EX-date 29/08/2012 Entitlement date 03/09/2012 Entitlement time 05:00:00 PM Entitlement subject Rights Issue Entitlement description Renounceable rights issue of 80,000,250 new units in Hektar Real Estate Investment Trust (“Hektar REIT”) (“Rights Units”) on the basis of one (1) Rights Unit for every four (4) existing units held in Hektar REIT as at 5.00 p.m. on 3 September 2012 (“Entitlement Date”) at an issue price of RM1.23 per Rights Unit (“Rights Issue”) Period of interest payment to Financial Year End Share transfer book & register of members will be to closed from (both dates inclusive) for the purpose of determining the entitlements Registrar's name ,address, telephone no Mega Corporate Services Sdn. Bhd. (187984-H) Level 15-2, Bangunan Faber Imperial Court Jalan Sultan Ismail 50250 Kuala Lumpur Telephone No.: +603 2692 4271 Fax No.: +603 2732 5388 Payment date a.Securities transferred into the Depositor's Securities Account before 4:00 pm in respect of transfers 03/09/2012 b.Securities deposited into the Depositor's Securities Account before 12:30 pm in respect of securities exempted from mandatory deposit c. Securities bought on the Exchange on a cum entitlement basis according to the Rules of the Exchange. Number of new shares/securities issued (units) (If applicable) 80000250 Entitlement indicator Ratio Ratio 1 : 4 Rights Issues/Offer Price 1.23
Hektar announced improved 3Q12 result yesterday. At current price RM1.44, gross yield ~7%. This yield is highest among retails reits. ,In comparison, CMMT, Pavilion, SunReit and IGB reit gross yield ranged from ~ 4.5% to 5.0%.
One favourate question: when Hektar will fly like CMMT, Pavilion (or so call yield compression)? To answer this question, we need to look at Hektar 9 mth revenue (grow 5.0%) while rental revision rate grow at 8%. As both rates are still below than those peers, Hektar therefore cannot fly like those peers. In addition, Hektar is smaller and not as liquid as those peers.
Notwithstanding the above, it appears that Hektar’s outlook now is better, it may able to swim faster instead of flying.
3rd interim Div in respect of 3Q12 earning has been moved forward & paid on 18 Oct 2012 due to right issue exercise undertaken in Sep 2012. As for 4Q12 final div, most likely paid in Mar2013.
For 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.
After the missing plane incident, China tourists will choose other place, Thailand, Indonesia. I don't think Visit Malaysia Year 2014 will have a good result.
which REIT u like, u post on that forum lor. u like HEKTAR, u post here. u like SUNREIT, u post in SUNREIT forum u like IGBREIT, u post in IGBREIT forum u like AXREIT, u post in AXREIT forum
Hi rizerlee, thanks info. There is another LRT station which will be integrated with existing KTM station right behind AEON Big. Just 500m or <10mins walking distance to Subang Parade. From MyRapid website, the project is expected to be completed in first quarter of 2016. --> http://www.myrapid.com.my/projects/lrt-line-extension/latest-progress
Total of 134 tenants rental expiring FY2015. % of monthly total rental income affected will be 32%, with NLA % affected at 41%. That's almost half of total NLA. Let's see if Hektar can find new tenants or not. With Da Men opening soon (Nov 2015), I foresee drop in income for the next year.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
chongkonghui
1,117 posts
Posted by chongkonghui > 2012-03-08 14:41 | Report Abuse
Another boring counter but steady.