PETALING JAYA, Pavilion Real Estate Investment Trust (Pavilion-REIT) recorded a higher net profit of RM78.66 million for the second quarter ended June 30, 2025 (2Q25), up from RM67.12 million in the same quarter last year. The improved results were driven by strong contributions from Pavilion Bukit Jalil.
The REIT’s revenue for the quarter rose to RM213.34mil.
Quarterly revenue rose to RM213.34 million compared with RM201.3 million a year earlier, mainly due to higher occupancy and increased earnings from the exhibition centre and advertising spaces at Pavilion Bukit Jalil. Additional advertising income from a new LED screen at Elite Pavilion Mall also supported revenue growth.
Net property income climbed 8% to RM133.3 million from RM123.47 million, despite property operating expenses rising by RM2.3 million (3%) due to marketing and advertising setup costs.
For the first half of the year (1H25), Pavilion-REIT posted a net profit of RM169.08 million, up from RM150.28 million in the same period last year. Revenue for 1H25 increased to RM441.52 million from RM419.82 million, with net property income rising to RM272.58 million from RM256.05 million. Property operating expenses for the period were RM168.94 million, mainly due to advertising-related expenses and provisions for doubtful debts.
Earnings per unit rose to 4.60 sen from 4.11 sen, and the REIT declared an interim distribution of 0.32 sen per unit, payable on August 27, 2025.
Looking ahead, Pavilion-REIT said it remains cautious amid ongoing cost pressures, including the service tax on commercial rents, rising wages, and subsidy cuts. However, it will continue to actively manage its portfolio to maintain steady returns for unitholders.
The return of international events and concerts is expected to support demand, especially in the hospitality sector, which is showing signs of recovery.
As of end-June, Pavilion-REIT’s portfolio includes Pavilion Kuala Lumpur Mall, Pavilion Tower, Da Men Mall, Intermark Mall, Elite Pavilion Mall, Pavilion Bukit Jalil, Banyan Tree Kuala Lumpur, and Pavilion Hotel Kuala Lumpur.
In May, unitholders approved the RM480 million acquisition of Banyan Tree and Pavilion Hotel, a move the REIT says will enhance long-term performance and strengthen its presence in Bukit Bintang. CEO Datuk Philip Ho said the acquisitions align with its focus on premium, retail-led integrated developments and will enhance synergies with existing assets.
Pavilion-REIT also noted that it holds several rights of first refusal, placing it in a strong position to expand its net lettable area in the future
