Hektar REIT Secures Prestigious ESG Award Recognition in Outstanding ESG Performance and Dividend Return Category in 2024

§  Gold Award in the “Outstanding ESG Performance and Dividend Return” category

§  Acknowledge as one of the top ESG performers among Public Listed companies in Malaysia

Kuala Lumpur, 16 October 2024 – Hektar Asset Management Sdn. Bhd., the Manager of Hektar Real Estate Investment Trust (Hektar REIT), is pleased to announce that Hektar REIT has been honoured with prestigious recognition at The Edge Malaysia ESG Awards 2024, taking home accolade in the Outstanding ESG Performance and Dividend Return category.

Hektar REIT emerged as one of the standout winners, with the award underscoring the trust’s commitment to exceptional Environmental, Social, and Governance (“ESG”) standards. The gala event, held at the Mandarin Oriental Kuala Lumpur, was graced by esteemed guests, with Deputy Prime Minister of Malaysia – Datuk Seri Fadillah bin Yusof, Minister of Energy Transition and Water Transformation, officiating the ceremony.

The Edge Malaysia ESG Awards 2024 recognises leaders in ESG across two categories: Public Listed Companies (“PLCs”) and funds. In the PLC category, FTSE Russell plays a crucial role in the evaluation, ensuring a fair and data-driven assessment of each company’s ESG practices. Morningstar, meanwhile, evaluates funds using its Sustainability Rating for the funds category. This award is part of a broader initiative to encourage the adoption of ESG principles among Malaysian businesses, fostering greater transparency and competitiveness on the global stage.

Hektar REIT was recognised under the Outstanding ESG performance and Dividend Return category, which highlights companies that have consistently delivered strong ESG performance alongside remarkable dividend returns over the past five years. This category continues to honour companies that balance sustainability efforts with shareholder returns.

Zainal Iskandar Ismail, Chief Executive Officer of Hektar Asset Management Sdn. Bhd. expressed his gratitude, stating, "We are immensely proud to have received this prestigious award, reflecting our unwavering commitment to embedding ESG principles at the heart of our operations. Our belief is in balancing profitability with responsible environmental and social practices, ensuring long-term value for our stakeholders, unitholders, and the communities we serve."

With ESG now an integral part of Malaysia’s corporate landscape, Hektar REIT remains committed in maintaining and surpassing the high standards that earned them this recognition. Hektar REIT continues to lead by example, balancing occupancy growth with sustainability efforts, balancing cash flow with sustainability, managing energy consumption and actively support the local communities. ESG achievements include maintaining energy consumption despite 4.7% portfolio occupancy increase and 10% increase in footfall across six (6) shopping centres, followed by reduction in scope 1 and scope 2 emissions ranging from 40% and 26% respectively.

Hektar REIT’s achievement aligns with The Edge Malaysia ESG Award mission to promote greater ESG adoption among PLCs and funds, in collaboration with Bursa Malaysia and UOB Malaysia as key partners. The event also emphasised the importance of sustainability practices for businesses, especially in light of increasing global regulatory requirements, such as the EU’s Carbon Border Adjustment Mechanism (“CBAM”) and European Union Deforestation Regulation (“EUDR”).

Moving Forward, Hektar REIT adopts UNGC’s Forward Faster Initiative, committing to decarbonisation, digitalisation, and sustainable innovation. This framework is integral to our leadership in ESG adoption. Hektar REIT continues to lead with purpose, balancing growth and sustainability to ensure a better future for our stakeholders.