Assessing the disclosure of green-rated properties in real estate investment trust portfolios

The increasing global emphasis on sustainability has brought heightened attention to how Real Estate Investment Trusts (REITs) incorporate environmentally responsible practices into their property portfolios. This study conducts a content analysis on the disclosure of green-rated buildings within REIT portfolios, focusing on how such information reflects sustainability commitments and communicates its value relevance to investors. Employing a qualitative content analysis approach, the research systematically reviews the 2023 audited annual reports of all 19 publicly listed Malaysian REITs. The analysis identifies the presence and levels of certification across four (4) key rating tools: Malaysia’s GreenRE and Green Building Index (GBI), along with internationally recognised standards such as Singapore’s Green Mark and the U.S.-based Leadership in Energy and Environmental Design (LEED). The findings reveal diverse patterns of adoption and disclosure, reflecting varying degrees of commitment among REIT managers. The study offers meaningful insights for investors by enhancing their understanding of REITs’ sustainability commitments, enabling more informed and responsible investment decisions aligned with ESG principles and long-term value creation.