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KUALA LUMPUR (July 24): Pavilion Real Estate Investment Trust (KL:PAVREIT) saw its net property income (NPI) in the second quarter rise 11.1% from a year earlier, driven by higher rental income from its hotel assets and lower electricity expenses.
NPI for the three months ended June 30, 2026 (2QFY2026) rose to RM142.28 million from RM129.83 million previously, according to a bourse filing on Thursday.
The stronger quarterly performance was supported by rental income from Banyan Tree Kuala Lumpur and Pavilion Hotel Kuala Lumpur as well as stronger occupancy at Pavilion Bukit Jalil, which recorded a 4% increase in total gross revenue. This came despite a marginal decline in rental income from Pavilion Kuala Lumpur.
Revenue was up 3.6% to RM221.01 million as compared to RM213.34 million previously.
The company has proposed an interim distribution of 5.17 sen per unit, amounting to RM203 million, for the six months ended June 30, 2026. The payout will be made on Aug 28, 2026.
For the six-month period ended June 30, 2026, NPI rose 10.5% to RM301.21 million from RM272.58 million in the same period a year earlier, as revenue increased 5.75% to RM466.91 million from RM441.52 million.
It said the increase was mainly contributed by rental income from Banyan Tree Kuala Lumpur and Pavilion Hotel Kuala Lumpur, which were acquired in June 2025, and stronger occupancy at Pavilion Bukit Jalil.
Property operating expenses fell 2% to RM165.71 million from RM168.94 million a year earlier, mainly due to lower electricity costs following the approval of a new tariff structure by Tenaga Nasional Bhd (KL:TENAGA).
The savings were partly offset by higher maintenance expenses for security system upgrades, as well as roof and lighting improvements.
Commenting on its prospects, Pavilion REIT said it will continue building momentum with a diverse line-up of experiential and cultural activations to sustain shopper engagement and support the Visit Malaysia Year 2026 programme.
Shares in Pavilion REIT were unchanged at RM1.75 on Thursday, valuing the investment trust at RM6.87 billion.
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