Inflationary pressure likely to affect medium-term outlook for REITs

Sunway-REIT may have a balanced buffer against sector risk exposures thanks to its diversified assets and strong brand equity, said Kenanga Research.

PETALING JAYA: Analysts have expressed concern that a slowdown in consumer spending may impact the medium-term outlook for local Real Estate Investment Trusts (REITs).

Kenanga Research noted while REITS with commercial space such as malls would continue to enjoy healthy footfall and rental yields, high inflation and subsidy rationalisation are headwinds that could impact the sector’s earnings and valuations.