Just last week, I revisited my analysis of the top 10 Singapore REITs you would have profited from if you’d invested since their initial public offerings. Among the 25 Singapore REITs that have been on the market for over a decade, 20 have handed investors positive returns overall. Today, let’s shift our focus to measuring the performance of REITs listed in Malaysia.
When the COVID-19 pandemic hit in 2020, Malaysian REITs, which predominantly consist of retail and office properties, encountered significant hurdles. However, by 2024, there was a marked recovery in their market prices. This rejuvenation was largely driven by a surge in tourism, which brought a higher number of visitors and increased spending in shopping centers. This influx enabled property owners to raise rents. Despite such a robust resurgence last year, REIT prices in Malaysia still linger about 10% below the levels they were before the pandemic struck.
At first glance, REITs might appear to have underperformed since those challenging times. Yet, for those of us focused on income investing, it’s crucial to evaluate performance over the long haul. It’s in these extended time frames that the real value of these investments can be measured.
