Hektar Asset Management Sdn Bhd, the Manager of Hektar Real Estate Investment Trust (“Hektar REIT”), today announced its financial results for the fourth quarter ended 31 December 2025 (“Q4 FY2025”), reflecting steady revenue growth and resilient portfolio performance amid ongoing cost pressures. The Trust delivered resilient operational performance while pivoting towards a more resilient, diversified portfolio.
For Q4 FY2025, Hektar REIT recorded total revenue of RM30.75 million, a 2.4% increase compared to RM30.04 million in the corresponding quarter last year. The improvement was primarily driven by higher rental income, supported by improved occupancy rates across selected retail assets. Net Property Income (“NPI”) stood at RM11.27 million, while net realised income amounted to RM1.35 million.
Net profit after tax rose 11.1% year-on-year to RM5.90 million, supported by a fair value gain of RM4.86 million on investment properties during the quarter.
On a full-year basis, Hektar REIT recorded revenue of RM124.73 million, broadly stable compared to RM124.80 million in FY2024. NPI for the year stood at RM57.06 million, while net realised income totalled RM14.20 million. The softer NPI and realised income were primarily attributable to a one-off asset enhancement expenditure of RM4.0 million expensed during the financial year, as well as lower one-off other income compared to the preceding year.
The Trust’s leasing momentum remained robust, with committed occupancy rising to 85.8%. A total of 176 new and renewed tenancies were secured, with overall 2.5% positive rental reversion. New strategic partnerships were forged with renowned tenants including but not limited to The Farm & Chan Rak BBQ, CC Roaster & Paolo Paolo Gelato, Mokky’s Pizza, Chagee, Dadi Cinema, and Oh Some, enhancing the appeal of its retail destinations.
As at 31 December 2025, total assets stood at RM1.46 billion, with Net Asset Value (“NAV”) increasing to RM744.55 million. NAV per unit strengthened to RM1.0497 from RM1.0463 a year earlier, reflecting sustained value preservation for unitholders.
Operationally, the Manager continued to advance its asset enhancement and tenancy remixing initiatives across the retail portfolio. Improved occupancy levels and positive rental reversions have supported rental stability, reinforcing the resilience of key assets including Subang Parade, Central Square and Segamat Central.
For Subang Parade, the full replacement of lifts and escalators was completed in Q4 2025. Internal refurbishment of toilets and lift lobbies is on track for completion by Q1 2026. Curation of a dedicated Kids Village experiential space is ongoing and targeted for completion in 2H 2026. These initiatives are designed to enhance shopper experience, improve asset competitiveness and drive sustainable long-term rental growth.
Further demonstrating its commitment to long-term value creation, Hektar REIT has embarked on a landmark rooftop solar initiative across five shopping centres, in partnership with Samaiden Group Berhad. Fully operational by Q1 2026, the project is expected to generate approximately RM2 million in annual energy cost savings, insulating the portfolio from tariff volatility and significantly reducing its carbon footprint.
Zainal Iskandar, Executive Director and Chief Executive Officer of Hektar Asset Management, said,
“The fourth quarter closes the year on a steady footing, with revenue growth and improved profitability reflecting the resilience of our retail portfolio. While one-off asset enhancement costs weighed on realised income, the underlying rental momentum and fair value uplift demonstrate improving asset quality. We remain disciplined in capital deployment and focused on strengthening income visibility through proactive asset management and strategic acquisitions.”
During the year, the Manager has also progressed on its acquisition pipeline, including the proposed industrial asset in Bayan Lepas and education-related land acquisitions in Melaka, which are expected to be completed by 1Q26, enhancing portfolio diversification and long-term income resilience.
Looking ahead, the Manager remains cautiously optimistic despite global trade uncertainties. Domestic consumption is expected to remain supportive, aided by accommodative monetary conditions. The Manager will continue to prioritise active leasing strategies, cost optimisation and yield-accretive acquisitions to enhance Net Property Income (“NPI”), strengthen income visibility and deliver sustainable long-term value to unitholders.
For more information, please visit www.HektarREIT.com
