Highlights:
Shariah Setting
HEKTAR (5121) : HEKTAR REAL ESTATE INVESTMENT TRUST
ILoveDividend
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13 Feb 2012, 05:26 PMPost #1
Anyone know why some of the REIT counter registered strong revenue & profit jump for this quarter? Is it due to the revaluation of their property?
gen_hwang
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13 Feb 2012, 07:08 PMPost #2
yes, they were due to re-evaluation. i look more at cash flow instead for REITs.
ILoveDividend
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13 Feb 2012, 07:39 PMPost #3
yes, they were due to re-evaluation. i look more at cash flow instead for REITs.gen_hwang @ 13 Feb 2012, 07:08 PM

I am nob. How the re-evaluation affects the revenue & EPS? I thought the only income for REIT counter is from their rental?

Thinking to add a REIT Counter into my portfolio. Any good counter that has > 8% DY that you know? Thanks. notworthy
ILoveDividend
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13 Feb 2012, 07:43 PMPost #4
yes, they were due to re-evaluation. i look more at cash flow instead for REITs.gen_hwang @ 13 Feb 2012, 07:08 PM

Also, what does you means by look more at cash flow instead of REITS? smile
gen_hwang
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13 Feb 2012, 08:00 PMPost #5
how much they collected minus expenses. re-evaluation is only on papers, and the value locked in only when they are disposed. of course it looks good on the NTA so the price may go up.

based on http://mreit.reitdata.com/ the Starhill and UOA fit in your >8% at the moment.
ILoveDividend
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13 Feb 2012, 08:12 PMPost #6
how much they collected minus expenses. re-evaluation is only on papers, and the value locked in onl...gen_hwang @ 13 Feb 2012, 08:00 PM

Thanks for sharing. I am regret that i overlook reit counter last 2 years. The dividend yield is really good for those who bought it 1-2 years ago.
gen_hwang
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13 Feb 2012, 08:44 PMPost #7
No problem. I involved more in SGX REITs since i am based down south. The yield is higher here lol
ILoveDividend
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13 Feb 2012, 08:57 PMPost #8
No problem. I involved more in SGX REITs since i am based down south. The yield is higher here ...gen_hwang @ 13 Feb 2012, 08:44 PM
IC. Really? I tried to search for high dividend counter in sg last time, but i could not find much, it is very hard to get > 8% DY in sg market. But my fren in sg told me that it is hard to even get 5% DY in sg. I am not too sure if this is the case.
Jacky
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14 Feb 2012, 09:54 AMPost #9
CIMB research for HEKTAR's latest result
Results highlights

• Broadly in line; maintain BUY. Hektar REIT’s FY11 core net profit of RM38.9m
was spot on at 99.7% of our full-year forecast. It declared a final DPU of 3.0 sen,
bringing full-year DPU to 10.5 sen, slightly lower than our forecast of 10.8 sen. We
maintain our BUY recommendation, earnings forecasts and DDM-based target price
of RM1.50. We like Hektar’s above-industry-average yields of >8%, which are an
attraction in volatile market conditions. Another catalyst could be upward rental
reversions for one-quarter of its NLA in 2012.
• Healthy rental reversions. Hektar enjoyed a healthy average rental reversion of
20% for 124 new tenancies (35% of total NLA) in 2011, led by Subang Parade,
which saw the renewal of 68 tenancies at rates that were 31% higher, primarily
because of the new retail space for Cube and Rosette. Wetex Parade also benefited
from a 20% increase in rentals for 24 tenancies in 2011, a result of the new
entertainment outlet at Quadrix. Mahkota Parade’s rental rates started stabilising,
registering a positive rental reversion of 3% in 2011, a change from 9M11’s -1%.
• 9.0% rise in 2011 shopper traffic. Total shopper traffic for the overall portfolio rose
by 9.0% yoy to 22.1m visitors. After 3 consecutive years of negative growth,
Mahkota Parade’s visitor traffic showed a strong 14.0% growth in 2011 to 8.2m
visitors due to the completion of major refurbishments in May 2010. Subang Parade
and Wetex Parade too reversed the negative growth trend in 2010 to register a
5.8% and 7.6% growth in shoppers in 2011, respectively.
• Further rental reversions in 2012. About a quarter of Hektar’s NLA (24% of total
rental income) will be up for renewal this year. We believe there is a high chance of
further upward rental revisions.


Maintain BUY. We maintain our BUY recommendation, earnings forecasts and DDMbased
target price of RM1.50. We like Hektar’s above-industry-average yields of >8%,
which are an attraction in volatile market conditions. Another catalyst could be upward
rental reversions for one-quarter of its NLA in 2012.
airasia
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15 Feb 2012, 12:17 AMPost #10
how much they collected minus expenses. re-evaluation is only on papers, and the value locked in onl...gen_hwang @ 13 Feb 2012, 08:00 PM

Pursuant to M'sia Financial Reporting Std , FRS 139 or 140 (plantation assets), the fund is required to conduct a yearly revaluation of all its real estate properties and the fair value adjustment of investment properties is recognize in net incoming calculation and statement of cash flow. The valuations shall be undertaken by independent professional valuers.

Example
1. HEKTAR REIT adopted FRS 139, Q4FY11 Net income for the period = $ 57,690,819 (Net property income is $15,153,502 + Fair value adjustment $47,737,207), translated to EPS 18.03cents.

2. BSTEAD REIT adopted FRS 140, Q4FY11 Net income for the period = $238,888,000 (Net Realised profit is $25,660,000 + Fair value adjustment $ 212,524,000), translated to EPS 38.1

HEKTAR REIT's property value is increasing at CAGR 8.2% since 2006, translated to NAV +6.2% CAGR... a good number that can't be ignored in REIT investment.

ILoveDividend
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15 Feb 2012, 09:04 AMPost #11


Pursuant to M'sia Financial Reporting Std , FRS 139 or 140 (plantation assets), the fund is ...airasia @ 15 Feb 2012, 12:17 AM


Hi Airasia,

Thanks for your detail explanation. notworthy
I can see that a lot REITs player like HEKTAR and its dividend is increasing slowly.
3 cents was declared compare to 2.8 cent for the same quarter last year. But i have one question, can the EPS maintain above 18cent for the next few quarter or it will adjusted to 2-3 cents?
airasia
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16 Feb 2012, 12:05 AMPost #12


Hi Airasia,

Thanks for your detail explanation. ...ILoveDividend @ 15 Feb 2012, 09:04 AM


Simple answer, No adjustment can be made on EPS.

All revenue and earnings have to be reported in each accounting period (inclusive implementation of FRS 117, which recognised regular rent, tounover rent and step-up rent) in categories of:

- Net Property Income (NPI)
- Net Income
- Earnings Per Share/Unit
- Net Income – Realised
- Net Income Per Share/Unit – Realised (sen)

Fair Value recognition and measurement is year-end valuation to happen at Q4.

However, Distributable net income excludes non-cash items such as FRS117 revenue recognition and capital allowances and valuation.

Refer M'sian Financial Reporting Standard http://www.masb.org.my, explains Earnings Per Share/Unit.
ILoveDividend
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16 Feb 2012, 08:59 AMPost #13


Simple answer, No adjustment can be made on EPS.

All revenue and earnings have to be ...airasia @ 16 Feb 2012, 12:05 AM


Thanks again for your explanation. Are you working as financial analyst? The way to analysis stock looks very professional? Haha. thumbup
airasia
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26 Feb 2012, 03:54 PMPost #14


Thanks again for your explanation. Are you working as financial analyst? The way to analysis...ILoveDividend @ 16 Feb 2012, 08:59 AM


Nop, i m not financial analyst.

To invest, it ought to be the bottomline to understand how the counter/ company make & report earnings, top influential factors and how earnings being rewarded to the investors.

Happy Invest.

airasia
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26 Feb 2012, 04:25 PMPost #15
Hektar's 2012 outlook remain positive and favourably compared against other larger REIT peers with:

- Strategy to focus at 2nd liner cities with greater potential net value valuations -- strategic portfolio acquisition of Kulim Landmark Central and SP Central Square (combined RM181million and total rentable area of 580k sq ft).

- high occupancy rate 97.5% for 3 current retail-focus assets.

- better rental reversions being largely from Subang Parade (NLA sq ft 194,097), which expected at ~ 30% increase.

- Tranch 1 loan RM184 million successful extended to 2016 (while Tranche 2 RM150 million only expire at 2013).

- trading below net asset value of RM1.48 (vs larger peers were all above by 1.19~1.32x)

- Attractive return of DPU 10.50cents (yield 7.8% @ RM1.35 on Feb24th, 2012)
Destiny
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11 Jun 2012, 08:42 PMPost #16
i sell arreit smile buy hektarrolleyes
david
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24 Aug 2012, 11:45 AMPost #17
There are only Tesco and Kulim Landmark Central in Kulim. The cinema and bowling alley is in Landmark, with Giant and key fast food chain. No direct competition for Kulim Landmark... :)thumbup
omightycap
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05 Nov 2015, 01:59 PMPost #18
One of O'Mighty's follower asked about REIT Valuations

Read our comments from
https://www.facebook.com/omightycap/photos/a.516884705141868.1073741828.516880861808919/543083465855325/?type=3
Joanna
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18 Apr 2017, 06:14 PMPost #19

yeahyeah

abraham
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09 Jan 2018, 07:35 PMPost #20

After my exhaustive study about this Hektor share, I have just bought this stock.. However  I have found the figures published for the Hektor REIT  web site for the annual  financial ratio of  ROE have  not been given much importance. Only in one place I found the Return On Equity (ROI)  published to be 5.12% which is rather a low return  compared to its peers. Besides I could not obtain in its web site any where the historical  annual values of ROI. Though its  Dividend Yield published as 8.61% is relatively high compared to its peers, I find this is not reflected in the in the published ROE. Can the managment provide the annual figures of ROI or advise me where i can get these figures. A.David


yeah doh drool lol mad notworthy question rant rolleyes sad shutup shy smile star sweat thumbup wub cry


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