Portfolio Performance | Print this page |
Property Profiles
With the completion of its latest acquisitions, Hektar REIT's porfolio now consists of five well-established centres:
- Subang Parade, located in Subang Jaya, Selangor;
- Mahkota Parade, located in Bandar Melaka, Melaka;
- Wetex Parade & Classic Hotel, located in Muar, Johor;
- Landmark Central Shopping Centre, located in Kulim, Kedah;
- Central Square Shopping Centre, located in Sungai Petani, Kedah.
1.7 million sq ft
96.3%
1.9 million
28.1 million
506
Data current as at 31 December 2012.
1 MIRP Surveys (2007-8)
2 Excluding Central Square and Landmark Central as FootFall System has only been installed in November 2012
3 NLA Tenants only
| Subang Parade |
Mahkota Parade |
Wetex Parade |
Central Square |
Landmark Central |
|
|---|---|---|---|---|---|
| State | Selangor | Melaka | Johor | Kedah | Kedah |
| Title | Freehold | Leasehold (2101) |
Freehold | Freehold | Freehold |
| Primary Trade Area1 |
833,538 (within 15–mins drive radius) |
350,000 (within 15–mins drive radius) |
154,000 (10km radius) |
406,870 (within 15–mins drive radius) |
181,195 (within 15–mins drive radius) |
| NLA (Retail) | 500,447 sq ft | 480,052 sq ft | 155,253 sq ft | 300,046 sq ft | 281,716 sq ft |
| Tenancies | 132 | 108 | 100 | 88 | 78 |
| Occupancy2 | 99.76% | 96.05% | 97.83% | 89.80% | 96.87% |
| Visitor Traffic FY2012 | 11.4 million | 11.0 million | 5.7 million | n/a | n/a |
| Purchase Price (RM) | 280.0 million | 232.0 million | 117.5 million | 83.0 million | 98.0 million |
| Valuation (RM) | 391.3 million | 315.0 million | 135.0 million | 84.7 million | 103.0 million |
1 Malaysian Census, MIRP (Independent Research) and Market Survey 2011.
2 As at 31 December 2012.
Diversified Portfolio
*Gross Revenue and NPI for Central Square and Landmark Central is recorded for the months of October, November and December 2012 only
Portfolio Occupancy
Overall portfolio occupancy was at 96.3% as at 31 December 2012. The overall occupancy rate was recorded to be lower than the preceding year due to the addition of the two Kedah shopping centres. Since the REIT has just completed its acquisition, improvement plans has yet to be fully implemented at the new centres. The lower occupancy rates provide opportunity for growth in coming financial years. The earlier shopping centres, namely Subang Parade, Mahkota Parade and Wetex Parade have all maintained high occupancy rates. The slight fluctuation in the occupancy rates is reflective of the tenant remixing exercises that ensure the shopping centres keep up with the consumer trends.
| Property | As at 31 December 2012 |
As at 31 December 2011 |
As at 31 December 2010 |
As at 31 December 2009 |
As at 31 December 2008 |
As at 31 December 2007 |
As at 31 December 2006 |
|---|---|---|---|---|---|---|---|
| Subang Parade | 99.8% | 99.9% | 94.8% | 100.0% | 99.8% | 99.9% | 98.5% |
| Mahkota Parade | 96.1% | 94.5% | 96.1% | 93.6% | 96.5% | 93.9% | 94.9% |
| Wetex Parade | 97.8% | 98.6% | 95.6% | 90.1% | 83.1% | - | - |
| Central Square (CS) | 89.8% | 98.6% | 95.6% | 90.1% | 83.1% | - | - |
| Landmark Central (LC) | 96.9% | 98.6% | 95.6% | 90.1% | 83.1% | - | - |
| Overall* | 96.3% | 97.5% | 95.5% | 95.8% | 95.8% | 96.9% | 96.7% |
| Overall excluding CS and LM* | 97.9% | 97.5% | 95.5% | 95.8% | 95.8% | 96.9% | 96.7% |
*The weighted average occupancy rate is calculated based on NLA.
Visitor Traffic
Visitor traffic is measured by FootFall, a UK-based computerised video traffic monitoring system.
| Property | No. of Visits 2012 |
No. of Visits 2011 |
No. of Visits 2010 |
No. of Visits 2009 |
No. of Visits 2008 |
No. of Visits 2007 |
No. of Visits 2006 |
|---|---|---|---|---|---|---|---|
| Subang Parade | 11.43 million |
7.95 million |
7.52 million |
7.76 million |
7.62 million |
7.84 million |
5.92 million |
| % Change in Traffic | 43.8% | 5.8% | -3.1% | 1.8% | -2.8% | 32.6% | 4.0% |
| Mahkota Parade | 11.00 million |
8.17 million |
7.19 million |
7.88 million |
8.32 million |
8.82 million |
8.64 million |
| % Change in Traffic | 34.5% | 14.0% | -8.8% | -5.3% | -5.7% | 2.1% | 7.8% |
| Wetex Parade* | 5.69 million |
5.93 million |
5.51 million |
5.63 million |
1.96 million |
- | - |
| % Change in Traffic | -4.8% | 7.6% | -2.2% | ||||
| Total | 28.1 million | 22.1 million | 20.2 million | 21.3 million | 17.9 million | 16.6 million | 14.5 million |
* FootFall system for Wetex Parade was installed in September 2008 - traffic figures for 2008 are for approximately 4 months only. Visitor traffic for Central Square and Landmark Central is not reported here as the FootFall System has only been installed in November 2012 for these two malls. Visitor count for these two malls will be reported from 2013 onwards.
Portfolio Tenancy Mix
The portfolio tenancy mix is dominated by department stores and supermarkets which, led by Parkson and The Store, constitute approximately 37.7% of total portfolio NLA. The proportion has increased this year with the addition of the new malls. In terms of rental income, the largest segment remains fashion and footwear, which contributes approximately 28.4% of monthly rental income.
* Based on monthly rental income for December 2012.
Portfolio Top Ten Tenants
The top ten tenants in the portfolio contributed approximately 24.4% of total monthly rental income, providing a diversified revenue base. After the top tenant, Parkson, which contributed approximately 9.4% monthly rental income, no other tenant contributed more than 6.0%.
| Tenant | Trade Sector | NLA (sq ft) |
% of Total NLA |
% of Monthly Rental Income* |
|
|---|---|---|---|---|---|
| 1 | Parkson | Department Store | 254,009 | 14.8% | 9.4% |
| 2 | The Store | Department Store | 267,114 | 15.5% | 5.8% |
| 3 | Ampang Superbowl | Leisure & Entertainment | 61,717 | 3.6% | 1.4% |
| 4 | Giant Supermarket | Department Store | 72,140 | 4.2% | 1.3% |
| 5 | KFC | Food & Beverage | 11,776 | 0.7% | 1.3% |
| 6 | Celebrity Fitness | Leisure & Entertainment | 34,317 | 2.0% | 1.2% |
| 7 | World of Sports | Fashion & Footwear | 11,517 | 0.7% | 1.2% |
| 8 | Digital One | Electronics & IT | 21,361 | 1.2% | 1.0% |
| 9 | McDonald's | Food & Beverage | 8,431 | 0.5% | 1.0% |
| 10 | Best Denki | Electronics & IT | 24,739 | 1.4% | 0.8% |
| Top 10 Tenants (By Monthly Rental Income) |
767,121 | 44.5% | 24.4% | ||
| Other Tenants | 954,945 | 55.5% | 75.6% | ||
| Total | 1,722,066 | 100.0% | 100.0% | ||
*Based on monthly rental income for December 2012
Portfolio Rental Reversions
For the year ended 31 December 2012, the portfolio recorded 114 new and renewed tenancies, with an overall weighted average rental reversion of 8%. Subang Parade, Wetex Parade, Central Square and Landmark Central recorded healthy rental reversion of 9%, 12%, 14% and 20% respectively; whilst Mahkota Parade's reversion is stable at 2%.
| Full Year 2012 (12 months) Ended 31 December |
No. of New Tenancies / Renewals |
NLA (sq ft) |
% of Total NLA |
% Increase / (Decrease) Over Previous Rent Rates |
|---|---|---|---|---|
| Subang Parade | 32 | 231,726 | 46% | 9% |
| Mahkota Parade | 36 | 85,219 | 18% | 2% |
| Wetex Parade | 44 | 31,466 | 20% | 12% |
| Central Square | 1 | 1,144 | 0% | 14% |
| Landmark Central | 1 | 517 | 0% | 20% |
| Total / Average* | 114 | 350,072 | 20% | 8% |
* The weight average is calculated based on NLA. Figures as at 31 December 2012
Portfolio Tenancy Expiry Profile
For the year 2013, a total of 190 tenancies will expire, representing approximately 19% of NLA and 29% of monthly rental income as at 31 December 2012. Our tenancy agreement typically reflect the tenancy terms of 3 years, as per the current market practice in Malaysia.
For the year 2015, the proportion of tenancies expiring is higher due to the tenancy structure in Landmark Central. As the shopping centre was newly opened in 2009, with the standard tenancy terms of 3 years, majority of its tenancy expired in 2012 and subsequently 2015 after the renewals. Hektar has also secured options-for-renewal with the anchor tenants.
| 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 2013 | 190 | 319,121 | 19% | 29% |
| FY 2014 | 162 | 576,383 | 33% | 35% |
| FY 2015 | 129 | 708,450 | 41% | 30% |
* Based on monthly rental income for December 2012. Figures may not round to 100% due to miscellaneous items.
Portfolio Tenancy Provisions
As at 31 December 2012, turnover rent provisions were present in approximately 61% of the tenancies in the portfolio. Step-up rent provisions were present in approximately 30% of tenancies within the portfolio.
As the practice of turnover rent and step-up rent has yet to be incorporated at Central Square and Landmark Central, the portfolio average for the provisions is reported to be lower. Excluding the effects of the two new malls, the turnover rent provision and step-up rent provision will be 88% and 44% of the tenancies respectively.
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 tenancy agreements 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.
