[%DZlL%] 
Research by HLIB
BUY – TP RM1.60

“Slight shortfall”

Pavilion REIT’s 2Q24 core net profit of RM67.1m (-19.3% QoQ, +6.7% YoY) brought 1H24 sum to RM150.3m (+13.1% YoY). The results came in below ours and street estimates at 41% and 44% respectively. The negative deviation was due to lower gross revenue than expected. Declared DPU of 4.53 sen/unit vs 4.41 sen/unit SPLY. In view of the results shortfall, we cut our FY24/25/26 forecasts by -7.4%/-7.0%/-6.5% respectively. Nonetheless, management remains positive for the remaining two quarters of the year due to (i) higher tourist arrivals and (ii) higher rental income contribution from PBJ. Maintain BUY with slightly lower TP of RM1.60.

Analyst:
Tan Je Jyne
[%TTDa%]

$KLSE-PAVREIT 
Research by HLIB
BUY – TP RM1.60

“Slight shortfall”

Pavilion REIT’s 2Q24 core net profit of RM67.1m (-19.3% QoQ, +6.7% YoY) brought 1H24 sum to RM150.3m (+13.1% YoY). The results came in below ours and street estimates at 41% and 44% respectively. The negative deviation was due to lower gross revenue than expected. Declared DPU of 4.53 sen/unit vs 4.41 sen/unit SPLY. In view of the results shortfall, we cut our FY24/25/26 forecasts by -7.4%/-7.0%/-6.5% respectively. Nonetheless, management remains positive for the remaining two quarters of the year due to (i) higher tourist arrivals and (ii) higher rental income contribution from PBJ. Maintain BUY with slightly lower TP of RM1.60.

Analyst:
Tan Je Jyne
JJTan@hlib.hongleong.com.my

$PAVREIT / 5212 (PAVILION REAL ESTATE INVESTMENT TRUST)