Pavilion REIT posts second-quarter proit
Pavilion Real Estate Investment Trust (REIT) posted a net profit of RM47.7mil, or 1.59 sen earnings per share on revenue of RM82.8mil for the second quarter ended June 30.
For the first six months, Pavilion REIT posted a net profit of RM95.5mil. Its revenue stood at RM168.1mil. There were no comparative figures reported.
Pavilion REIT also declared an income distribution comprising 3.28 sen per unit (taxable) and 0.08 sen per unit (non taxable) totalling 3.36 sen per unit.
Pavilion REIT's earnings forecast raised
Maybank Kim Eng Research has raised the financial year 2012-2014 earnings forecast of Pavilion Real Estate Investment Trust (Pavilion REIT)by eight to 8.4 per cent.
It also factored in a higher rental growth and turnover rent as well as higher occupancy rate.
Maybank Kim Eng in a research note today said Pavilion REIT's first half net profit of RM95.6 million was above the research house and consensus expectations at 55 to 56 per cent.
"This was due mainly to higher-than-expected retail turnover rent and rental hikes," it said.
Going forward, it said piling works of the Pavilion KL Mall extension will commence in the third quarter, whilst construction of the sub-urban mall in Subang Jaya is ahead of schedule.
"As for the Fahrenheit 88 mall, the management is monitoring the leases due for renewal in the third quarter, rental reversions and tenancy profile.
"When acquired, we expect these properties to raise Pavilion REIT's asset size by more than 41 per cent from RM3.6 billion currently," it added.
Maybank Kim Eng has maintained a "hold" call on Pavilion REIT but revised upward the target price to RM1.40 from RM1.26 previously. — BERNAMA