Determinant Factors of Profitability in Malaysia’s Real Estate Investment Trusts (M-REITS)

  • Shaharudin Jakpar Universiti Malaysia Sarawak
  • Michael Tinggi Universiti Malaysia Sarawak
  • Akmal Hisham Tak Universiti Malaysia Sarawak
  • Nur Amanina Ruzlan Universiti Malaysia Sarawak


The performance of Real Estate Investment Trust (REIT) can be literarily explained in terms of its operational success which is revealed in its profitability to the investors (Grupe & DiRocco, 1999). A company’s success in investments is usually measured by its profitability. The objective of this study is to examine the role of determinant factors towards the profitability of M-REITs. This research was conducted using procedures of panel data for a total sample of 8 Malaysia’s Real Estate Investment Trusts (M-REITs) for a period of 8 years, starting from 2008 until 2015. The profitability of M-REITs was measured by the return on equity (ROE) as the dependent variable, whereas the determinant factors for M-REITs’ profitability are dividend yield (DY), net asset value (NAV) and price earnings ratio (PER) as the independent variables. The outcome from the research revealed that only dividend yield (DY) has a positive significant relationship with M-REITs profitability, and no significant relationship was found between both net asset value (NAV) and price earnings ratio (PER) towards M-REITs profitability.


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How to Cite
Jakpar, S., Tinggi, M., Tak, A. H., & Ruzlan, N. A. (2018). Determinant Factors of Profitability in Malaysia’s Real Estate Investment Trusts (M-REITS). UNIMAS Review of Accounting and Finance, 2(1).