REITs Malaysia: Selected ones are very safe to invest. Which is the best?

REITs Malaysia: Selected ones are very safe to invest. Which is the best?

Actually REITs in Malaysia are safe to invest. I have yet to read about any REIT facing financial issue causing it to report losses. Either that or I missed that news. As for the typical dividends, here are one latest I could find online. Looks decent right, the percentage where dividends are concerned. I show you both the highest and the lowest ones. Generally, any REIT counter we buy gives us dividends. So, it’s safe.

Solid Defensive Yield Play says RHB Research

Article here: nst.com.my Real estate investment trusts (REITs) will remain a strong defensive yield play in 2025, given the stable economic and rental growth outlook. 

The firm has maintained a “neutral” stance on the sector and selected Axis REIT and Sunway REIT as its top picks. 

“With high occupancy rates and normalised rental reversions moving forward, we prefer REITs with more inorganic growth prospects, especially as interest rates may have peaked at this juncture. 

“We like Sunway REIT for its diverse property portfolio and active acquisition strategy. 

“As for Axis REIT, it is our pick due to the resilient industrial subsector, and it should record strong distribution per unit (DPU) growth in the financial year 2025 (FY25) on the strength of new acquisitions made,” it said in a note. Do read all their research in full here: Article here: nst.com.my

Investing into something which gives returns above 6 percent is a good decision, I think.

FD rates are around 3 percent today. Thus, if any REIT counter we buy gives us double, I think it’s worth to put some money into it and just wait. When property prices increase, this will help the valuation of the REIT counter, so REITs also potentially give us capital returns which should be reflected in the REIT price. It’s just not as direct as when we invest into a property but REITs allow us to invest anytime we have some money. It does not need for us to save at least 10 percent of the property price which is substantial. That’s also the reason why so many people say they do not want to invest into a property.

Happy deciding.

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