THE SUSTAINABLE PERFORMANCE OF ISLAMIC REITS AND THEIR SOCIAL CONTRIBUTIONS: MALAYSIA AS CASE STUDY.
DOI:
https://doi.org/10.53840/ijiefer97Keywords:
Real Estate Investment Trust (REIT), Financial Performance, Social Responsibility, International Integrated Report Requirements (IIRR)Abstract
The institutions that are committed to the Islamic tenets logically have got general sustainable
performance and positive social impacts. Thus, this study aims to evaluate the sustainability in
Malaysian Islamic REITs’ performance in terms of dividends distributions, net profit and share
price. Also, discovering the social contributions of them that often is link to the material
performance. The methodology will include a mixed quantitative and qualitative case study
approach to assess the performance and social responsibility of Listed IREITs in Bursa
Malaysia through a modelling set of questions. From the findings, two main different trends
can be highlighted (improving & deteriorating) relating to Malaysian IREITs' performance.
The golden start-up period of Malaysian IREITs persisted only for 5 years in terms of their
positive financial performance, which it reflected an increase in the net income and raise in the
share price of each fund of them. After 5 to 6 years from the inception, the negative financial
performance generally was noticed especially in share price. Moreover, it can be said that
Malaysian Islamic Real Estate Investment Trusts (REITs) do not make a positive social
contribution based on the social responsibility activities mentioned in their annual reports. The
implication is that social responsibility plays a fundamental role in the performance of Islamic
REITs (IREITs), and this study highlights the importance of considering their social impacts,
which have often been overlooked in previous studies focusing mainly on financial
performance.
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