PETALING JAYA: Tower Real Estate Investment Trust
(Tower-REIT) believes that the Klang Valley office market continues to demonstrate positive leasing momentum in the first half of 2026, with demand gravitated towards premium-grade, and well-connected office buildings as rental levels improved.
“This flight-to-quality trend is expected to continue with ongoing displacement of occupancy of older buildings towards quality with competition remaining intense,” said the firm.
Releasing its results for the fourth quarter and financial year ended June 2026 (4Q26) yesterday, Tower-REIT saw 4Q26 net profit jump by almost four times to RM3.7mil, as revenue climbed 7.3% year-on-year (y-o-y) to RM10.4mil.
For financial year 2026, the investment trust saw bottom line soar 73% y-o-y to RM12.5mil, as turnover reached RM42mil on a 7.9% improvement.
In a Bursa Malaysia filing, Tower-REIT credited the better 4Q26 performance primarily to higher occupancy across its portfolio, increased rental rates at Menara HLX and Guoco Tower, alongside a reduction in interest expense.
For the full financial year, the stronger performance was underpinned by higher rental contributions and lower interest expense.
