KUALA LUMPUR: Hektar Real Estate Investment Trust's (Hektar Reit) net property income (NPI) rose 33.7 per cent in the second quarter of financial year 2024 (2Q 2024).
This was largely attributed to the rental income from its newly-acquired education asset, Kolej Yayasan Saad (KYS).
Its NPI increased to RM20.7 million from RM15.5 million a year ago while the revenue stood at RM36.6 million, up 34.4 per cent compared to RM27.2 million previously, said the Reit's manager Hektar Asset Management Sdn Bhd.
It declared an interim income distribution of 1.9 sen per unit this quarter, totalling RM13.4 million.
Hektar Reit's portfolio of diversified properties includes Subang Parade in Selangor; Mahkota Parade and KYS in Melaka; Wetex Parade, Classic Hotel and Segamat Central in Johor; as well as Central Square and Kulim Central in Kedah.
As at 2Q 2024, the overall occupancy rate at Hektar malls was recorded at 87.2 per cent while its secured occupancy rate has further improved to 89.3 per cent with tenants committed to open their doors to customers in the coming quarters.
As it remains focus on Subang Parade's overall repositioning, Hektar Asset Management said the mall's rejuvenation project, which will start by the first quarter of 2025, involves the interior and exterior facelifts for over three years.
It added that the management foresees improved occupancy levels, positive rental reversions, property valuation and increase in visitor traffic post-renovation works.
Chief operating officer Sabrina Halim said the successful acquisition of KYS as its first non-retail asset marks a significant milestone in the diversification strategy.
"This strategic move not only broadens our portfolio but also enhances our resilience against market fluctuations.
"We believe that diversifying our asset base with high-quality, income-generating properties will provide a more stable revenue stream and reduce our dependency on retail assets alone," she said.
Moving forward, she said the Reit's management is actively exploring further accretive opportunities that align with the long-term growth objectives, ensuring continuous sustainable and attractive returns to unitholders.