Latest news with #Pavilion-REIT
The Star
12-05-2025
- Business
- The Star
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.
The Star
07-05-2025
- Business
- The Star
Pavilion-REIT gets nod to acquire hotels for RM480mil
The move is expected to enhance Pavilion-REIT's long-term performance and reinforce its presence in Bukit Bintang. PETALING JAYA: Pavilion Real Estate Investment Trust (Pavilion-REIT) has received unitholder approval to acquire Banyan Tree Kuala Lumpur (BTKL) and Pavilion Hotel Kuala Lumpur (PHKL) for RM480mil, a move expected to enhance its long-term performance and reinforce its presence in Bukit Bintang. Pavilion-REIT, in a statement, said the resolutions passed at the unitholders' meeting will allow MTrustee Bhd, on behalf of the REIT, to proceed with the acquisition of the properties from Lumayan Indah Sdn Bhd and Harmoni Perkasa Sdn Bhd. 'We are pleased with the strong support from our unitholders. These hotels are highly synergistic with Pavilion Kuala Lumpur Mall and Elite Pavilion Mall, allowing for an elevated visitor and hotel guest experience,' Pavilion REIT Management Sdn Bhd chief executive officer Datuk Philip Ho said. The two properties are 5-star hotels operated and managed by Banyan Tree Hotels & Resorts Pte Ltd, and achieved occupancy rates of 82.1% (BTKL) and 81.5% (PHKL) for the financial year ended Dec 31, 2024. Pavilion-REIT said the acquisition will be funded through a combination of debt and or equity, including the issuance of up to 172.4 million new units to the vendors and/or their nominees, and a private placement of up to 386 million new units to raise between RM264mil and RM552mil. The hotels will be leased to Harmoni Perkasa for an initial 10-year term, with renewal options extending up to 20 years. The lease guarantees a fixed annual rental of RM33.5mil for the first five years, offering a gross yield of about 7%.
