PETALING JAYA: Pavilion Real Estate Investment Trust
’s (Pavilion REIT) net profit for its fourth quarter ended Dec 31, 2025 (4Q25) rose to RM203.25mil from RM180.69mil in the previous corresponding quarter, supported by strong retail fundamentals, contributions from newly acquired hotel assets and disciplined cost management across its diversified portfolio.
During the quarter under review, Pavilion REIT said it recorded gross revenue of RM232.1mil, representing a 6% increase as compared to RM218.8mil in 4Q24.
“The improvement was primarily driven by rental income from Banyan Tree Kuala Lumpur and Pavilion Hotel Kuala Lumpur, acquired in June 2025, as well as higher contribution from Pavilion Bukit Jalil.
“Property operating expenses declined marginally year-on-year, resulting in an 11% increase in net property income to RM149.8mil.”
It added that a fair value gain of RM107.4mil arising from the valuation of investment properties as at Dec 31, 2025 was recognised during the quarter, higher than the RM99.9mil recorded in 4Q24, “reinforcing the resilience and long-term value of Pavilion REIT’s prime assets.”
“Distributable income for the quarter stood at RM99.4mil, underscoring Pavilion REIT’s continued focus on delivering sustainable and consistent returns to unitholders.”
For the financial year ended Dec 31, 2025 (FY25), Pavilion REIT recorded total revenue of RM901.5mil, an increase of 7% year-on-year, while net property income rose 9% to RM567.9mil, reflecting sustained operational strength across its retail, hotel and office portfolio, it said.
“Retail assets remained the cornerstone of Pavilion REIT’s performance, led by Pavilion Kuala Lumpur, Pavilion Bukit Jalil and Elite Pavilion Mall. The hotel segment continued to strengthen the Trust’s diversified income base following the inclusion of Banyan Tree Kuala Lumpur and Pavilion Hotel Kuala Lumpur, while Pavilion Tower provided a stable contribution from the office segment.
“For FY2025, Pavilion REIT’s achieved a full-year distribution of 10.00 sen per unit, in line with its commitment to providing regular and stable income to unitholders.”
Looking ahead, Pavilion REIT said it remains cautiously optimistic, supported by resilient domestic consumption, Visit Malaysia Year 2026 tourism campaigns and a continued focus on asset enhancement, partnerships and operational efficiency to drive portfolio performance.
