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Pavilion REIT's 3Q NPI rises 11%, helped by rental income from 2 new malls

KUALA LUMPUR (Oct 27): Pavilion Real Estate Investment Trust (Pavilion REIT) saw a 11% rise in net property income (NPI) to RM80.71 million for the third quarter ended Sept 30, 2016 (3QFY16), from RM72.73 million a year earlier, boosted by rental income from two new properties, Damen Mall and Intermark Mall.  

Distributable income was, however, down by a marginal 0.5% to RM62.08 million or 2.06 sen a share, from RM62.37 million a year earlier, due to higher trust expenditure.  

Revenue rose 14.7% to RM117.54 million, from RM102.48 million in 3QFY15, Pavilion REIT said in a filing.  

For the first nine months of the financial year ((9MFY16), the trust’s NPI grew 9.3% to RM237.78 million, from RM217.57 million.

Distributable income for the period rose 1% to RM187.82 million or 6.22 sen per share, from RM185.88 million a year earlier.  

Revenue for the period rose 10.2% to RM342.24 million, from RM310.47 million.  

The manager of Pavilion KL shopping mall said it expended RM9.1 million of its capital commitment during the year, mainly for continuous toilet upgrading works and enhancement to its common corridor, as well as the creation of a new drop off entrance at Jalan Bukit Bintang and upgrading of the entrance at Jalan Raja Chulan.

Going forward, Pavilion REIT expects the retail prospects to remain challenging, due to low consumer sentiment.

“Operating cost will continue to be scrutinised to enhance productivity," it added.  

Pavilion REIT shares closed down one sen or 0.57% at RM1.74, for a market value of RM5.23 billion. — theedgemarkets.com

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