Hektar REIT 3Q net property income rises to RM15.44 million on improved operations
Hektar Real Estate Investment Trust reported a 3.4% rise in net property income to RM15.44 million for the third quarter ended Sept 30, 2026, driven by better property operations and cost optimisation. However, quarterly net income fell 14.5% to RM3.45 million due to higher financing costs from addi
PETALING JAYA (Nov 13): Hektar Real Estate Investment Trust’s (Hektar REIT) net property income (NPI) rose to RM15.44 million in the third quarter ended Sept 30, 2026 (3QFY2026), from RM14.93 million a year earlier, supported by improved property operations and continued cost optimisation. Revenue increased 3.2% to RM32.04 million from RM31.06 million.
In a Bursa Malaysia filing on Thursday (Nov 12), Hektar REIT said its nine-month property performance also benefited from higher occupancy, tenancy remixing and cost optimisation across its retail assets, as well as the completed acquisition of an industrial asset in Bayan Lepas, Penang. For the nine months ended Sept 30, NPI grew 5% to RM48.08 million from RM45.79 million, outpacing revenue growth of 1.1% to RM94.99 million from RM93.98 million. The NPI margin improved to 50.6% from 48.7%.
Despite the stronger property performance, quarterly net income fell 14.5% to RM3.45 million from RM4.04 million. Hektar REIT attributed the decline in quarterly net realised income primarily to higher financing costs arising from additional borrowings drawn down in the second quarter. Finance expenses increased by RM882,475 to RM8.34 million from RM7.46 million a year earlier. Earnings per unit declined to 0.49 sen from 0.57 sen.
For the nine-month period, net income rose 11.4% to RM14.33 million from RM12.86 million, including a RM2.65 million fair value gain on investment property. Excluding the fair value gain, net realised income fell 9.1% to RM11.68 million from RM12.86 million. The REIT said the decline reflected RM2.5 million in one-off administrative expenses related to various corporate initiatives, alongside higher financing costs.
No income distribution was proposed for the quarter. Subject to the REIT’s financial performance, the manager intends to make distributions semi-annually. It also intends to distribute at least 90% of realised income available for distribution for FY2026. An interim distribution of 1.21 sen per unit for the second quarter, amounting to RM8.58 million, was paid on Oct 9.
Looking ahead, the manager said it would focus on improving occupancy through tenant remixing, optimising rental reversions, undertaking targeted asset enhancements and pursuing acquisitions, while maintaining cost discipline.
