Post on 20-Jun-2020
PRIVATE AND CONFIDENTIAL
2019 Q2Business Overview
25 July 2019
PRIVATE AND CONFIDENTIAL
PRIVATE AND CONFIDENTIAL
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Disclaimer
The information contained in this document is provided for information purposesonly and does not constitute an offer of services or solicitation.
No information or data contained herein may be reproduced by any processwhatsoever without written consent.
This presentation, prepared by Pavilion REIT Management Sdn Bhd (“theManager”) may contain certain forward-looking statements and is prepared basedon the Manager’s current view of future events that may involve certainassumptions, risks and uncertainties. Past performance does not necessarilysignify its future performance.
No responsibility is accepted for any direct or indirect damages or consequencesas a result of inaccuracy of information reproduced in this document nor for anyaction taken in reliance thereon.
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Table of Contents
Section 1 Overview
Section 2 Financial Results
Section 3 Investors Relation
Section 4 Pavilion Kuala Lumpur Mall
Section 5 Intermark Mall
Section 6 DA MEN Mall
Section 7 Elite Pavilion Mall
Section 8 Pavilion Tower
Section 9 Investment Opportunities / Growth Strategies
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1. Overview
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� Pavilion REIT consists of :
− Pavilion Kuala Lumpur Mall, a 7-storey retail podium, together with a 3-storey retailoffice block and a 4-storey entertainment annex located at Jalan Bukit Bintang, KualaLumpur
− Elite Pavilion Mall, a 10-storey retail mall seamlessly connected to Pavilion KualaLumpur Mall
− Intermark Mall, a 6 level retail with rooftop at intersection of Jalan Tun Razak andJalan Ampang, Kuala Lumpur
− DA MEN Mall, a 5-storey retail mall with a lower ground floor located in USJ SubangJaya
− Pavilion Tower, a 20-storey office block located adjacent to Pavilion Kuala LumpurMall
Asset Portfolio
In the M-REIT market, Pavilion REIT � has the largest retail mall, by valuation� within the top 4 in terms of market
capitalization� part of FTSE Bursa Malaysia Mid 70 Index� part of MSCI Malaysia Annual Property
Index� reviewed by MSCI ESG Research LLC
Sector Retail Office
Total Asset Value as at 30 June 2019
(31 Dec 2018)
RM6,215m
(RM6,177m)
RM134m
(RM134m)
Weightage 97.9% 2.1%
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2. Financial Results
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Current Quarter ended 30 June
Current Year
(unaudited)
Last Year
(unaudited)
Favourable /
(Adverse)
RM’000 RM’000 %
Gross Revenue 144,119 135,060 6.7
Property Operating
Expenses52,767 44,436 (18.7)
Net Property Income 91,352 90,624 0.8
Income before Taxation
(excl revaluation gain)59,229 60,808 (2.6)
Distributable Income 61,797 61,965 (0.3)
Earnings per unit (sen)
(excl revaluation gain)1.95 2.00 (2.5)
Proposed / Declared DPU
(sen)2.03 2.05 (1.0)
Highlights from Statement of Comprehensive Income –
Current Year Quarter against Same Quarter Last Year
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Highlights from Statement of Comprehensive Income –
Current Year Quarter against Last Preceding Quarter
Quarter ended
30 June 2019
(unaudited)
31 Mar 2019
(unaudited)
Favourable /
(Adverse)
RM’000 RM’000 %
Gross Revenue 144,119 150,922 (4.5)
Property Operating
Expenses52,767 49,414 (6.8)
Net Property Income 91,352 101,508 (10.0)
Income before Taxation
(excl revaluation gain)59,229 69,231 (14.4)
Distributable Income 61,797 72,157 (14.4)
Earnings per unit (sen)
(excl revaluation gain)1.95 2.28 (14.5)
Proposed / Declared DPU
(sen)2.03 2.37 (14.3)
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Pavilion REIT’s Gross Revenue (RM’000)
106,688
118,006 117,544
117,463
118,941 120,256
121,356
129,448 131,510
135,060
141,348
147,059
150,922
144,119
100,000
110,000
120,000
130,000
140,000
150,000
160,000
Q1 Q2 Q3 Q4
R
M
'
0
0
0
Quarter
Gross Revenue (RM'000)
2016
2017
2018
2019
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Pavilion REIT’s Net Property Income (RM’000)
75,641
81,429 80,712
76,992
78,973 76,719
78,162
89,059
89,003
90,624
94,176
100,984
101,508
91,352
70,000
75,000
80,000
85,000
90,000
95,000
100,000
105,000
Q1 Q2 Q3 Q4
R
M
'
0
0
0
Quarter
Net Property Income (RM'000)
2016
2017
2018
2019
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Pavilion REIT’s Distribution (sen)
2.10
2.062.06
2.02
2.02
1.94
1.96
2.32
2.29
2.05
2.14
2.30
2.37
2.03
1.90
1.95
2.00
2.05
2.10
2.15
2.20
2.25
2.30
2.35
2.40
Q1 Q2 Q3 Q4
s
e
n
Quarter
2016
2017
2018
2019
Year Jan to June (sen) July to Dec (sen) Total (sen) Change
2016 4.16 4.08 8.24 -
2017 3.96 4.28 8.24 -
2018 4.34 4.44 8.78 6.6%
2019 4.40
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Pavilion REIT Debt as at 30 June 2019
Fixed vs Floating Rate
42.8%
57.2%
Fixed Rate
Floating
Rate
1,086
375
700
-
200
400
600
800
1,000
1,200
2021 2022 2023
Debt Maturity Profile (RM million)
Average Interest Cost : 4.8% Gearing : 34.0%
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3. Investors Relation
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Capital appreciation of 103.3% since listing, 7 Dec 2011
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Trading Performance 31 Dec 2018 28 June 2019
Closing unit price as at 31 December 2018 / 28 June 2019 RM1.64 RM1.83
Highest traded price during the year RM1.78 RM1.92
Lowest traded price during the year RM1.32 RM1.61
Capital appreciation (closing price on institutional IPO price of RM0.90) 82.2% 103.3%
Market capitalization (RM’000) as at 31 Dec 2018 / 28 June 2019 4,980,196 5,561,407
1,400
1,500
1,600
1,700
1,800
1,900
2,000
2,100
1.00
1.10
1.20
1.30
1.40
1.50
1.60
1.70
1.80
1.90
2.00
FB
M K
LC
I
PA
VR
EIT
Price
PAVREIT KLCI
PAVREIT :↑↑↑↑ 1. 9% for 2018
FBM KLCI :↓↓↓↓ 5.9% for 2018
PAVREIT : ↑↑↑↑ 11.6% for 2019
FBM KLCI : ↓↓↓↓ 1.1% for 2019
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Total number of unitholders as at 30 June 2019 : 5,647 (5,872 as at 31 Dec 2018)
Unitholders’ Composition based on Unitholdings as at 30 June 2019
Category of Holders Category of Holders Type of Holders Type of Holders
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Top 10 Unitholders’ as at 30 June 2019
No Name %
1 HSBC Nominees (Asing) Sdn Bhd
CS (Switz) for Qatar Holding LLC
35.63
2 Maybank Nominees (Tempatan) Sdn Bhd
Pledged Securities Account for Lim Siew Choon (432218)
22.72
3 Maybank Nominees (Tempatan) Sdn Bhd
Pledged Securities Account for Tan Kewi Yong (129118)
9.37
4 UOBM Nominees (Tempatan) Sdn Bhd
Pledged Securities Account for Lim Siew Choon
5.10
5 Citigroup Nominees (Tempatan) Sdn Bhd
Employees Provident Fund Board
5.00
6 Kumpulan Wang Persaraan (Diperbadankan) 3.42
7 Amanah Trustees Berhad
Amanah Saham Bumiputera
2.96
8 Citigroup Nominees (Tempatan) Sdn Bhd
Exempt an for AIA Bhd
1.49
9 Citigroup Nominees (Tempatan) Sdn Bhd
Valuecap Sdn Bhd
1.40
10 HSBC Nominees (Asing) Sdn Bhd
BBH and Co Boston for Asia REIT Master Fund
0.90
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4. Pavilion Kuala Lumpur Mall
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Pavilion Kuala Lumpur Mall – Tenancy Status
Top 10 retail tenants by Gross RentTop 10 retail tenants by Gross Rent
Anchor Tenant
(>70,000 sq ft of NLA), 18%
Speciality Anchors (10,000
to 70,000 sq ft of NLA), 20%
Speciality Tenants
(<10,000 sq ft of NLA), 62%
High proportion of speciality tenants
Pavilion Kuala Lumpur mall enjoys a diverse and unique tenant base along with rising rental rates and consistently high occupancy rates
1.3m square feet of NLA
Top 10 retail tenants contributes 18.4% of Gross Rent
Name Trade sector
% of
occupied
NLA
Parkson Elite Departmental Store 18.9%
Golden Screen Cinema Urban Leisure 4.6%
Food Republic Food & Beverage 2.4%
Forever 21 Fashion 1.8%
Padini Concept Store Fashion 1.6%
Zara Fashion 1.3%
Royal Selangor Gifts & Souvenir 0.6%
Cartier Fashion 0.5%
Hermes Fashion 0.3%
Quivo Food & Beverage 0.1%
Total 32.1%
Tenant Mix by NLATenant Mix by NLA
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Pavilion Kuala Lumpur Mall – Tenancy StatusOccupancy rate at the end of quarterOccupancy rate at the end of quarter
Projected tenancy expiry schedule on NLAProjected tenancy expiry schedule on NLA
96.3%
98.9% 98.8%
98.7%98.7% 98.7%
97.8%
95.6%
Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19
1%
31%22%
14%
32%
Monthly 2019 2020 2021 2022
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Pavilion Kuala Lumpur Mall – Tenancy Status
Trade sector analysis based on NLATrade sector analysis based on NLA Trade sector analysis based on Gross Rental Trade sector analysis based on Gross Rental
Fashion 27%
Department Store /
Supermarket21%Food &
Beverage21%
Urban Leisure7%
Office4%
Beauty & Personal Care
5%
Jew ellry, Timepieces and
Writing Instruments
5%
Elect, IT and Digital3%
Shoes, Bags and Leather
products2%
Home Decorations and
Furnishings1%
Gifts and Souvenirs
1%
Others3%
Fashion , 37%
Department Store /
Supermarket, 8%
Food & Beverage, 21%
Urban Leisure, 3%
Office, 1%
Beauty & Personal Care,
7%
Jew ellry,Timepieces and Writing
instruments, 11%
Elect, IT and Digital, 2%
Shoes, Bags and Leather Products, 3%
Home Decorations and Furnishings, 1%
Gifts and Souvenirs, 2%
Others, 4%
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5. Intermark Mall
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Intermark Mall – Tenancy Status
Top 10 retail tenants by Gross RentTop 10 retail tenants by Gross Rent
Speciality Anchors (between 10,000
and 70,000 sq
ft of NLA), 33.3%
Speciality Tenants
(<10,000 sq ft of NLA), 66.7%
Intermark Mall being positioned to cater to middle income professionals, expatriate and family conveniences
221k square feet of NLA
Top 10 retail tenants contributes 39.7% of Gross Rent
Name Trade sector
% of
occupied
NLA
Jaya Grocer Supermarket 15.3%
Hua Wei IT 7.3%
Primrose Hill Active LearninEdutainment 5.4%
MST Golf Sports 5.3%
Sports Direct Sports 4.5%
Space Furniture Home Furnishing 4.2%
Oriental Landmark Food & Beverage 2.8%
McDonald's Food & Beverage 2.7%
Savini Food & Beverage 2.2%
Hanare Food & Beverage 1.9%
Total 51.6%
Tenant Mix by NLATenant Mix by NLA
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Intermark Mall – Tenancy Status
Occupancy rate at the end of quarterOccupancy rate at the end of quarter
Projected tenancy expiry schedule on NLAProjected tenancy expiry schedule on NLA
4%
19%
31%29%
17%
Monthly 2019 2020 2021 2022
86.8%
90.0%90.9%
92.2%93.1%
94.4% 93.9% 93.9%
Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19
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Intermark Mall – Tenancy Status
Trade sector analysis based on NLATrade sector analysis based on NLA Trade sector analysis based on Gross Rental Trade sector analysis based on Gross Rental
Beauty & Personal Care
10%
Conv Hsehold & Living1%
Edutainment8%
Fashion 12%
Food & Beverage
35%
Home Decorations and
Furnishings8%
Services5%
Supermarket15%
Urban Leisure3%
Others3%
Beauty & Personal Care
10%Conv Hsehold &
Living1%
Edutainment5%
Fashion 9%
Food & Beverage
47%
Home Decorations and
Furnishings6%
Services6%
Supermarket13%
Urban Leisure1%
Others2%
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6. DA MEN Mall
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DA MEN Mall – Tenancy Status
Top 10 retail tenants by Gross RentTop 10 retail tenants by Gross Rent
Speciality Anchors (between 10,000
and 70,000 sq ft of NLA),
35.2%
Speciality Tenants
(<10,000 sq ft of NLA), 64.8%
Da men Mall targeting offerings of F&B and beauty products/services, catering to middle income suburb residential, commercial and industrial clientele
420k square feet of NLA
Top 10 retail tenants contributes 42.2% of Gross Rent
Name Trade sector
% of
occupied
NLA
Jaya Grocer Supermarket 9.6%
Food Arcade Food & Beverage 5.3%
Grand Harbour Restaurant Food & Beverage 4.7%
Chi-X Fitness Urban Leisure 3.7%
Mr DIY Home Furnishing 3.5%
Home's Harmony Home Furnishing 2.4%
Nam Heong Ipoh Food & Beverage 1.6%
Aunty Manju's Restaurant Food & Beverage 1.3%
Swensen's Food & Beverage 0.8%
Oiso Food & Beverage 0.7%
Total 33.6%
Tenant Mix by NLATenant Mix by NLA
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DA MEN Mall – Tenancy Status
Occupancy rate at the end of quarterOccupancy rate at the end of quarter
Projected tenancy expiry schedule on NLAProjected tenancy expiry schedule on NLA
85.6% 86.3% 76.5% 79.0% 78.8% 74.4% 67.9% 65.4%
Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19
7%
20%15%
37%
21%
Monthly 2019 2020 2021 2022
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DA MEN Mall – Tenancy Status
Trade sector analysis based on NLATrade sector analysis based on NLA Trade sector analysis based on Gross Rental Trade sector analysis based on Gross Rental
Beauty & Personal Care
10%
Elect IT & Digital1%
Fashion 17%
Food & Beverage
29%
Health & Fitness
5%
Home Decorations and
Furnishings14%
Shoes Bags & Leather
12%
Supermarket10%
Toys/Hobbies/Child2%
Others0% Beauty &
Personal Care17%
Elect IT & Digital2%
Fashion 6%
Food & Beverage
51%
Health & Fitness
4%
Home Decorations and
Furnishings9%
Shoes Bags & Leather
0%
Supermarket6%
Toys/Hobbies/Child1%
Others4%
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7. Elite Pavilion Mall
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Elite Pavilion Mall – Tenancy Status
Top 10 retail tenants by Gross RentTop 10 retail tenants by Gross Rent
Speciality Anchors (between 10,000
and 70,000 sq ft of NLA),
29.4%
Speciality Tenants
(<10,000 sq ft of NLA), 70.6%
An extension to Pavilion Kuala Lumpur mall, it offers additional variety of shopping options
232k square feet of NLA
Top 10 retail tenants contributes 44.6% of Gross Rent
Name Trade sector
% of
occupied
NLA
JD Sports, King of Trainer Fashion 6.6%
Muji Fashion 6.1%
Mango and Mango Man Fashion 5.9%
Toys R Us Leisure Hobbies & Toys 5.9%
Haidilao Hot Pot Food & Beverage 4.9%
COS Fashion 3.4%
ACME Bar & Coffee Food & Beverage 1.9%
Coach Fashion 1.8%
Rimowa Travel & Luggage 1.0%
LukFook Jewellery Jewellery Timepiece 0.9%
Total 38.4%
Tenant Mix by NLATenant Mix by NLA
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Elite Pavilion Mall – Tenancy Status
Occupancy rate at the end of quarterOccupancy rate at the end of quarter
Projected tenancy expiry schedule on NLAProjected tenancy expiry schedule on NLA
96.2%95.4%
96.7%
95.5%95.2%
Jun-18 Sep-18 Dec-18 Mar-19 Jun-19
0%
53%
21%
11%15%
Monthly 2019 2020 2021 2022
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Elite Pavilion Mall – Tenancy Status
Trade sector analysis based on NLATrade sector analysis based on NLA Trade sector analysis based on Gross Rental Trade sector analysis based on Gross Rental
Beauty & Personal Care
1%
Fashion 29%
Food & Beverage
42%
Home Decorations and
Furnishings2%
IT & Digital3%
Jew ellery Timepieces
2%
Leisure Hobbies Toys7%
Shoes Bags & Leather
5%
Travel & Luggage
5%
Urban Leisure1% Beauty &
Personal Care3%
Fashion 32%
Food & Beverage
33%
Home Decorations and
Furnishings1%
IT & Digital3%
Jew ellery Timepieces
6%
Leisure Hobbies Toys4%
Shoes Bags & Leather
8%
Travel & Luggage
6%
Urban Leisure1%
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8. Pavilion Tower
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Projected expiry schedule on NLAProjected expiry schedule on NLA
Pavilion TowerOne of Kuala Lumpur’s premier business addresses
Benefits of Pavilion TowerBenefits of Pavilion Tower
� Connected to Pavilion Kuala Lumpur Mall
� Tenants across multiple trade sectors, including property development, construction, retail,
service office and others
� Major tenants include Malton Group, MrailInternational, Clever Eagle, Crabtree & Evelyn,KL Metro
87% space occupied
26%22%
37%
15%
Monthly 2019 2020 2021 2022
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Pavilion Tower Office – Tenancy Status
Trade sector analysis based on NLATrade sector analysis based on NLA Trade sector analysis based on Gross Rental Trade sector analysis based on Gross Rental
Others3%
Construction5%
Consultancy13%
Financial Services
4%
Investment Holding
5%
Property63%
Service Office7%
Others3%
Construction5%
Consultancy14%
Financial Services
4%
Investment Holding
5%
Property62%
Service Office7%
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9. Investment Opportunities / Growth Strategies
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Opportunities for future growth
Potential for acquisition growth : Rights of First Refusal
Pavilion REIT benefits from several ROFRs which place it in a strong position to grow its NLA in the future
The fahrenheit88 ROFR The General ROFR
� Granted by Makna Mujur Sdn Bhd
� Located in Bukit Bintang opposite Pavilion
Kuala Lumpur Mall
� Awaiting for intention to sell
� Granted by Urusharta Cemerlang Sdn Bhd
� Future retail developments of the Sponsor
� Covers the whole of Malaysia
fahrenheit88General retail development
(artist rendering)
PRIVATE AND CONFIDENTIAL
Pavilion REIT Management Sdn BhdLevel 10 Pavilion Kuala Lumpur
168 Jalan Bukit Bintang55100 Kuala Lumpur
Telephone Number : +603 – 2118 8888
Facsimile Number : +603 – 2118 8889Email : info@pavilion-reit.com
Website : www.pavilion-reit.com
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