News by AllianceDBS Research

While investors may treat the asset injection news positively, PavREIT’s one-year forward yield of 5.5% implies a spread of less than 1.5% over the benchmark 10-year Malaysian Government Securities yield, which is thinner than other Malaysian REITS (M-REIT) peers. This suggests that the potential from asset injection has been priced in.

Relative to other Malaysian REITs, KLCC REIT has been trading at a substantial premium with yields at about 1% above the 10-year Malaysian Government Securities.