KUALA LUMPUR: Hektar Real Estate Investment Trust

(Hektar REIT) remains optimistic about its growth prospects, supported by its enlarged and diversified property portfolio, stable rental income and resilient domestic economic conditions.

“Looking ahead, Hektar REIT remains well-positioned to pursue sustainable growth, underpinned by its enlarged and diversified portfolio, stable recurring rental income and prudent capital management,” it said in a filing with Bursa Malaysia.

It said it would continue focusing on enhancing occupancy rates, optimising rental income, implementing targeted asset enhancements and pursuing acquisition opportunities.

It also plans to maintain disciplined cost management to mitigate rising operating and tax-related costs.

For the third quarter ended Sept 30, 2026 (3Q26), Hektar REIT's net profit fell 14.5% to RM3.45mil from RM4.04mil a year earlier, weighed down by higher financing costs.

Revenue rose 3.2% to RM32.05mil from RM31.06mil, while net property income (NPI) increased 3.5% to RM15.44mil from RM14.93mil.

The REIT said its quarterly earnings were affected by an additional RM880,000 in financing costs following borrowings drawn down in the second quarter of 2026.

For the nine months ended Sept 30, 2026 (9M26), Hektar REIT's net profit rose 11.4% to RM14.33mil from RM12.86mil, while revenue edged up 1.1% to RM94.99mil from RM93.98mil.

NPI increased 5% to RM48.08mil from RM45.79mil, with its NPI margin improving to 50.6% from 48.7%.

The improvement was driven by higher occupancy rates, tenant remixing initiatives, cost optimisation and the acquisition of an industrial property in Bayan Lepas, Penang.

However, Hektar REIT said its nine-month net realised income declined 9.1% to RM11.68mil, affected by RM2.5mil in one-off administrative expenses and higher financing costs.