Portfolio Performance | Print this page |
Property Profiles
Hektar REIT's portfolio consists of three well-established destination centres – Subang Parade, located in Subang Jaya, Selangor, Mahkota Parade, located in Bandar Melaka, Melaka and Wetex Parade & Classic Hotel, located in Muar, Johor.
1.1 million sq ft
95.5%
1.3 million residents
20.2 million
318
Data current as at 31 December 2010. 1 NLA Tenants only 2 MIRP Surveys (2007-8)
| Subang Parade | Mahkota Parade | Wetex Parade & Classic Hotel |
|
|---|---|---|---|
| State | Selangor | Melaka | Johor |
| Title | Freehold | Leasehold (2101) | Freehold |
| Primary Trade Area1 | 833,538 (within 15-mins drive) |
350,000 (within 15-mins drive) |
154,000 (10km radius) |
| NLA (Retail) | 476,577 sq ft | 461,067 sq ft | 162,016 sq ft |
| Tenancies | 123 | 105 | 90 |
| Occupancy2 | 94.8% | 96.1% | 95.6% |
| Visitor Traffic FY2010 | 7.5 million | 7.2 million | 5.5 million |
| Purchase Price (RM) | 280.0 million | 232.0 million | 117.5 million |
| Valuation (RM)2 | 347.0 million | 283.0 million | 122.0 million |
| Gross Revenue FY2010 (RM) | 44.3 million | 35.5 million | 11.2 million |
| Net Property Income (NPI) FY2010 (RM) | 28.1 million | 20.5 million | 6.7 million |
1 Malaysian Census, MIRP (Independent Research)
2 As at 31 December 2010.
Portfolio Occupancy
Overall portfolio occupancy was at 95.5% as at 31 December 2010. Subang Parade's occupancy dipped to 94.8% due to the pending replacement of its co-anchor. Mahkota Parade's occupancy improved to 96.1% with the completion of the mall refurbishment in May 2010. Wetex Parade's occupancy increased to 95.6% due to the opening of a new entertainment and lifestyle retail zone.
| 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 | 94.8% | 100.0% | 99.8% | 99.9% | 98.5% |
| Mahkota Parade | 96.1% | 93.6% | 96.5% | 93.9% | 94.9% |
| Wetex Parade | 95.6% | 90.1% | 83.1% | - | - |
| Overall* | 95.5% | 95.8% | 95.8% | 96.9% | 96.7% |
*Average weighted by NLA
Visitor Traffic
Visitor traffic is measured by FootFall, a computerised video-based traffic monitoring system. Visits to Subang Parade decreased by 3.1% in 2010, while Mahkota Parade visits declined by 8.8%, in part due to the refurbishment activities through to May 2010. Visits to Wetex Parade dipped by 2.2%. Overall, the portfolio received 20.2 million visits in 2010.
| Property | No. of Visits 2010 |
No. of Visits 2009 |
No. of Visits 2008 |
No. of Visits 2007 |
No. of Visits 2006 |
|---|---|---|---|---|---|
| Subang Parade | 7.52 million | 7.76 million | 7.62 million | 7.84 million | 5.92 million |
| % Change in Traffic | -3.1% | 1.8% | -2.8% | 32.6% | 4.0% |
| Mahkota Parade | 7.19 million | 7.88 million | 8.32 million | 8.82 million | 8.64 million |
| % Change in Traffic | -8.8% | -5.3% | -5.7% | 2.1% | 7.8% |
| Wetex Parade* | 5.51 million | 5.63 million | 1.96 million | - | - |
| Acquired in May 2008 | -2.2% | ||||
| Total | 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 are for approximately 4 months only
Portfolio Tenancy Mix
The portfolio tenancy mix is dominated by department stores and supermarkets, which led by Parkson and The Store, constitute approximately 35.2% of total portfolio NLA. In terms of rental income, the largest segment remains fashion and footwear, which contributes approximately 29.7% of monthly rental income.
Portfolio Top Ten Tenants
The top ten tenants in the portfolio contributed approximately 27.4% of total monthly rental income, providing a diversified revenue base. After the top tenant, Parkson, which contributed approximately 11.3% monthly rental income, no other tenant contributed more than 3.0%.
| Tenant | Trade Sector | NLA (sq ft) |
% of Total NLA |
% of Monthly Rental Income* |
|
|---|---|---|---|---|---|
| 1 | Parkson | Department Store | 254,009 | 23.1% | 11.3% |
| 2 | The Store | Department Store | 91,357 | 8.3% | 3.0% |
| 3 | Bata | Fashion & Footwear | 12,946 | 1.2% | 2.0% |
| 4 | McDonald's | Food & Beverage | 7,322 | 0.7% | 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 | 7,096 | 0.6% | 1.5% |
| 8 | Kenny Rogers Roasters | Food & Beverage | 36,717 | 3.3% | 1.5% |
| 9 | K.F.C. | Food & Beverage | 10,282 | 0.9% | 1.5% |
| 10 | Celebrity Fitness | Sport & Fitness | 34,317 | 3.1% | 1.4% |
| Top 10 Tenants (By Monthly Rental Income) |
482,537 | 43.8% | 27.4% | ||
| Other Tenants | 617,063 | 56.2% | 72.6% | ||
| Total | 1,099,600 | 100.0% | 100.0% | ||
*Based on monthly rental income for December 2010.
Portfolio Rental Reversions
For the year ended 31 December 2010, the portfolio recorded 111 new and renewed tenancies, with an overall weighted average rental rate decrease of 1%. Subang Parade's rental reversion decreased for the year, with 20% of NLA reverting with a 2% rental rate decrease. Wetex Parade recorded an overall 37% increase in rental rates, reflecting the efforts of the tenant remixing exercise in the past year. Mahkota Parade accounted for an average 3% decrease for new or renewed tenants.
| Full Year 2010 (12 months) (Ended 31 Dec) |
No. of New Tenancies / Renewals |
NLA (sq ft) |
% of Total NLA |
% Increase / (Decrease) Over Previous Rent Rates |
|---|---|---|---|---|
| Subang Parade | 48 | 96,365 | 20% | -2% |
| Mahkota Parade | 35 | 55,030 | 12% | -3% |
| Wetex Parade | 28 | 14,249 | 9% | 37% |
| Total / Average* | 11 | 165,644 | 15% | -1% |
* Approximate average, weighted by Net Lettable Area. Figures as at 31 December 2010.
Portfolio Tenancy Expiry Profile
For the year 2011, a total of 94 tenancies will expire, representing approximately 44% of NLA and 37% of monthly rental income as at 31 December 2010. 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 2011 | 94 | 480,579 | 44% | 37% |
| FY 2012 | 117 | 288,986 | 26% | 27% |
| FY 2013 | 92 | 157,084 | 14% | 25% |
| FY 2014 | 15 | 58,735 | 5% | 4% |
* Based on monthly rental income for December 2010.
Portfolio Tenancy Provisions
As at 31 December 2010, turnover rent provisions were present in approximately 97% of the tenancies in the portfolio. Step-up rent provisions were present in approximately 70% of tenancies within the portfolio.
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 in 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.
