A study on performance of REITs in Malaysia / Siti Nor Aida Abdul Satar

REIT can be stands for Real Estate Investment Trust. It is not new to the world because in many other developed countries, REIT has been developed for decades and with steady fix income as oppose to fix deposit as an alternative. It targets long term investor with moderate risk such as insurance companies, pension funds, unit trust funds and even individual investor. The problem arise in REIT is related to financial performance. For example, failure to ensure assets are properly valued risks financial exposure for a wide range of stakeholders. For example, in June 2007, the subprime crisis happened and it affected the value of real estate. To avoid company performance goes down; they should ensure their ‘asset’ can easily converted into cash within a specific period of time without affecting the price changes.