Hektar REIT sees growth with asset enhancement, strategic acquisitions

KUALA LUMPUR: Hektar Real Estate Investment Trust (Hektar REIT) said its asset enhancement and tenancy remixing initiatives have begun to yield encouraging results, as reflected in rising occupancy levels and positive rental reversions across its portfolio.

Building on this momentum, the manager, Hektar Asset Management Sdn Bhd, remains focused on driving long-term value creation through ongoing asset repositioning and prudent cost-optimisation measures.

“Looking ahead, the manager will continue to pursue its strategic objective of developing a well-diversified and resilient asset portfolio.

“This includes exploring opportunities to acquire yield-accretive properties with long-term, stable leases that will enhance income visibility and further strengthen the REIT’s net property income (NPI), thereby supporting sustainable returns to unitholders over the long term,” it said in a filing with Bursa Malaysia.

In the third quarter ended Sept 30, Hektar REIT recorded total revenue of RM31.1mil, a 4.2% increase from RM29.8mil in the same period last year.

The growth was driven by stronger rental income across key retail assets, including Subang Parade and Mahkota Parade.

Its NPI remained stable at RM14.9mil, while net realised income came in at RM4.0mil, slightly lower year-on-year due to higher property operating expenses and reduced other income during the quarter.

On a year-to-date basis, Hektar REIT posted revenue of RM94mil, slightly lower than the RM94.8mil recorded in the same period last year.

The preceding year’s figure included a one-off RM4mil education asset income, and excluding this, the REIT said its underlying performance remained encouraging despite the higher cost environment.

NPI for the nine-month period stood at RM45.8mil, while realised income totalled RM12.9mil.

Hektar Asset Management executive director and chief executive officer Zainal Iskandar said 3Q25 marked another period of steady progress for Hektar REIT, with improved revenue and stronger occupancy levels across its retail assets.

“Despite external cost pressures, our underlying performance remains resilient, supported by aggressive leasing efforts, disciplined capital management and ongoing asset enhancement initiatives.

“At the same time, our diversification strategy into education, industrial, and strategic ground lease continues to gain traction. These initiatives are designed to strengthen income visibility and create a more balanced, future-ready portfolio that supports long-term value creation for our unitholders,” he said.