Pavilion-REIT to gain from positive rental revision

MIDF Research raised its target price for Pavilion-REIT to RM1.63 per unit from RM1.56 previously with an estimated net distribution yield of 5.7%.

PETALING JAYA: The prospects of positive rental reversion, lower maintenance charges, higher tourist numbers and earnings from the acquisition of Pavilion Bukit Jalil will help drive up earnings for Pavilion Real Estate Investment Trust (Pavilion-REIT) in financial year 2023 (FY23).

The REIT’s distribution per unit (DPU) of 4.29 sen announced for the fourth quarter ended Dec 31, 2022 (4Q22) took its total DPU to 8.37 sen in FY22 and translated into a gross yield of 6.2%. Driven by the prospect of further gain in FY23, research houses have revised their estimates for the REIT.