Countdown for 2013 at Sungei Wang Plaza. Pavilion is still crowded even there is no performance.
PETALING JAYA: Pavilion Real Estate Investment Trust
(Pavilion REIT) reported a 6.7% slide in net profit to RM55.4mil for the third quarter ended Sept 30, 2017, on the back of higher property operating expenses.
The retail-concentrated REIT’s total property operating expenses were 17% higher year-on-year mainly due to higher maintenance costs incurred, such as continuous air conditioning system improvement and upgrading works, replacement of pumps, escalator handrails and steps at the Pavilion Kuala Lumpur Mall as well as its sponsorship of the 2017 Sea Games.
This, it said, resulted in lower total net property income by RM2.5mil or 3% during the quarter.
Pavilion REIT Management Sdn Bhd’s management fees incurred during the period were also slightly higher, in line with the higher total asset value, while borrowing costs were up by RM1.0mil from a year ago due to the drawdown of additional borrowings.
Pavilion REIT’s revenue for the quarter, however, came in 3.2% higher than a year ago at RM121.4mil, mainly contributed by rental income from the tenants of Pavilion Kuala Lumpur Mall following a repositioning exercise.
For the year to date, the company recorded a 5.4% increase in revenue at RM360.5mil on the back of rental income from two newly acquired properties as well as tenants of Pavilion Kuala Lumpur Mall.
Net profit for the period, however, slumped 7.5% to RM166.8mil.
The company said property operating expenses incurred during the period was 21% higher year-on-year due to the routine operating expenses for the two new properties and higher maintenance cost incurred.
Earnings per share was 1.83 sen for the quarter and 5.51 sen for the year to date.
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