Pavilion REIT 1Q net profit jumps to RM65mil

KUALA LUMPUR: Pavilion Real Estate Investment Trust’s (Pavilion REIT) net profit for the first quarter ended March 31, 2022 (Q1 2022) rose to RM65.24 million from RM31.26 million posted in the same quarter last year.

Revenue increased 10 per cent to RM138.78 million from RM126.21 million a year ago.

The company told the stock exchange the increase was mainly contributed by higher revenue rent and income from advertising after more economic sectors and businesses were allowed to reopen under Phase 4 of the National Recovery Plan.

Pavilion REIT, whose portfolio comprises Pavilion Kuala Lumpur Mall, Elite Pavilion Mall, Pavilion Office Tower, Damen Mall, and Intermark Mall, also noted that its total property operating expenses were lower by RM22.6 million, or 34 per cent, compared to Q1 2021.

"This was mainly due to rent rebates given to tenants and higher provision for doubtful debts in Q1 2021, offset by higher utility cost in Q1 2022 due to the 10 per cent electricity bill support by the government ended in December 2021 as well as the imposition of electricity tariff surcharge of 3.7 sen per kilowatt-hour (kWh) to the non-domestic sector from Feb 1, 2022.

"The increase in maintenance and marketing expenses was mainly due to the resumption of marketing activities and events after more relaxation was granted with the reopening of the economy, resulting in higher net property income by RM35.1 million, or 60 per cent, in the first quarter,” it said.

The company also noted that its Q1 2022 distributable income increased to RM67.6 million from RM33.5 million in the same quarter last year, an increase of 101.4 per cent.

Pavilion REIT’s net property income also increased 59.7 per cent to RM94 million.

"As Malaysia enters an endemic phase, the manager is optimistic of a positive outlook for the retail industry and is confident of bringing back more footfall to the malls, with increased shopper engagement, to spur spend and reinforce consumer confidence,” it said. - Bernama