KUALA LUMPUR: AmanahRaya Real Estate Investment Trust (AmanahRaya REIT) will emphasise a more focused portfolio strategy in the next phase of growth, realigning sectors towards education, industrial and wellness assets, where demand fundamentals and lease structures provide better income visibility.
Managing director Datuk Mohd Iskandar Dzulkarnain Ramli said the group’s acquisition of an industrial asset in Telok Panglima Garang in Selangor, under a sale-and-leaseback arrangement, and the securing of a 15-year double net lease for Holiday Villa Alor Setar, are concrete reflections of this direction, in which the company is prioritising tenant covenant quality, longer lease tenures and income stability.
“While our priorities, guided by our strategic theme since 2025, have centred on strengthening our foundation for sustainable growth and improving asset performance, it became evident early on that building long-term resilience requires a more structured and deliberate approach to how we run this organisation.
“Sustainability remains central to our direction. Vista Tower’s GreenRE Silver Certification supports our broader ESG (environmental, social and governance) roadmap and strengthens the portfolio’s appeal to future tenants and investors.
“With the groundwork laid in 2025, our focus in 2026 is on execution – improving gearing, occupancy, revenue and portfolio resilience as we move from remediation to sustainable performance.
“At the same time, we remain cautious amid ongoing economic uncertainties and will continue adapting our strategies in the best interests of AmanahRaya REIT and its unitholders,“ Iskandar told SunBiz.
He noted that AmanahRaya REIT earnings for FY25 have improved, a testament to the hard work and commitment invested in this transformation journey.
Net property income grew by 9.31% to RM53.79 million, realised income after taxation surged 306.11% to RM7.31 million, and overall portfolio occupancy improved significantly to 85%, up from 74% in December 2024.
Looking ahead, Iskandar said AmanahRaya REIT plans to sharpen its focus across its education, industrial and wellness asset pillars through four key priorities aimed at improving yields and strengthening long-term resilience.
The first is portfolio enhancement, with disciplined capital expenditure and asset upgrades to keep properties competitive and appealing to quality tenants.
The second is improving operational performance through the ARREITCare and customer engagement programmes to strengthen tenant retention and maximise asset performance.
The REIT is also placing greater emphasis on talent development and accountability, building a stronger internal performance culture while setting clearer benchmarks for property managers.
At the same time, it is accelerating digitalisation efforts through platforms such as iREMs and ARREIT Touch to improve operational visibility, support data-driven asset management and enhance the tenant experience.
“Together, these initiatives are expected to strengthen returns across its core sectors, attract higher-quality tenants and build a more resilient portfolio over the longer term,“ Iskandar said.
Across AmanahRaya REIT’s core segments, the education portfolio, which makes up 26.5% of total assets, remained a key stabiliser with full occupancy throughout the year, supported by steady demand in Malaysia’s education sector, longer lease tenures and stable enrolment trends.
The industrial and wellness segments also performed strongly. The IHT Rehabilitation Centre in Shah Alam is fully occupied under a 15-year single-tenant lease, reflecting our strategy to reposition assets into higher-value healthcare and wellness uses.
Both Meta Deco Industries and the newly acquired Telok Panglima Garang industrial property, secured in May 2025 under a sale-and-leaseback with Alpha Express, are fully occupied, reinforcing stable income visibility.
“In our office and retail portfolio, Vista Tower and Menara Dana 13 recorded occupancy gains of 16% and 12% respectively, while Selayang Mall improved to 97% from 88% previously.
“These gains were supported by stronger rental reversions and higher occupancy across the portfolio, with additional upside at Selayang Mall driven by space optimisation initiatives such as pop-up kiosks, flexible event spaces and digital activations,“ Iskandar said.
Over the next 12 to 18 months, AmanahREIT’s focus is on further improving occupancy, especially in the office segment, where there is still upside.
“We will continue to exit non-performing assets and redeploy capital into higher-yield opportunities across industrial, education and wellness assets. Supported by active leasing, disciplined asset management and capital allocation, these steps are aimed at improving portfolio yield and steadily growing assets under management,“ Iskandar said.
When asked about the outlook for the Malaysian REIT (M-REIT) sector over the next two years, Iskandar said it has demonstrated real resilience.
He said that in 2025, the Bursa Malaysia REIT Index rose about 7.59%, significantly outperforming the broader FBM KLCI, as investors gravitated towards stable, income-generating assets amid shifting global monetary conditions.
Total M-REIT market capitalisation expanded to about RM59.92 billion from RM48.9 billion the year prior, a clear signal of sustained investor confidence in the sector’s defensive characteristics.
“Looking ahead over the next two years, we hold a cautiously optimistic view.
Malaysia’s GDP (gross domestic product) is projected to grow between 4.% and 5% in 2026, supported by resilient domestic demand, the rollout of national master plans and increased tourism activity under Visit Malaysia 2026.
“The OPR (Overnight Policy Rate) is expected to hold at 2.75%, keeping financing costs manageable and sustaining the yield attractiveness of REITs relative to domestic policy rates. While global headwinds – trade tensions, geopolitical uncertainties and inflationary pressures – warrant ongoing vigilance, the domestic macro environment remains broadly supportive.
“On sector opportunities, our conviction is strongest in three areas. Industrial continues to benefit from semiconductor growth, e-commerce expansion and policy-driven investment through NIMP 2030 (New Industrial Master Plan 2030), the NETR (National Energy Transition Roadmap) and the Johor-Singapore Special Economic Zone.
“Education offers structural stability through long-term institutional tenancies and sustained enrolment growth, particularly in private higher education.
“Healthcare and wellness are underpinned by an ageing population and growing medical tourism. Malaysia attracted 1.5 million health tourists in 2025 alone, positioning it as a compelling long-term growth segment.
“For AmanahRaya REIT specifically, this environment reinforces our strategy of redirecting capital from non-core assets into these higher-yield, structurally supported segments while also improving income quality, while maintaining the financial discipline needed to navigate a still-uncertain global landscape,“ Iskandar said.
On risks, he said AmanahRaya REIT is cautious about the dynamics and rapid changes in the market environment that could impact tenancy and occupancy, shift demand patterns, evolve tenant needs, and create macroeconomic uncertainties.
“Financing costs, gearing management and ensuring our capital recycling moves quickly enough to fund the right acquisitions remain areas we watch closely and manage with discipline. The benchmark is clear. We have to deliver the kind of consistent, sustainable returns that have made Malaysia’s leading REITs the investment of choice for income-focused investors. That is what drives us,“ Iskandar said.
