KUALA LUMPUR: Hektar Real Estate Investment Trust's (Hektar Reit) net profit dropped 37.2 per cent year-on-year (YoY) to RM4.29 million in the third quarter ended Sep 30, 2024 (Q3 2024) versus RM6.82 million in Q3 2023 dragged by a decline in net property income.
The company saw an increase in finance cost during the quarter under review.
It also had one off administrative expenses of RM900,000.
Revenue for the quarter under review rose 7.1 per cent to RM29.8 million from RM27.81 million in Q3 2023.
This was attributable to the stable income generated from the education asset, Kolej Yayasan Saad, acquired as part of Hektar Reit's portfolio diversification strategy.
For the nine-month period (9MFY24), the company's net profit dropped to RM19.3 million from RM23 million a year ago.
It logged a higher revenue of RM94.76 million compared to RM83.96 million in the same period last year.
Hektar Asset Management Sdn Bhd chief executive officer Zainal Iskandar said the quarter's results demonstrate the strength of its strategic diversification, as the company integrates stable, income-generating assets like Kolej Yayasan Saad into its portfolio.
"This expansion not only enhances our revenue stability but also underscores our adaptability in capturing emerging opportunities within Malaysia's evolving real estate landscape."