Low inflation recently, REITs are cheap?


  Consumer prices in Malaysia increased 1.3 percent year-on-year in March of 2018, after a 1.4 percent rise in the prior month while markets estimated a 1.6 percent gain. It was the lowest inflation rate since July 2016.
  After hitting a high of around 5%, inflation has been on a downtrend ever since. Rather or not inflation continues to go lower, though unlikely, due to rising fuel prices and slowdown of strengthening of Ringgit recently, a rate of 1.3% is very favorable for REITs.
  REITS have an average dividend yield of 6.85% currently. Real yield (after inflation) nets 5.55%. This is slightly higher than ytd return on KLCI of 5.06%, however, REITs are generally less volatile than normal stock, good for risk adverse investors in 2018 due to GE