Better days for REITs on improving economy

RHB Research said retail REITS should remain resilient, backed by a resilient domestic economy and a rising number of tourists despite inflationary pressures and risks from the impending luxury tax.

PETALING JAYA: RHB Research remains optimistic about the outlook for Malaysia’s real estate investment trusts (M-REITs) as the sector should continue to improve, backed by healthy domestic economic growth.

The research house said M-REITs provided a decent defensive yield play, with the current yield spread between the Kuala Lumpur REIT Index and the 10-year Malaysia Government Securities being about 180 basis points (bps), which is slightly above the historical average of 151 bps.