KUALA LUMPUR (Nov 12): Hektar Real Estate Investment Trust's (KL:HEKTAR) net property income (NPI) rose 3.5% year-on-year (y-o-y) in the third quarter, supported by improved property-level operating performance and continued cost optimisation.
NPI for the three months ended Sept 30, 2026 (3QFY2026) improved to RM15.44 million, from RM14.93 million a year ago.
Revenue for the quarter increased 3.17% y-o-y to RM32.04 million from RM31.06 million, the retail-focused REIT bourse filing showed.
No income distribution was proposed for the latest quarter.
For the nine months ended Sept 30, 2026 (9MFY2026), Hektar REIT's NPI grew 5% to RM48.08 million from RM45.79 million last year, while revenue edged up 1.1% to RM94.99 million from RM93.98 million.
The improvement for 9MFY2026 was primarily driven by higher occupancy rates, tenancy remixing initiatives and continued cost optimisation, as well as the acquisition of an industrial property in Bayan Lepas, Penang.
The bulk of Hektar REIT's portfolio are retail properties, comprising Subang Parade in Selangor, Mahkota Parade in Melaka, Wetex Parade in Muar, Johor, Central Square in Sungai Petani, Kedah, Kulim Central in Kedah and Segamat Central in Johor.
Its only education asset is Kolej Yayasan Saad in Melaka.
Looking ahead, the manager expects the Malaysian REIT sector to remain resilient, supported by domestic economic activity and measures that sustain household spending.
Hektar REIT said it would improve occupancy through strategic tenant remixing, optimising rental reversions, implementing targeted asset enhancement initiatives and pursuing value-accretive acquisitions.
It also plans to maintain cost management to mitigate the impact of rising operating and tax-related costs.
The two largest unitholders of Hektar REIT are Upayapadu (M) Sdn Bhd (20.451%) – controlled by Datuk Seri Dr Wong Yeon Chai – and Hektar Black Sdn Bhd (16.12%).
Datuk Eddie Ong, who was the third largest unitholder of Hektar REIT, ceased to be a substantial unitholder on Aug 7. He is currently a substantial shareholder of KIP Real Estate Investment Trust (KL:KIPREIT).
Hextar REIT units closed unchanged at 55 sen, with a market capitalisation of RM390 million. Year-to-date, the REIT has gained over 26%.