KUALA LUMPUR (April 19): Hektar Real Estate Investment Trust (REIT) founder and chief executive officer (CEO) Datuk Jaafar Abdul Hamid will be resigning as the CEO of its management company Hektar Asset Management Sdn Bhd (HAM) on May 1.

He will be duly replaced by former Edaran Otomobil Nasional Bhd (EON) CEO Datuk Hisham Othman on the same date, said Hektar REIT in a filing with Bursa Malaysia today.

It added that HAM had received the approval from the Securities Commission of Malaysia on March 17 for the appointment of Hisham.

In a separate statement, the group said Jaafar, who started the company in 2006, would be redesignated as the board's non-independent non-executive chairman on the same date while Hisham would be its non-independent executive director.

"Hisham brings with him a wealth of experience that will elevate Hektar REIT to its next phase of growth. His appointment is part of the strategic succession planning we have put in place to ensure that the company has a solid and capable management team to work towards progressive growth going forward.

"I am confident that with his commitment and passion for excellence, Hisham will be able to continue Hektar REIT's proven track record in delivering sustainable dividend income for our valued unitholders," said Jaafar said.

Jaafar owns a 40.32%-indirect stake in the company.

Meanwhile, Hisham said Hektar REIT would remain a niche REIT player that focused on neighbourhood malls as the segment proved to be resilient amidst the changing economy.

"The year 2016 will continue to remain challenging for Malaysia, amidst the gloomy global economic outlook. However, there are new proactive measures by the government to spur domestic spending which will eventually have a positive impact on the retail industry.

"We will continue to remain a niche REIT player that focuses on neighbourhood malls as this segment has proven to be resilient in the face of fluctuating economic outlook.

"By focusing on our strong track record and solid retail strategy, we are confident that we are able to create long-term value of the properties within our portfolio," said he added.

Hektar REIT said Hisham was previously DRB-Hicom Bhd automotive head and was also tasked to oversee various automotive brands within his purview as the CEO for EON group, which is a subsidiary of DRB-Hicom.

Hektar REIT's portfolio includes shopping malls such as Subang Parade, Mahkota Parade, Wetex Parade, Central Square and Landmark Central.

As at Dec 31, 2015, the portfolio, valued at RM1.09 billion, had an average occupancy of 96.6% and recorded over 30.6 million shopper visits.

For the financial year 2015, Hektar REIT recorded a gross revenue of RM126 million and a net property income of RM76.5 million.

"Both increased by 2.9% and 4.4% respectively. Hektar REIT's final distribution per unit for FY15 stood at 10.5 sen," it said.

Hektar REIT closed unchanged at RM1.51 for a market capitalisation of RM604.9 million.