KUALA LUMPUR, Oct 22 — Pavilion Real Estate Investment Trust’s (REIT) net profit fell 46 per cent year-on-year to RM32.04 million for the third quarter (Q3) ended September 30, 2020, dragged down mainly by the weaker performance of its two biggest revenue-contributing properties.
Revenue dropped to RM116.23 million from RM144.35 million a year earlier, the group said in a filing with Bursa Malaysia today.
“The decrease in revenue was mainly due to lower gross revenue from Pavilion Kuala Lumpur Mall and Elite Pavilion Mall.
“Malls’ occupancy was lower due to non-renewal of some expired tenancies and also deferment of rent commencement date for some tenants due to the movement control order, conditional movement control order and recovery movement control order imposed by the government,” it said.
The revenue rent and advertising income were also badly affected, it added.
With the latest resurgence of Covid-19 cases in the country as well as announcement of cases in some shopping malls, the number of patrons visiting malls had reduced, Pavilion REIT said.
“Hence, gross revenue for the next quarter is likely to be affected. The manager will continue to be vigilant due to the uncertainties surrounding the economic recovery and is dedicated to remain resilient to drive long term value for its stakeholders,” it added. — Bernama
