Pavilion REIT Poised for Higher Earnings on Rental Growth

Pavilion REIT reported a 9MFY26 core net income of RM287.7 million, representing a 9.1% year-on-year increase and meeting expectations. Third-quarter earnings rose 4.3% quarter-on-quarter to RM92.9 million, supported by stronger performances from Pavilion KL Mall, Elite Pavilion Mall and Intermark Mall.

Pavilion REIT

Despite a slight year-on-year dip in quarterly earnings, earnings resilience was supported by contributions from Pavilion Bukit Jalil, Banyan Tree KL and Pavilion Hotel KL, alongside narrower losses at Da Men Mall. Looking ahead, management expects higher rental income from Pavilion KL Mall following the reconfiguration of its Level 3 retail space, while positive rental reversions at Pavilion Bukit Jalil are set to support future earnings growth. MBSB maintained its BUY call and RM2.00 target price on the REIT.

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