“Malaysia’s REIT sector is expected to grow in 2026, driven by new listings, asset injections and supportive interest rate conditions.”
Kuala Lumpur, 18th December 2025, 11.30am – Malaysia’s real estate investment trust (REIT) sector is expected to see strong expansion in 2026, underpinned by a potential wave of new listings from major property developers and continued asset injections.
Analysts believe the anticipated listings could channel significant new capital into the market, broadening the sector’s asset base and providing investors with greater access to quality retail, industrial and office properties.
RHB Research estimates that RM10 billion to RM11 billion worth of assets could be introduced into the REIT market through upcoming exercises, reflecting developers’ efforts to monetise completed assets, diversify funding sources and take advantage of rising demand for income-generating investments.
The research firm maintained its “Overweight” stance on the sector, citing expectations of a more accommodative interest-rate environment, which typically favours yield-focused instruments such as REITs.
Policy-related tailwinds are also expected to support sector performance. RHB noted that initiatives such as Visit Malaysia Year 2026 (VMY2026), along with measures under the National Energy Transition Roadmap and the New Industrial Master Plan 2030, should benefit retail- and industrial-focused REITs.
Pavilion REIT remains RHB’s top pick, supported by its relatively higher floating-rate exposure and strong retail portfolio positioned to benefit from increased tourist arrivals linked to VMY2026.
Meanwhile, Hong Leong Investment Bank Bhd (HLIB) highlighted several potential acquisition pipelines to watch. These include Paradigm REIT, AmanahRaya REIT and UOA REIT.
Paradigm REIT plans to inject three hospitality assets — Hyatt Place Johor Bahru Paradigm Mall, Le Méridien Petaling Jaya and Premier Hotel Klang — with a combined valuation of about RM500 million, targeted for the second half of 2026.
AmanahRaya REIT is proposing the acquisition of an industrial property in Telok Panglima Garang, Selangor, for RM39 million, while UOA REIT is seeking to acquire Tower 2A, Tower 2B and a car park at UOA Business Park in Glenmarie, Shah Alam, for RM200 million.
HLIB also pointed to solid operational performance among existing REITs. Sunway REIT, Pavilion REIT, Axis REIT and KIP REIT posted double-digit year-on-year growth, driven by recent asset acquisitions and improved rental performance.
Sunway REIT benefited from multiple retail asset injections, including Sunway 163 Mall, Kluang Mall, Sunway Oasis and Aeon Mall Seri Manjung, while the completion of Phase 2 of the Sunway Carnival Mall refurbishment in May 2025 further supported growth.
Pavilion REIT continued to gain from hospitality-related asset injections, while KIP REIT’s performance was lifted by the acquisitions of KIPMall Desa Coalfields, KIP Kuantan and Bintulu Industrial Land.
Looking ahead, HLIB expects sector earnings to be supported by REIT-specific initiatives such as asset injections, tenant reconfiguration and higher occupancy rates. From the fourth quarter onwards, REITs with recently completed acquisitions are projected to deliver stronger earnings contributions.
The office segment recovery also remains firm, with most REITs reporting improved occupancies and positive rental reversions. During the latest earnings season, the majority of REITs under HLIB’s coverage delivered results in line with expectations.
Overall, HLIB maintained its “Overweight” outlook on the REIT sector, citing its defensive nature, resilient income streams and attractive valuations as key factors supporting investor interest heading into 2026.
