Pavilion Real Estate Investment Trust (Pavilion REIT) has announced that it will issue 3.12 million new units to its management company as partial settlement of management fees for the second half of the financial year ended Dec 31, 2025 (2H2025).
In a regulatory filing dated Feb 19, the REIT confirmed that 3,118,169 new units will be allotted to Pavilion REIT Management Sdn Bhd. The issuance represents payment in units for part of the management fees due and does not introduce a new class of securities.
The new units will be issued at RM1.9236 per unit. The pricing was derived from the five-day volume weighted average price (VWAP) of Pavilion REIT units up to, but excluding, Jan 29, 2026 — the date of its latest quarterly results announcement — and adjusted for a cash distribution of 5.03 sen per unit with an entitlement date of Feb 16, 2026.
Upon completion of the issuance, Pavilion REIT’s total issued units will rise to 3,927,958,409 units, translating into an issued unit capital of approximately RM3.85 billion. The additional units are scheduled to be listed on Feb 20, 2026.
The move reflects a common structure within Malaysia’s REIT landscape, where a portion of management fees is satisfied via unit issuance. This approach conserves cash at the trust level while aligning the manager’s interests with those of unitholders through direct equity participation.
The practice of fee settlement in units is frequently adopted by Malaysian REITs to enhance liquidity management and maintain capital efficiency. For investors tracking income-generating assets such as commercial property in KL, such mechanisms can support stronger cash retention for asset enhancement initiatives or acquisitions.
In Kuala Lumpur and Selangor, REIT strategies often intersect with high-demand segments including office space in Bukit Jalil, mixed-use commercial hubs, and emerging decentralised business districts. As corporate occupiers reassess space utilisation, quality-managed office assets remain key components of diversified REIT portfolios.
Meanwhile, the industrial segment continues to show structural resilience. Demand for industrial land in Selangor, a factory in Puchong, and industrial property in Subang area remains underpinned by logistics expansion, manufacturing activity, and supply chain optimisation across the Klang Valley.
For investors and business owners evaluating opportunities within Kuala Lumpur and Selangor, understanding how listed property trusts manage capital and align stakeholder interests offers useful insight into broader commercial property trends and long-term value positioning.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 21 Feb 26
Malaysia