PETALING JAYA: A growing demand for industrial space in Malaysia, steady portfolio occupancy rates and higher retail rental reversion is supportive of Capitaland Malaysia Trust
’s outlook, says CGSI Research.
CapitaLand Malaysia reported fourth quarter of financial year ended Dec 31, 2025 (4Q25) and full-year (FY25) financial results last Wednesday.
Net profit for 4Q25 slipped 17.3% compared to the same quarter in 2024, while revenue grew 3.9%. It also proposed a dividend of 1.91 sen per share for 4Q25.
The brokerage reiterated an “add” call on the stock with an unchanged target price of 78 sen.
“We like CapitaLand Malaysia for its compelling FY26 dividend yield of 7.1% and exposure to high-quality malls, such as Gurney Plaza and Queensbay Mall, which we believe are poised to deliver high rental reversions and resilient occupancy rates in FY26 to FY28,” it said.
“We are also positive on CapitaLand Malaysia’s recent acquisition of five high-specification industrial assets in Johor for RM222.1mil.
“While these properties are still under construction and will be completed from FY27 onwards with no committed tenants to date, management highlighted strong underlying demand for industrial space in Johor and is targeting a net property income yield of 7.3%, in line with its existing Senai Airport City facilities,” it said.
Three industrial properties from its portfolio, Senai Airport City Facilities, Synergy Logistics Hub and Iskandar Puteri Facilities, posted maiden contributions in FY25.
“We expect full-year contributions from these assets to partially support FY26 dividend per unit growth, with potential to deliver commendable rental reversions amid growing demand for industrial space in Malaysia,” it said.
“Management expects average rental reversions for its retail portfolio to remain in the low teens, with a resilient retail outlook likely to mitigate potential headwinds from the implementation of the 6% sales and service tax on rental and leasing services,” it said, adding that industrial assets delivered a strong average rental reversion of 21% in FY25 driven largely by lease renewals at Valdor Logistics Hub.
