Hektar REIT's DPU yield a comfortable 4.96% despite tough 2021

Photo: Subang Parade

KUALA LUMPUR (Feb 25): Hektar REIT (Bursa : 5121) is weathering the challenges thrown at it by C19 and continues to attract new tenants while maintaining existing tenants through lease renewals. Management is cautiously optimistic of the retail industry outlook based on economic recovery and policy support.

The REIT has a distribution per unit yield of 4.96% or 2.53 sen per unit, which is 181% higher than in FY2020. Compare their distribution yield to the average bank FD rate for one year of around 1.80%.

Hektar REIT noted that there are signs of recovery supported by the gradual reopening of the economy and it can also be seen in the steady rise in visitor footfall since the relaxation of restrictions by the Government. While the REIT is cognisant of the economy’s improved growth trajectory supported by a recovering labour market, continued policy support and expansion in external demand, as well as the possible opening of international borders as early as the second quarter, the REIT is nevertheless retaining its cautious outlook in the face of the current wave of infections stemming from the Omicron strain.

Photo: Mahkota Parade

Hektar REIT earlier declared an income distribution of RM11.9 million for 4Q 2021, equivalent to 2.53 sen per unit or a DPU yield of 4.96%, which is 181% higher compared to the income distribution for the corresponding period in 2020.

During the quarter under review, Hektar REIT’s fund size increased to 471,260,178 units from 461,960,178 units arising from the private placement exercise announced on 15 November 2021. A total of 9.30 million units out of the total proposed private placement of 23.098 million units were subsequently placed out in two tranches in December 2021, raising RM4.23 million. 

Various energy utilisation and optimisation initiatives since 2017 have been put in place for all of Hektar REIT's shopping malls, resulting in a significant reduction in greenhouse gas emissions (recorded as CO2e) and energy usage over the last five years.

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