Reit sector to record 6% net profit growth this year
In a report yesterday, UOB Kay Hian Research said net profit grew 9.8% in 2017, adding that the Reit sector growth in 2018 should come mainly from Axis Reit, as it will recognise the contribution of Axis Mega development.
PETALING JAYA: The Malaysian real estate investment trust (Reit) segment is expected to record a modest net profit growth of 6% this year, given the lack of compelling catalysts in the near term.
In a report yesterday, UOB Kay Hian Research said net profit grew 9.8% in 2017, adding that the Reit sector growth in 2018 should come mainly from Axis Reit, as it will recognise the contribution of Axis Mega development.
“We think that IGB Reit will have clearer earnings visibility, given the location of its assets which ensures a commendable rental reversion. Meanwhile, we foresee CapitaLand Malaysia Mall Trust 
(CMMT) having a higher risk if the rental reversion for its Klang Valley malls continues to deteriorate at a sharper pace.”
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