Hektar REIT net profit drops to RM10.27mil

PETALING JAYA: Hektar Real Estate Investment Trust’s (Hektar REIT) net profit for its second quarter ended June 30 was marginally lower at RM10.27mil compared with RM10.5mil in the previous corresponding period, while revenue came in higher at RM33.85mil compared with RM30.79mil previously.

In a filing with Bursa Malaysia yesterday, Hektar REIT said revenue was higher than the preceding cumulative quarter by 10%, mainly due to the inclusion of Segamat Central into its portfolio and the completion of the Asset Enhancement Initiatives at Kulim Central.

“Realised net profit was higher by 5%. Property operating expenses increased by 11%,” said Hektar REIT.

For the six-month period, Hektar REIT’s net profit was also flat at RM20.95mil compared with RM20.12mil in the previous corresponding period, while revenue increased to RM67.81mil from RM61.64mil a year earlier.

Commenting on its prospects, Hektar REIT said the retail business in Malaysia continues to remain challenging.

“However, measures are being taken to improve the performance,” the company said.

Meanwhile, AmFirst REIT reported a net profit of RM6.97mil for its first quarter ended June 30 compared with RM6.39mil in the previous corresponding period, while revenue was flattish at RM28.60mil from RM28.05mil a year earlier.

In a note to the local bourse, the company said earnings were contributed by full occupancy in Prima 9 and higher average occupancies at The Summit retail and office.

“However, the increase was partially offset by a lower gross revenue in Menara AmBank, Menara AmFirst and Wisma AmFirst, as a result of lower average occupancy.

“Property expenses were lower by 1.3%, mainly attributable to lower electricity charges as well as lower repair and maintenance cost in some of the properties within the portfolio.”

As at June 30, 2018, AmFirst said the overall occupancy of its portfolio stood at 83.6%.