Kuala Lumpur’s showcase Pavilion mall says it has weathered the sluggish retail market, posting increased earnings this quarter.
Gross revenue for the first quarter of the current calendar and financial year was RM105.1 million (US$29.6 million) which translated into a net profit of RM60.5 million ($17 million).
Revenue rose by four per cent year-on-year after renovations were completed last year, and due to an increase in service charges.
The mall’s occupancy rates were stable and this year just 15 per cent of tenants leases are scheduled to expire. Pavilion mall management expects only a slight relocation and revision of the current tenant mix.
Renovations are planned of restrooms, parts of level one in the foodcourt area and enhancements of the air conditioning system to reduce power consumption and air flow.
Pavilion management reports tenants sales were stable through the quarter, but warned April sales are down due to the introduction of GST on April 1.
In a research note, Hong Leong IB said it expected the slowdown will only be temporary.
“Consumers will adjust their spending habits after a while.”