PETALING JAYA: Asset-enhancement initiatives (AEIs) followed by a good tenant mix as well as the addition of industrial properties will help support mall-and-industrial real estate investment trust (REIT) Capitaland Malaysia Trust
’s growth.
The REIT, which released second quarter ended June 30, 2026 (2Q26) results on Monday that largely met market expectations, highlighted that the AEI exercise at The Mines include the upgrade of space along the canal and the addition of new anchor tenants such as Jaya Grocer and MR DIY Plus.
According to CGS International Research, the addition of five high-specification industrial facilities in Iskandar Malaysia to be delivered from March 2027 to January 2028 paves the way for growth in financial year 2027 (FY27) to FY28 dividend per unit (DPU).
The research house, which reiterated an “add” call and 78-sen target price (TP), said it also expects full-year contributions from newly acquired industrial assets that started full contributions in 3Q26 to partially support FY26 DPU growth.
This comes with the potential to deliver commendable rental reversions amid growing demand for industrial space in Malaysia, it added.
UOB Kay Hian Research shared that CapitalLand’s management expects the tenant remix and upgraded space to support higher post-AEI rents in The Mines, while also expecting net property income to turn positive as of 2026 for Sungai Wang Plaza on higher occupancy and rental improvements.
It has maintained a “buy” call but raised the TP to 80 sen from 78 sen on an attractive dividend yield of 8% while pointing to the average 11.6% in rental reversions for malls during the first half of FY26.
TA Research believes rental reversions would remain positive into the second half of FY26 as management aims to maintain the momentum with tenant remixing across the portfolio continuing to support income growth.
“Management views AEON at East Coast Mall and Jaya Grocer at The Mines as stronger concepts than their predecessors, with the new anchors securing higher rents and improving the malls’ positioning,” it added.
It has reiterated a “buy” call and maintained the TP at 81 sen.
It added that leasing discussions for the five incoming industrial assets continue apace with potential tenants from Malaysia, Singapore, China and the United States having visited the site.
