Property profiles
Hektar REIT’s asset portfolio consists of a regional shopping centre, five established neighbourhood-focused shopping centres, and a hotel in the Northern, Central and Southern Regions of Peninsular Malaysia:-
- Subang Parade, located in Subang Jaya, Selangor;
- Mahkota Parade, located in Bandar Melaka, Melaka;
- Wetex Parade & Classic Hotel, located in Muar, Johor;
- Kulim Central Shopping Centre, located in Kulim, Kedah;
- Central Square Shopping Centre, located in Sungai Petani, Kedah; and
- Segamat Central Shopping Centre, located in Segamat, Johor.
| Property | Subang Parade | Mahkota Parade | Wetex Parade | Central Square | Kulim Central | Segamat Central |
|---|---|---|---|---|---|---|
| State | Selangor | Melaka | Johor | Kedah | Kedah | Johor |
| Title | Freehold | Leasehold* | Freehold | Freehold | Freehold | Leasehold** |
| Primary trade area (Population) | 1,834,000 | 382,200 | 201,600 | 406,870 | 287,694 | 190,000 |
| NLA (retail) | 521,992 sq ft | 521,142 sq ft | 170,463 sq ft | 310,564 sq ft | 299,781 sq ft | 211,919 sq ft |
| Tenancies (NLA lots only) | 78 | 91 | 61 | 49 | 72 | 36 |
| Occupancy | 74.3% | 93.8% | 97.6% | 87.1% | 96.9% | 76.0% |
| Visitor traffic | 4.5 million | 6.8 million | 3.2 million | 3.8 million | 3.0 million | 1.9 million |
| Acquisition price | RM 280.0 million | RM 232.0 million | RM 117.5 million | RM 83.0 million | RM 98.0 million | RM 104.0 million |
| Valuation | RM 430.0 million | RM 338.5 million | RM 161.7 million | RM 95.0 million | RM 142.5 million | RM 65.0 million |
| Gross revenue | RM 28.7 million | RM 36.1 million | RM 16.7 million | RM 9.3 million | RM 16.2 million | RM 4.5 million |
| NPI | RM 19.8 million | RM 22.5 million | RM 6.0 million | RM 4.6 million | RM 7.7 million | (RM 0.5 million) |
Portfolio diversification
(Tap individual slices for more details)
Occupancy
The portfolio recorded an overall occupancy rate of 86.8% as at 31 December 2023, as Hektar REIT continues its ongoing strategy of tenant remixing and rejuvenation plan at Subang Parade and Segamat Central. Despite the challenging retail environment, the Management remains steadfast on boosting occupancies by focusing on retaining existing tenants and utilizing marketing to attract specialty anchors and more F&B retailers to the mall.
| Property | 2023 | 2022 |
|---|---|---|
| Subang Parade | 2023: 74.3% | 2022: 70.3% |
| Mahkota Parade | 2023: 93.8% | 2022: 86.9% |
| Wetex Parade | 2023: 97.6% | 2022: 88.1% |
| Central Square | 2023: 87.1% | 2022: 82.3% |
| Kulim Central | 2023: 96.9% | 2022: 96.4% |
| Segamat Central | 2023: 76.0% | 2022: 73.7% |
| Overall* | 2023: 86.7% | 2022: 82.0% |
Visitor traffic
Overall visitor traffic increased to 23.2 million visits in 2023 as we intensified our marketing initiatives including sales-driven promotional campaigns at all our malls within the portfolio on the back of the lifting of the various restrictive containment measures. All malls experienced an uptrend following Malaysia’s transition to endemicity after the COVID-19 pandemic, showing positive signs of return in shopper confidence at Hektar malls.
| Property | 2023 | 2022 |
|---|---|---|
| Subang Parade | 2023: 4.5 million visits | 2022: 4.7 million visits |
| Mahkota Parade | 2023: 6.8 million visits | 2022: 6.0 million visits |
| Wetex Parade | 2023: 3.2 million visits | 2022: 2.9 million visits |
| Central Square | 2023: 3.8 million visits | 2022: 2.7 million visits |
| Kulim Central | 2023: 3.0 million visits | 2022: 2.9 million visits |
| Segamat Central | 2023: 1.9 million visits | 2022: 1.8 million visits |
| Total | 2023: 23.2 million visits | 2022: 21.1 million visits |
Tenancy mix
The largest rental contributors to the portfolio are tenants from the departmental store and the food & beverage segments. Both segments contributed 45% of the portfolio’s total rental income. In terms of NLA occupancy, department stores and supermarkets continue to dominate the portfolio by taking up 39% of all available NLA.
(Tap individual slices for more details)
- Numbers may exceed 100% due to rounding up.
Top 10 tenants
The top ten tenants in the portfolio contributed approximately 36.6% of total monthly rental income, providing a diversified revenue base. Aside from the top tenant, Parkson, which contributed approximately 12% of monthly rental income, no other tenant contributed more than 10%.
| Tenant | Trade sector | NLA | % of total NLA | % of monthly rental income* |
|---|---|---|---|---|
| Parkson | Department Store/Supermarket | 252,515 | 12.4% | 12.3% |
| The Store | Department Store/Supermarket | 273,198 | 13.4% | 8.7% |
| GSC | Leisure & Entertainment/Sports & Fitness | 88,670 | 4.3% | 2.4% |
| Watson's | Health & Beauty | 74,301 | 3.6% | 2.2% |
| MR. D.I.Y. | Homewares & Furnishing | 47,760 | 2.3% | 2.1% |
| Seleria Food Court | Food & Beverage/Food Court | 72,140 | 3.5% | 2.0% |
| Guardian | Health & Beauty | 11,965 | 0.6% | 1.8% |
| Giant Superstore | Department Store/Supermarket | 75,928 | 3.7% | 1.8% |
| MM Cineplexes | Leisure & Entertainment/Sports & Fitness | 15,792 | 0.8% | 1.7% |
| KFC | Food & Beverage/Food Court | 12,164 | 0.5% | 1.7% |
| Top 10 tenants (by monthly rental income) | ||
|---|---|---|
| 924,432 sq ft NLA | 45.4% of total NLA | 36.6% of monthly rental income* |
| Other tenants | ||
| 1,111,429 sq ft NLA | 54.6% of total NLA | 63.4% of monthly rental income* |
| Total | ||
| 2,035,861 sq ft NLA | 100.0% of total NLA | 100.0% of monthly rental income* |
Rental reversions
For the year ended 31 December 2023, the portfolio recorded 212 new and renewed tenancies, with an overall weighted average positive rental reversion of 0.2% reflecting our strategy in balancing rental reversions and occupancy levels to ensure portfolio stability.
| Property | No. of new tenancies / renewals | NLA | % of total NLA | % increase / decrease over previous rent rates |
|---|---|---|---|---|
| Subang Parade | 57 new tenancies / renewals | 144,438 sq ft NLA | 27.4% of total NLA | -4.2% change over previous rent rates |
| Mahkota Parade | 44 new tenancies / renewals | 237,474 sq ft NLA | 45.6% of total NLA | 3.1% change over previous rent rates |
| Wetex Parade | 28 new tenancies / renewals | 38,195 sq ft NLA | 22.4% of total NLA | -6.2% change over previous rent rates |
| Central Square | 22 new tenancies / renewals | 49,278 sq ft NLA | 15.9% of total NLA | -3.5% change over previous rent rates |
| Kulim Central | 51 new tenancies / renewals | 88,108 sq ft NLA | 29.4% of total NLA | 7.0% change over previous rent rates |
| Segamat Central | 10 new tenancies / renewals | 24,309 sq ft NLA | 11.5% of total NLA | 5.8% change over previous rent rates |
| Total / average of rental reversions |
|---|
| 212 new tenancies / renewals |
| 581,802 sq ft NLA |
| 28.6% of total NLA |
| 0.2% change over previous rent rates |
Tenancy expiry profile
A total of 192 tenancies will expire in 2024 representing approximately 51.5% of NLA and 53.8% of monthly rental income as at 31 December 2023. However, we have successfully renewed a total of 212 tenancies for the year which represents approximately 28.6% of total NLA.
The management’s strategy is to continue tenancy remixing exercises by refreshing the tenant mix as tenant contracts expire. Key tenancies are secured with options to renew and are usually confirmed six months prior to their expiry.
| For year ending 31 December | 2024 | 2025 | 2026 |
|---|---|---|---|
| No. of tenancies expiring | 192 | 121 | 74 |
| NLA of tenancies expiring | 1,052,729 sq ft | 456,004 sq ft | 264,414 sq ft |
| NLA of tenancies expiring as % of total NLA | 51.7% | 22.4% | 12.6% |
| % of total monthly rental income* | 53.8% | 28.8% | 17.4% |
(Tap individual bars for more details)
Tenancy provisions
As at 31 December 2023, turnover rent provisions were present in 94% of tenancy contracts within the portfolio. Step-up rent provisions were present in 55% of tenancy contracts within the portfolio.
A turnover rent provision allows for rent calculated as a proportion of monthly or yearly turnover of the tenant’s business. Turnover rent is paid to the REIT if it exceeds the base rent specified in tenancy agreements on a monthly or yearly basis. A step-up rent provision stipulates pre-determined increases in rent at defined intervals during a tenancy agreement.
(Tap or mouse-over individual bars for more details)