Kemampanan Amanah Pelaburan Hartanah Islam (I-REITS) dalam Mendepani Ketidaktentuan Ekonomi di Malaysia

(Sustainability of Islamic Real Estate Investment Trusts (I-REITs) in Addressing Economic Uncertainty in Malaysia)

Abstract

This study examines the financial sustainability of Islamic Real Estate Investment Trusts (i-REITs) in Malaysia amid multi-crisis economic uncertainty over the period 2018–2024. The study period is characterised by domestic political transitions, the COVID-19 pandemic, global geopolitical conflicts, and exchange rate volatility. Unlike prior studies that primarily focus on market returns or macroeconomic linkages, this research emphasises the internal financial resilience of i-REITs through financial ratio analysis. Four mature i-REITs listed on Bursa Malaysia are examined, representing healthcare, industrial, office, and residential property subsectors. A trend analysis approach is employed to evaluate liquidity, leverage, and profitability ratios across pre-crisis, crisis, and post-crisis phases. The conceptual framework integrates Portfolio Diversification Theory, Liquidity–Risk Trade-Off Theory and Pecking Order Theory to explain changes in financial management strategies under economic stress. The findings indicate that i-REITs increased liquidity holdings and reliance on debt financing during crisis periods as a defensive response, albeit at the expense of profitability. During the recovery phase, i-REITs with conservative capital structures and diversified property portfolios demonstrated stronger financial resilience. This study contributes new empirical evidence to the Islamic finance literature and offers policy-relevant insights for regulators and Islamic investors in designing sustainable i-REIT frameworks.