Pavilion Real Estate Investment Trust (REIT), managed by Pavilion REIT Management Sdn Bhd says the financial performance of its malls in Klang Valley has been hit by the Covid-19 pandemic.
The REIT recognised total gross revenue of RM116.2 million in the third quarter ended September 30, 2020 (Q3 2020), a decrease of RM28.1 million or 19 per cent compared to Q3 2019 of RM144.3 million.
Its portfolio includes Pavilion Kuala Lumpur Mall, Pavilion Elite Mall, Pavilion Tower, Intermark Mall in Kuala Lumpur and Da Men Mall in Subang Jaya.
Pavilion REIT said there was lower gross revenue from Pavilion Kuala Lumpur Mall, and Elite Pavilion Mall.
The two malls’ occupancy was lower due to non-renewal of some expired tenancies and also deferment of rent commencement date for some tenants due to the Movement Control Order (MCO), Conditional Movement Control Order (CMCO), and Recovery Movement Control Order (RMCO) imposed by the government.
Pavilion REIT said rental income and advertising revenue were also badly affected.
Its total property operating expenses increased by RM2.1 million or four per cent as it had to regularly sanitise the malls, and purchase hygiene equipment and tools, among others.
Net property income reduced by RM30.2 million or 33 per cent in Q3 2020 compared to Q3 2019.
For the nine months to September 2020, Pavilion REIT achieved total revenue of RM319.4 million, which was lower by RM120 million or 27 per cent compared to the preceding year-to-date performance.