Portfolio Performance | Print this page |
Property Profiles
Hektar REIT's portfolio consists of three well-established destination centres – Subang Parade, located in Selangor, Mahkota Parade, located in Bandar Melaka, Melaka and Wetex Parade & Classic Hotel, located in Muar, Johor.
1.1 million sq ft
95.8%
1.3 million residents
21.3 million
315
Data current as at 31 December 2009. 1 NLA Tenants only 2 MIRP Surveys (2007-8)
Diversified Portfolio
For the financial year ended 31 December 2009, Subang Parade remained the largest contributor to the portfolio, providing 47.6% of the property valuation, 49.2% of revenue and 51.0% of net property income.
Portfolio Occupancy
Overall portfolio occupancy remained at 95.8% as at 31 December 2009. Subang Parade's occupancy remained at 100% for the year while Mahkota Parade's occupancy stabilised at 93.6% with the ongoing refurbishment (commenced in July 2009). Wetex Parade’s occupancy increased to 90.1% and continues to see selective tenant remixing.
| As at 31 December 2009 |
As at 31 December 2008 |
As at 31 December 2007 |
As at 31 December 2006 |
|
|---|---|---|---|---|
| Subang Parade | 100.0% | 99.8% | 99.9% | 98.5% |
| Mahkota Parade | 93.6% | 96.5% | 93.9% | 94.9% |
| Wetex Parade | 90.1% | 83.1% | - | - |
| Overall* | 95.8% | 95.8% | 96.9% | 96.7% |
*Approximate average, weighted by Net Lettable Area.
Visitor Traffic
Visitor traffic is measured by Footfall, a computerised video-based traffic monitoring system. Visits to Subang Parade increased by 1.8% in 2009, while Mahkota Parade visits decreased by 5.3%, in part due to the refurbishment exercise which commenced in July 2009. Overall, the portfolio received 21.3 million visits in 2009.
| Property | No. of Visits 2009 |
No. of Visits 2008 |
No. of Visits 2007 |
No. of Visits 2006 |
|---|---|---|---|---|
| Subang Parade | 7.76 million | 7.62 million | 7.84 million | 5.92 million |
| % Change in Traffic | 1.8% | -2.8% | 32.6% | 4.0% |
| Mahkota Parade | 7.88 million | 8.32 million | 8.82 million | 8.64 million |
| % Change in Traffic | -5.3% | -5.7% | 2.1% | 7.8% |
| Wetex Parade* | 5.63 million | 1.96 million | - | - |
| Acquired in May 2008 | ||||
| Total | 21.3 million | 17.9 million | 16.6 million | 14.5 million |
* Footfall system for Wetex Parade was installed in September 2008 – traffic figures are for approximately 4 months only
Portfolio Tenancy Mix
The portfolio tenancy mix is dominated by department store and supermarkets, which, led by Parkson and The Store, constitute approximately 35.0% of total portfolio NLA. In terms of rental income, the largest segment remains fashion and footwear, which contributes approximately 29.0% of monthly rental income for December 2009.
* Based on monthly rental income for December 2009.
Portfolio Top Ten Tenants
The top ten tenants in the portfolio contribute approximately 27.2% of total monthly rental income, providing a diversified revenue base. After the top tenant, Parkson, which contributes approximately 11.1% of monthly rental income, no other tenant contributes more than 3.0% of total monthly rental income.
| Tenant | Trade Sector | NLA (sq ft) |
% of Total NLA |
% of Monthly Rental Income* |
|
|---|---|---|---|---|---|
| 1 | Parkson | Department Store | 254,009 | 23.0% | 11.1% |
| 2 | The Store | Department Store | 91,357 | 8.3% | 3.0% |
| 3 | Bata | Fashion & Footwear | 8,409 | 0.8% | 2.1% |
| 4 | McDonald's | Food & Beverage | 12,946 | 1.2% | 1.9% |
| 5 | The Reject Shop | Fashion & Footwear | 17,695 | 1.6% | 1.8% |
| 6 | World Of Sports | Fashion & Footwear | 10,796 | 1.0% | 1.5% |
| 7 | Ampang Superbowl | Leisure & Entertainment | 36,717 | 3.3% | 1.5% |
| 8 | Kenny Rogers Roasters | Food & Beverage | 7,096 | 0.6% | 1.5% |
| 9 | K.F.C. | Food & Beverage | 10,282 | 0.9% | 1.4% |
| 10 | Celebrity Fitness | Sport & Fitness | 34,317 | 3.1% | 1.4% |
| Top 10 Tenants (By Monthly Rental Income) |
483,624 | 43.8% | 27.2% | ||
| Other Tenants | 619,417 | 56.2% | 72.8% | ||
| Total | 1,103,041 | 100.0% | 100.0% | ||
* Based on monthly rental income for December 2009. NLA = Net Lettable Area
Portfolio Rental Reversions
For the year ended 31 December 2009, the portfolio recorded 99 new and renewed tenancies, with an overall weighted average rental rate decrease of 5%. Subang Parade’s rental reversions were flat for the year, with 10% of the NLA reverting with no rental rate increase. Wetex Parade recorded an overall 8% increase in rental rates, reflecting the efforts of the tenant remixing exercise in the past year. Mahkota Parade accounted for the decrease in rental reversions, recording an average 13% decrease for new or renewed tenants. The negative performance in Mahkota Parade is in part, due to the ongoing refurbishment efforts which commenced in July 2009 and is expected to be completed by April 2010, with a revitalised look for the shopping centre.
| Full Year 2009 (12 months) (Ended 31 Dec) |
No. of New Tenancies / Renewals |
NLA (sq ft) |
% of Total NLA |
% Increase / (Decrease) Over Previous Rent Rates |
|---|---|---|---|---|
| Subang Parade | 34 | 47,100 | 10% | 0% |
| Mahkota Parade | 41 | 80,158 | 17% | -13% |
| Wetex Parade | 24 | 18,525 | 11% | 8% |
| Total / Average* | 99 | 145,783 | 13% | -5% |
* Approximate average, weighted by Net Lettable Area. Figures as of 31 December 2009.
Portfolio Tenancy Expiry Profile
For the year 2010, a total of approximately 93 tenancies will expire, representing 23% of NLA and 28% of monthly rental income as at 31 December 2009. This is in line with typical tenancy terms of 3 years, as per the current market practice in Malaysia.
| Portfolio For Year Ending 31 December |
No. of Tenancies Expiring | NLA of Tenancies Expiring (sq ft) |
NLA of Tenancies Expiring as % of Total NLA | % of Total Monthly Rental Income* |
|---|---|---|---|---|
| FY 2010 | 93 | 257,873 | 23% | 28% |
| FY 2011 | 104 | 510,484 | 46% | 39% |
| FY 2012 | 100 | 276,579 | 25% | 24% |
| FY 2013 | 7 | 7,975 | 1% | 2% |
Portfolio Tenancy Provisions
As at 31 December 2009, turnover rent provisions were present in approximately 91% of the tenancies in the portfolio, with Subang Parade and Mahkota Parade recording both in excess of 90%. Step-up rent provisions were present in approximately 75% of tenancies within the portfolio. As Wetex Parade was acquired in May 2008, its expiring tenancies are being revised to include Turnover Rent and Step-Up Rent provisions, as appropriate.
A turnover rent provision allows for rent calculated as a proportion of annual turnover of the tenant’s business. Turnover rent is paid to the REIT if it exceeds the base rent specified in the tenancy agreement on an annual basis. A step-up rent provision is specified in tenancy agreements as a pre-determined increase in rent at defined intervals during a tenancy agreement, typically each year and forms the base rent of any tenancy agreement.
