Key Investment Strategies

Key Investment Objectives

To acquire and invest in commercial properties primarily in Malaysia with a view:

  1. to provide long term and sustainable distribution of income to unitholders; and
  2. to achieve long term growth in the net asset value per unit of MQREIT.

MQM plans to achieve the key objectives while seeking additional income growth and enhancement to the value of MQREIT’s property portfolio over time through the following strategies:

  • Acquisition Growth and Portfolio Management Strategy
  • Active Asset Management Strategy
  • Capital Management Strategy

Acquisition Growth and Portfolio Management Strategy

We intend to selectively acquire additional properties that meet our investment criteria to enhance yields and returns while improving portfolio diversification.

  • Capitalise on Strengths of two (2) of our Major Shareholders & Board Members We will pursue acquisitions of suitable assets from third parties as well as leverage on the strengths and network of our shareholders, QRH & MRCB.
  • Acquisitions We will embark on an acquisition strategy to make acquisitions of Commercial Properties in Malaysia to grow and diversify MQREIT’s initial portfolio. We will continue to actively explore acquisition opportunities that would enhance the quality of MQREIT’s portfolio and generate higher returns to unitholders. The focus is on good quality properties with strong recurring rental income and potential for revenue and capital growth.
  • Portfolio Management We intend to hold MQREIT’s investments on a long-term basis. However, at the appropriate time, we will recommend an adjustment of the portfolio mix through acquisition or sale of one or more of the Authorised Investments or Commercial Properties with the objective of maximising total returns to unitholders. The proceeds from such a sale would be either redeployed to purchase other attractive Authorised Investments or, in the absence of appropriate investments, distributed to unitholders.

Active Asset Management Strategy

We intend to implement strategies with the objective of enhancing the attractiveness of MQREIT’s existing commercial space and correspondingly maximising returns through increased net property yields, via active asset management.

We intend to increase the property yield of existing commercial space and correspondingly maximising returns from the existing commercial space by implementing the following:

  • Maximising tenant retention;
  • Diversifying tenant base;
  • Proactive marketing plans;
  • Continued minimisation of property expenses; and
  • Undertaking asset enhancement

Capital Management Strategy

We aim to optimise MQREIT’s capital structure and cost of capital within the borrowing limits set out in the REIT Guidelines and intend to use a combination of debt and equity to fund future acquisitions and improvement works.

Our capital management strategy involve:

  • adopting and maintaining an optimal gearing level; and
  • adopting an active interest rate management strategy to manage the risks associated with changes in interest rates.