Short answer: Malaysia has 18 listed REITs on Bursa Malaysia. Average distribution yield sits at 5-7%. Below is every Malaysian REIT ranked by estimated FY2025 distribution yield — the single number that matters most for income investors.
If you are choosing between REIT units and a physical rental property, the yield comparison is not apples-to-apples. REIT yields are already net of property expenses. Direct property yields are gross — you still need to subtract maintenance, vacancy, tax, insurance, and management. Use our cashflow calculator to see the real net yield on any direct property.
All 18 Malaysian REITs Ranked by Distribution Yield
This table ranks every REIT listed on Bursa Malaysia by estimated FY2025 distribution yield. Yields are calculated from publicly available distribution data and unit prices as of Q1 2026.
| Rank | REIT | Sector | FY2025 Yield (est.) | Market Cap |
|---|---|---|---|---|
| 1 | Al-Aqar Healthcare REIT | Healthcare | ~7.0% | Small |
| 2 | Axis REIT | Industrial/Logistics | ~6.5% | Mid |
| 3 | Atrium REIT | Industrial | ~6.3% | Small |
| 4 | Hektar REIT | Retail | ~6.0% | Small |
| 5 | YTL Hospitality REIT | Hospitality | ~5.8% | Mid |
| 6 | KIP REIT | Retail | ~5.5% | Small |
| 7 | Sentral REIT | Office | ~5.5% | Small |
| 8 | AmFirst REIT | Office/Retail | ~5.3% | Small |
| 9 | AmanahRaya REIT | Diversified | ~5.2% | Small |
| 10 | Tower REIT | Office | ~5.0% | Small |
| 11 | UOA REIT | Office | ~4.8% | Small |
| 12 | Sunway REIT | Diversified | ~4.7% | Large |
| 13 | Pavilion REIT | Retail | ~4.5% | Large |
| 14 | CapitaLand Malaysia Trust | Retail | ~4.3% | Mid |
| 15 | IGB REIT | Retail | ~4.2% | Large |
| 16 | KLCC Stapled Group | Office/Retail | ~4.0% | Large |
| 17 | Al-Salam REIT | Diversified | ~4.0% | Small |
| 18 | AME REIT | Industrial | ~5.0% | Small |
Disclaimer: Yields are estimated from publicly available FY2025 annual reports and distribution announcements. Actual yields change daily with unit price movements. Always verify current data on Bursa Malaysia before making investment decisions.
Key observations from the table:
- Highest yields cluster in small-cap REITs. Al-Aqar, Atrium, and Hektar all sit below RM1 billion market cap. Higher yield often reflects higher perceived risk — smaller asset base, lower liquidity, concentrated tenant exposure.
- Large-cap REITs trade at lower yields. KLCC Stapled, IGB REIT, Pavilion REIT, and Sunway REIT yield 3.5-4.7%. Investors accept lower income for blue-chip asset quality and trading liquidity.
- Industrial/logistics REITs outperform. Axis REIT and Atrium REIT benefit from Malaysia's logistics and warehouse demand, particularly driven by e-commerce growth and supply chain diversification from China.
- Office REITs are mixed. Sentral REIT yields well at ~5.5%, but Eco World REIT lags at ~3.5%. Office occupancy rates remain under pressure post-pandemic, with KL oversupply weighing on rental reversions.
REIT Sectors in Malaysia
Malaysian REITs span five property sectors. Each has different yield characteristics, risk profiles, and growth trajectories.
Retail REITs — Pavilion REIT, IGB REIT, Hektar REIT, CapitaLand Malaysia Trust, KIP REIT. Retail remains the largest REIT sector in Malaysia by asset value. Prime malls like Mid Valley Megamall and Pavilion KL enjoy near-full occupancy and stable tenant demand. Suburban malls face more pressure from e-commerce and changing consumer habits. Yield range: 4-6%.
Office REITs — Sentral REIT, Tower REIT, UOA REIT, AmFirst REIT, Eco World REIT. KL's office market has chronic oversupply — vacancy rates hover around 25-30% in some corridors. REITs with Grade A assets in transit-adjacent locations (like Platinum Sentral near KL Sentral) perform better than those with secondary buildings. Yield range: 3.5-5.5%.
Industrial/Logistics REITs — Axis REIT, Atrium REIT. The strongest growth sector. E-commerce penetration, regional supply chain shifts, and Malaysia's manufacturing base drive demand for warehouses and light industrial space. Axis REIT's 60+ properties give it the widest industrial portfolio. Yield range: 6-7%.
Healthcare REITs — Al-Aqar Healthcare REIT. The only pure healthcare REIT in Malaysia, backed by KPJ Healthcare's hospital portfolio. Healthcare property demand is structurally defensive — hospital occupancy is less cyclical than retail or office. Yield: ~7%.
Hospitality REITs — YTL Hospitality REIT. Tourism recovery post-pandemic has lifted hotel RevPAR across Malaysia, Japan, and Australia (YTL Hospitality holds assets in all three). Hospitality yields are more volatile than other sectors — they swing with tourism cycles and room rates. Yield: ~5.8%.
REIT vs Direct Property — Yield Comparison
The most common question property investors ask: should I buy REIT units or a physical rental property? The yield comparison reveals why the answer depends on leverage.
| Metric | REIT | Direct Property |
|---|---|---|
| Gross yield | 5-7% | 4-8% |
| Expenses deducted? | Yes (net of property costs) | No (you pay maintenance, tax, vacancy) |
| Net yield | 5-7% | 1-3% (after 12-cost model) |
| Leverage available | None (cash only) | Up to 90% LTV (citizens), 70% (foreigners) |
| Liquidity | Sell in seconds on Bursa | Months to sell, 2-4% agent fees |
| Management effort | Zero | Active (tenant, maintenance, legal) |
| Capital appreciation | Moderate (tracks NAV) | Potentially high in growth corridors |
| Minimum investment | ~RM100 (1 board lot) | RM200,000+ (downpayment + costs) |
On pure yield, REITs win. A 5-7% net distribution yield beats most direct property net yields of 1-3% after accounting for all 12 cost categories (maintenance, sinking fund, vacancy, property tax, insurance, agent fees, legal fees, furnishing depreciation, loan interest, quit rent, assessment, and income tax).
But direct property has one advantage REITs cannot match: leverage. With a 10% downpayment and 90% bank financing, your return on equity can reach 15-25% on a cashflow-positive property — even if the net rental yield is only 2-3%. REITs offer no leverage. Your return is capped at the distribution yield plus any unit price appreciation.
Run the numbers for any specific property using our cashflow calculator. It applies all 12 cost categories and shows the true net monthly cashflow.
How to Buy Malaysian REITs
Buying REITs in Malaysia follows the same process as buying any listed stock on Bursa Malaysia.
Step 1: Open a CDS Account. A Central Depository System (CDS) account holds your REIT units. Open one through any licensed stockbroker — Malacca Securities, Rakuten Trade, Mplus, CGS International, or any of the 30+ brokers registered with Bursa Malaysia.
Step 2: Fund your trading account. Deposit funds via online banking. Most brokers require a minimum initial deposit of RM1,000-RM5,000.
Step 3: Buy REIT units. Search for the REIT stock code (e.g., Axis REIT trades as AXREIT, stock code 5106). Place a buy order during market hours (9:00am-12:30pm and 2:30pm-5:00pm, Monday to Friday). Minimum purchase is 1 board lot = 100 units.
Step 4: Collect distributions. Distributions are credited directly to your bank account on the payment date. Most REITs distribute quarterly or semi-annually. The 10% withholding tax is deducted automatically — no further filing needed for individual investors.
No foreigner restrictions. Unlike direct property (which has minimum purchase price thresholds by state), there is no foreign ownership limit on Malaysian REITs. Non-residents can buy and sell freely through any broker that accepts international clients.
Related reads:
- REIT Malaysia: The Complete Guide for Property Investors
- Property Investment Malaysia: Beginner's Guide
- Cashflow Calculator
Sources: Bursa Malaysia, Securities Commission Malaysia, Malaysian REIT Managers Association (MRMA), individual REIT annual reports (FY2025).