Pavilion REIT net profit rises 217.6 pct to RM397.80 million in FY22

KUALA LUMPUR: Pavilion Real Estate Investment Trust’s (Pavilion REIT) net profit for the financial year ended Dec 31, 2022 (FY22) rose 217.6 per cent to RM397.80 million from RM125.24 million in FY21.

Revenue increased 17 per cent to RM569.69 million from RM488.59 a year ago, mainly contributed by higher rental billings, an increase in revenue rent and income from advertising and marketing events after all economic sectors and businesses resumed post-pandemic.

In a filing with Bursa Malaysia, the company said income after taxation also increased by 217.6 per cent or RM272.6 million to RM397.8 million resulting in an annual distributable income of RM255.8 million or 8.37 sen per unit.

A distribution of 4.29 sen per unit would be payable on Feb 28, 2023, it noted.

As for the fourth quarter of FY22, Pavilion REIT’s income after taxation increased 304 per cent from RM53.6 million to RM216.4 million, while total gross revenue increased by 17.3 per cent to RM145.8 million as compared to the same quarter in the preceding year of RM124.3 million.

This increase was mainly attributed to higher rental billings, increase in revenue rent and income from advertising, it said.

Moving forward, Pavilion REIT Management Sdn Bhd expects retail sales to normalise as consumers in Malaysia continue to be cautious in their spending due to uncertainties in the domestic and global economy stemming from inflationary pressures, the rising cost of living and the projected slowdown in the international economy.

“Despite these challenges, it is expected that domestic demand will anchor the economy amid a steady recovery in the labour market as well as further strengthening of tourism-related sectors leading to an increase in corporate earnings,” it said.

The manager’s chief executive officer, Datuk Philip Ho said that Pavilion REIT malls will continue to elevate its retail mix, create immersive experiences and encourage shopper interaction.

“Through festive and themed campaigns, international collaborations, first-inMalaysia experiences, stronger tenant partnerships, celebrity appearances and rewards, Pavilion REIT malls will be able to reinvigorate a passion for shopping, dining and leisure in Malaysia for visitors,” he added.