Opportunity to accumulate REIT stocks on appealing distribution yields

While the results of REITs for 2023 came in mixed,AmInvestment Bank Research anticipates stable occupancy rates across key assets.

PETALING JAYA: AmInvestment Bank Research sees buying opportunities in local real estate investment trust (REIT) stocks, given widening yield spreads against 10-year Malaysian Government Securities (MGS), supported by appealing distribution yields of 6% to 8%.

With the monetary policy tightening coming to a tail-end, it said developed economies could potentially cut interest rates in the second half of 2024 (2H24).