Hektar REIT achieves 87.7% occupancy rate across its retail portfolio in 3Q2023

• Hektar Asset Management executive director and chief executive officer (CEO) Johari Shukri Jamil said: Hektar REIT’s malls, strategically positioned as neighbourhood and community hubs, have been the focal point of our success. Our unwavering commitment to enhancing the overall tenancy mix and occupancy levels at our malls, reflects our dedication to our niche market.

KUALA LUMPUR (Nov 23): Hektar Asset Management Sdn Bhd, the manager of Hektar Real Estate Investment Trust (Hektar REIT), reported that it has achieved an 87.7% occupancy rate for its retail asset portfolio in 3Q2023, with Mahkota Parade, Melaka and Wetex Parade, Johor having reached 93%, while Kulim Central, Kedah achieving almost 98%.

In a press statement on Wednesday (Nov 22), Hektar Asset Management executive director and chief executive officer (CEO) Johari Shukri Jamil (pictured) said: “Hektar REIT’s malls, strategically positioned as neighbourhood and community hubs, have been the focal point of our success. Our unwavering commitment to enhancing the overall tenancy mix and occupancy levels at our malls, reflects our dedication to our niche market”.

“This strategic move involves remixing tenancies by introducing new, vibrant tenants to complement our existing offerings. We are confident that this initiative will not only meet but exceed the expectations of our loyal patrons. Our primary focus remains on implementing targeted strategies to improve visitor footfall, and create a sustained positive cycle for our malls and retailers. Our overall committed occupancy currently stands at 88.4%, and we are positive [that] we will surpass the 90% mark by the end of this year. We believe in initiative-yielding, long-term benefits and ensuring continuous growth, ultimately delivering sustainable returns to our unitholders,” he added.

Hektar REIT achieved a revenue of RM27.8 million and a net property income (NPI) of RM15.4 million for its 3Q2023. NPI margin stood at 55.4%.

In September 2023, the REIT also announced its plans to acquire Kolej Yayasan Saad Melaka — a private boarding school, located in Ayer Keroh, Melaka — for RM150 million. This marks the REIT’s diversification of its portfolio to educational assets.

According to the press release, the diversification move will provide a sustainable and resilient income source to Hektar REIT, with a 30-year quadruple-net lease agreement that guarantees step-up yearly returns.

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