Pavilion REIT’s Second-Quarter Net Profit Rises 13.2% to RM89.03 Million

KUALA LUMPUR, JULY 2026 – Pavilion Real Estate Investment Trust, or Pavilion REIT, recorded a 13.2% year-on-year increase in net profit for the second quarter ended June 30, 2026, reaching RM89.03 million compared with RM78.66 million in the corresponding quarter last year.

The stronger quarterly result reflected improved contributions from the trust’s portfolio of retail and hospitality properties, supported by higher rental income from its hotel assets and lower electricity expenses during the period.

Net property income for the quarter reportedly increased by 11.1% from a year earlier, demonstrating the resilience of Pavilion REIT’s income-generating assets despite softer retail market expectations and continued geopolitical uncertainty.

Pavilion Bukit Jalil was among the properties contributing positively to the trust’s first-half performance, while lower property operating expenses following revisions to the electricity tariff structure also helped strengthen earnings.

For the first six months of the 2026 financial year, Pavilion REIT’s profit rose to approximately RM194.8 million, supported by stronger rental contributions and improved cost management across its property portfolio.

However, the positive performance was partly offset by weaker contributions from Pavilion Kuala Lumpur. The flagship shopping centre is undergoing a reconfiguration of retail space on Level 3 following the departure of former anchor tenant Parkson.

The vacated area is being transformed into 37 new retail lots featuring fashion, food and beverage outlets, including several international brands expected to enter the Malaysian market. Leasing progress has been encouraging, with committed occupancy exceeding 50% while negotiations with other prospective tenants continue.

The redevelopment is expected to be completed ahead of the reopening of the upgraded space in early November 2026. The new tenant mix is anticipated to generate stronger rental yields and improve occupancy at Pavilion Kuala Lumpur.

Market analysts expect Pavilion REIT’s earnings to improve further during the second half of the financial year, driven by the reopening of the redeveloped retail space, continued positive rental reversions and lower operating costs.

Nevertheless, third-quarter earnings are expected to remain relatively stable as seasonal consumer spending and promotional activities help offset the temporary impact of lower occupancy at Pavilion Kuala Lumpur.

Pavilion REIT’s wider property portfolio includes major retail, office and hospitality assets such as Pavilion Kuala Lumpur, Pavilion Bukit Jalil, Pavilion Tower, Pavilion Hotel Kuala Lumpur, Banyan Tree Kuala Lumpur, Intermark Mall and Da Men Mall.