[%maDl%] 
Research by HLIB
Hold (Maintain) - TP of RM0.58

"Weaker end to FY23"

Hektar’s 4Q23 results came in at RM2.1m (-69.1% QoQ, -17.9% YoY), bringing FY23 sum to RM25.1m (-29.3% YoY). We deem the results to be below ours and consensus expectations at 83% and 79% respectively. The negative deviation was due to higher trust and finance expenses. In view of the results shortfall, we cut our FY24/25 forecasts by -3.4%/-3.0%, respectively. Despite increased occupancy rate, rental reversions for FY23 were flat. Moreover, with additional retail malls entering the market later this year, competition in this space will inevitably ramp up, which could further negatively impact Hektar’s rental reversions. Maintain HOLD with a lower TP of RM0.58 based on FY24 DPU on targeted yield of 11.0%.

Analyst(s):
Tan Je Jyne 
[%jLoe%]

$KLSE-HEKTAR 
Research by HLIB
Hold (Maintain) - TP of RM0.58

"Weaker end to FY23"

Hektar’s 4Q23 results came in at RM2.1m (-69.1% QoQ, -17.9% YoY), bringing FY23 sum to RM25.1m (-29.3% YoY). We deem the results to be below ours and consensus expectations at 83% and 79% respectively. The negative deviation was due to higher trust and finance expenses. In view of the results shortfall, we cut our FY24/25 forecasts by -3.4%/-3.0%, respectively. Despite increased occupancy rate, rental reversions for FY23 were flat. Moreover, with additional retail malls entering the market later this year, competition in this space will inevitably ramp up, which could further negatively impact Hektar’s rental reversions. Maintain HOLD with a lower TP of RM0.58 based on FY24 DPU on targeted yield of 11.0%.

Analyst(s):
Tan Je Jyne 
jjtan@hlib.hongleong.com.my

$HEKTAR / 5121 (HEKTAR REAL ESTATE INVESTMENT TRUST)