Hektar REIT posts 9.5% rise in 2Q NPI to RM17.36 million
Hektar Real Estate Investment Trust (Hektar REIT) reported a 9.5% year-on-year rise in second-quarter net property income (NPI) to RM17.36 million, driven by a 9.8% drop in property operating expenses.
Source: EdgeProp Malaysia · August 20, 2026 at 5:27 PM · AI-assisted report
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KUALA LUMPUR, 21 AUGUST 2026 —
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Hektar Real Estate Investment Trust (Hektar REIT) reported a 9.5% year-on-year rise in second-quarter net property income (NPI) to RM17.36 million, driven by a 9.8% drop in property operating expenses.
Market Impact
Revenue was broadly flat at RM31.92 million, down from RM31.99 million a year earlier, while property operating expenses fell to RM14.56 million from RM16.13 million, lifting the NPI margin to 54.4% from 49.6%, according to a Bursa Malaysia filing on Aug 20.
Net income jumped 33.6% to RM6.23 million from RM4.66 million in 2QFY2025, but RM2.65 million of that came from a fair-value gain on investment properties, compared with none in the same quarter a year earlier. Excluding the unrealised gain, realised income fell 23.1% to RM3.58 million from RM4.66 million.
Trust expenses rose to RM5.87 million from RM3.51 million, while finance expenses edged up to RM7.88 million from RM7.62 million.
For the six months ended June 30, revenue slipped 1% to RM62.94 million and NPI grew 5.8% to RM32.64 million. Realised income fell 6.7% to RM8.23 million, mainly due to RM2.5 million in one-off administrative costs tied to corporate initiatives, the manager said. Higher occupancy, tenant remixing and cost controls helped lift NPI.
Retail assets generated RM58.11 million, or 92.3% of first-half revenue, with the education asset contributing RM4.83 million, or 7.7%.
As at June 30, Hektar’s investment properties stood at RM1.48 billion, up from RM1.41 billion at end-2025. Total secured borrowings rose to RM662.48 million from RM603.85 million, while net asset value increased to RM747.41 million, or RM1.0537 per unit, from RM744.55 million, or RM1.0497 per unit.
The manager expects completed acquisitions to add lease income in coming quarters. Pending proposals include a RM26 million deal to buy a 90% stake in Terramark Sdn Bhd and a RM125 million acquisition of a Setapak land parcel with existing buildings and a new school to be built for KYS KL East International School.
Hektar REIT declared an interim distribution of 1.21 sen per unit for 2QFY2026, totalling RM8.58 million. The distribution goes ex on Sept 9, with entitlement on Sept 10 and payment on Oct 9. It is taxable.
Related: Bursa Malaysia