Conventional Islamic REITs against macroeconomics variable / Nazmi Mustaqim Muhammad

Real Estate Investment Trust (REITs) is a low-risk investment tools that pools fund from investors to be used in real estate management (Joug & Tik 2015). Despite the increasing sophistication in financial instruments, the real estate sector remains very popular (Lieser and Groh, 2014; Sun et al., 2016). A real estate investment trust (REIT) is a type of real estate collective investment plan that combines the greatest aspects of both real estate and trust funds. The i-REIT is a Shariah-compliant variation of the traditional REIT. It can pay out at least 90% of its net profit in dividends to investors and unit holders. The aim of this study to investigate conventional and Islamic REITs towards macroeconomics variables within 5 years from 2016 to 2020. A five years data had been employed and correlation analysis is adopted. This study reveals that KLCI has not significant towards conventional REITs (CREIT) and Islamic REITs (IREIT) which are 0.3595 and 0.6370. Similarly, TBILLS has not significant with CREIT and IR EIT which are 0.9645 and 0.4176. On the other hand, CPI is significant with CREIT with 0.0381, different with CPI and IREIT which is not significant with 0.1450. This study has developed valuable information and insight into the performance of Malaysian real estate investment trusts. Studies comparing the similarities and differences between conventional and Islamic REIT's toward macroeconomicsvariables.