KUALA LUMPUR (Oct 30): Pavilion Real Estate Investment Trust (REIT) announced distributable income of RM64.9 milion or 2.16 sen per unit, for the third quarter ended Sept 30 (Q3FY14).

The retail mall REIT had posted a 19% increase in its net profit for the third quarter ended Sept 30, of RM63 million, compared with RM52.9 million a year ago.  

Revenue also increased to RM101.4 million, from RM93.2 million year-on-year, contributed by rental reversion after all due tenancies had been renewed from Q3 2013, the group said in a Bursa Malaysia filing this evening.  

"Total property operating expenses was lower by RM2.3 million or 8%, as compared to Q3FY13. This was mainly due to the reversal of overprovision of assessment charges recorded in the first half of 2014, and recognition of credit/overcharge of electricity charges on one of the electricity metering system by Tenaga Nasional Bhd," it said.  

For the nine months ended Sept 30, Pavilion REIT's total revenue grew to RM301.3 million, from RM279.1 million previously.  

Total property operating expenses was higher by 7%, due to the incurrence of repairs and preventive maintenance work, cost incurred for marketing events, maintenance cost to some advertising sites and a significant increase in assessment charges from 2014.

Looking ahead, Pavilion REIT said it would be challenging for the rest of 2014, going into 2015.  

"The manager will cautiously track the potential increase in cost of some items/services, due to the gradual removal of government subsidies and the impending GST implementation in April 2015," it said.  

"The manager will continue to seek increase in income, manage its operational cost effectively, and seek investment opportunities to ensure the best possible return for unitholders," it added.