Structural oversupply a bane for REIT sector

RHB Research said M-REITs have minimal downside risks to earnings in the short term.

PETALING JAYA: While Malaysian real estate investment trusts (M-REITs) remain a steady defensive play, the sector seems to have limited catalysts to boost its share prices.

According to RHB Research, which has a “neutral” recommendation on M-REITs, the reasons for the limited rerating catalysts is due to the structural oversupply in the retail and office sectors, high interest rates globally and gradual return of tourists to Malaysia.