Pavilion REIT has kicked off 2025 with solid financial growth, demonstrating resilience in Malaysia’s retail property sector. The trust reported a 5% year-on-year increase in net property income to RM142.75 million for the first quarter, with gross revenue climbing 4.4% to RM228.18 million. This positive performance was primarily fueled by stronger rental income from two key properties: Pavilion Bukit Jalil and Elite Pavilion Mall.
The trust’s portfolio of premier retail assets, including Pavilion Kuala Lumpur Mall and DA MEN Mall, contributed significantly to these results. Pavilion Bukit Jalil stood out with a remarkable 35% surge in net property income, while Elite Pavilion Mall saw an 18.2% improvement. These gains were attributed to higher occupancy rates, new rental streams from exhibition spaces, and increased advertising revenue.
Financial metrics showed consistent growth across the board, with net profit rising 8.7% to RM90.42 million. Distributable income also increased to RM98.16 million, translating to 2.68 sen per unit. The retail portfolio accounted for nearly 99% of total net property income, underscoring its dominance in the trust’s revenue streams.
Looking forward, Pavilion REIT remains optimistic about its growth trajectory. The recent RM480 million acquisition of Banyan Tree Kuala Lumpur and Pavilion Hotel Kuala Lumpur is expected to bolster future performance. Management plans to enhance shopper engagement through targeted events while maintaining rigorous cost control measures to sustain profitability in the evolving retail landscape.