KUALA LUMPUR: Hektar Real Estate Investment Trust (Hektar REIT) posted a 36 per cent drop in net profit to RM26 million for the fourth quarter ended Dec 31, 2023 (4QFY23) from RM40.8 million in the preceding quarter.
The company experienced a 1.3 per cent revenue decrease in the fourth quarter (4Q) to RM27.5 million from RM27.9 million in the previous quarter.
Hektar Reit attributed the decline in revenue to ongoing repositioning and tenancy remixing strategies at Subang Parade, along with extensive cost optimisation efforts implemented throughout the year.
Hektar Asset Management Sdn Bhd chief executive officer Johari Shukri Jamil emphasised that the previous year highlighted the company's ability to remain resilient despite challenging market conditions.
"With our occupancy rates, rental reversions, and financial management, we are poised to continue our growth trajectory.
"Our ongoing efforts to deliver sustainable value to our unitholders and enrich the community centric experiences at our malls remain our top priority," he said.
In its quarterly report, the company expressed caution regarding the outlook for the current year, citing the volatile economic environment driven by a hawkish monetary policy in response to uncertain consumer sentiments, as well as ongoing supply-chain and logistics issues arising from geopolitical concerns.
