Pavilion REIT 1Q net profit jumps to RM65m

By BERNAMA / pic by TMR

PAVILION Real Estate Investment Trust’s (Pavilion REIT) net profit for the first quarter ended March 31, 2022 (1Q22) rose to RM65.24 million from RM31.26 million posted in the same quarter last year. 

Revenue increased 10% to RM138.78 million from RM126.21 million a year ago. 

The company told the stock exchange the increase was mainly contributed by higher revenue rent and income from advertising after more economic sectors and businesses were allowed to reopen under Phase 4 of the National Recovery Plan. 

Pavilion REIT — whose portfolio comprises Pavilion Kuala Lumpur Mall, Elite Pavilion Mall, Pavilion Intermark Mall — also noted that Office Tower, Damen Mall, and its total property operating expenses were lower by RM22.6 million, or 34%, compared to 1Q21.

“This was mainly due to rent rebates given to tenants and higher provision for doubtful debts in 1Q21, offset by higher utility cost in 1Q22 due to the 10% electricity bill support by the government ended in December 2021 and the imposition of electricity tariff surcharge of 3.7 sen per kilowatt-hour to the non-domestic sector from Feb 1, 2022. 

“The increase in maintenance and marketing expenses was mainly due to the resumption of marketing activities and events after more relaxation was granted with the reopening of the economy, resulting in higher net property income by RM35.1 million, or 60%, in the 1Q,” it said. 

The company also noted that its 1Q22 distributable income increased to RM67.6 million from RM33.5 million in the same quarter last year, an increase of 101.4%. 

Pavilion REIT’s net property income also increased 59.7% to RM94 million. 

“As Malaysia enters an endemic phase, the manager is optimistic of a positive outlook for the retail industry and is confident of bringing back more footfall to the malls, with increased shopper engagement, to spur spend and reinforce consumer confidence,” it said.