Pavilion Real Estate Investment Trust (REIT) has delivered a strong financial performance in its latest quarterly results, showcasing steady growth across key metrics. The trust reported a 5% increase in net property income to RM142.75 million for the first quarter of 2025, driven by improved rental earnings from its flagship properties, Pavilion Bukit Jalil and Elite Pavilion Mall. This upward trend was further reflected in a 4.4% rise in gross revenue to RM228.18 million, supported by higher occupancy rates and enhanced rental yields.
The trust’s profitability also saw notable improvement, with net profit climbing 8.7% year-on-year to RM90.42 million. Distributable income followed suit, rising to RM98.16 million, equivalent to 2.68 sen per unit, compared to RM90.89 million in the same period last year. Pavilion REIT attributed this growth to stronger rental income from Pavilion Bukit Jalil, boosted by new revenue streams from its exhibition center, as well as increased advertising income at Elite Pavilion Mall.
Pavilion Bukit Jalil emerged as a standout performer, recording a 35% surge in net property income to RM36.11 million, while Elite Pavilion Mall saw an 18.2% increase to RM13.68 million. The trust’s retail portfolio, which includes Pavilion Kuala Lumpur Mall and DA MEN Mall, contributed 98.9% of total net property income. With consumer spending remaining resilient, Pavilion REIT remains optimistic about future prospects, particularly following its recent RM480 million acquisitions of Banyan Tree Kuala Lumpur and Pavilion Hotel Kuala Lumpur.
Looking ahead, the trust plans to enhance its offerings through targeted events and strategic brand partnerships while maintaining disciplined cost management. Shares of Pavilion REIT ended flat at RM1.45 on Thursday, valuing the trust at RM5.31 billion. The positive financial results underscore the trust’s ability to capitalize on Malaysia’s recovering retail sector and position itself for sustained growth.