Pavilion REIT quarterly net profit down 6.7%

PETALING JAYA: Pavilion Real Estate Investment Trust (Pavilion REIT) saw its net profit sliding 6.7% to RM55.4mil for the third quarter ended Sept 30 on the back of higher property operating expenses.

The company said its total property operating expenses were 17% higher year-onyear mainly due to higher maintenance costs such as continuous air-conditioning system improvement and upgrading works, replacement of pumps, escalator handrails and steps at the Pavilion Kuala Lumpur Mall, as well as its sponsorship of the 2017 SEA Games.

This, it said, has resulted in lower total net property income by RM2.5mil or 3% during the quarter.

Its management fees incurred during the period were also slightly higher, in line with the higher total asset value, while borrowing costs were up by RM1mil from a year ago due to the drawdown of additional borrowings.

Pavilion REIT’s revenue for the quarter, however, came in 3.2% higher than a year ago at RM121.4mil, mainly contributed by rental income from the tenants of Pavilion Kuala Lumpur Mall following a repositioning exercise.

For the year-to-date period, the company recorded a 5.4% increase in revenue to RM360.5mil on the back of rental income from two newly acquired properties, as well as tenants of Pavilion Kuala Lumpur Mall.