UUM Electronic Theses and Dissertation
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The financial performance of real estate investment trusts (REITS) in Malaysia

Mohamad Hakam Harith, Mohamad Rodzi (2021) The financial performance of real estate investment trusts (REITS) in Malaysia. Masters thesis, Universiti Utara Malaysia.

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Abstract

This study examines the development of Real Estate Investment Trusts (REITs) in Malaysia. In addition, this study also investigates the performance of Malaysian REITs using Net Asset Value approach (NAV) and Dividend Distribution Per Unit (DPU). To achieve the objectives, the performances of 18 REITs in Malaysia are carefully observed for the period of ten years starting from the year 2010 until the year 2019. Specifically, trend analysis is used to detect any significant trend in REITs’ performance using NAV and DPU. Annual prices for each company are collected from Bursa Malaysia and Bloomberg. Information about the total asset, total liabilities, and the number of shares outstanding are obtained from the 18 REITs' respective annual reports. The findings of the study reveal that not all of the REIT companies show an upward trend. Based on DPU analysis, only seven or 39 percent of the REIT companies demonstrate an upward trend. The other seven companies (39 percent) exhibit a downward trend, while the balance of four companies or 22 percent do not show any significant trend. The DPUs of these four REITs are observed to fluctuate in no consistent specific direction during the ten-year period. As for NAV, four companies which are Al-Aqar Healthcare REIT, Atrium REIT, Pavilion REIT, and UOA REIT exhibit premium NAV for all ten years. The study has also discovered that NAV can be affected by the increase of the companies’ profit and dividend. Results of this study are hoped to help investors and portfolio managers to have better understanding regarding the performance of REITs so that they can make wise investment decision

Item Type: Thesis (Masters)
Supervisor : Nordin, Norhafiza
Item ID: 10435
Uncontrolled Keywords: dividend distribution per unit (DPU), net asset value (NAV), performance, REITs, trend analysis.
Subjects: H Social Sciences > HG Finance
Divisions: School of Economics, Finance & Banking
Date Deposited: 29 Mar 2023 01:33
Last Modified: 29 Mar 2023 01:33
Department: School of Economics, Finance & Banking
Name: Nordin, Norhafiza
URI: https://etd.uum.edu.my/id/eprint/10435

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