Hektar Black Sdn Bhd had about 157 milion shares at at beginning of July, thats about 34% of Hektar Reit. If they keep selling at the rate 350k shares a day it will take them about 2 years to clear. So long as they keep selling.... the market cannot go up, and will continue to slide. Who knows what their game plan is, or maybe how desperate they are, or if its the banks selling their shares. As it is, the constant selling is cutting their own throats as well as ours.

Going by the last distribution 1Q of only 1.93, we are heading for a 2019 DPU of (1.93 x 4) = 7.72 cents. I my view the facts are not being fairly reflected in Managers glowing report. Seems to me their statements in their report are misleading investors to believe their REIT is doing well, when in fact clearly the DPU is tanking. If not for the huge increases in Managers fees which increase amount to over 4.6 million (.11c per Unit) at least they could have maintained DPU above 10c. How do they justify their 8.5 millions in fees when clearly they are performing so badly?

Time to get real!..............................................................................................................................
Year………….. DPU cents……….. ……Manage fee …….31 Dec price
2009 ……………..10.30 ………………3,790,195 ………………....1.12
2010 ………….... 10.30 ……………….5,507,311 …………………1.35
2011 …………….10.50 ……………….5,760,257 …………………1.32
2012 ……………..10.50 ……………….6,500,653 ……………..…..1.46
2013 ……………..10.50 ……………….7,582,051 …………………1.50
2014 ……………..10.50 ……………….7,634,898 …………………1.49
2015 ……………..10.50 ………………7,927,254 …………………1.52
2016 ……………..10.50 ………………7,791,596 …………………1.56
2017 ……………….9.60 ……………....7,905,354 …………………1.30
2018 ……………….9.01 ………………8,443,864 …………………1.11

Year DPU cents Manage fee 31 Dec price
2009 10.30 3,790,195 1.12
2010 10.30 5,507,311 1.35
2011 10.50 5,760,257 1.32
2012 10.50 6,500,653 1.46
2013 10.50 7,582,051 1.50
2014 10.50 7,634,898 1.49
2015 10.50 7,927,254 1.52
2016 10.50 7,791,596 1.56
2017 9.60 7,905,354 1.30
2018 9.01 8,443,864 1.11

Hektar Reit Unit price at the end 2009 was RM 1.12, Managers fees were 3,790,195 and DPU was 10.5 Cents.
Unit price at the end 2019 was RM 1.11, Managers fees were 8,443,864 and DPU had dropped significantly to 9.01 Cents.
Managers fees have risen in all but one year since 2009, however DPU stayed flat at 10.5 cents each year till 2017, then it started to drop. Despite DPU dropping, the mangers fees continues to climb.
It seems to me that the Managers are focused on their fees rather than Unit holder DPU!
Isn't it time to ask the managers to drop their fees to below 2009 fees as the DPU has dropped below that level?
REIT Managers are ever keen to acquire more and more properties which increases their fees, but hurts the DPU. I think they should be forced to focus on DPU rather than their fee.
Time to get real!
Year DPU cents Manage fee 31 Dec price
2009 10.30 3,790,195 1.12
2010 10.30 5,507,311 1.35
2011 10.50 5,760,257 1.32
2012 10.50 6,500,653 1.46
2013 10.50 7,582,051 1.50
2014 10.50 7,634,898 1.49
2015 10.50 7,927,254 1.52
2016 10.50 7,791,596 1.56
2017 9.60 7,905,354 1.30
2018 9.01 8,443,864 1.11