01
Highlights
02
Portfolio
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DIVERSITY IN ASSET BY LOCATION
The portfolio consists of 2.0 million square feet of retail space and provides good geographical diversification to the REIT,
serving areas including CBDs, suburbs, growing towns and emerging towns.
PROPERTY VALUE
RM1.39
billion
PROPERTY PROFIT
RM57.0
million
DISTRIBUTION
2.18
sen
VISITOR TRAFFIC
22.7 million
per annum
NUMBER OF TENANCIES
377
based on
NLA
NLA
OCCUPANCY
85.7%
HEKTAR REIT’S HIGHLIGHTS
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:-
Bayan Lepas Factory located in Bayan Lepas, Penang;
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.
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.
| 1 Asset | Subang Parade | Mahkota Parade | Wetex Parade | Central Square | Kulim Central | Segamat Central | Kolej Yayasan Saad | Bayan Lepas Factory |
|---|---|---|---|---|---|---|---|---|
| Title | Freehold | Leasehold (Until 2101) |
Freehold | Freehold | Freehold | Leasehold (Until 2116) |
Leasehold | Leasehold |
| Year Openend | 1988 | 1994 | 1996 | 1997 | 1996 | 1998 | XXXX | XXXX |
| Year Acquired by Hektar REIT | 2006 | 2006 | 2008 | 2012 | 2012 | 2017 | XXXX | XXXX |
| Primary Trade Area | 1,834,000 | 382,200 | 201,600 | 406,870 | 287,694 | 190,000 | 382,200 | 130,455 |
| Gross Floor Area (sq ft) | 1,169,038 | 1,392,623 | 281,590 | 743,117 | 513,333 | 360,000 | - | - |
| NLA Lettable Area (sq ft) | 521,373 | 522,346 | 170,463 | 310,902 | 294,872 | 223,017 | 396,874 | 58,381 |
| Car Park (bays) | 1,288 | 1,079 | 175 | 478 | 519 | 442 | - | - |
| Valuation (RM mil) | 441 | 345 | 153 | 95 | 144.6 | 63 | 152 | 33 |
| Tenants | 89 | 93 | 56 | 38 | 61 | 40 | - | - |
| Occupancy | 84.70% | 94.00% | 94.50% | 74.40% | 86.80% | 76.80% | 100% | 100% |
| Traffic (mil/annum) | 5 | 6.8 | 2.7 | 3.2 | 3.3 | 1.7 | - | - |
| Key Tenants | Parkson, Best Denki, Game On Sports Hub, Village Grocer, GSC | Parkson, Seleria Foodcourt, KFC, Family Store, JD Sports | The Store, Watsons, Guardian, MR. D.I.Y., McDonald's | The Store, Dadi Cinema, KFC, MR. D.I.Y., Guardian Pharmacy | Mercato, The Store, GSC, FOS | Target Supermarket, TS Concept Store, AE Cinema | KYSA Education Sdn Bhd | Microlead Precision Technology Sdn Bhd |
| *Until 2101; **Until 2116. Data as at 31 December 2025. | ||||||||
Portfolio diversification
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PORTFOLIO BY
VALUATION
VALUATION
PORTFOLIO BY
GROSS REVENUE
GROSS REVENUE
PORTFOLIO BY
NPI*
NPI*
| 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 | 84.1% | 74.7% | |
| Mahkota Parade | 98.1% | 93.8% | |
| Wetex Parade | 96.5% | 97.6% | |
| Central Square | 71.7% | 87.1% | |
| Kulim Central | 83.9% | 96.9% | |
| Segamat Central | 58.4% | 76.0% | |
| Overall* | 84.0% | 86.7% | |
| * The weighted average occupancy rate is calculated based on NLA. Occupancy as at 31 December. | |||
| 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 | 4.9 million visits | 4.5 million visits | |
| Mahkota Parade | 6.6 million visits | 6.8 million visits | |
| Wetex Parade | 2.9 million visits | 3.2 million visits | |
| Central Square | 3.3 million visits | 3.8 million visits | |
| Kulim Central | 3.2 million visits | 3.0 million visits | |
| Segamat Central | 1.8 million visits | 1.9 million visits | |
| Total | 22.7 million visits | 23.2 million visits | |
| Note: Figures rounded up. | |||
| TENANCY MIX | |||
|---|---|---|---|
|
( Portfolio by rental income* )
Portfolio by NLA
* Based on monthly rental income for December 2021. Numbers may exceed 100% due to rounding up.
|
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.
|
||
| ( Tap individual slices for more details ) | |||
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 | 40.4% | 33.6% | |
| Other tenants | 1,217,460 sq ft | 59.6% | 66.4% | |
| Total | 2,041,902 sq ft | 100.0% | 100.0% | |
| * Based on monthly rental income for December 2024. | ||||
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 | 243,104 sq ft | 11.9% | 6.5% |
| Mahkota Parade | 41 | 88,156 sq ft | 4.3% | 6.7% |
| Wetex Parade | 18 | 110,053 sq ft | 5.4% | 3.6% |
| Segamat Central | 13 | 30,109 sq ft | 1.5% | 0.8% |
| Kulim Central | 20 | 108,386 sq ft | 5.3% | 8.9% |
| Central Square | 11 | 115,795 sq ft | 5.7% | 6.1% |
| Total / average | 144 | 695,603 sq ft | 34.1% | 5.7% |
| Figures as at 31 December 2024. | ||||
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.
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 | 171 |
| 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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* Based on monthly rental income for December 2024.
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.
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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TURNOVER RENT
STEP-UP RENT