It is mainly attributed to higher rental billings, increase in revenue rent and income from advertising
PAVILION REIT’s net profit for the fourth quarter ended December 2022 (4Q22), increased by four-fold to RM216.4 million from RM53.6 million a year ago.
In a filing to Bursa Malaysia yesterday, Pavilion REIT announced total gross revenue of RM145.8 million for the said period, a 17.3% increase compared to the same quarter in the preceding year of RM124.3 million.
“This increase is mainly attributed to higher rental billings, increase in revenue rent and income from advertising,” it said.
Its net property income increased by RM14.2 million or 17.2% for 4Q22 compared to the same quarter in 2021.
Meanwhile, net profit for the 12 months, increased by 217.6% to RM397.8 million resulting in an annual distributable income of RM255.8 million or 8.37 sen per unit.
Distribution of 4.29 sen per unit would be payable on Feb 28, 2023.
Total revenue for the financial year ended Dec 31, 2022, was RM569.7 million, higher by RM81.1 million or 16.6% compared to the preceding year end.
Pavilion REIT expects retail sales to normalise as consumers in Malaysia continue to be cautious in their spending due to uncertainties in the domestic and global economy stemming from inflationary pressures, the rising cost of living and the projected slowdown in the international economy.
Despite these challenges, it is expected that domestic demand will anchor the economy amid a steady recovery in the labour market as well as further strengthening of tourism-related sectors leading to an increase in corporate earnings.
CEO Datuk Philip Ho said that Pavilion REIT malls will continue to elevate its retail mix, create immersive experiences and encourage shopper interaction.
In a separate announcement, Pavilion REIT’s trustee, MTrustee Bhd, has entered into a memorandum of understanding with Tanah Hijauan Sdn Bhd (THSB), a Malaysia-based developer and provider of renewable energy and energy solutions.
Pavilion Kuala Lumpur Mall and Intermark Mall would now be able to explore the possibility of purchasing green electricity generated by THSB’s solar power plant.
“This is expected to generate future energy savings for these malls,” it said. —TMR / TMRgraphic