AmanahRaya REIT aims to raise occupancy rate to 90% by end-2025

• AmanahRaya REIT has previously announced a decision to fully divest from the hospitality sector as part of ongoing initiatives to optimise its portfolio by acquiring high-yielding assets and divesting non-core assets.

KUALA LUMPUR (April 18): AmanahRaya Real Estate Investment Trust (REIT), which mainly manages commercial properties, is aiming to achieve a portfolio occupancy rate of at least 90% by the financial year ending Dec 31, 2025 (FY2025).

The REIT is counting on Vista Tower to significantly bolster its earnings potential, managing director Tunku Rozita Abdul Malek said in a statement. As the largest asset within its portfolio, Vista Tower’s occupancy rate could reach 60% by July following an influx of new tenants, she noted.

"Currently, we are in active discussions with numerous potential tenants, and the outlook is quite promising,” she said. Tunku Rozita expects the positive trend to continue throughout FY2024 and occupancy rate may hit at least 70% by the end of this year from 35% at the end of 2023, she noted.

Vista Tower, formerly Empire Tower, is a 63-storey office tower that is part of an integrated development known as The Intermark located on Jalan Tun Razak in Kuala Lumpur. As at December 2022, its valuation stood at RM521 million.

Besides Vista Tower, AmanahRaya REIT owns three other properties under its office segment, namely Dana 13 in Ara Damansara, Wisma Comcorp in Shah Alam and Contraves in Cyberjaya. Overall, the REIT has 11 properties across the office, education, industrial, retail and hospitality sectors.

"The new leases we are securing have tenures ranging from two to three years, providing stability, and contributing to our long-term growth strategy," Tunku Rozita said.

AmanahRaya REIT has previously announced a decision to fully divest from the hospitality sector as part of ongoing initiatives to optimise its portfolio by acquiring high-yielding assets and divesting non-core assets.

Most recently, AmanahRaya REIT in January completed the disposal of its four-star, 238-room Holiday Villa Beach Resort and Spa Langkawi to property developer Plenitude Bhd for RM145 million, cash.

The REIT is also reportedly looking to sell its remaining asset under the hospitality segment, the former Holiday Villa Alor Setar in Kedah, which has been left vacant since 2018, as it seeks to fully exit the hospitality business.

Moving forward, Tunku Rozita said the company will be focusing primarily on acquiring educational assets, wellness facilities and industrial properties particularly in logistics.

"While evaluating numerous proposals, our priority is to ensure that any acquisition contributes significantly to our earnings and overall yield," she added.

At noon market break on Thursday, AmanahRaya REIT remained unchanged at 36.5 sen after 10,000 units changed hands, giving it a market capitalisation of RM206.4 million. The REIT's prices have declined 33.64% over the past year.

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