HEKTAR (5121) - Stock With Momentum: Hektar REIT

This article first appeared in The Edge Financial Daily, on August 3, 2016.

Hektar REIT (+ve)Red Flag

SHARES in Hektar Real Estate Investment Trust (REIT) (fundamental: 0.05/3, valuation: 2.3 /3) was highlighted as a “red flag” Stock with Momentum by our proprietary algorithm yesterday, suggesting that investors should exercise caution while trading. This was also the first time it triggered our momentum algorithm.

The stock closed unchanged at RM1.56, after 404,800 shares were traded, compared with its 200-day average volume of 56,902 shares.

Hektar REIT’s net property income (NPI) for the second quarter ended June 30, 2016 (2QFY16) fell 3.9% to RM18.89 million, from RM19.65 million, on higher property operating expenses.

Hektar REIT said there will be an income distribution amounting to RM10.42 million or 2.6 sen per unit, payable on Sept 2.

Quarterly revenue was almost flat at RM30.94 million, versus RM30.98 million for 2QFY15.

At the current share price, Hektar REIT is trading at 1.07 times its book value.

HEKTAR (5121) - Stock With Momentum: Hektar REIT