Stock Digest - Hektar Real Estate Investment Trust - Neighbourhood Mall Concept Retail REITs

Established in 2006, Hektar has now expanded its property portfolio to 6 shopping centres spanned across Subang Jaya, Melaka, Muar, Sungai Petani, Kulim, and Segamat worth a total of RM1.20 bn. We project core earnings to be driven by improving occupancy rate amid economic recovery in FY24f, as well as the REIT’s initiatives to improve energy efficiency. Hektar is valued by pegging its FY23f core EPS of 7.7 sen to P/E of 11.0x, leading to a FV of RM0.84. Projected dividend yield is attractive at 9.9% for FY23f based on current share price.