AUTHOR: Mahfuzur Rahman, Leong Jeih How, Syed Faisal Shah, Mohamed Albaity.
PUBLISHED IN: Volume 5 Issue 1
KEYWORDS: Malaysian REITs (M-REITs), Strategic Investment, Dividend Yield, Financial Crisis, Islamic Finance, Regional Integration, Correlation Analysis
ABSTRACT
This study empirically investigates the performance dynamics and strategic investment implications of Malaysian Real Estate Investment Trusts (M-REITs) within an evolving financial landscape. Utilizing data from 2005 to 2018, the research employs regression and correlation analysis to evaluate M-REIT performance through dividend yield and total returns. The study is innovatively structured across two dimensions: it segments the data into sub-periods to assess the impact of the Global Financial Crisis (GFC). It conducts a comparative panel analysis between Conventional and Islamic REITs. The analysis reveals that M-REITs provide superior dividend yields compared to government bonds and private debt securities, affirming their appeal for long-term investors. Furthermore, while domestic equity markets show a strong correlation with M-REIT returns, a significant positive relationship exists with regional REIT markets, particularly Singapore (S-REITs), indicating a level of regional integration. The paper offers original value by providing a novel dual-perspective on the market, yielding actionable strategic insights for investors seeking diversification and stable income, and highlighting the strategic importance of regional linkages and the unique Islamic finance component within the REIT structure.
DOI: https://doi.org/10.65194/IJBI-2025-1002
