Pavilion REIT posts marginal rise in 2Q NPI

KUALA LUMPUR (July 26): Pavillion Real Estate Investment Trust (REIT) registered a 0.8% increase in net property income (NPI) to RM91.35 million for the second quarter (2Q) ended June 30, 2019, from RM90.62 million a year earlier, on the back of higher revenue.

It declared an interim income distribution of 4.40 sen per unit, payable on Aug 30.

Total comprehensive income for the quarter declined 2.6% to RM59.23 million, from RM60.81 million previously, according to the REIT’s filing with Bursa Malaysia yesterday.

Distributable income declined 0.27% to RM61.8 million, from RM61.97 million last year — resulting in a lower distribution per unit (DPU) of 2.03 sen from 2.05 sen.

Quarterly revenue increased 6.71% year-on-year to RM144.12 million, from RM135.06 million previously.

The group attributed the second-quarter NPI increase to higher revenue, which was mainly contributed by higher rent and electricity income from the Pavilion Kuala Lumpur mall for the supply of electricity to the Pavilion Hotel and Pavilion Suites.

In addition, income from the Elite Pavilion Mall — which was acquired in April 2018 — also contributed to the increase in revenue. However, this growth was mitigated by lower rental income from Da Men Mall due to the mall’s lower occupancy and rental rates.

For the cumulative six months ended June 30, 2019, the REIT saw a 7.37% increase in NPI to RM192.86 million, from RM179.63 million a year prior.

Total comprehensive income for the six months rose 1.83% to RM128.46 million, from RM126.16 million in the previous corresponding period.

Distributable income for the period increased 1.70% to RM133.95 million, from RM131.71 million previously — with DPU rising to 4.40 sen from 4.34 sen.

This article first appeared in The Edge Financial Daily, on July 26, 2019.

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