PETALING JAYA: Hong Leong Investment Bank (HLIB) Research expects the future earnings of the real estate investment trusts’ (REITs) sector to be underpinned by company specific strategies such as asset injections, tenant remixing and improving occupancies.
The research house in a report said retail REITs in the fourth quarter of financial year 2025 (4Q25) should also benefit from the seasonal uplift during the year-end festive period and school holidays, which typically drive higher tenant sales and variable rents.
During the recent 3Q25 results season, five REITS under its coverage namely Sentral-REIT, IGB Commercial-REIT, Axis-REIT, KLCC Property Holdings Bhd and Pavilion-REIT reported earnings broadly in line, while Sunway-REIT exceeded expectations on stronger hotel occupancy.
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