KUALA LUMPUR, Jan 14 — Pavilion Real Estate Investment Trust (REIT) posted a lower pre-tax profit of RM282.3 million for the financial year ended Dec 31, 2015 compared to RM510.5 million in 2014.
In a filing to Bursa Malaysia Thursday, Pavilion REIT said the lower profit was mainly due to the lower fair value gain of investment properties being recognised in the fourth quarter of 2015.
“Revenue, however, rose by 2.9% or RM11.8 million to RM413.9 million during the period under review, from RM402.1 million registered in 2014.
“The higher revenue was mainly contributed by rental from the 2014 asset enhancement areas such as Beauty Precinct, the extension of ‘Couture Pavilion’ and Dining Loft plus the increase in service charge that was revised in May 2014,” it said.
On prospects, Pavilion REIT said while the retail environment is expected to be challenging, the company would continue to create differentiation and key attractions to build shopping experiences.
“This would attract and retain shopper loyalty to our retail mall with operating costs being continuously monitored to optimise its efficiency,” it said.