Firm Size Straegy of Malaysian Real Estate Investment Trust

Useful evidences stated that Malaysian REITs is able to contribute high possible return in portfolio diversification yet it received less response from investors. Few determinants had been identified that influence its performance. However a no empirical examination been done upon the relationship of systematic risk (beta) which had been used by the investors to measure the investment and size of REIT firm. The objective of this study is to investigate as to whether firm size has significant influence toward Malaysian REITs performance. The multiple regression analysis (MRA) approach been used on the Total Net Asset Value, Market Capitalization rate and Net Asset Value toward Malaysian REIT systematic risk (beta) to measure performance. The result found that there is insignificant influence between the firm size and systematic risk, that due to the maturity of REIT itself, smallness of size and growth orientation. This means that the Malaysian REITs performance is being explained by the unsystematic risk from uncontrollable factor that tend to be unique to the industry.