REIT sector likely to see recovery in 2H

Aeon BigCGS-CIMB Research said it expects the retail segment to be spurred by the various festive holidays this year, adding however, that the situation could be mitigated by the negative impact of interest rate hikes and rising inflation rates on overall consumer spending.

KUALA LUMPUR: The Malaysian real estate investment trust (REITs) sector is expected to experience a gradual “U-shaped” recovery in the second half of 2022, backed by improving overall fundamentals and operating environment.

CGS-CIMB Research said the momentum in recovery in the second half of this year will be driven by positive impact from full economic reopening since the fourth quarter of last year, as well as a pick-up in domestic tourism activities, in tandem with the easing of international travel restrictions.