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WEDNESDAY | JUNE 3, 2026

AmanahRaya REIT sharpens focus, execution to lift yields

Ű BY JOHN GILBERT sunbiz@thesundaily.com

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 ( pic ) 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 sus tainable 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 trans formation 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 signi ficantly to 85%, up from 74% in (ETCon26), organised by Tenaga Nasional Bhd (TNB), will serve as a key platform for discussions on the energy transition agenda, bringing together national leaders, industry experts and stakeholders from around the world from today to Friday. TNB senior chief strategy, regulatory and sustainability officer Datuk Muhamad Nazri Pazil said the conference will be officiated by Prime Minister Datuk Seri Anwar Ibrahim. He said Deputy Prime Minister Datuk Seri Fadillah Yusof, who is also the Minister of Energy Transition and Water Transformation, is scheduled to deliver a keynote address. Muhamad Nazri said ETCon26 will

KLCI, as investors gravitated towards stable, income-generating assets amid shifting global monetary con ditions. Total M-REIT market capital isation 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 invest ment 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 insti tutional tenancies and sustained enrolment growth, particularly in private higher education. “Healthcare and wellness are underpinned by an ageing population and growing medical tourism. ensure a stable and reliable electricity supply capable of supporting the nation’s energy transition goals. “There are three key priorities. First, to ensure a sufficient and secure energy supply. Second, to strengthen and modernise the grid so it remains stable and reliable while enabling faster integration of new energy sources. “The third is to ensure that all these initiatives ultimately benefit the people,” Muhamad Nazri said. He added that TNB is also accelerating the development of Malaysia’s smart grid ecosystem through the deployment of artificial intelligence technologies and smart meters, with installations expected to reach nine million units by 2027. Bernama

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 oppor tunities 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.

o Group leans towards education, industrial and wellness assets – while it improves gearing, occupancy, revenue and portfolio resilience – to achieve sustainable growth

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 pro perties competitive and appealing to quality tenants. The second is improving opera tional performance through the ARREITCare and customer engage ment 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 plat forms such as iREMs and ARREIT Touch to improve operational visi bility, 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, policymakers, investors, academics and industry stakeholders from more than 60 countries, with an estimated 4,000 delegates expected to participate in the three-day event. “In addition, about 80 speakers from various sectors will share their expertise, perspectives and solutions as we explore the best approaches to building a sustainable, clean and efficient energy ecosystem, not only for Malaysia but also for the wider Asean region,”he said during Bernama TV’s Ruang Bicara programme titled “ETCon26 – Mastering the Energy Transition Phase of the Nation and Asean” recently. Themed “Energy and AI: The Synergy for Energy Transition”, the

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

On the outlook for the Malaysian REIT (M-REIT) sector over the next two years, Iskandar

said it has demon strated real resi lience. He said that in 2025, the Bursa Malaysia REIT Index rose about 7.59%, significantly outperforming the broader FBM

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% res

pectively, while Selayang Mall improved to 97% from 88% previously. “The gains were backed by stronger rental rever sions and

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h i g h e r occupancy across the

Malaysia attracted 1.5 million health tourists in 2025, positioning Asean energy cooperation, power grid high on agenda of ETCon26 KUALA LUMPUR: The Energy Transition Conference 2026 bring together

Thailand-Malaysia-Singapore Power Integration Project, five additional cross-border energy projects involving Vietnam, Sarawak, Thailand and Singapore are being planned. Among the highlights will be the launch of Southeast Asia’s largest floating solar project, aimed at meeting rising electricity demand, particularly from Malaysia’s rapidly expanding data centre industry. “Currently, 36 data centres have been completed with a combined energy demand of 4.5GW, while another 23 are under construction,” Muhamad Nazri said. Meanwhile, TNB is advancing several major initiatives, including large-scale gas power plant projects and grid modernisation efforts, to

conference will also serve as a strategic platform to strengthen regional energy cooperation, including efforts to advance the Asean Power Grid (APG) initiative. Muhamad Nazri said Malaysia’s strategic location at the heart of Asean and its stable electricity grid infrastructure position the country to play a leading role in the region’s energy transition. “The APG initiative enables Asean member states to share energy resources across borders. For example, when a country experiences a surge in electricity demand or a temporary supply shortage, neighbouring countries can provide support through cross-border energy sharing.” He added that, besides the Laos