This is the most practical, highly actionable guide to invest in the best REITs in Malaysia.
The best part?
We are going to reveal how the really advanced property investors achieved breakthrough by using REITs as an smart alternative to property investment.
Knowing this will render you an indestructible investor in both realms – stocks and property.
Just like Thor – he dominates both in his divine homeworld (Asgard) and in the human realm (Midgard)
In short, this is your shortcut to profitable property investing using REITs as an alternative. Regardless you have RM 500 or RM 500,000 to invest, you’ll love this guide.
Let’s get started.
Table of Contents
What is REIT as an investment asset class or sector?
Get to know Malaysian REITs before investing
What to look for before Investing in a REIT?
Why Invest in REITs?
Buying REIT Investments in Malaysia
“Next to the right of liberty, the right of property is the most important individual right guaranteed by the Constitution and the one which, united with that of personal liberty, has contributed more to the growth of civilization than any other institution established by the human race.”
This saying by William Howard Taft definitely best describes the significance and the importance of appropriating for one’s self real property and it applies to everyone which is living in the world today.
Investing in real property which can provide cash flow to its owners through regular passive income and dividends is simply the best deal that you can get with acquiring real estate properties.
FACT: Real Estate Investment Trust or REIT has emerged as the best vehicle to indirectly invest your money into real estate properties without the hassle or problems that often comes with managing tenancy related issues.
My credibility in REIT investing comes from the fact that in addition to managing multi-millions equity investment portfolio for clients as an independent financial adviser, I’m also sought after by corporate financial organizations (like fund houses, financial associations and reputable banks) for my REIT investment expertise, to conduct workshops & seminars for their internal staff, whom consists of:
- CEO & CFOs
- Accountants
- Investment Analysts
- Bankers
- Financial Advisers
What is REIT as an investment asset class or sector?
Real estate investment trust or REIT is a form of public listed corporation which invests its shares in acquiring and running profit-making real estate or properties. The profit from rental income is then distributed to investors in the form the dividend back to shareholders.
It is a structure where investment comes through the buying of shares and investing it to buy real-estate proprty which is rented out in order to reap profits. Some of these real estate assets under a REIT include one of more combination of the following: hotels, office and warehouse spaces, hospitals and shopping centers.
>> CLICK HERE TO ATTEND UPCOMING WEB CLASS on REIT INVESTING
Get to know Malaysian REITs before investing
What is REIT investment actually?
Well, let’s start with the very beginning – the first REIT in Malaysia started in 2005, but it was not until 2011 that Malaysia has really caught up with the trend.
The good thing about REIT investing in Malaysia is that it has brought a good amount of profits for its investors since the economic crisis in 2008-2009 caused by US subprime mortgage crisis.
Since then, not unlike ASB, REIT sector had effortlessly and consistently brought from an average of 6%-8% annual net dividend yield to double-digits yield (circa 12% to 15%) especially for investors who had the guts to go all in when the REIT prices bottomed back in 2008-2009.
Some of the more well-off REITs in Malaysia are the AXIS-REIT which focuses on renting-out warehouse and office buildings, the KPJ Healthcare REIT which caters to hospitals, and the YTL-REIT which owns properties for hotels & resorts.
Property developers like Sunway Group are the common shareholders and owners of REITs (Sunway REIT) as they specialize in the development of real estate. They have the advantage of knowing how to create and give the best improvements that can be made in real properties which lets them have a better business strategy for renting them out for business purposes. Furthermore, they also have that edge of knowing how to maintain and operate such establishments to get the best profits that can be had on that type of business.
Malaysia has come to be one of the leading nations aside from Singapore when it comes to profits made in REIT in South East Asia region. In terms of economic development, it was able to have great strides which have now placed MREITs as one of the best among the developing countries in the world.
Below is a REIT Malaysia list (Bursa Malaysia REIT comparison)
| REIT | Asset Type | Stocks Ticker |
|---|---|---|
| Al-Aqar Healthcare REIT | Hospital, Retirement Home | ALAQAR |
| Al-Salam REIT | Retail, Office, Industrial | ALSREIT |
| AmFirst REIT | Office, Retail, Hotels | AMFIRST |
| Amanah Raya REIT | Industrial, Office, Hotel, Retail | ARREIT |
| Atrium REIT | Industrial, Warehouse, Office | ATRIUM |
| Axis REIT | Industrial, Office, Warehouse | AXREIT |
| Capital Land Malaysia | Retail | CMMT |
| Hektar REIT | Retail | HEKTAR |
| IGB REIT | Retail, Hotels | IGBREIT |
| KLCC Stapled REIT | Retail, Office | KLCC |
| KIP REIT | Retail | KIPREIT |
| Pavillion REIT | Retail, Office | PAVREIT |
| Sentral REIT | Office, Industrial | MQREIT |
| Sunway REIT | Retail, Hotels, Office, Hospital, Industrial | SUNREIT |
| Tower REIT | Office | TWRREIT |
| UOA REIT | Office | UOAREIT |
| YTL Hospitality REIT | Hotels | YTLREIT |
REIT sector is on fast track to maturity in Malaysia with upcoming trends in e-commerce (Axis REIT is the main beneficiary with warehouse and logistics center assets) and big data (expect data center REITs to make a debut soon).
So use this table to help you buy the best performing REITs in Malaysia to keep in your investment portfolio for years to come.
Dynamic REIT Managers can still make their own signature steps in how they want to improve the performance of their properties in the market, with lots of room for improvement & development.
Malaysia REIT dividend payout
This table below will show exactly which month you will be expecting guaranteed dividend payout from REIT stocks in Bursa Malaysia. Guaranteed as in the certainty of getting a dividend payout, not the dividend amount, OK? Now, as you can see, REIT pays dividends either quarterly or half yearly, although some investors wish they are paid monthly 🙂
| Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|
| ALAQAR | FEB/MAR | X | OCT | X |
| AMFIRST | X | MAY | X | NOV |
| ARREIT | MAR | JUNE | SEPT | DEC |
| AXIS | FEB | MAY | AUG | NOV |
| CMMT | FEB | X | AUG | X |
| HEKTAR | FEB | MAY | AUG | NOV |
| IGBREIT | FEB | X | AUG | X |
| KIPREIT | FEB | MAY | AUG | NOV |
| KLCCREIT | FEB | MAY | AUG | NOV |
| PAVREIT | FEB | X | AUG | X |
| SENTRAL REIT | FEB | X | AUG | X |
| SUNREIT | FEB | MAY | AUG | NOV |
| TWRREIT | FEB | X | AUG | X |
| UOAREIT | JAN | X | JUL | X |
| YTLREIT | FEB | MAY | AUG | NOV |
| ATRIUM | FEB | MAY | AUG | NOV |
| ALSREIT | FEB | X | X | OCT |
What to Look For before Investing in a REIT?
You should always put your money where you can be rest-assured that it will be handled correctly – you would not want to invest on something which will not yield results. Careful analysis and a serious study of an REIT’s background is an important element before putting an investment in it.
>> CLICK HERE TO ATTEND UPCOMING WEB CLASS on REIT INVESTING
That being said, what should you look for to invest into the top REITs in Malaysia (or anywhere in the world, for that matter?)
- Firstly, a REIT should have an ever increasing dividend payout to its shareholders. Look at their past records and see if there is any improvement on the money that they return to their investors. If you do not see much improvement there, then you may want to reconsider investing in that REIT.
- Secondly, a REIT should not be a stagnant entity – REIT should be acquiring assets and making improvements on their assets for the past few years. Remember, you are not going to put your money into something that distribute the same or reducing amount of dividends each year. The REIT manager should be competent enough to continuously improve their net rental/profit which translates into growing dividends for shareholders.
- The REIT assets or real estate properties should be well-taken care of and located in a strategic locations which will aid in the improvement of its sales in rent. Check if the property is located in an area where there are high chances of improvement and it highly accessible to its target customers. If you are thinking of investing in a retail REIT, ask yourself if it is located centrally to an area which will attract a lot of mall-goers? If it is a warehouse, is it properly maintained to ensure the safety and protection of the goods that is stored in it and strategically located within the vicinity of major transportation hubs?
- Fourth, a REIT should favorably cater to tenants which show a promising chance of longer-term tenancies. Is the property occupied by a business which has a greater chance of staying for 2 years or more? Or is the REIT letting in businesses which are small-scale or those which have chances for being easily dissolved or abandoned upon certain circumstances? The permanency of those who rent the space is an important factor that will determine the success of the REIT.
- Does the REIT have sufficient numbers and variety of tenants that it will be able to continue functioning even if one large tenant should leave? It should be able to sustain its business without depending on a single particular tenant to keep it going.
- Does the REIT management comprise of competent and well-skilled professionals who will be able to handle the business’ ups-and-downs? All types of business experience problems either financially or organizationally but it is the way with which its administrative team is able to cope with it that they are able to come through. An entities staff is a reflection of the business and what it is eventually coming to be. If the REIT is staffed with excellent and knowledgeable personnel, you will be sure that it will be able to go through good and tough times.
REIT Malaysia Analysis
This is an example of how you do it (watch video lesson below).
In short, you analyze its financial statements, whether pre or post IPO. Important things to look at include tenancy profile, weighted average lease of expiry (WALE), net property income which affects Distribution per share (DPU), gearing ration, net asset value, and to a certain extent, SWOT analysis.
Why Invest in REIT
Investing in REIT is now considered as a safer way of making an investment due to its nature and entity structure (trades like shares, structured like a unit trust).
Consider the following advantages of REIT investing in contrast to other options of investments such as in direct brick & mortar real estate properties or small-mid cap stocks.
Any REIT is obligated to distribute minimum 90% of its net profit
In order for any public listed REIT to be exempt from corporate tax, it will almost always distribute at least 90% of its net profit – rain or shine.
Nothing fancy here – a REIT net profit purely comes from rentals collected from all commercial real estate properties under its management.
Compared that to any other profitable public listed company – which is not obligated to pay any dividends if it needs to conserve cash flow for, say, expansion. For example, even though Public Bank has been historically paying great dividends, if the board of director/management chooses not to pay any this year or pay significantly lower, it can do so and you can complain until the cows come home.
But REIT cannot do that and surely will not because it gets incentivized to pay 90% or more of its net profit. Therefore, in terms of dividend paying investments, there’s no asset class or investment vehicle like REITs that can provide investors with such a ASB-like consistent and almost-guaranteed dividends.
In other words, a truly defensive asset class come what may – even in economic crisis, dividends is sure as eggs is eggs!
> CLICK HERE TO GET A REIT INVESTING SUCCESS STORY CASE STUDY
Investing in REIT = Informed Diversification of your Property Investment
Real estate property investing in REIT form provides you with lower downside risks – but how?
REIT essentially provides investors the opportunity to become a part-owner of a large-scale business cum commercial real estate property portfolio; this would be quite impossible if you are going on the traditional path of direct (residential) property investing.
Watch this lesson below on WHY REIT could be your best option to scale your property investment when you are working in an job with uncertain future prospects or need to deal with a lot of financial uncertainties in your business
Even if you can afford to build a sizeable property portfolio, there’s no guarantee that you’ll achieve improving diversification. On the contrary, you could be heading to diworsification, where subsequent real estate property purchase worsen you overall property portfolio rental profitability.
Ouch!
On the contrary, for example, by investing in Sunway REIT, the REIT manager need to ensure that any assets or properties injected into its existing asset portfolio will improve overall long term profitability, not worsen it, otherwise they will be out of job very soon comes the next AGM.
Furthermore, investing in a diversified REIT means your funds are already spread out among several properties types and also geographically. Your funds could are invested in malls, hotels, offices across several states in Malaysia.
You can even take it further by investing in global REIT funds which invests in commercial real estate around the world. It is available in the form of unit trusts or even ETFs via platform that is Malaysian-friendly like Stashaway Malaysia.
Now that IS informed diversification.
Investing in REIT means Cash Flow Liquidity
Compared to a brick & mortar real estate property, you’re able to purchase and dispose of any REIT shares in KLSE within seconds.
Think of the hassle you have to go through just to sell a condo unit now. The lawyers, agents, potential buyers, it’ll be at least a few months before you’re able to get the liquid funds from the sale of the condo.
You will realize how important liquidity is if you ever been in a financial emergency. Liquidity will save you a huge amount of time when disposing of REITs, for a fraction of the costs compared to disposing a physical real estate property.
In other words, the REIT shares that you own can be sold in the stock market as they are treated as regular shares.
Buying REIT Investments in Malaysia
How to buy REIT in Malaysia?
Well, you can buy shares of conventional or Islamic REIT of any entity in Malaysia by going to Bursa Malaysia much like the same way that you buy stocks in other markets. You can conveniently use any stockbroking platform and filter by sector – REIT to see all the REIT shares trading in KLSE.
The easiest way to open an online brokerage account without much paperwork is shown in the video lesson below, to buy some of the best REITs to invest in Malaysia.
Evidently, real estate investment trusts (REITs) is indeed one of the safer ways to invest in real estate property. Malaysia is one of the countries in Asia which have made great strides in REITs market. The present state of the country’s economy is certainly an ideal one which will definitely allow investors a chance for creativity and ingenuity in business strategy and a greater share of the market. Expansion is also one of the many possibilities in an REIT in Malaysia.
So, what else do you want to know more about REIT? Post a comment or question below.
What to know more in detail about REIT Investment? Visit REIT Method – the #1 online course on how to analyze REIT Investment in Malaysia. Also, how to pick and buy the top performing REIT counters in 2020, 2021 or heck, at any given time. Suffice to say, whether you want to know the top 5 or top 10 REITs in Malaysia, this is the place to go.
Trivia: Do you know you can also use do EPF account 1 withdrawal to invest into REITs overseas? No? Then you want to check out REITMethod.
Related
How to invest in Malaysia REITs for passive income – a beginner’s guide
The Complete Guide to REITs in Malaysia
How to invest in REITs in Malaysia and why is it an alternative to property investment?
REITs In Malaysia: 8 Core Categories Of Real Estate To Invest In
112 replies to "How to Invest in REIT Malaysia (Definitive Guide 2023)"
I don’t think many of websites provide this type of information.
Hi. Im interested to invest in REITS. Where do i start? Which platform should i register? Kindly assist.
AA, opening an account via online platform is the easiest to kickstart what you want to do. For that, head over to this for step-by-step instructions: https://youtu.be/Bq_cKJ7FBH4
When you want to learn the ‘How-to’, suggest you check out this: https://reitmethod.com/webmain/
Hi Sifu,
I have a house with market value of RM300-350K (Settled debt) which only generate monthly rental of RM550 now.
Any advise if i selling the house and invest in REITs? What is the risk?
Regards,
VC
congrats for being debt-free (for this house) but the rental is indeed paltry ~ circa FD yield.
Since you ask about REIT and risks, suggest you go to here to learn more – https://reitmethod.com/webmain/
hi what would you think about YTL Hospitality REIT per current MCO and future perspective ?
understandably bad but then again, like they say “bunga bukan sekumtum, kumbang bukan seekor’ or ‘Miss The Forest For The Trees’ 🙂
HI CF and KC, thank you for your complete introduction about REITs. My name is Aaron and I’m currently 18 yrs old. I’m going to pursue my studies in sunway college soon. My future plan and goals are to be an accredited investor or a business person and most importantly to have financial freedom. So i knew that it is important for me to start investing in myself now with knowledge about real estate investment, portfolios etc during my young ages. These few days i have been researching about REITs on the internet and found it might be a good investment for my future. So by now I knew that I still need to pursue my studies and after graduate only i can have a job and convert my income into my assets columns for investment. So any advice on how to start learning about REITs and strengthen my knowledge on this investment?
Aaron you can do so here: https://reitmethod.com/webmain/
Your write-up on REITS is very comprehensive and thank you for for it.
Am thinking of switching most of my holdings ( almost all in negative positions) to REIT for the dividends and capital appreciation .
1. Do you have any favourites to look out for and why,
2. Should wait untill MCO is over or start to pick some up during dips
3. Should I wait for some recovery to sell before switching
Best regards and stay safe.
Alan Tan, thank you for your compliment. Sorry to hear about your current positions but really, in times of uncertainty, dividends & cash flow is king.
That being said, the answer to your first question is here- https://reitmethod.com/webmain/ where I can give you some insights in detail because it’s too lengthy to respond to that.
The answers to your 2nd and 3rd question boil down to your how strong is your holding power, which I have no idea on and that’s why no professional should dispense any advice without understanding your situation wholly.
Hai CF lieu.I have few question here..I made several surveys on the REIT sector.But currently i am not clear with this situation.If 90% or more of the totol income of REITS in the basis year for a year of assessment is distributed to unit holders,REITs are exempted from tax for that year of assessment.However unit holder are liable to tax on this distributed income right? Since I am a individual unitholder 10% of tax is charged for the dividen distributed to me right? .Help me to clear on this situation.Isan’t there is alternative ways to get off from the tax charged for the individual unitholder.
Thanks in advance
Your understanding is correct but Why would you want ‘get off from tax charged’ as an individual? 🙂
Two to three years or even five as long as the dividends are still attractive.
If the dividends are still attractive, why only hold for 2-3 years? or even 5? Why not forever? 🙂
hi CF Lieu,
I have few questions here.
1, I tried to activate domain CDS account, and I called HL and used RM2k to re-activate. So the RM 2k can be used to buy reit / stock ???
2, How does REIT gives out dividends?? Bank in to holder’s broker account ??
Thx in advance,
1. You are absolutely right Jin
2. Bingo on that too.
Cheers!
I am using fundsupermart and i can see some of the REITs funds but i don’t which to invest 🙁
any guidelines and suggestion?
have you tried learning some free lesson over here Eddy? 🙂 https://reitmethod.com/webmain/
Hi, I have just started investing via Rakuten Trade. As this is my first time investing in general, when I want to buy for example, SunReit, on the order page, there are 2 options: Limit order and Market order. I’ve chosen Limit Order in this case, however I have no idea how this process works. Why is the shares I bought not appearing in my portfolio yet?
Thank you in advance for your advice.
When you put Limit Order, it’s likely your orders aren’t executed which explains why you don’t see any shares bought, because no shares are bought 🙂 Does this make sense?
Yes, it make sense now. Thank you for explaining.
If I have RM1500 to RM 2000 to invest every month, should I invest it in REIT or should I make capital repayment to my house mortgage loan. I have paid about one third of the capital amount borrowed and has another 15 to make the repayment.
Value you insight. Thanks.
*correction…. Meant to say I have another 15 years to pay the mortgage loan.
Franky, what is the exact annual interest rate of your mortgage?
Hi. You mean the current mortgage I’m paying? It is 4.36%. When I took up the loan it was based on the BLR system.
Well, if you can get 5-7 percent per year versus ‘saving’ 4.36 percent per year on your mortgage interest…which makes more sense?
Or let me put it in another way….
Scenario #1
Your, say, 100k advance payment into mortgage….you ‘save’ 4360/year for the next 15 years ~ that’s about 65k. Good money, but that’s probably the max you can save…but the thing is, mortgage interest rate, I expect will go further down in the future ( 4.36% to say….3.5% in 2026….then to, say 2.9% in 2030….)
Scenario #2
The other scenario: 100k into REIT. Gives you dividend of 5% today. That’s 5000/year. A good, growing REIT, gives increasing dividend every year…say, conservatively, matching inflation rate at 3% growth per year
…so starting at…5k to 5.15k…to 5.3k…to 5.46k…and so on…..[and I’m just considering the dividend, not even counting potential capital gain]
Do you know how much you’ll end up with in 15 years time?
Hi, I would like to know if I am a full time student and without pay slip, how should I start investment?
Tan, let us understand – is there any reason you don’t feel like focusing on your study right now, full time?
Hi, may I know what’s the best online website/app to use to invest in REIT (in a Halal/Islamic manner)?
Thank you
Yaasir, what do you mean the best website/app? How do you define ‘best’?
I guess in the sense of: easy/simple to use and understand? Low fees would be a plus too.
Have you considered this and see if it’s easy/simple enough for you? (the low fees is given)
When REIT distribute income and mentioned taxable and non-taxable, what does that means?
Do unit holder need to declare personal tax on the taxable dividend?
No, there’s no need to declare your REIT dividend received in personal tax filing
can I invest REIT in singapore if I am staying in Malaysia . If yes ,how do I invest?
Yes. Through a foreign broker that allows you to trade SGX share, or through a local broker who allows you to trade SGX share.
Hi, I am interested to invest in REIT but I am station out in Hong Kong. Any advice?
Hi Heidi, do you mean you are a Malaysian based in Hong Kong?
Hi CF, can you briefly talk about the risk, return and liquidity of REIT
Tew, you might want to check out this (click here). It’s too lengthy to respond to you here.
Hi KC and CF,
Im new here, may i know how do DPU work? how to calculate dpu?
Lim you don’t calculate DPU. DPU or DPS is a number you see and discover from a REIT or stocks annual reports.
Hi there KC / CF
Love your content here !
Is it possible to start investing ( REIT or in general ) even though I don’t work for a company ? I’m a freelance worker that works for myself. I’ve recently registered SSM however
Shawn, thanks. Well, of course! Why did you think a freelancer like yourself wouldn’t be able to start investing in REIT?
Hi, CF, can u briefly talk about what are the requirement to become investor or investor profile ?
What do you mean Wang? Can you elaborate what you wanna do?
Hi KC or CF,
I am interested in investing in the REIT’s market but i am unsure of what may be the best amount especially for a beginner in the REIT’s market. Whats the minimum recommended amount ?
Well Daniel, there are some REIT counter which is like RM 0.80 per share. And if you buy 1 lot (100 shares), that’s like RM 80. Do you have RM 80? Sure you do 🙂
That being said, recommend you register a spot at our upcoming web class – https://reitmethod.com/webmain/
HI sifus,
Would like to know with the recent slowdown in property development in the recent quarters. Will REIT be significantly affected?
The slowdown you mentioned has been long time coming but now only truly surfaces and its affecting mostly residential market.
REITs don’t play in residential property market, you want to register for an upcoming web class we conduct to learn more (it’s free) – click here
HI CF or KC,
I am new to REITs and after read this article, I found that it was very helpful and provided an insightful knowledge in investing, is there any event you guys will conduct in Malaysia? Love to know more from it!
You can get on Lieu’s email list at https://howtofinancemoney.com
He has physical event occasionally.
For me, I don’t normally have any physical seminar, mostly online webinar and courses.
Hi, how do i invest in the malaysian markets. I am from the UK London. Finding it tricky to create a CDS account.
Have you looked at this Fahim? – https://www.youtube.com/watch?v=Bq_cKJ7FBH4
Good day Sir,
I just wanted to know your thoughts on where would REITs fit as an asset class in an investment portfolio. As well as how it interacts with other assets, just as bonds and stocks are seen to be opposites of sorts. I find it difficult to determine what would be a wise allocation be for REITs. There are many well studied and established allocation presets for stocks, bonds & cash, but not many concerning REITs.
Looking forward to hearing your thoughts and ideas on the matter.
Hi Mary, REIT is a very versatile portfolio. It could replace brick & mortar property investment for consistent rental income. It could also replace bond as income generating assets, but unlike bonds, it has growth. Versus normal stocks, it could provide more consistent dividends and higher dividend payout ratio. They are not strongly correlated to the movement of stocks, bonds and residential property market so it is resilient during slowndown or downturn (just look at how defensive they are in 2018). REIT asset class is truly an underdog asset. You may want to register a spot for an upcoming web class we’re conducting on this topic (CLICK HERE)
Hi I want to ask that, if I buy REITs, how are the dividends distributed to me? Is it onto my trading account in the form of stock units or into my bank account? Please advise.
Tangible Cash into your Bank Account which is associated with your Trading account George :). Just starting out over there? 🙂
Hi. I want to invest in reit. Do you think it’s wise to start off with small amount RM1000-2000?
Sure, that’s very wise 🙂 You can start by registering for an upcoming webinar we are conducting over HERE (click)
Would like to know whether MY REITs can leverage from banks or securities firms.
Tks.
Philip, do you mean borrowing money (using margin financing)?
Do you have any opinion regarding islamic vs conventional REIT? Which one more profitable, stable & less risky?
well Hadifli, there’s really no data showing which REIT is more profitable or way or another. Rather, you want to look at the type of assets the REIT holds. Like hospitals, offices, industrial warehouses etc
Hi CF and KC,
I have some newbie questions here:
1. Currently I’m thinking should I open a trading account from Rakuten or Hong Leong? Which one would u suggest or recommend for a newbie?
2. Is Rakuten and Hong Leong can buy REITS as well?
3. If the stocks or REITS’ price are drop, but I did not sell it out, is this consider I won’t losing any money? I means we won’t physically losing money? It just that the dividends on that year might become lesser right?
Hope can get yr advise. Thanks
Agnes
1. Both doesn’t hurt 🙂 then you decide which one you feel more comfortable for you
2. Yes absolutely
3. Yes to your first 2 questions. Big No to your 3rd question (read: the dividends won’t be lesser due to price drop).
Hope that helps! Cheers.
Hi,Where can i buy reit at penang?
You don’t need to be constrained to REIT at Penang. You can invest in REITs anywhere in M’sia or overseas, Maybe you try to re-read the article above again 🙂
Hi, I am 22 years old right now and I am still pursuing my studies. Where should I start investing at this stage? Any suggestion please?
First, invest in yourself. Nobody can take that away, and it will be useful for your entire life. You can learn about investing first – through reading, and attending courses for faster learning.
The best advice I ever heard
Thank you for your explanation. Really meaningful & enlightening.
Gopal
good evening sir,i would like to find out if REIT is more risky compared to unitrust
REIT is traded like stocks. Generally, risk is high when you don’t know what you are doing.
I couldn’t say that REIT is higher risk than UT, because when you invest in UT, the upfront charge of 5.5% already causes loss instantly to your portfolio.
Hi..did you finally buy REIT or unit trust. Share your experience with me, of the return and your thoughts about it. It’s my first time venturing into REIT. Thanks.
Hi KC,
What are the best REITs in Malaysia showing consistently positive results?
Thanks
Masroor
Dear Mr. Lau, Thanks for your article on Reit. I have invested a lot on YTL Reit for almost 4 years and I find the dividend is so much higher than FD rate. Do you think it is advisable to put all my eggs into one basket. Kindly advise. Thank you
Hi Lim, it boils down to how well can you make use of your investment capital. Warren Buffett says and does put all eggs in one basket – but he takes care of the basket really well. Do you? I think that’s the question.
Hi, does the return of reits is more than the profit return of etf (for both long term and short term invest)? Thanks.
Hi ABC, it is not an apple to apple comparison. Well, it all comes down to your own investment profile.
Currently investing in REIT as well.Btw i think it is relatively stable than stock .Good to hear more about this investment.
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how to invest in REITs?
do u know have 1 company name call APG reit??they from singapora cufzholding ?? malaysia office in midvalley north point ?is legal company reit or not??
[…] Reference: How to Invest in REIT in Malaysia […]
Hi there, I came across your article post while looking through for more potential information on REIT to invest in. I myself am already an investor in a singapore based REIT and even though I am from Malaysia, my preferred choice had always been participating in foreign investment platform. Reason due to the higher currency exchange of value I will have profit later on. Investing in REIT has always been my most stable portfolio as compared to other volatile investment I have tried on.
Great to know that.
Any risk to invest REIT? How invest?
this is my first on REITs. Good article and easy to understand. im currently actively investing in equity but the returns arent that high. really considering REIT ,how do i go about in starting an investment plan? My colleagues have advised me to check out Axis.
Dear KC, the short article on Reits is quite easy to understand. So would you ” recommend” Axis, KPJ and/or YTl to a potential investor keen on investing in M’sian Reits? Is there another one or two ( the above 3) that comes to mind?
thanks
I always look for who the REIT trustee is, if it is no one the industry has heard off, or its a personal name, not a proper trustee company then its most likely a no-no to me.
I want to let you know how meaningful your article was to me that I viewed yesterday. REITS is worth investment vehicle. Would like to receive more on
REITS articles , as REITS is one of my investment portfolio. Thank for sharing.
Good intro and write-up on REIT..
REIT as a core holding in one’s portfolio for dividend yield is fairly good idea…
Good investment tips due to the uncertain market outlook in Europe and US which have a significant effect on Malaysian market. It would be beneficial if you could produce a comparison of Malaysian REITS and see which REITS is the best among all. Would you please advise companies that will be able to thrive in this downturn and still pay high dividends?
It is a very interest article. Every investment there is an element of risks.
As you said that REIT business must depend on sufficient numbers and
variety of tenants. What ‘if’ that building is a bit old and the tenants , one
by one decided to leave for newer pastures, newer buildings with latest
attraction. So the owner of this Reit decide to either pull down or renovate
the whole building, will the share-holders being ask to put in more money,
will there be a EGM to seek shareholders approval?
Good tips!! As a new investor, how many % should REITS account for in our portfolio?
Hi KC,
For your first point on the increasing dividend payout, is it based on absolute number? As far as my concern, those REITS with increasing dividend payout, the REITS price will also be increasing along the way, and the calculation of the dividend yield (DY) will be based on the REIT price. In such scenario, even the dividend payout has been increased, but the DY still relatives lower, may be only about 6%. Do give your comment on this. Thanks
Can see the REITs is high dividend frm:
http://max-wealth.blogspot.com/
http://bursastory.blogspot.com/2011/07/malaysia-reit-report-june-2011.html
Hi KC
What do you think of Investing in REIT during crisis time period, is it better to keep the cash and buy in blue chip share for better return?
It depends on the objective of investing. REIT is more suitable for long term financial goal such as education fund or as seed money for the child to start investing or business. It is not a good choice for early retirement. Direct investment in property market is better.
Can you provide some examples of the REIT shares that are currently listed and doing well in Bursa Malaysia? Many thanks.
i think this was the 1st time heard about REIT…never knew such investment exist in Malaysia…well explained that I know what REIT is now…i think Amanah Hartanah Bumiputera (AHB) by PHB is considered under REIT, is this correct?…based on the current economic & real estate situation in Malaysia, which REIT is best to invest in?…
Good article, easy to understand and definitely like more posts on this topic!
Dear KC,
Agree that the risk is reduced. There are also weakness points which can be realized. Firstly, it is clear that all decisions are being made by the 3rd party which may not be in same direction or is there a collective decision being sought? Also, while the entry and exit of the investment is flexible, there lies the price differential and no control at all of the price to be sold. Depending on the market. It is common that in the initial stages, the managing company shows good performance, it is often when the management go bad and there is no choice or authority to replace them. Hence, this is purely “dependent investment strategy”. Leaving it to the 3rd party which surfaces on the explanation of what has been written earlier by KC. Investors have to clear on the above factors.
Thanks.
I like the sharing, it is another way you can get more $ than our current FD rate of 3.0%~3.5% per annum and the capital outlay is relatively small compared to property investment. THe REIT return inclusive of dividend can be 6% ~ 8% per annum.
Hi, do you think that invest in REIT will be better than Unit Trust? I have been invest in Unit Trust through monthly regular saving. I am thinking whether stop the regular saving in unit trust and start invest in REIT. What do you think? Thank you.
Unit Trust is just one type of ‘packaging’ for stocks. Stocks got lots of types – such as consumer stocks, industrial stocks, property developer stocks, banks stocks and of course REIT stocks. Therefore, there’s this thing called REIT unit trusts (funds) too, this is a way for you to invest outside Malaysia easily into REIT stocks, after you have invested in Malaysian REIT stocks. The question is, what type of unit trusts you are investing in now via regular savings?
Hi CF, can you briefly talk about the risk, return and liquidity of REIT