KUALA LUMPUR (July 31): Pavilion Real Estate Investment Trust (Pavilion REIT) saw its second quarter (ending June 30, 2015) distributable income rise 6.5% year-on-year to RM61.18 million from RM57.46 million, mainly on higher rental from asset-enhancement areas.

This translates to a distribution per unit (DPU) of 2.03 sen compared to 1.9 sen a year ago, according to Pavilion REIT’s filing with Bursa Malaysia yesterday.

This brings its proposed interim income distribution for the six months ending June 30 to 4.09 sen per unit (payable on Sept 8) compared to 3.84 sen per unit in 1HFY14.

Pavilion REIT said its gross revenue for the quarter was RM102.87 million, up 4.3% y-o-y from RM98.68 million, mainly due to rental from 2014’s asset-enhancement areas such as Beauty Precint, extension of "Coutre Pavilion" at Level 2 and Dining Loft at Level 7.

Quarterly net property income was higher by 5.8% at RM70.16 million compared with RM66.3 million in 2QFY14.

Meanwhile, its 1HFY15 distributable income rose 6.6% to RM123.52 million from RM115.89 million, revenue was up 4.3% to RM207.99 million from RM199.89 a year earlier.

Net income for 1HFY15 was at RM144.84 million, up 5.9% from RM136.75 million in 1HFY14.

On prospects, Pavilion REIT said said weak consumer sentiment continues to be felt after the implementation of the Goods and Services Tax in April.

“Indirectly, the world and country events also causes concerns that lead to the weakening of ringgit.

“Therefore, more marketing efforts would be held to attract local and foreign shoppers to encourage retail spending. With the soft office market condition, continuous efforts will be put in to increase occupancy to at least 98% by the end of this year,” it added.

Pavilion REIT closed 1 sen or 0.65% lower at RM1.54 today for a market capitalisation of RM4.64 billion.

SHARE
RELATED POSTS
  1. S P Setia to continue cutting debt, preparing for potential REIT
  2. CapitaLand Malaysia Trust ventures into industrial segment with acquisition of three Iskandar M'sia factories for RM27m
  3. HLIB sees minimal impact on REITs amid high-value goods tax implementation