Pavilion REIT recognised total gross revenue of RM160 million in Q2 2023, an increase of RM23.3 million or 17% as compared to Q2 2022 of RM136.7 million. The increase it said was mainly contributed by income from the new property, Pavilion Bukit Jalil higher occupancy rate, and higher revenue rent for existing retail malls. Income from advertising and marketing events also increased as compared to Q2 2022.
Total property operating expenses were higher by RM5.3 million or 10% as compared to Q2 2022 mainly due to operating expenses incurred for the new property and the increase of electricity tariff surcharge by the government from 3.7 sen to 20 sen per kilowatt hour (kWh) mitigated by higher doubtful debts provision in Q2 2022. These have resulted in higher net property income by RM17.9 million or 22% in Q2 2023 as compared to Q2 2022.
Manager’s management fee incurred for Q2 2023 was higher by RM1.1 million as compared to the same quarter last year. This was in line with the increased in total asset value and net property income. Borrowing cost incurred during the quarter has increased by RM10.2 million as compared to Q2 2022 due to the drawdown of additional borrowings for acquisition of investment property. RM1.4 million was also recognised in borrowing cost as present value adjustment to deferred acquisition payments. These have resulted in income before taxation being higher by RM7.9 million or 14% as compared to Q2 2022.
Distributable income for the quarter under review was RM66.9 million, consisting of income after tax of RM62.9 million and non-cash adjustments for depreciation of RM0.1 million, amortisation of borrowings transaction cost of RM0.4 million, Manager’s management fee payable in units amounting to RM2.1 million and present value adjustment on deferred acquisition payments of RM1.4 million.
While distributable income for year-to-date 30 June 2023 was RM139.4 million, consisting of income after tax of RM132.9 million and non-cash adjustments for depreciation of RM0.2 million, amortisation of borrowings transaction cost of RM0.8 million and Manager’s management fee payable in units amounting to RM4.1 million and present value adjustment on deferred acquisition payments of RM1.4 million.
Pavilion REIT has expended approximately RM5.7 million of its capital commitment during the period, mainly for reconfiguring tenancy lots at Fashion Avenue and Elite Pavilion Mall.
