Latest news with #F4GBMIndex
The Star
3 days ago
- Business
- The Star
REITs draw positive attention with ESG efforts
CIMB Research highlighted that Sunway Real Estate Investment Trust (Sunway-REIT) is a strong contender for F4GBM Index inclusion by year-end. PETALING JAYA: Malaysian real estate investment trusts (REITs) are expected to gain further traction in the sustainability space, with increasing potential for enhanced representation in the FTSE4Good Bursa Malaysia (F4GBM) Index in the coming review cycle this December. This momentum reflects the sector's growing alignment with environmental, social and governance (ESG) standards. CIMB Research highlighted that Sunway Real Estate Investment Trust (Sunway-REIT) is a strong contender for F4GBM Index inclusion by year-end. 'Our assessment indicates that Sunway-REIT is on track for potential inclusion in the F4GBM Index in December,' the research house said in a recent note. In the June review, Sunway-REIT joined Axis-REIT and Capitaland Malaysia Trust (CLMT) in attaining ESG Grading Band 4 – the second-highest tier – marking the highest number of REITs achieving this level in the last six cycles. Despite this, Sunway-REIT was not added to the index at that point as it was not a constituent of the FTSE Bursa Malaysia Emas Index as of end-May due to previously low liquidity. However, a turnaround in liquidity saw Sunway-REIT re-enter the FBM Emas Index following the June semi-annual review, paving the way for potential inclusion in the December F4GBM Index review. CIMB Research recommended 'hold' on Sunway-REIT with a target price of RM2.11. According to the research house, 'Only companies that are constituents of the FBM Emas Index as of the end of May are eligible for consideration in the June F4GBM Index review, while companies added thereafter are only eligible in the December review.' The REIT sector's weightage in the F4GBM Index has risen to 1.7% from 1.1% last December, following the inclusion of 19 new companies in the update last month. Among these were CLMT, KIP-REIT and YTL Hospitality-REIT, bringing the total number of REIT constituents to seven out of 160. 'To qualify for inclusion in the F4GBM Index, companies must achieve a minimum ESG score of 2.9 out of five,' CIMB Research noted. Based on its analysis, CLMT likely qualified due to liquidity, while YTL-REIT and KIP-REIT earned their spots through improved ESG performance. Still, five of the 10 largest REITs by market capitalisation – which represent 93% of the sector's total market capitalisation – remain absent from the index, including KLCC-REIT and IGB Commercial-REIT, mainly due to liquidity issues. Al-Aqar Healthcare-REIT was excluded for failing to meet the minimum ESG score. 'Overall, we are positive on the gradual progress made by REIT players in enhancing their ESG practices, as reflected by the increasing number of constituents in the F4GBM Index,' CIMB Research stated. The research house emphasised that further ESG gains lie within the environmental pillar, particularly in reducing carbon emissions and boosting energy efficiency. 'A key area for improvement is the reduction of carbon emissions through greater adoption of renewable energy or improving energy efficiency,' it said. REITs were encouraged to consider subscribing to Tenaga Nasional Bhd 's Green Electricity Tariff programme, which was revised this month to offer a more accessible flat rate of five sen per kilowatt-hour. KIP-REIT was singled out for retrofitting efforts across seven malls through a performance-based partnership that is expected to deliver energy savings of 15%. 'Sustainability-linked financing embeds pre-agreed sustainability performance targets into financing terms, directly linking borrowing costs to the achievement of ESG outcomes,' CIMB Research added, citing Sunway-REIT's RM3.4mil in savings from 2021 to 2023 as an example. With tenants increasingly favouring green-certified spaces and cost-effective financing tied to sustainability metrics, Malaysian REITs are positioned to benefit from continued ESG integration in the long term.
The Star
3 days ago
- Business
- The Star
REITs in good stead for F4GBM Index inclusion
PETALING JAYA: Malaysian real estate investment trusts (REITs) are expected to gain further traction in the sustainability space, with increasing potential for enhanced representation in the FTSE4Good Bursa Malaysia (F4GBM) Index in the coming review cycle this December. This momentum reflects the sector's growing alignment with environmental, social, and governance (ESG) standards. CIMB Research highlighted that Sunway Real Estate Investment Trust (Sunway REIT) is a strong contender for F4GBM Index inclusion by year-end. 'Our assessment indicates that Sunway REIT is on track for potential inclusion in the F4GBM Index in Dec 2025,' the brokerage said in a recent note. In the June 2025 review, Sunway REIT joined Axis REIT and Capitaland Malaysia Trust (CLMT) in attaining ESG Grading Band 4 — the second-highest tier — marking the highest number of REITs achieving this level in the last six cycles. Despite this, Sunway REIT was not added to the index at that point as it was not a constituent of the FTSE Bursa Malaysia EMAS Index as at end-May 2025 due to previously low liquidity. However, a turnaround in liquidity saw Sunway REIT re-enter the FBM EMAS Index following the June 2025 semi-annual review, paving the way for potential inclusion in the December 2025 F4GBM Index review. CIMB Research recommended 'hold' on Sunway REIT, with a target price of RM2.11. According to CIMB Research, 'Only companies that are constituents of the FBM EMAS Index as at end-May are eligible for consideration in the June F4GBM Index review, while companies added thereafter are only eligible in the December review.' The REIT sector's weightage in the F4GBM Index has risen to 1.7% from 1.1% in December 2024, following the inclusion of 19 new companies in the June 2025 update. Among these were CLMT, KIP REIT, and YTL Hospitality REIT , bringing the total number of REIT constituents to seven out of 160. 'To qualify for inclusion in the F4GBM Index, companies must achieve a minimum ESG score of 2.9 out of 5,' CIMB Research noted. Based on its analysis, CLMT likely qualified due to liquidity, while YTL REIT and KIP REIT earned their spots through improved ESG performance. Still, five of the 10 largest REITs by market capitalisation — which represent 93% of the sector's total market cap — remain absent from the index, including KLCC REIT and IGB Commercial REIT, mainly due to liquidity issues. Al-Aqar Healthcare REIT was excluded for failing to meet the minimum ESG score. 'Overall, we are positive on the gradual progress made by REIT players in enhancing their ESG practices, as reflected by the increasing number of constituents in the F4GBM Index,' CIMB Research stated. The brokerage emphasised that further ESG gains lie within the environmental pillar, particularly in reducing carbon emissions and boosting energy efficiency. 'A key area for improvement is the reduction of carbon emissions through greater adoption of renewable energy or improving energy efficiency,' it said. REITs were encouraged to consider subscribing to Tenaga Nasional Bhd 's Green Electricity Tariff programme, which was revised in July 2025 to offer a more accessible flat rate of five sen per kilowatt-hour. KIP REIT was singled out for retrofitting efforts across seven malls through a performance-based partnership that is expected to deliver energy savings of 15% post-capex recovery. 'Sustainability-linked financing embeds pre-agreed sustainability performance targets into financing terms, directly linking borrowing costs to the achievement of ESG outcomes,' CIMB Research added, citing Sunway REIT's RM3.4mil in savings from 2021 to 2023 as an example. With tenants increasingly favouring green-certified spaces and cost-effective financing tied to sustainability metrics, Malaysian REITs are positioned to benefit from continued ESG integration in the long term.
The Star
12-06-2025
- Business
- The Star
FTSE4Good Bursa Malaysia Index adds 19 stocks
All constituent changes will take effect at the start of business on June 23, 2025. PETALING JAYA: Bursa Malaysia has announced 19 additions to the constituents of the FTSE4Good Bursa Malaysia (F4GBM) Index and 14 inclusions to the constituents of the FTSE4Good Bursa Malaysia Shariah (F4GBMS) Index. In a statement, the stock exchange operator said the F4GBM Index includes publicly listed companies or PLCs with good liquidity and strong environmental, social and governance or ESG practices. The F4GBMS Index tracks the constituents in the F4GBM that are syariah-compliant. 'For the June 2025 review, the F4GBM Index will see 19 additions and five exclusions, bringing its constituent count to 160,' Bursa Malaysia said. Separately, the F4GBMS Index will see 14 inclusions and four exclusions, resulting in a total of 125 constituents in the index. All constituent changes will take effect at the start of business on June 23, 2025. The new additions to the F4GBM Index include Berjaya Land Bhd , Capitaland Malaysia Trust , Carlsberg Brewery Malaysia Bhd , EG Industries Bhd , Genetec Technology Bhd and Genting Plantations Bhd . Meanwhile, IOI Properties Group Bhd , Samaiden Group Bhd, UEM Edgenta Bhd and Malakoff Corp Bhd, among others, have been included in the F4GBMS Index.
New Straits Times
12-06-2025
- Business
- New Straits Times
Bursa adds 19 firms to F4GBM Index, 14 to F4GBMS Index
KUALA LUMPUR: Bursa Malaysia Bhd has announced 19 additions to the constituents of the FTSE4Good Bursa Malaysia (F4GBM) Index. It also includes 14 firms to the constituents of the FTSE4Good Bursa Malaysia Shariah (F4GBMS) Index. The stock exchange operator said the F4GBM Index includes public listed companies (PLCs) with good liquidity and strong environmental, social and governance (ESG) practices. The F4GBMS Index, meanwhile, tracks the constituents in the F4GBM that are Syariah-compliant. "For the June 2025 review, the F4GBM Index will see 19 additions and five exclusions, bringing its constituent count to 160 "The F4GBMS Index will see 14 inclusions and four exclusions, resulting in a total of 125 constituents in the index," Bursa Malaysia said. All constituent changes will take effect at the start of business on June 23. The new additions to the F4GBM Index include Berjaya Land Bhd, Capitaland Malaysia Trust, Carlsberg Brewery Malaysia Bhd, EG Industries Bhd, Genetec Technology Bhd and Genting Plantations Bhd This kicks out FM Global Logistics Holdings Bhd, Hextar Retail Bhd, Hong Leong Financial Group Bhd, Paramount Corp Bhd and Petron Malaysia Refining & Marketing Bhd. For the F4GBMS Index, the additions include EG Industries Bhd, Genetec Technology Bhd, Genting Plantations Bhd, Harbour-Link Group Bhd and IOI Properties Group Bhd. These companies replaced FM Global Logistics Holdings Bhd, Hextar Retail Bhd, Paramount Corp Bhd and Petron Malaysia Refining & Marketing Bhd.
