KUALA LUMPUR: Hektar Real Estate Investment Trust (Hektar REIT) remains optimistic about its sustainable growth trajectory, underpinned by its enlarged, diversified asset portfolio, stable recurring rental income, and prudent capital management.
Looking ahead, the trust’s manager, Hektar Asset Management Sdn Bhd believes that domestic economic expansion, which grew 5.3% year-on-year (y-o-y) in the third quarter, alongside government cash assistance and fuel subsidies, continues to cushion household spending and support retail sector resilience.
To drive long-term unitholder value, Hektar REIT will focus on improving mall occupancy through strategic tenant remixing, optimising rental reversions, executing asset enhancement initiatives, and pursuing value-accretive acquisitions while keeping operating costs disciplined.
For the third quarter ended Sept 30, 2026 (3Q26), Hektar REIT posted a 14.52% y-o-y decline in net profit to RM3.45 million, down from RM4.04 million in 3Q25. Earnings per unit stood at 0.49 sen, compared with 0.57 sen previously.
The softer bottom line occurred despite a 3.17% y-o-y increase in quarterly revenue to RM32.05 million from RM31.06 million in 3Q25. Top-line growth and a 3.45% rise in net property income (NPI) to RM15.44 million were supported by higher retail occupancy, ongoing cost optimisation, and maiden rental contributions from its newly acquired industrial asset in Bayan Lepas, Penang.
However, net realised income was weighed down by RM880,000 in higher finance expenses stemming from additional borrowings drawn down in the second quarter.
On a quarter-on-quarter (q-o-q) basis, net profit dropped 44.62% from RM6.23 million recorded in 2Q26. The sharp sequential contraction was primarily because 2Q26 earnings included a RM2.65 million fair value gain on investment properties.
Stripping out unrealised fair value adjustments, 3Q26 realised net profit of RM3.45 million edged down 3.76% q-o-q from RM3.58 million in 2Q26. Quarterly revenue inched up 0.39% q-o-q from RM31.92 million.
For the cumulative nine-month period (9M26), net profit grew 11.43% y-o-y to RM14.33 million from RM12.86 million, aided by fair value gains. Cumulative revenue rose 1.07% to RM94.99 million from RM93.98 million.
Consistent with its semi-annual distribution policy, no income distribution was proposed or declared for 3Q26. Cumulative declared distribution per unit for 9MFY26 stands at 1.21 sen, up from 1.05 sen in the prior year’s corresponding period.