Pavilion REIT’s gross revenue increases RM21.8 million to RM156.4 million mainly due to higher contribution from rental income due to increased occupancy, revenue rent, advertising and marketing income for retail malls.
The real estate investment company said the total property operating expenses were higher by RM13.7 million or 34% as compared to the same quarter of the preceding year. The increase was mainly due to a 28% increase in utilities cost from RM11.3 million to RM14.4 million as the electricity tariff surcharge increased from 3.7 sen to 20.0 sen per kilowatt hour (kWh) from 1 January 2023.
Adding these factors resulted in net property income increased by RM8.1 million or 9% for the first quarter of 2023 as compared to the same quarter in 2022. Distributable income increased by 7% to RM72.4 million resulting in a distribution yield of 7.2% based on 31 March 2023 closing market price of RM1.34. Distribution per unit of 2.37 sen for the 1st quarter of 2023 is the same as the 1st quarter of 2019 despite increased in units issued to date.
The Manager of Pavilion REIT expects consumer spending in retail sales to stay resilient despite concerns about the rising cost of living.
