Friday 29 Mar 2024
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KUALA LUMPUR (Oct 25): Pavilion Real Estate Investment Trust’s net property income rose by a fifth or 20.5% to RM94.18 million in the third quarter ended Sept 30, 2018 (3QFY18), from RM78.16 million a year prior, owing to higher rental income from Elite Pavilion Mall and Pavilion Kuala Lumpur.

The REIT also attributed the higher NPI to higher occupancy rates at Intermark Mall, as well as to lower operating expenses from Pavilion Kuala Lumpur Mall.

“The operating expenses for Pavilion Kuala Lumpur Mall was higher in 3QFY17, due to the sponsorship of 2017 Sea Games,” the REIT said in a bourse filing.

It has proposed a distribution per unit (DPU) of 2.14 sen, taking its annualised distribution yield to 5.41%.

Revenue for the quarter rose 16.47% to RM141.35 million, against RM121.36 million in 3QFY17.

For the cumulative nine months, NPI ballooned 17.08% to RM273.8 million versus RM233.85 million last year, while revenue increased 13.14% to RM407.92 million from RM360.55 million.

Even though the retail market reported higher sales growth for the June to August period, owing to the limited tax free period from the goods and services tax, Pavilion REIT expects retail spending to pick up only during the year end seasonal holidays.

It said the REIT manager would continue to explore improvement to its tenant mix (and) cost management, and introduce shopping experiences to attract shoppers, in order to ensure results are sustainable.

Pavilion REIT closed three sen or 1.88% lower to RM1.57 today, valuing it at RM4.77 billion. 

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