Pavilion REIT’s Distribution Per Unit Increases 156%

Pavilion REIT announced total gross revenue of RM141.5 million for the second quarter ended 30 June 2022, an increase of RM16.7 million or 13.4% as compared to the same quarter in the preceding year of RM124.8 million. It added the increase was mainly attributed to higher rental revenue and income from advertising after all economic sectors and businesses were allowed to reopen. This resulted in net property income increased by RM35.5 million or 74.5% for the second quarter of 2022 as compared to the same quarter in 2021.

The group’s 2nd quarter distribution per unit increased to 1.87 sen from 0.73 sen the same quarter last year. Interim distributable income of 4.08 sen per unit or RM124.6 million will be payable on 2 September 2022.

Total property operating expenses was lower by RM18.8 million or 24.3% as compared to the same quarter of the preceding year, mainly due to higher rent rebates given to tenants in 2021, offset by higher provision for doubtful debts and increase in utility cost with the withdrawal of 10% rebate as well as the imposition of tariff surcharge of 3.7 sen per kilowatt hour to the non-domestic sector. Maintenance and marketing expenses also increased with the resumption of activities during this endemic period.

Total revenue for the 6 months ended 30 June 2022 was RM280.3 million, higher by RM29.3 million or 11.7% as compared to the corresponding period to 30 June 2021’s performance. Income after taxation also increased by 132.7% or RM68.6 million to RM120.2 million.

The Manager of Pavilion REIT is optimistic that the retail sector recovery will be sustainable adding that shopping traffic has returned to pre-Covid levels. However, cautions that inflation and rising interest rate will affect the discretionary spending and purchasing power of consumers.

Commenting on ESG, Dato’ Philip Ho, the Manager’s Chief Executive Officer, “As part of its corporate responsibility to reduce carbon footprint, Pavilion Kuala Lumpur Mall has to date, secured approximately 20% of renewable energy from Tenaga Nasional Berhad with more to subscribe when there is availability. The mall’s cooling tower plants are also being upgraded which will improve operational productivity and efficiency with more sustainable initiatives under consideration. “

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