEKTAR. Show all posts
Showing posts with label HEKTAR. Show all posts
Thursday, 14 August 2014
Tuesday, 6 May 2014
Friday, 4 April 2014
Wednesday, 26 March 2014
Wednesday, 12 February 2014
Saturday, 7 December 2013
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Monday, 11 November 2013
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Friday, 2 August 2013
HEKTAR Q2'13
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Monday, 20 May 2013
HEKTAR at RM 1.64
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Hektar surges for few weeks and perform quite well recently. Today, it hits a new high and closed at RM 1.64. Cheer!
Sunday, 19 May 2013
Hektar REIT quietly carving a niche market
SAFE havens like real estate investment trusts (REITs) are always in demand during tumultous times, but let's face it, it will never be as sexy as growth and penny stocks. In fact, the instrument itself was never attractive but just stable until the emergence of mega REITs that dominated the local scene.
One of these local REIT players, Hektar REIT has been silently but surely carving a niche for itself.
Controlling its three-plus-two malls currently at its headquarters nestled in Solaris Dutamas in Kuala Lumpur, Hektar REIT is going on a defensive stance to fortify its resilience even further by going for neighbourhood malls that nobody sees value in.
Speaking to StarBizWeek recently, executive director and chief financial officer Zalila Mohd Toon says it is just the starting point for Hektar although it has recorded a set of improved numbers for its first quarter, after recognising the additional rental rates from its newly-acquired two Kedah malls, namely Central Square in Sungai Petani and Landmark Central in Kulim.
“The bumped up revenue are based on legacy rental rates and the rental rates would definitely be higher after we complete our asset enhancement initiatives (AEI),” she says.
Looking at a timeframe of one-and-a-half years to complete its AEIs, she says the rental rates could be bumped up significantly like how the company had rebranded the relatively small Wetex Parade mall in Johor.
“Currently, the majority of tenants in the two Kedah malls comprises of mom and pop retailers, and our ambition is to replicate the success of our earlier malls. We plan to attract more international and national retailers who have the appetite for higher rentals,” she says.
Taking a feather out of its earlier success like Wetex Parade, she says Wetex was among the smallest out of its five malls, but it has been a case study for the company.
“Wetex is like a baby to us, and when we bought it in 2008, it was already 10 years old. It was pretty runned down and filled with tenants like bootleg DVD operators, but once we conducted our AEI, the rental rates had gone up substantially,” she says.
She says with capital expenditure of about RM25 per sq ft for its AEI, it is the optimal amount for the company to create the essential positive spillover effects that would generate shopper traffic and also attract international and national retailers to the malls.
Based on the net lettable area (NLA) of 300,046 sq ft and 281,716 sq ft of Central Square and Landmark Central, it would entail the company to fork out about RM15mil to conduct its AEIs.
“Once we conduct our AEIs, we believe we can double up the rental rates from the existing rates we are collecting right now. The previous owners were mostly just property developers with no experience in handling a mall. For us, we have the network, expertise and the value added advantage to turn these malls around,” she says.
Specifically for Central Square, she says the AEIs would entail the remixing of tenants, and also to upgrade the mall's facilities and infrastructure due to the age of the mall, while the focus on Landmark Central would be to expand its NLA as the mall is still new.
According to her, getting the right tenant mix is fundamental in attracting shopper traffic, which for instance, the aging Central Square has a cinema with just three screens, and expanding it to nine screens would pull shopper traffic similar to its flagship mall Subang Parade that has doubled its shopper traffic after the introduction of cinema operator MBO.
“The population catchment for Central Square is about 400,000, while Landmark Central is similar to Wetex Parade with a catchment of about 200,000. We are positive that these two malls would fly just like what we have done in Muar,” she says. Although the company is pumping more cash to transform its malls, it has pledged to shareholders that it will at least maintain its dividend per unit, as there are concerns that the company would encounter some sort of income disruption with the downtime in the malls and also its high gearing ratio.
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. It is the highest yielding when compared to the other REITs focused on the retail sector.
“There would be no major disruption to the operation of the mall as we are prudent that the AEIs would not interrupt the malls' operations. These initiatives can be executed at night after business hours,” she says. Its current gearing ratio stood at 41%, which is above the recommendation of analysts and fund managers, but still below the 50% threshold set by the Securities Commission.
“The gearing ratio is at an acceptable level. And we gear up relatively more than other REITs instead of issuing new units simply because it is more cost effective and more efficient. Over the last six years, Hektar REIT's EBITDA has improved year-on-year due to our leasing strategy, tenancy remixing and scheduled asset enhancement initiatives. With a stable cap rate of an average of 7%, the value of Hektar REIT's assets is expected to rise steadily in the coming years,” she says.
One of these local REIT players, Hektar REIT has been silently but surely carving a niche for itself.
Controlling its three-plus-two malls currently at its headquarters nestled in Solaris Dutamas in Kuala Lumpur, Hektar REIT is going on a defensive stance to fortify its resilience even further by going for neighbourhood malls that nobody sees value in.
Speaking to StarBizWeek recently, executive director and chief financial officer Zalila Mohd Toon says it is just the starting point for Hektar although it has recorded a set of improved numbers for its first quarter, after recognising the additional rental rates from its newly-acquired two Kedah malls, namely Central Square in Sungai Petani and Landmark Central in Kulim.
“The bumped up revenue are based on legacy rental rates and the rental rates would definitely be higher after we complete our asset enhancement initiatives (AEI),” she says.
Looking at a timeframe of one-and-a-half years to complete its AEIs, she says the rental rates could be bumped up significantly like how the company had rebranded the relatively small Wetex Parade mall in Johor.
“Currently, the majority of tenants in the two Kedah malls comprises of mom and pop retailers, and our ambition is to replicate the success of our earlier malls. We plan to attract more international and national retailers who have the appetite for higher rentals,” she says.
Taking a feather out of its earlier success like Wetex Parade, she says Wetex was among the smallest out of its five malls, but it has been a case study for the company.
“Wetex is like a baby to us, and when we bought it in 2008, it was already 10 years old. It was pretty runned down and filled with tenants like bootleg DVD operators, but once we conducted our AEI, the rental rates had gone up substantially,” she says.
She says with capital expenditure of about RM25 per sq ft for its AEI, it is the optimal amount for the company to create the essential positive spillover effects that would generate shopper traffic and also attract international and national retailers to the malls.
Based on the net lettable area (NLA) of 300,046 sq ft and 281,716 sq ft of Central Square and Landmark Central, it would entail the company to fork out about RM15mil to conduct its AEIs.
“Once we conduct our AEIs, we believe we can double up the rental rates from the existing rates we are collecting right now. The previous owners were mostly just property developers with no experience in handling a mall. For us, we have the network, expertise and the value added advantage to turn these malls around,” she says.
Specifically for Central Square, she says the AEIs would entail the remixing of tenants, and also to upgrade the mall's facilities and infrastructure due to the age of the mall, while the focus on Landmark Central would be to expand its NLA as the mall is still new.
According to her, getting the right tenant mix is fundamental in attracting shopper traffic, which for instance, the aging Central Square has a cinema with just three screens, and expanding it to nine screens would pull shopper traffic similar to its flagship mall Subang Parade that has doubled its shopper traffic after the introduction of cinema operator MBO.
“The population catchment for Central Square is about 400,000, while Landmark Central is similar to Wetex Parade with a catchment of about 200,000. We are positive that these two malls would fly just like what we have done in Muar,” she says. Although the company is pumping more cash to transform its malls, it has pledged to shareholders that it will at least maintain its dividend per unit, as there are concerns that the company would encounter some sort of income disruption with the downtime in the malls and also its high gearing ratio.
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. It is the highest yielding when compared to the other REITs focused on the retail sector.
“There would be no major disruption to the operation of the mall as we are prudent that the AEIs would not interrupt the malls' operations. These initiatives can be executed at night after business hours,” she says. Its current gearing ratio stood at 41%, which is above the recommendation of analysts and fund managers, but still below the 50% threshold set by the Securities Commission.
“The gearing ratio is at an acceptable level. And we gear up relatively more than other REITs instead of issuing new units simply because it is more cost effective and more efficient. Over the last six years, Hektar REIT's EBITDA has improved year-on-year due to our leasing strategy, tenancy remixing and scheduled asset enhancement initiatives. With a stable cap rate of an average of 7%, the value of Hektar REIT's assets is expected to rise steadily in the coming years,” she says.
On consumer patterns, she says that one should never underestimate the spending power of people in small towns, as what has happened in Wetex Johor, where the company tried to introduce international retailers like Baskin Robbins, which is well-received by the local community.
“It was a gamble that paid off when we offer giveaway rates to Baskin Robbins on the terms of an additional turnover rent provision. It was similar when we introduced Sushi King,” she says.
She says the company is also encouraging local entrepreneurs to step up the value chain and set up their own franchises that can rival the quality of international and national retailers.
Hektar currently has a total NLA 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, by virtue that it is located in the Klang Valley, which commands a higher rental rate. The rest are from Mahkota Parade, Wetex Parade and the two new Kedah malls.
It has not stopped in its expansion after its recent acquisition.
“While we are busy with our AEIs, we are constantly looking at proposals. There's a misconception that Hektar will be in the mood for acquisition every three years, but it doesn't work that way. The proposals are opportunistic in nature, and if we see a potential mall that meets our criteria and promises good yield, we will go for it,” she says.
“We took six years to reach RM1bil in terms of asset size under our management, and our next target is to expand this to RM2bil. I definitely hope we would be able to achieve this in a shorter time,” she says.
With its strategy to spread its wings throughout the country, Zalila says not only would this carve out its own niche, it would also spread out any risk of income disruption.
For its first quarter ended March 31, 2013, the company recorded a higher net profit of RM11.06mil from a revenue of RM30.07mil compared to RM9.72mil from a revenue of RM24.45mil recorded in the previous corresponding quarter. It closed 10 sen higher at RM1.62 on Friday.
Tuesday, 14 May 2013
Friday, 10 May 2013
寻找更多收购目标 贺达产托提升吉打新广场
（八打灵再也9日讯）贺达产托（Hektar，5121，主板产业信托股）将提升吉打两间新收购购物广场，同时寻求更多收购目标，增加旗下资产。
贺达产托执行董事兼总财务长莎莉拉向《星报》表示，公司将会效仿柔佛WetexParade购物广场的资产提升计划，为该广场成功重塑品牌。
她说，根据研究，双溪大年的Central Square的人流量约40万，是Wetex Parade的一半。
拟增Landmark NLA
“柔佛的购物广场将是我们的参考对象，进行提升工程后，Wetex Parade的平均租金翻了一倍。”
另外，莎莉拉表示，贺达产托有意增加Landmark Central的净租用面积（NLA），前者开业3年，比营业13年的Central Square广场新颖很多。
“接下来的7个月，我们将忙于提升工程，我们同时也与产业经纪会面，持续寻找新的商场加入我们的投资组合，符合把资产规模扩大至20亿令吉的目标。”
贺达产托执行董事兼总财务长莎莉拉向《星报》表示，公司将会效仿柔佛WetexParade购物广场的资产提升计划，为该广场成功重塑品牌。
她说，根据研究，双溪大年的Central Square的人流量约40万，是Wetex Parade的一半。
拟增Landmark NLA
“柔佛的购物广场将是我们的参考对象，进行提升工程后，Wetex Parade的平均租金翻了一倍。”
另外，莎莉拉表示，贺达产托有意增加Landmark Central的净租用面积（NLA），前者开业3年，比营业13年的Central Square广场新颖很多。
“接下来的7个月，我们将忙于提升工程，我们同时也与产业经纪会面，持续寻找新的商场加入我们的投资组合，符合把资产规模扩大至20亿令吉的目标。”
Tuesday, 7 May 2013
HEKTAR Q1'13
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The Q1'13 net income increases 13.7% mainly due to net income arising from the two new shopping malls in Kedah.
Cash at end of Q1'13 stood at RM 25.4mil as compare to RM17.6mil Q1'12.
Thursday, 18 April 2013
Hektar Asset Mgmt plans RM19m capex to refurbish Kedah malls
KUALA LUMPUR: Hektar Asset Management Sdn Bhd, the manager of Hektar REIT, will invest RM19mil to refurbish two of its malls in Kedah.
Its executive director and chief financial officer Zalila Mohd Toon said on Thursday the malls were Central Square and Landmark Central, which were recently acquired for RM181mil.
"We are going to prioritise the refurbishment of Central Square and RM19m have been allocated to upgrade the two malls," she said after Hektar's AGM.
Its executive director and chief financial officer Zalila Mohd Toon said on Thursday the malls were Central Square and Landmark Central, which were recently acquired for RM181mil.
"We are going to prioritise the refurbishment of Central Square and RM19m have been allocated to upgrade the two malls," she said after Hektar's AGM.
Monday, 25 February 2013
Tuesday, 5 February 2013
HEKTAR Q4'12
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I think this quarter Hektar cannot do the comparison with Q4'11 as they acquisition two properties, Central Square in Sungai Petani, Kedah and Landmark Central in Kulim, Kedah. Hopefully, we can see the more earning from these two acquisition properties.
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Yes, Hektar declared a final dividend of 2.7 cents.
Total dividend = 2.6 + 2.6 + 2.6 + 2.7 = 10.5 cents (same as year 2011)
DY = 7.14% (based on today's price of RM1.47)
Actually, DY not bad, i.e. > FD. I think the dividend will increase in coming quarters. Let's wait patiently.
Tuesday, 11 December 2012
HEKTAR revaluation
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Table above shows three properties under HEKTAR with the latest revaluation results. The result seems good. The revaluation do not include another two properties (i.e. Central Square & Landmark Central) as both are just take over after September 2012.
After revaluation, the latest NAV is revised to RM 1.5226 instead of RM 1.4673.
After revaluation, the latest NAV is revised to RM 1.5226 instead of RM 1.4673.
Friday, 12 October 2012
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Monday, 1 October 2012
HEKTAR right issue listing tomorrow
A total of 80,000,250 new right issue units will be listed tomorrow.
Green (>RM1.4) or Red (<RM1.39)?
Let's watch closely how will this REIT perform tomorrow.
Green (>RM1.4) or Red (<RM1.39)?
Let's watch closely how will this REIT perform tomorrow.
Monday, 10 September 2012
HEKTAR Interim Dividend
What's a big surprise just after HEKTAR last day trade of right issue today! It's an
unexpected 3rd interim dividend! From the past history, the 3rd interim
dividend should be announced in November every year. But, why it announced 2 months earlier? Doubt...Haha, I believe this is due to the right issue. The 3rd interim dividend should belong to existing shareholder before ex-date of right issue. In this way, it's fair to the shareholder whose holding before right issue.
Anyway, it's good to receive their dividends in September & October. Cheer up!
Anyway, it's good to receive their dividends in September & October. Cheer up!
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