Pavilion REIT - Announcements

Press Release
15 January 2015
For Immediate Release
Pavilion REIT’s 2014 annual distribution per unit improved by 8.2%
Kuala Lumpur, 15 January 2015 – Pavilion REIT Management Sdn Bhd (“the Manager”), the REIT Manager of
Pavilion Real Estate Investment Trust (“Pavilion REIT”), is pleased to announce that Pavilion REIT’s distribution
per unit for 2014 increased by 0.60 sen to 7.96 sen, as compared to 2013.
nd
Distributable income of 4.12 sen for the 2 half of 2014 is expected to be payable on 27 February 2015. This
translates to distribution yield of 5.5% based on Pavilion REIT’s closing price of RM1.46 per unit as at 31
December 2014. This closing price is higher by 14.1% as compared to 31 December 2013 closing price of
RM1.28.
Gross revenue increased by RM26.6 million or 7.1% to RM402.1 million in 2014 as compared to 2013. This
resulted in net property income of RM282.7 million or 70.3% of gross revenue. Revaluation of its retail mall
resulted in increased of its fair value by RM278.1 million to RM4,300.0 million, leading to profit before taxation
of RM510.5 million or increase of 56.0% year on year. This impact gave rise to Pavilion REIT’s net asset value
per unit from RM1.17 as at 31 December 2013 to RM1.26 as at 31 December 2014.
Although 2015 is expected to remain challenging for the retail sector due to weak consumer sentiment from
impending GST implementation, weakening of Ringgit Malaysia and inflationary pressures, the Manager will
continue to engage with its stakeholders to continue to attract shoppers, manage its operational cost
effectively and seek investment prospects to ensure the best achievable return for unitholders. Continuous
effort will be employed to fill up office space vacancies, although there are many other options available to
potential tenants with newer buildings coming into the market and attractive lower rent.
Key Financial Information
2014
2013
Gross Revenue
RM'000
Q4 2014
100,770
96,450
4.5%
402,092
375,509
7.1%
Net Property Income
RM'000
70,487
67,658
4.2%
282,739
263,125
7.5%
Fair Value Gain
RM'000
278,112
113,112
145.9%
278,112
113,112
145.9%
Income before Taxation
RM'000
335,182
168,074
99.4%
510,475
327,250
56.0%
Distributable Income
RM'000
59,150
56,884
4.0%
239,928
221,315
8.4%
Propose / Declared
Distribution per Unit
sen
1.96
1.89
3.7%
7.96
7.36
8.2%
Closing Price as at 31
December
RM
1.46
1.28
14.1%
5.5%
5.8%
Distribution Yield (based on
Closing Price )
Q4 2013
Change
Change
About Pavilion REIT
Listed on 7 December 2011, with the largest exposure to the retail sector by any listed Malaysian REIT, Pavilion
REIT owns a RM4.4 billion portfolio based on appraised value, which consists of Pavilion Kuala Lumpur Mall
and Pavilion Tower, both of which are located in Bukit Bintang, Kuala Lumpur, Malaysia. Pavilion REIT is
established with the principal investment policy of investing, directly and indirectly, in a diversified portfolio of
income producing real estate used solely or predominantly for retail purposes (including mixed – use
developments with a retail component) in Malaysia and other countries within the Asia-Pacific region as well
as real estate related assets. For more details, please visit www.pavilion-reit.com
About Pavilion REIT Management Sdn Bhd
Pavilion REIT Management Sdn Bhd is the manager of Pavilion REIT. Incorporated in Malaysia on 7 April 2011
with an issued and paid up capital of RM5.0 million, it is 51% owned by Urusharta Cemerlang Development
Sdn Bhd and 49% owned by Urusharta Cemerlang Project Corporation Sdn Bhd. The principal activity of the
Manager is to manage and administer Pavilion REIT.