Hektar Asset Management Sdn Bhd CEO Datuk Hisham Othman is quoted as saying “This strategy has been proven well" Well it hasnt for the Unit holder but it clerly has for him and his company Hektar Asset Management Sdn Bhd. In fact if you bought Units in 2013 then after crediting all the DPUS since then you would be at a loss today . the DPUs have not even been able to keep up with the drop in the Unit price. "PROVEN WELL" !
higher management fee = falling dividend and falling share price. some one should raise this and stop them from revaluing upwards their building values cause its a % of assets under management.
Tax expense : - Hektar REIT has provided Deferred Tax Liability of RM28.2 million calculated based on RPGT at a rate of 10% on the net fair value gain of five (5) investment properties which comprised of Subang Parade, Mahkota Parade, Wetex Parade along with Classic Hotel, Central Square and Kulim Central.
I hold this counter for years. And it drop all the way from 1.60 to 0.935 as at today. I never thought of losing so much by investing in REIT. Can the management tell how much more to drop?
Earnings per share reduced to 1.53 sen from 1.93 sen previously. Hektar REIT has decided not to declare a first interim distribution per unit in the current quarter.
I assume Datuk Hisham Othman private Management company Hektar Asset Management Sdn Bhd and its CEO will forgo its seven millions a year in management fees its leaching off Hektar to help out? If not then flush the Hektar shares down the loo.
Due to the grant of a temporary deferment of all profit payments to our financiers, Malayan Banking Berhad and Maybank Islamic Berhad, from April 2020 to September 2020 (“Moratorium Period”), Hektar REIT is prohibited from paying out any dividends to its unitholders until full settlement of the deferred interest/profit payments on all financing facilities for the Moratorium Period.
The quarterly report does not item disclose the Management fees being taken, I wonder why? In deciding to take advantage of the Bank loan Moratorium and temporarily defer accumulating interest payments till later, Hektar management has not only used this as an excuse not to pay DPU but has now caused Unit Holders to loose the tax free status on the DPU and will now have 10% deducted from the future distribution. The DPU would have been tax free otherwise. A hefty price for unit holders to pay for a deferment of a few months of interest that is accumulating for later payment.
I am holding a very small amount of share for a decade. As a layman point of view. I can see the shares value is dropping yearly, the dividends also dropping yearly. I still haven't get back my cost. Do you think DY looks attractive now? I don't think so. Its could be a trap. Lets observe after the MCO. Will the management really got the super power to bring it back to alive.
REIT like any other stocks, inherited risk when you get at high price. Likewise, when your entry price at lower like the current ranges, you will get handsome return.
be a contrarian means dont buy now since you are saying buy now!. lol....anyway the major shareholder hektar black s/b has been selling lately. The malls wont be recovering so fast. Somehow the mall manager appear to be weak. Just look at Subang Parade. Compare it with the nearest Empire Subang or Aeon Big. I think even Aeon Big has better attraction than Subang Parade. Subang Parade is located at the heart of Subang Jaya. Is sad that the mall manager does not do what it takes to attract footfall. Just my 2 cents.
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....
getingreal
405 posts
Posted by getingreal > 2019-11-20 23:01 | Report Abuse
Yippy68 the Fees have risen 227%! not 127%