Pavilion REIT, the property manager for Pavilion KL, Bukit Jalil, Pavilion Elite, Pavilion Tower, Intermark, and Damen Mall Subang recorded total revenue for 2021 at RM488.6 million, lower by RM21.6 million or 4.2% as compared to the preceding year’s performance.
Despite the slight dip, its income tax before taxation increased by 170.2% or RM78.9 million to RM125.2 million resulting in an annual distributable income of RM134.7 million or 4.41 sen per unit.
The group attributes the positive results to Klang Valley transitioning into Phase 4 of the National Recovery Plan, the lifting of interstate and overseas travel restrictions, alongside the relaxation of quarantine measures. These measures had augered well for the retail, tourism and hospitality industries which the group is confident of recovery.
CEO Dato’ Philip Ho “Pavilion REIT will continue to improve performance and support its tenants by sustaining healthy occupancy levels through proactive lease management, leveraging on digital and media presences to engage and draw visitors to its malls. DA MEN Mall will continue to drive activities to engage college-age and young families to position DA MEN as a holistic community-friendly mall.”
In a filing to Bursa Malaysia, the group announced total gross revenue of RM124.3 million for the fourth quarter ended 31 December 2021, a decrease of RM6.5 million or 5.0% as compared to the same quarter in the preceding year of RM130.8 million.
The decrease is mainly attributed to a lower occupancy rate because of the non-renewal of expired tenancies and the deferment of rent commencement date of some tenants stemming from the various Movement Control Orders (MCOs) and National Recovery Plan (NRP) imposed by the Government arising from the Covid-19 pandemic.
Total property operating expenses was lower by RM20.7 million or 33.3% as compared to the same quarter of the preceding year, mainly due to savings in utilities and lower rent rebates which were offset by higher marketing expenses incurred during the period for festive seasons setup and gift campaigns.
This resulted in net property income increased by RM14.2 million or 20.8% in the fourth quarter of 2021 as compared to the same quarter in
2020.
