Facing the disruption of the Covid-19 pandemic, Malaysian retail trust Hektar REIT is seeking the approval to issue up to 5% more units through a private placement:
The Proposed Private Placement will mainly allow Hektar REIT to raise the necessary funds for working capital and capital work in progress to help to facilitate Hektar REIT's existing day-to-day operations as a whole by providing more flexibility in terms of cash flow management.
While reducing the gearing level, the operation would dilute NAV and yield for existing shareholders. Timeframe for completion is indicated to be the second half of 2020.
The trust also decided to defer dividend distribution for Q1 2020.