Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on October 26, 2018

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

The higher NPI was also because of higher occupancy rates at Intermark Mall, as well as 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 only to pick up 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 ensure results are sustainable.

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

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