Pavilion REIT’s profit up 21.4% in 4Q18


Pavilion Real Estate Investment Trust’s (REIT) net profit for the fourth quarter ended Dec 31, 2018 (4Q18), jumped 21.37% year-on-year (YoY) to RM100.28 million as a result of higher fair value gain of investment properties being recognised in the current quarter.

In an exchange filing yesterday, the company said excluding the fair value gain, income before taxation for the current quarter was slightly higher by RM1.1 million, or 2%, compared to 4Q17.

Pavilion REIT revenue during the three months also increased 13.6% YoY to RM147.06 million, mainly contributed by income from the new property, Elite Pavilion Mall, that was acquired at the end of April 2018; higher rental income from Pavilion Kuala Lumpur Mall after the repositioning exercise; and a higher occupancy rate at Intermark Mall.

The revenue was, however, offset by a lower occupancy rate at Damen Mall.

“Overall, the retail market conditions are flattish for the first half of 2019 due to geopolitical tension, uncertain investment activities, volatile commodity prices, as well as a lack of positive catalysts.

“The manager will continue to explore improvement to its tenant mix, cost management and bring shopping experiences to attract shoppers to ensure Pavilion REIT’s results are sustainable,” the filing read.

Pavilion REIT had also undertaken a revaluation exercise for all of its properties — namely Pavilion Kuala Lumpur Mall, Elite Pavilion Mall, Pavilion Tower, Intermark Mall and Damen Mall.

Based on the unaudited results for the 2018 financial year, the net asset value per unit will be RM1.31 upon incorporation of the revaluation surplus of RM33.6 million.