Pavilion Real Estate Investment Trust (Pavilion REIT) reported a 34.5% increase in net property income (NPI) for the third quarter ending September 30, 2023, reaching RM121.35 million, compared to RM90.22 million the previous year. The boost in NPI was attributed to income generated from the newly-acquired Pavilion Bukit Jalil.
Quarterly revenue also surged by 43.4% to RM199.21 million, up from RM138.94 million, largely driven by Pavilion Bukit Jalil’s income, which was acquired in June. Additionally, higher occupancy rates, increased revenue rent from existing retail malls, and higher income from advertising and marketing events contributed to the revenue growth.
Distributable income for the third quarter stood at RM78.31 million, a 23.4% increase from RM63.46 million the previous year. The distribution per unit (DPU) increased to 2.15 sen, up from 2.08 sen.
For the cumulative nine months of 2023, Pavilion REIT’s NPI increased by 21.4% to RM324.47 million, compared to RM267.32 million the previous year. Revenue for this period was 25.7% higher at RM515.59 million, up from RM410.22 million.
Distributable income for the nine months also climbed by 15.6% to RM217.71 million, compared to RM188.25 million the previous year, and DPU increased to 6.56 sen from 6.16 sen.
Regarding future prospects, Pavilion REIT expects retail sales to normalize due to moderation in spending following a robust recovery in 2022 and concerns about a higher cost of living. The REIT plans to enhance its retail mix, create immersive experiences, and engage shoppers with targeted campaigns in its malls.
Pavilion REIT’s units closed unchanged at RM1.20, with a market capitalization of RM4.38 billion.