KUALA LUMPUR, Oct 26 — Pavilion Real Estate Investment Trust’s (REIT) net profit for the third quarter ended September 30, 2023, increased to RM70.59 million compared to RM61.17 million recorded in the same period last year.

Revenue rose to RM199.21 million from RM138.94 million previously, the group said in a filing with Bursa Malaysia today.

The increase in revenue was mainly contributed by income from its new property, Pavilion Bukit Jalil, acquired on June 1, 2023, higher occupancy rates and higher rent revenue from existing retail malls.

Income from advertising and marketing events also increased compared to same quarter in 2022.

"Total property operating expenses were higher by RM29.1 million, or 60 per cent, compared to the third quarter in 2022, mainly due to operating expenses incurred for the new property and a rise in electricity tariff surcharge by the government from 3.7 sen to 17 sen per kilowatt hour (kWh) from July 1, 2023,” it said.

Moving forward, the group said retail sales are expected to normalise due to a moderation in spending after a robust recovery in 2022 as well as concerns of higher cost of living.

"Pavilion REIT malls will continue to elevate retail mix, create immersive experiences and encourage shoppers’ interaction with targeted campaigns,” it added. — Bernama