Listed on Bursa Malaysia on 12 April 2006, Tower REIT currently has a real estate portfolio consisting of two commercial office buildings: Menara HLA and Plaza Zurich. The properties are valued at RM342.2 million and RM220.1 million respectively as at 30 June 2019.

After Bank Negara Malaysia cut the overnight policy rate (OPR) by 25 basis points on 7 May 2019, banks and research houses were expecting another rate cut of the same magnitude by year end, inciting investor interests in dividend stocks, including REITs.

As a result, 10 out of 18 Malaysian REITs listed on Bursa Malaysia have returns in the positive territory year to date as of 30 September 2019. However, Tower REIT is one REIT that hasn’t performed as well with a year-to-date return of negative 6.5%. I attended the AGM to find out the reason for the underperformance and management’s plans to improve the business.