Hektar Real Estate Investment Trust (Hektar REIT) is a Malaysia-based real estate investment trust. It is managed by Hektar Asset Management Sdn. Bhd. Its principal activity is to invest in shopping centers with the objective of achieving attractive level of return from rental income and for long-term capital growth. Hektar REIT's portfolio consists of shopping centers, including Subang Parade, Mahkota Parade and Wetex Parade and Classic Hotel. Subang Parade is a shopping center located in the heart of Subang Jaya's commercial district and with a net lettable are of 474,612 square feet (sq ft). Mahkota Parade is a shopping center located in the commercial and tourist center, which is situated in the heart of Melaka town and with a net lettable are of 461,067 sq ft. Wetex Parade and Classic Hotel is a retail development located within the commercial district of Muar, Johor and with a net lettable area of 167,362 sq ft. In 2009, the portfolio of Hektar REIT received 21.3 million visits.
greatdreamerFor factors influence the share price movement, top factor is rental revision rate while liquidity is secordary factors. When one day a small reit counter achieve a high rental revision rate, big fund still won't be buying but hedge fund is willing to buy. This will cause sharp share price upward movement.
For hektar, the rental revision rate for the time being is still weak (esp melaka parade mall)compared with big reit like cmmt and pavreit.
Annual report 2012 indicate 2012 traffic for Subang Parade & Mahkota Parade increase by 44% and 34% respectively. Therefore, healhty rental revision rates expected for both mall in 2013.
On the other hand, the reposition & reburnishment of 2 new kedah malls acquired in Oct 2012 (Landmark & Central Square), are expected to completed by end 2013. Healthy rental revision rate are expected after the exercise.
With (1) stronger outlook of rental revision rates, (2)current high gross yield at 7.1% (10.5/148) and (3)potential yield compression since retail peer trade at yield range 4.5% to 5.0%, these 3 fundamental factors point to the high possibility of strong run up of hektar share price in later part of 2013.
chongkonghuiYield Compression comes, SELL for Capital Gain. Yield Compression don't come, KEEP for 2x FD return.
Come, good; Don't come, also good.
derricksylWill announce dividend soonest by next month.