REITs can get it right

AS interest rates in Malaysia have normalised and stabilised, albeit at an “elevated level” following the tightening cycle, listed real estate investment trusts (REITs) are now focusing on capital discipline, cash-flow visibility and asset quality.

While borrowing costs remain higher than the ultra-low levels of the lockdown years, there is no fear of near-term rate volatility. This has shifted investor focus toward balance-sheet resilience, refinancing profiles and the sustainability of distributions.