Moderate outlook for REIT sector

HLIB Research favours Axis-REIT with a target price of RM1.99 a unit as well as Sunway-REIT and IGB-REIT for their strategically located prime retail malls.

PETALING JAYA: Hong Leong Investment Bank (HLIB) Research is keeping its “neutral” stance on the real estate investment trust (REIT) sector, as a favourable outlook for some sub-segments are neutralised by less optimistic projections for others.

Dividing the REIT industry into a number of segments including offices, retail, industrial and hotels, the research house noted there was still an oversupply of office space, especially in the Klang Valley, with vacancy rates staying at 30%.