Best Bursa Malaysia REITs for Capital Appreciation (August 2025)
Based on recent performance, analyst recommendations, and annualised returns, the following Malaysian REITs stand out for capital appreciation potential in 2025:
Top Candidates
Axis REIT
Sunway REIT
Pavilion REIT
IGB REIT
Key Data Snapshot (2025)
Note: Complete pricing data for some REITs not available in the latest snapshot, but long-term performance is consistent.
Analyst Picks for 2025
Sunway REIT is widely cited by analysts as one of the most recommended stocks for 2025 among all sectors for capital appreciation, especially for its diversified exposure and growth prospects.
Pavilion REIT is favored for retail-focused investors, thanks to its leading position in Malaysia’s retail sector.
Conclusion
For pure capital appreciation in August 2025, Axis REIT, Sunway REIT, and Pavilion REIT are the most attractive options in Bursa Malaysia based on historical returns, recent price performance, solid asset portfolios, and analyst sentiment. If your priority is growth potential (not purely dividend yield), any of these three would be suitable, with Axis REIT and Sunway REIT slightly ahead due to their balance of returns and portfolio resilience.
You should always match your choice with your risk profile and investment horizon—these top performers provide both stability and high appreciation potential in the current Malaysian REIT market.
Fundamental Analysis: Sunway REIT (2025)
Portfolio & Growth Strategy
Sunway REIT manages a diversified portfolio with 28 properties as of 2024, focusing on retail, hotels, offices, and industrial assets. Its property value was RM10.4b at end-2024.
Actively expanding with acquisitions (over RM1b of assets in 2024), especially in retail and industrial segments, including new hypermarkets, malls, and logistics assets.
Disposal of non-core assets (education segment) to focus on core retail and commercial strengths.
Financial Performance
Q2 2025: Revenue RM211.4m; profit before tax RM129.4m. Net profit for the quarter declined 11% y-o-y, mainly due to softer retail sales and higher borrowing costs, despite new rental contributions from recent acquisitions.
FY2024: Revenue rose to RM767.1m (+7.2% y-o-y), net property income RM569.7m (+8.1%), distribution per unit (DPU) up 7.5% y-o-y to 10.0 sen.
Retail segment remains resilient; hotel performance expected to improve with tourism initiatives in 2026. Office segment faces challenges from oversupply, but management is addressing underperformers with asset recycling.
Balance Sheet & Ratios
Gearing: 41.2% (expected to normalize to 38% post asset disposal). Cost of debt competitive at 3.9%-4.6%.
DPU consistently growing, with new assets forecast to boost yield and net asset value. Target price recently upgraded to RM2.11, indicating moderate upside.
Management Outlook
Management adopts a cautious stance for H2 2025 due to inflation, high interest rates, and softer consumer sentiment. Strategic asset enhancements and acquisitions remain a priority.
ESG and sustainability initiatives part of long-term value proposition.
Portfolio & Growth Strategy
Sunway REIT manages a diversified portfolio with 28 properties as of 2024, focusing on retail, hotels, offices, and industrial assets. Its property value was RM10.4b at end-2024.
Actively expanding with acquisitions (over RM1b of assets in 2024), especially in retail and industrial segments, including new hypermarkets, malls, and logistics assets.
Disposal of non-core assets (education segment) to focus on core retail and commercial strengths.
Financial Performance
Q2 2025: Revenue RM211.4m; profit before tax RM129.4m. Net profit for the quarter declined 11% y-o-y, mainly due to softer retail sales and higher borrowing costs, despite new rental contributions from recent acquisitions.
FY2024: Revenue rose to RM767.1m (+7.2% y-o-y), net property income RM569.7m (+8.1%), distribution per unit (DPU) up 7.5% y-o-y to 10.0 sen.
Retail segment remains resilient; hotel performance expected to improve with tourism initiatives in 2026. Office segment faces challenges from oversupply, but management is addressing underperformers with asset recycling.
Balance Sheet & Ratios
Gearing: 41.2% (expected to normalize to 38% post asset disposal). Cost of debt competitive at 3.9%-4.6%.
DPU consistently growing, with new assets forecast to boost yield and net asset value. Target price recently upgraded to RM2.11, indicating moderate upside.
Management Outlook
Management adopts a cautious stance for H2 2025 due to inflation, high interest rates, and softer consumer sentiment. Strategic asset enhancements and acquisitions remain a priority.
ESG and sustainability initiatives part of long-term value proposition.
Fundamental Analysis: Pavilion REIT (2025)
Portfolio & Strengths
Pavilion REIT specializes in prime retail properties, including Pavilion KL and Bukit Jalil malls—high foot traffic and premium tenants.
Consistently high occupancy rates (typically 95%-99%), supporting stable rental income and resilience.
Financial Performance
FY2024: Pavilion REIT achieved robust growth due to strong consumer spending, retail recovery, and new asset contributions. Share price appreciated 37.2% in 2024—among Malaysia’s top REIT performers (from previous conversation).
Distribution yield remains attractive (latest: 6.2%). Recent quarterly results highlighted stable income streams with retail segment outperforming other sectors.
Balance Sheet & Ratios
Gearing maintained at a prudent level (below 40%), allowing room for further acquisitions or enhancements.
Price-to-book ratio typically around 1.10, indicating premium asset value.
Management Outlook
Positive outlook driven by anticipated increases in consumer traffic, new asset launches, and robust tourism forecast.
Ongoing asset enhancement works to maintain mall competitiveness and retain occupancy.
Portfolio & Strengths
Pavilion REIT specializes in prime retail properties, including Pavilion KL and Bukit Jalil malls—high foot traffic and premium tenants.
Consistently high occupancy rates (typically 95%-99%), supporting stable rental income and resilience.
Financial Performance
FY2024: Pavilion REIT achieved robust growth due to strong consumer spending, retail recovery, and new asset contributions. Share price appreciated 37.2% in 2024—among Malaysia’s top REIT performers (from previous conversation).
Distribution yield remains attractive (latest: 6.2%). Recent quarterly results highlighted stable income streams with retail segment outperforming other sectors.
Balance Sheet & Ratios
Gearing maintained at a prudent level (below 40%), allowing room for further acquisitions or enhancements.
Price-to-book ratio typically around 1.10, indicating premium asset value.
Management Outlook
Positive outlook driven by anticipated increases in consumer traffic, new asset launches, and robust tourism forecast.
Ongoing asset enhancement works to maintain mall competitiveness and retain occupancy.
Comparison Table (Key Metrics)
Conclusion
Sunway REIT offers stable growth from a diversified asset base, strong expansion, and solid management—though short-term headwinds persist due to macroeconomic factors.
Pavilion REIT delivers high quality retail exposure, strong brand, and resilient income, with outstanding share price performance and robust fundamentals.
Both REITs are fundamentally sound, with Pavilion REIT favored for pure retail resilience and Sunway REIT providing broader sector growth. Your selection should align with your desired risk and exposure across sectors.
Sunway REIT offers stable growth from a diversified asset base, strong expansion, and solid management—though short-term headwinds persist due to macroeconomic factors.
Pavilion REIT delivers high quality retail exposure, strong brand, and resilient income, with outstanding share price performance and robust fundamentals.
Both REITs are fundamentally sound, with Pavilion REIT favored for pure retail resilience and Sunway REIT providing broader sector growth. Your selection should align with your desired risk and exposure across sectors.
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