Pavilion Real Estate Investment Trust (Pavilion REIT) delivered a solid performance in the fourth quarter of financial year 2025, supported by higher rental income from its hospitality assets and improved contributions from key retail properties in Kuala Lumpur.
Net property income (NPI) for the three months ended Dec 31, 2025 increased 11.1% year-on-year to RM149.82 million, compared with RM134.86 million in the same period last year. The improvement was largely driven by income from Banyan Tree Kuala Lumpur and Pavilion Hotel Kuala Lumpur, which were acquired in mid-2024, alongside stronger earnings from Pavilion Bukit Jalil and tighter control over property operating expenses.
Revenue for the quarter rose 6.1% to RM232.09 million from RM218.79 million previously, reflecting resilient consumer spending across prime commercial property in KL and growing footfall in strategic urban locations.
As one of Malaysia’s largest retail-focused REITs, Pavilion REIT declared a final income distribution of 5.03 sen per unit, payable on Feb 27. This brings total distribution for FY2025 to 10 sen per unit.
For the full financial year ended Dec 31, 2025, Pavilion REIT recorded an 8.6% increase in NPI to RM567.89 million, up from RM522.77 million a year earlier. Annual revenue climbed 6.6% to RM901.49 million, underscoring the strength of well-located commercial assets within Kuala Lumpur and high-growth townships such as Bukit Jalil.
Looking ahead, Pavilion REIT remains optimistic about its outlook, citing stable domestic consumption and an anticipated uplift in tourism activity ahead of Visit Malaysia Year 2026. Management highlighted ongoing asset enhancement initiatives, operational efficiencies, and strategic partnerships as key drivers to sustain portfolio performance.
According to Pavilion REIT Management Sdn Bhd chief executive officer Datuk Philip Ho, the group will continue prioritising asset optimisation, enhanced shopper experiences, and disciplined cost and capital management to support long-term value creation.
Pavilion REIT units closed one sen lower, or 0.51%, at RM1.94, valuing the trust at approximately RM7.61 billion.
From a broader property market perspective, continued activity in prime retail and hospitality assets complements demand seen across commercial property in KL, office space in Bukit Jalil, and surrounding mature hubs such as the Subang area, reinforcing investor interest in strategically located real estate across Kuala Lumpur and Selangor.
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