Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Oct 24): Pavilion Real Estate Investment Trust’s (REIT) net property income fell 3.3% to RM91.08 million in its third quarter ended Sept 30, 2019 (3QFY19), from RM94.18 million a year ago on higher expenses.

This was in spite of a 2.1% higher quarterly revenue of RM144.35 million, compared with RM141.35 million in 3QFY18, contributed by higher revenue rent and electricity income from Pavilion Kuala Lumpur Mall for supplying electricity to Pavilion Hotel and Pavilion Suites.

“Total operating expenses was higher by RM6.1 million or 13% compared with 3Q 2018 mainly due to higher electricity cost incurred for providing electricity supply to Pavilion Hotel and Pavilion Suites, as well as the further increase in electricity adjusted rate for imbalance cost pass-through (ICPT) approved by the Government that took effect from March 1, 2019 onwards, cost incurred for repairing air conditioning system and higher marketing and promotional expenses incurred for branding and to attract more shoppers,” read its filing.

It proposed a distribution per unit (DPU) of 2.04 sen, compared with 2.14 sen in 3QFY18, bringing its annualised distribution yield to 4.76%.

Cumulative NPI for the nine-month period (9MFY19) came in at RM283.94 million, compared with RM273.8 million in 9MFY18, as revenue grew 7.7% to RM439.39 million from RM407.92 million.

Pavilion REIT sees marginal growth in the Malaysian retail industry in the fourth quarter of this year from year-end festival holidays and promotions.

“Hence to stay competitive and to ensure Pavilion REIT results are sustainable, the manager will continue to explore enhancement to its tenant mix, cost management and enhance shopping experiences to attract shoppers,” it added.

Pavilion REIT units settled one sen lower at RM1.79 today, bringing it a market capitalisation of RM5.44 billion.

      Print
      Text Size
      Share