KUALA LUMPUR: Pavilion Real Estate Investment Trust’s (REIT) net property income (NPI) rose 18.1% to RM90.62 million in the second quarter ended June 30, 2018 (2QFY18) from RM76.72 million a year ago, mainly contributed by rental income from Elite Pavilion Mall that was acquired at the end of April.
The trust also attributed the higher NPI to higher rental income from Pavilion Kuala Lumpur Mall after a repositioning exercise and higher occupancy rate at Intermark Mall here.
Quarterly revenue also increased 12.3% to RM135.06 million from RM120.26 million in 2QFY17.
The trust declared an interim income distribution per unit (DPU) of 4.34 sen for FY18 ending Dec 31, 2018, payable on Sept 5.
For the cumulative six months ended June 30, 2018, Pavilion REIT saw its NPI grow 15.4% to RM179.63 million from RM155.69 million a year ago, while revenue rose 11.4% to RM266.57 million from RM239.2 million.
In a filing with Bursa Malaysia yesterday, Pavilion REIT said it had expended RM2 million of its capital commitment during the year, mainly for landscaping, signage improvements and tenancy lots enhancement at Da Men Mall.
On prospects, the trust said with improved consumer sentiment post the 14th general election and the removal of the goods and services tax to be replaced with the sales and services tax on Sept 1, retail performance has and is expected to improve compared with 1QFY18.
Pavilion REIT units closed one sen or 0.6% lower at RM1.65 yesterday, valuing it at RM5.07 billion.