REIT Investment Outlook @ Malaysia – June 2012

REIT Investment News

Market capitalisation for Real Estate Investment Trust (REIT) in Malaysia is expected to grow by 30 per cent to RM20 billion this year.

This is according to Sunway REIT Management CEO Datuk Jeffrey Ng at the REIT Conference 2012.

Main contribution to this would come from  IGB REIT listing, which is worth between RM3.5 billion and RM4.5 billion.

IGB is a general construction and real estate developer. This is the company’s initial investment portfolio on KLSE. IGB REIT will comprise of  The Gardens Mall and Mid Valley Megamall.

Organised by the Asian Strategy and Leadership Institute, the REIT Conference 2012 brought together key decision makers, policymakers, sector players, property developers, asset managers, investors and consultants to share experience and forecast outlook and opportunities in the REIT market.

Key Takeaway

There’s huge growth potential for M-REIT for investors looking for consistent income from their investment. REITMethod is an online education course for learning to choose the profitable REIT investment at the right time by looking at real facts and figures.

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Another REIT investment news is related to Al-Aqar REIT. The “sponsor” of Al-Aqar REIT assets,  KPJ Healthcare Bhd will spend RM2 billion in the next five years to construct new and expand existing hospitals locally and internationally.

This is according to its chairman Kamaruzzaman Abu Kassim, at the group’s shareholders meeting the day before.

These plans will be funded mainly by selling its hospitals once completed, into the Al-Aqar healthcare REIT.

Currently, almost all of its 21 hospitals are part of Al-Aqar REIT.

The development include six new hospitals, namely KPJ Sabah Specialist Hospital, KPJ Pasir Gudang Specialist Hospital, KPJ Pahang Specialist Hospital, KPJ Specialist Hospital Bandar Dato’ Onn, KPJ Perlis Specialist Hospital and KPJ Muar Specialist Hospital.

Its expansion plans, which will see it investing RM867 million, will increase the number of beds in its hospitals to 3,400 from 2,600 now.

For the financial year ended December 31 2011, about 76 per cent of the healthcare company’s profits came from its hospital operations. During the year, the group made RM154.3 million net profit on RM1.9 billion revenue.

Key Takeaway

Healthcare REIT is generally an extremely defensive investment. There are also other factors to consider though,  and that can only be known by scrutinizing the financial statements. Members of REITMethod course get to do this the right way, step by step, via video tutorials.

 

Related posts which I recommend are:

What to Look for when Investing in REIT

 REIT Annual Report – How to Invest in 10 minutes

 Top 10 Reasons I Invest in Capital Malls Malaysia Trust

Disclaimer: The above opinion is not a recommendation to buy or sell. The ideas expressed are solely the opinions of the author. Any action that you take as a result of information, analysis, or commentary on this blog is ultimately your responsibility.

Source: Business Times

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