Affin Hwang maintains hold on Pavilion REIT

KUALA LUMPUR: Affin Hwang Capital Research said Pavilion REIT's 1Q18 net profit of RM65mil came in within its and consensus expectations.

The 15% growth in net earnings were driven by higher contributions from Pavilion KL Mall due to an improved occupancy rate of 99% and higher turnover rent.

"Elsewhere, Intermark Mall contributed higher revenue of RM7.4m (+22% yoy), driven by
improved occupancy while Da Men’s revenue fell by 15% to RM7.9m."

The research house addd that the RM580mil acquisitions of Elite Pavilion is expected to be completed by April/early May, which is a two-month delay from its earlier expectation of end-February. 

It maintained a hold call with a lower target price of RM1.54 from RM1.70 previously.