M-REITs expected to see a rebound in earnings

Overall, CGS-CIMB Research remained “neutral” on M-REITs. It recommends “add” for Axis REIT, IGB REIT and Sentral REIT.

PETALING JAYA: Malaysian real estate investment trusts (M-REITs) are expected to see a rebound in earnings this year, as the rollout of Covid-19 vaccines helps drive economic activities.

CGS-CIMB Research is projecting a core net profit growth of 10% year-on-year (y-o-y) for the sector in 2021,6.9% y-o-y for 2022 and 10.7% y-o-y for 2023 on improving net property income margin and phasing out of rental assistance.