MALAYSIAN REITS WITNESS POSITIVE GROWTH IN 2024 DESPITE GLOBAL CHALLENGES - MRMA

KUALA LUMPUR, Sept 19 (Bernama) -- The Malaysian Real Estate Investment Trusts (M-REITs) have witnessed a positive uptrend despite the challenging global economic and geopolitical landscape this year, according to the Malaysian REIT Managers Association (MRMA).

In a statement today, it said the Bursa Malaysia REIT Index rose by 7.0 per cent year-to-date as global benchmark interest rates have peaked, and sound fundamentals have supported strong earnings growth for M-REITs.

According to Leong Kit May, MRMA chair and chief executive officer of Axis REIT Managers Bhd, the M-REIT commercial sub-sectors’ performance has been bolstered by proactive government policies, such as the 30-day visa exemption for Chinese and Indian visitors.

She said tourist arrivals to Malaysia grew by 30 per cent in the first half of 2024 (1H2024), while tourism receipts rose by over 50 per cent year-on-year, lifting hotel occupancy rates and supporting retail sales at flagship malls.

“The industrial property sub-sector is enjoying stable occupancy rates and steady rental reversions, driven by a sharp rise in foreign direct investments into Malaysia’s industrial space in 2024.

“The office sector has also seen improvement in demand for space as more and more companies are moving their workforce back to physical offices,” she said.

Leong noted that the total approved investments in Malaysia grew almost 13 per cent in the first quarter of this year, amid favorable government policies and incentives.

“These include strategic policy efforts to attract investments in high-growth industries such as data centres, with Johor Bahru emerging as one of the fastest-growing data centre markets in Southeast Asia,” she said. 

She also highlighted that several M-REITs have also pursued portfolio expansion in 2024, with notable acquisitions seen in the industrial, hospitality, and retail REIT spaces.

“These, together with major asset enhancement initiatives, are expected to continue driving valuation and earnings growth in the years ahead,” added Leong. 

-- BERNAMA