Analysis Of M-REITs Performance Based On Financial Factors and The Degree Of Specialization

Abstract

The purpose of this research is to analyse the Malaysian Real Estate Investment Trusts (M-REITs) performance based on Financial Factors and Property Characteristics. M-REITs is a relatively new investment vehicle in Malaysia which is slowly soaring. As a developing nation in Asia, Malaysia is currently undergoing vast developments. In this regard, in line with the perpetual development of the Malaysian economy, the significance of M-REITs as a form of investment is also growing, but still far from the establishment state of bonds and stocks. This is attributable to the lack of awareness of the drivers and performance of M-REITs. Previous research on the performance of M-REITs had considered the expected returns as the measure of performance, factoring in financial determinants as well as the property characteristics. Nevertheless, due to the relatively new establishment of M-REITs, only a small sample with limited time series data is available for the examination of the M-REITs. This study seeks to rectify these flaws by employing the latest data of the listed M-REITs to test for the significance of the fir specific determinants of the performance of M-REITs, measured using another proxy termed the funds from operations, of which is a specific measure of M-REITs. The results would then offer inferences about the significance of the firm specific factors on the performance of M-REITs