Broker Name: Maybank Investment Bank Berhad
Date of Report: December 12, 2025
Excerpt from Maybank Investment Bank Berhad report.
Report Summary
- Al-Salam REIT is focusing on building a more resilient retail-industrial portfolio, with retail accounting for about 54% of asset value and a medium-term goal to raise industrial exposure to around 30%.
- The rejuvenation of KOMTAR JBCC is progressing, with new anchor tenants secured and expected improvements in leasing momentum, though near-term occupancy will remain range-bound due to redevelopment works.
- Upcoming infrastructure projects like the Rapid Transit System (RTS) and the Electrified Double Track Rail Project (EDTP) are expected to boost KOMTAR JBCC’s value and footfall by enhancing connectivity, with clearer earnings uplift expected from the second half of 2026 onward.
- Funding visibility has improved due to a recent sukuk issuance, but the REIT’s high gearing of 48% limits near-term growth; management may consider perpetual sukuk for added flexibility.
- Financial forecasts indicate significant rent reversion and distributable income growth in FY26E and FY27E, supported by asset enhancement initiatives and increased connectivity.
- Risks include execution delays, high floating-rate financing costs, and continued softness in the Johor retail market, though capital recycling and successful re-leasing could provide upside.
- The report maintains a HOLD rating on Al-Salam REIT, with a target price of MYR0.47.
Above is an excerpt from a report by Maybank Investment Bank Berhad. Clients of Maybank Investment Bank Berhad can be the first to access the full report from the Maybank Investment Bank Berhad website : www.maybank.com/investment-banking
