Latest news with #RM90.42mil
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
08-05-2025
- Business
- The Star
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.
