“Pavilion REIT’s Q3FY2025 profit rose 20% to RM94.6m, driven by Banyan Tree and Pavilion Hotel Kuala Lumpur acquisitions and strong Pavilion Bukit Jalil performance.”
Kuala Lumpur, 31th Octorber 2025, 12.25pm – Pavilion Real Estate Investment Trust (Pavilion REIT) reported a 10% year-on-year increase in net property income (NPI) to RM145.49 million for the third quarter ended Sept 30, 2025 (3QFY2025), supported by newly acquired hospitality assets and stronger retail performance.
According to its filing with Bursa Malaysia on Thursday, the growth was mainly driven by the inclusion of Banyan Tree Kuala Lumpur and Pavilion Hotel Kuala Lumpur, which were acquired in June 2025 for RM480 million. The acquisition has expanded Pavilion REIT’s total assets under management to RM9 billion.
Retail Portfolio Remains Key Growth Driver
Pavilion REIT said the higher NPI also reflected better performance from Pavilion Bukit Jalil, which recorded improved occupancy and higher income from its exhibition centre and advertising spaces.
Additional revenue contributions came from the upgraded LED screen at Elite Pavilion Mall, further boosting overall income.
Quarterly revenue rose 10% to RM227.88 million, from RM207.26 million a year earlier, while net profit climbed 19.8% to RM94.58 million compared with RM78.94 million previously.
Income available for distribution grew 12.5% year-on-year to RM97.9 million, up from RM86.96 million in 3QFY2024.
Nine-Month Performance Shows Steady Momentum
For the first nine months of FY2025, Pavilion REIT posted a 7.8% increase in NPI to RM418.07 million, while revenue rose 6.8% to RM669.4 million.
Retail remained the group’s largest contributor, delivering RM652.3 million in gross revenue and RM406.5 million in NPI.
Its hotel segment — comprising Pavilion Hotel Kuala Lumpur and Banyan Tree Kuala Lumpur — added RM9.7 million in revenue, while the office segment (Pavilion Tower) contributed RM7.4 million.
Tourism Recovery to Bolster Retail Outlook
Looking ahead, Pavilion REIT said it remains optimistic about its growth outlook, supported by resilient domestic demand and the recovery in international tourism.
“With Pavilion Kuala Lumpur selected as a strategic mall partner for Visit Malaysia 2026, we look forward to welcoming more international visitors and enhancing retail vibrancy across our portfolio,” said Pavilion REIT Management Sdn Bhd chief executive officer Philip Ho.
The REIT plans to collaborate closely with the Ministry of Tourism and industry associations to boost Pavilion Kuala Lumpur’s visibility among global tourists, capturing higher tourism-driven retail spending and complementing its hotel operations.
Market Snapshot
On Thursday, Pavilion REIT shares closed one sen higher at RM1.86, giving the trust a market capitalisation of RM7.3 billion.
