AmanahRaya REIT targets higher occupancy across assets

AmanahRaya Real Estate Investment Trust (AmanahRaya REIT) targets to achieve at least 90% of its portfolio occupancy rate by the financial year ending Dec 31, 2025 (FY25).

At the company’s AGM in Kuala Lumpur yesterday, AmanahRaya REIT managing director Tunku Rozita Tunku Abdul Malek said the ambitious target reflects AmanahRaya REIT’s commitment to maximise value for unitholders and strengthen its position as a listed REIT on Bursa Malaysia.

The increase in occupancy rates for Vista Tower is poised to significantly bolster the earnings potential for AmanahRaya REIT.

Tunku Rozita said, ‘We aim to achieve at least 90% occupancy rates for the fund’s portfolio by the financial year ending 2025. Currently, we are in active discussions with numerous potential tenants, and the outlook is quite promising. Being the largest asset within the portfolio, we anticipate that the occupancy rate for Vista Tower to reach 60% by July 2024, up from 35% at the end of FY 2023, primarily due to the influx of new tenants.’

Looking ahead, she said they are confident that this positive trend will continue throughout FY24, with the potential to reach at least 70% occupancy rates.

“The new leases we are securing have tenures ranging from 2 to 3 years, providing stability, and contributing to our long-term growth strategy,” she said.

AmanahRaya REIT’s current portfolio comprises 11 properties, including the educational assets of SEGi University Kota Damansara, SEGi College Subang Jaya and Help University campuses. The portfolio also encompasses a variety of properties in the industrial, retail, and hospitality sectors.

Moving forward, AmanahRaya REIT has announced its decision to fully divest from the hospitality sector, aligning with its ongoing initiative to optimise the portfolio by acquiring high-yielding assets and divesting non-core strategic assets.

Tunku Rozita said their focus will primarily be on educational assets, industrial properties, particularly in logistics, and wellness facilities while being prepared to seize attractive opportunities that can drive their earnings growth.