The industrial REIT sub-sector should continues to perform well with minimal occupancy rate risks and stable rental reversions. This is supported by the influx of investments and favourable government policies such as the National Industrial Master Plan 2030.

RHB Investment said while it has been cautious on the pace of inorganic growth due to compressed yields, Axis REIT announced that it has entered into new acquisitions totalling MYR526m YTD. Notably, these buildings are older, such as the properties to be acquired in Bukit Raja aged 33 to 40 years old. However, it is an area which the REIT has already established itself in and has successfully completed major asset enhancement initiatives to revamp the older buildings.

The house notes that earnings will likely pick up in FY25 when these acquisitions are completed. In contrast, AME REIT has yet to announce any new acquisitions since its listing in Sep 2022, but in the long term, it would benefit from a supply of new assets from its sponsor.