Press Release 15 January 2015 For Immediate Release Pavilion REIT’s 2014 annual distribution per unit improved by 8.2% Kuala Lumpur, 15 January 2015 – Pavilion REIT Management Sdn Bhd (“the Manager”), the REIT Manager of Pavilion Real Estate Investment Trust (“Pavilion REIT”), is pleased to announce that Pavilion REIT’s distribution per unit for 2014 increased by 0.60 sen to 7.96 sen, as compared to 2013. nd Distributable income of 4.12 sen for the 2 half of 2014 is expected to be payable on 27 February 2015. This translates to distribution yield of 5.5% based on Pavilion REIT’s closing price of RM1.46 per unit as at 31 December 2014. This closing price is higher by 14.1% as compared to 31 December 2013 closing price of RM1.28. Gross revenue increased by RM26.6 million or 7.1% to RM402.1 million in 2014 as compared to 2013. This resulted in net property income of RM282.7 million or 70.3% of gross revenue. Revaluation of its retail mall resulted in increased of its fair value by RM278.1 million to RM4,300.0 million, leading to profit before taxation of RM510.5 million or increase of 56.0% year on year. This impact gave rise to Pavilion REIT’s net asset value per unit from RM1.17 as at 31 December 2013 to RM1.26 as at 31 December 2014. Although 2015 is expected to remain challenging for the retail sector due to weak consumer sentiment from impending GST implementation, weakening of Ringgit Malaysia and inflationary pressures, the Manager will continue to engage with its stakeholders to continue to attract shoppers, manage its operational cost effectively and seek investment prospects to ensure the best achievable return for unitholders. Continuous effort will be employed to fill up office space vacancies, although there are many other options available to potential tenants with newer buildings coming into the market and attractive lower rent. Key Financial Information 2014 2013 Gross Revenue RM'000 Q4 2014 100,770 96,450 4.5% 402,092 375,509 7.1% Net Property Income RM'000 70,487 67,658 4.2% 282,739 263,125 7.5% Fair Value Gain RM'000 278,112 113,112 145.9% 278,112 113,112 145.9% Income before Taxation RM'000 335,182 168,074 99.4% 510,475 327,250 56.0% Distributable Income RM'000 59,150 56,884 4.0% 239,928 221,315 8.4% Propose / Declared Distribution per Unit sen 1.96 1.89 3.7% 7.96 7.36 8.2% Closing Price as at 31 December RM 1.46 1.28 14.1% 5.5% 5.8% Distribution Yield (based on Closing Price ) Q4 2013 Change Change About Pavilion REIT Listed on 7 December 2011, with the largest exposure to the retail sector by any listed Malaysian REIT, Pavilion REIT owns a RM4.4 billion portfolio based on appraised value, which consists of Pavilion Kuala Lumpur Mall and Pavilion Tower, both of which are located in Bukit Bintang, Kuala Lumpur, Malaysia. Pavilion REIT is established with the principal investment policy of investing, directly and indirectly, in a diversified portfolio of income producing real estate used solely or predominantly for retail purposes (including mixed – use developments with a retail component) in Malaysia and other countries within the Asia-Pacific region as well as real estate related assets. For more details, please visit www.pavilion-reit.com About Pavilion REIT Management Sdn Bhd Pavilion REIT Management Sdn Bhd is the manager of Pavilion REIT. Incorporated in Malaysia on 7 April 2011 with an issued and paid up capital of RM5.0 million, it is 51% owned by Urusharta Cemerlang Development Sdn Bhd and 49% owned by Urusharta Cemerlang Project Corporation Sdn Bhd. The principal activity of the Manager is to manage and administer Pavilion REIT.