Hektar Asset Management Sdn Bhd, the Manager of Hektar Real Estate Investment Trust (“Hektar REIT”), today announced its financial results for the first quarter ended 31 March 2026 (“Q1 FY2026”), reflecting continued operational resilience supported by improving occupancy levels, tenant remixing initiatives, and disciplined cost management efforts.
For Q1 FY2026, Hektar REIT maintained stable revenue of RM31.02 million, marginally higher compared to RM30.93 million in the corresponding quarter last year. Net Property Income (“NPI”) rose 1.8% year-on-year to RM15.28 million, while net realised income increased 11.8% to RM4.65 million from RM4.16 million previously.
The improvement was primarily driven by better mall occupancy rates and ongoing operational optimisation across the portfolio.
NPI margin strengthened to 49.2% in Q1 FY2026 compared to 48.5% in the corresponding quarter last year, reflecting continued efforts to enhance operating efficiency while improving portfolio occupancy and tenant quality.
The REIT’s leasing momentum remained robust, with committed occupancy rising to 86.1%. A total of 30 new and renewed tenancies were secured, with overall 3.0% positive rental reversion. New strategic partnerships were forged with renowned tenants including but not limited to Target Supermarket, Honda and Lucky Cup, enhancing the appeal of its retail destinations.
As at 31 March 2026, Hektar REIT’s total assets stood at RM1.46 billion, while Net Asset Value (“NAV”) per unit remained stable at RM1.045. Total borrowings stood at RM603.13 million, comprising RM19.2 million in current borrowings and RM583.93 million in non-current borrowings.
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. The rooftop solar has gone fully operational since Q1 2026 and will generate approximately RM2 million in annual energy cost savings, insulating the portfolio from tariff volatility and significantly reducing its carbon footprint.
In addition, the REIT has recently completed the acquisition of strategic land parcels adjacent to Kolej Yayasan Saad in Q2 2026, which are expected to generate approximately RM2.2 million annually towards NPI. The acquisition is underpinned by a long-term sale-and-leaseback arrangement featuring a triple-net lease structure and built-in rental escalations, providing resilient and inflation-hedged income visibility.
Upon completion, the non-retail property income segment is expected to increase its contribution to total NPI from 14.4% to 17.4%, reinforcing Hektar’s strategic portfolio rebalancing towards more stable and recurring income streams.
Zainal Iskandar, Executive Director and Chief Executive Officer of Hektar Asset Management, said,
“Our Q1 FY2026 performance reflects the resilience of Hektar REIT’s portfolio and the effectiveness of our ongoing leasing, tenant remixing, and operational optimisation strategies.
The improvement in realised income and NPI margin demonstrates that our initiatives are gaining traction, particularly across our retail assets. At the same time, our education asset continues to provide stable recurring income, strengthening the overall defensiveness and visibility of our earnings profile.”
Looking forward, the Manager remains cautiously optimistic despite continued global economic uncertainties. Hektar REIT expects the Malaysian REIT sector to remain supported by stable domestic demand, improving retail sector conditions, and visible growth opportunities through acquisitions and asset enhancement initiatives.
For more information, please visit www.HektarREIT.com
