Stable earnings prospects for Pavilion-REIT in 2025
PETALING JAYA: Analysts believe that Pavilion Real Estate Investment Trust (Pavilion-REIT) is off to a good start this year and anticipate stable earnings for the group in 2025.
For the first quarter ended March 31, 2025 (1Q25), Pavilion-REIT's net profit rose to RM90.42mil from RM83.17mil in the same quarter last year.
Revenue increased to RM228.18mil from RM218.52mil a year earlier.
Both MIDF Research and Kenanga Research said earnings for 1Q25 came in within expectations.
MIDF Research said it is maintaining its earnings forecast for Pavilion-REIT for the financial year 2025 (FY25) to FY27.
'We forecast stable earnings growth for Pavilion-REIT mainly underpinned by positive rental reversion of Pavilion KL Mall and growing contribution from Pavilion Bukit Jalil.
'On the other hand, Da Men Mall is expected to breakeven following master lease agreement with Easyhome International.'
Meanwhile, Kenanga Research said it expects the performance of the group's crown jewel, Pavilion KL, to remain stable this year.
'While the group's recent acquisition of two five-star hotels will help diversify its income streams with the potential to ride on increasing tourist arrivals, the full benefits may however, be partially offset by share dilution from the upcoming private placement.
'On Pavilion Bukit Jalil, we are confident for the mall to progressively achieve 95% tenant occupancy in the next 12 months, underpinned by strong footfalls and decent occupancy rates.'
In a filing with Bursa Malaysia on its 1Q25 performance, Pavilion-REIT said it will continue to optimise cost management, while curating targeted events to attract shoppers and build strong brand partnerships.
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