Corporate governance

Earning the trust of our shareholders

Sound principles of corporate governance are critical to earning and retaining the trust of our investors, and to sustaining our foremost commitment to acting with integrity.

Earning the trust of our shareholders

Sound principles of corporate governance are critical to earning and retaining the trust of our investors, and to sustaining our foremost commitment to acting with integrity.

The management of Hektar Real Estate Investment Trust (“Hektar REIT”), together with the Trustee, continues to be committed in adopting the highest standards of corporate governance. Hektar REIT ensures that its day to day business affairs adopt ethical behaviours, accountability, transparency and sustainability in its core practices. By virtue of such commitment, Hektar REIT aims to acquire public trust and investor confidence, which are essential to support the long term growth and sustainability of the organisation.

Hektar REIT

Hektar REIT is Malaysia’s first retail focused REIT listed on the Main Board of Bursa Malaysia Securities Berhad on 4 December 2006. The REIT’s cornerstone investor is Frasers Centrepoint Trust, part of Frasers Property, headquartered in Singapore.

The Manager of Hektar REIT

Hektar REIT is managed by Hektar Asset Management Sdn Bhd (“the Manager / HAMSB”), and was formed with a vision to set strategic directions in managing the REIT’s assets and liabilities for the benefit of the Unitholders and to make recommendations to the Trustee on the acquisition, investments and enhancement of assets under management.

Hektar REIT’s portfolio currently consists of quality shopping centres, namely Subang Parade in Subang Jaya, Mahkota Parade in Melaka, Wetex Parade in Muar, Central Square in Sungai Petani, Kulim Central in Kulim and Segamat Central in Segamat. Besides shopping centres, Hektar REIT also owns Classic Hotel in Muar, which is adjoined to Wetex Parade. Details of the Hektar REIT’s assets can be found under “Portfolio Performance” of this annual report.

As required by the Capital Markets and Services Act 2007, the Manager holds a valid Capital Markets Services License (“CMSL”) issued by the Securities Commission (“SC”).

Other main functions of the Manager are (but not limited to) as follows:-

  • Developing and implementing business and strategic planning for Hektar REIT;
  • Monitoring and ensuring the compliance with all relevant authorities, legislations, rules and guidelines as well as the Hektar REIT’s trust deeds;
  • Supervising and overseeing the Property Manager on the management and operations of Hektar REIT’s retail malls and hotel;
  • Supervising regulatory filing, ensuring compliance with Capital Markets and Service Act 2007, SC REIT Guidelines, Bursa Malaysia Main Market Listing Requirements (“Listing Requirements”), Trust Deeds and all relevant authority guidelines.

The Trustee

MTrustee Berhad was appointed as the Trustee for Hektar REIT via a Trust Deed executed by the Manager and the Trustee on 5 October 2006 and as amended by two Supplemental Trust Deeds dated 20 March 2012 and 23 November 2016 respectively. The Deed details out the roles, duties, obligations and powers of the Manager and the Trustee. Essentially, the Trustee and the Manager play countervailing roles against each other to ensure that the REIT’s assets and liabilities are managed with efficiency and integrity for the benefit of the Unitholders.

Board Charter & Code of Ethics and Conduct

In addition to the Deed, the Board of the Manager is also governed by the Board Charter, which encompasses the principal role of the Board, establishing the functions, responsibilities and powers of the Board and its various Committees. It also sets the policies of the Board as well as to ensure that the principles and practices of good corporate governance are applied in all their dealings for the REIT.

The Code of Ethics and Conduct (“Code”) sets out policies and guidelines relating to the standards and ethics expected of all employees of the Manager. Separately, any specific procedures on the application of policies referred to in the Code will be spelt out in the Company’s policies and procedures manual.

The Board Charter is regularly reviewed to incorporate latest statutory developments. Please click here for the Board Charter..

For the Terms of Reference for the Audit Committee, Nomination Committee, Executive Committee, please refer to the Board Charter.

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