2019 Q2 Business Overview - Pavilion REIT Q2... · part of FTSE Bursa Malaysia Mid 70 Index part of...

PRIVATE AND CONFIDENTIAL

2019 Q2Business Overview

25 July 2019



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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


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


Exempt an for AIA Bhd

1.49


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


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


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%



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Occupancy rate at the end of quarterOccupancy rate at the end of quarter


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%



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10%

Conv Hsehold & Living1%

Edutainment8%

Fashion 12%

Food & Beverage

35%


Furnishings8%

Services5%

Supermarket15%

Urban Leisure3%

Others3%


10%Conv Hsehold &

Living1%

Edutainment5%

Fashion 9%

Food & Beverage

47%


Furnishings6%

Services6%

Supermarket13%

Urban Leisure1%

Others2%

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6. DA MEN Mall


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DA MEN Mall – Tenancy Status



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



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%



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85.6% 86.3% 76.5% 79.0% 78.8% 74.4% 67.9% 65.4%


7%

20%15%

37%

21%

Monthly 2019 2020 2021 2022


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10%

Elect IT & Digital1%

Fashion 17%

Food & Beverage

29%

Health & Fitness

5%


Furnishings14%

Shoes Bags & Leather

12%

Supermarket10%

Toys/Hobbies/Child2%

Others0% Beauty &

Personal Care17%

Elect IT & Digital2%

Fashion 6%

Food & Beverage

51%

Health & Fitness

4%


Furnishings9%


0%

Supermarket6%

Toys/Hobbies/Child1%

Others4%

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7. Elite Pavilion Mall


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Elite Pavilion Mall – Tenancy Status



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



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%



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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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1%

Fashion 29%

Food & Beverage

42%


Furnishings2%

IT & Digital3%

Jew ellery Timepieces

2%

Leisure Hobbies Toys7%


5%

Travel & Luggage

5%

Urban Leisure1% Beauty &

Personal Care3%

Fashion 32%

Food & Beverage

33%


Furnishings1%

IT & Digital3%

Jew ellery Timepieces

6%

Leisure Hobbies Toys4%


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


34

Pavilion Tower Office – Tenancy Status


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)


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 : [email protected]

Website : www.pavilion-reit.com

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2019 Q2 Business Overview - Pavilion REIT Q2... · part of FTSE Bursa Malaysia Mid 70 Index part of...

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