Pavilion REIT records higher 1Q25 earnings
PETALING JAYA: Pavilion Real Estate Investment Trust (Pavilion REIT) will continue to optimise its cost management, besides continuing to curate targeted events to attract shoppers and build strong brand partnerships.
In a filing with Bursa Malaysia, it said the Malaysian retail industry reported a growth rate of 3.8% for 2024.
'Retail Group Malaysia estimated 2025 retail sales growth of 4.3% due to encouraging growth during the first quarter, slower second quarter with moderate growth for the remaining quarters.
'Despite concern on rising cost of living, analysts and economists are optimistic about the sustainability of domestic consumption due to stable employment conditions, rising wages and support from government policies.'
For the first quarter ended March 31, 2025 (1Q25), Pavilion REIT's net profit rose to RM90.42mil from RM83.17mil in the previous corresponding quarter, while revenue during the quarter grew to RM228.18mil from RM218.52mil a year earlier.
Pavilion REIT said the increase was mainly contributed by Pavilion Bukit Jalil, driven by higher occupancy rate and income generated from the Pavilion Bukit Jalil exhibition centre, and improved advertising revenue generated from the upgraded LED screen at Elite Pavilion Mall.
'Total property operating expenses were higher by RM2.9mil or 4% as compared to 1Q24, mainly due to higher doubtful debts provision and increased marketing and promotion expenses for expenses related to festivals.
'These resulted in higher net property income of RM6.7mil or 5% in 1Q25 as compared to 1Q24.'
Pavilion REIT added that the higher manager's management fee of RM0.2mil was in line with the increase in total asset value and net property income.
'Income before taxation was higher by RM7.3mil or 9% as compared to 1Q24.'
Meanwhile, distributable income for the quarter under review was RM98.2mil or 2.68 sen per unit.
This consisted of income after tax of RM90.4mil and non-cash adjustments for depreciation of RM0.1mil, amortisation of borrowing transaction cost of RM0.4mil, manager's management fee payable in units amounting to RM2.7mil and present value adjustment on deferred acquisition payments of RM4.4mil.
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