Property profiles
Hektar REIT’s asset portfolio consists of a regional shopping centre, five established neighbourhood-focused shopping centres, a hotel and a private highschool 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;
- Segamat Central Shopping Centre, located in Segamat, Johor; and
- Kolej Yayasan Saad, located in Ayer Keroh, Melaka.
| Property | Subang Parade | Mahkota Parade | Wetex Parade | Central Square | Kulim Central | Segamat Central | Kolej Yayasan Saad Melaka |
|---|---|---|---|---|---|---|---|
| State | Selangor | Melaka | Johor | Kedah | Kedah | Johor | Melaka |
| Title | Freehold | Leasehold* | Freehold | Freehold | Freehold | Leasehold** | Leasehold |
| Primary trade area (Population) | 1,834,000 | 382,200 | 201,600 | 406,870 | 287,694 | 190,000 | 44,000 |
| NLA (retail) | 521,680 sq ft | 520,968 sq ft | 170,463 sq ft | 310,902 sq ft | 294,872 sq ft | 223,017 sq ft | 396,874 sq ft (GFA) |
| Tenancies (NLA lots only) | 86 | 100 | 57 | 47 | 72 | 30 | – |
| Occupancy | 84.1% | 98.1% | 96.5% | 71.7% | 83.9% | 58.4% | 100.0% |
| Visitor traffic | 4.9 million | 6.6 million | 2.9 million | 3.3 million | 3.2 million | 1.8 million | n/a |
| 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 | RM 148.5 million |
| Valuation | RM 438.0 million | RM 343.0 million | RM 153.0 million | RM 95.9 million | RM 144.6 million | RM 62.0 million | RM 150.0 million |
| Gross revenue | RM 29.5 million | RM 37.9 million | RM 15.8 million | RM 8.5 million | RM 15.9 million | RM 4.8 million | RM 12.2 million |
| NPI | RM 15.1 million | RM 20.7 million | RM 5.5 million | RM 3.3 million | RM 7.8 million | (RM 1.8 million) | RM 12.2 million |
Portfolio diversification
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Occupancy
The portfolio recorded an overall occupancy rate of 84.0% as at 31 December 2024 as Hektar REIT continues our ongoing strategy of tenant remixing and rejuvenation plan at Subang Parade and Segamat Central. Furthermore, the recent acquisition of Kolej Yayasan Saad represented a significant milestone in Hektar REIT’s efforts to strategically expand and diversify our portfolio, marking the inclusion of our first educational asset.
| Property | 2024 | 2023 |
|---|---|---|
| Subang Parade | 2024: 84.1% | 2023: 74.7% |
| Mahkota Parade | 2024: 98.1% | 2023: 93.8% |
| Wetex Parade | 2024: 96.5% | 2023: 97.6% |
| Central Square | 2024: 71.7% | 2023: 87.1% |
| Kulim Central | 2024: 83.9% | 2023: 96.9% |
| Segamat Central | 2024: 58.4% | 2023: 76.0% |
| Overall* | 2024: 84.0% | 2023: 86.7% |
Visitor traffic
Overall visitor traffic for our retail portfolio had decreased from 23.2 million to 22.7 million visits in 2024. Despite the decline, Subang Parade had shown a promising improvement of 10%. Klang Valley is seeing a trend of a shift toward neighborhood-centric, community-focused retail spaces which aligns with the rejuvenation plan of Subang Parade.
| Property | 2024 | 2023 |
|---|---|---|
| Subang Parade | 2024: 4.9 million visits | 2023: 4.5 million visits |
| Mahkota Parade | 2024: 6.6 million visits | 2023: 6.8 million visits |
| Wetex Parade | 2024: 2.9 million visits | 2023: 3.2 million visits |
| Central Square | 2024: 3.3 million visits | 2023: 3.8 million visits |
| Kulim Central | 2024: 3.2 million visits | 2023: 3.0 million visits |
| Segamat Central | 2024: 1.8 million visits | 2023: 1.9 million visits |
| Total | 2024: 22.7 million visits | 2023: 23.2 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 42% of the portfolio’s total rental income. In terms of NLA occupancy, department stores and supermarkets continue to dominate the portfolio by taking up 35% of all available NLA.
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- Based on monthly rental income for December 2024. Numbers may exceed 100% due to rounding up.
Top 10 tenants
The top ten tenants in the portfolio contributed approximately 33.6% of total monthly rental income, providing a diversified revenue base. Aside from the top tenant, Parkson, which contributed approximately 11.3% 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% | 11.3% |
| The Store | Department Store/Supermarket | 259,979 | 12.7% | 7.8% |
| Mr DIY | Homewares & Furnishing | 74,443 | 3.6% | 2.3% |
| Watson's | Health & Beauty | 15,072 | 0.7% | 1.7% |
| Guardian | Health & Beauty | 12,164 | 0.6% | 1.9% |
| MM Cineplex | Leisure & Entertainment/Sports & Fitness | 75,928 | 3.7% | 1.7% |
| KFC | Food & Beverage/Food Court | 15,792 | 0.8% | 1.7% |
| GSC | Leisure & Entertainment/Sports & Fitness | 54,258 | 2.7% | 1.7% |
| Seleria | Food & Beverage/Food Court | 43,362 | 2.1% | 1.7% |
| Best Denki | Electronics & IT | 20,930 | 1.0% | 1.0% |
| Top 10 tenants (by monthly rental income) | ||
|---|---|---|
| 824,442 sq ft NLA | 40.4% of total NLA | 33.6% of monthly rental income* |
| Other tenants | ||
| 1,217,460 sq ft NLA | 59.6% of total NLA | 66.4% of monthly rental income* |
| Total | ||
| 2,041,902 sq ft NLA | 100.0% of total NLA | 100.0% of monthly rental income* |
Rental reversions
For the year ended 31 December 2024, the portfolio recorded 144 new and renewed tenancies, with an overall weighted average positive rental reversion of 5.7% 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 | 41 new tenancies / renewals | 243,104 sq ft NLA | 11.9% of total NLA | 6.5% change over previous rent rates |
| Mahkota Parade | 41 new tenancies / renewals | 88,156 sq ft NLA | 4.3% of total NLA | 6.7% change over previous rent rates |
| Wetex Parade | 18 new tenancies / renewals | 110,053 sq ft NLA | 5.4% of total NLA | 3.6% change over previous rent rates |
| Segamat Central | 13 new tenancies / renewals | 30,109 sq ft NLA | 1.5% of total NLA | 0.8% change over previous rent rates |
| Kulim Central | 20 new tenancies / renewals | 108,386 sq ft NLA | 5.3% of total NLA | 8.9% change over previous rent rates |
| Central Square | 11 new tenancies / renewals | 115,795 sq ft NLA | 5.7% of total NLA | 6.1% change over previous rent rates |
| Total / average of rental reversions |
|---|
| 144 new tenancies / renewals |
| 695,603 sq ft NLA |
| 34.1% of total NLA |
| 5.7% change over previous rent rates |
Tenancy expiry profile
A total of 222 tenancies will expire in 2025 representing 37.7% of NLA and 48.5% of monthly rental as at 31 December 2024.
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 | 2025 | 2026 | 2027 |
|---|---|---|---|
| No. of tenancies expiring | 222 | 106 | 71 |
| NLA of tenancies expiring | 770,747 sq ft | 491,079 sq ft | 453,317 sq ft |
| NLA of tenancies expiring as % of total NLA | 37.7% | 24.1% | 22.2% |
| % of total monthly rental income* | 48.5% | 27.2% | 24.4% |
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Note: Kolej Yayasan Saad, Melaka has been excluded in the calculation above. For reference, it has a remaining 28.75-year lease expiry.
Tenancy provisions
As at 31 December 2024, turnover rent provisions were present in 89% 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.
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