KUALA LUMPUR (Sept 21): AmFirst Real Estate Investment Trust (KL:AMFIRST) is confident of raising its overall occupancy level to 90%, as most of its tenants thrived despite external uncertainties.

The ongoing disposal of Menara AmBank will help as the 46-storey office tower has been weighing on the trust’s average, chief executive officer Chong Hong Chuon told reporters on Monday. Meanwhile, AmFirst REIT will continue pursuing new leasing deals across the remaining assets, he said.

“We will definitely continue to lock in more deals,” he said. “So hopefully, we can achieve at least 90% from all the property that we own on an average basis.”

AmFirst REIT owns eight office and retail assets worth RM1.7 billion combined. Occupancy across its portfolio was about 88% at the end of June.

Menara AmBank’s occupancy rate is only in the high-70% range and its sale for RM331 million is expected to be completed by the end of 2026. AmFirst REIT’s unitholders approved the transaction at an extraordinary general meeting on Monday.

On the outlook for the remainder of the financial year ending March 31, 2027 (FY2027), Chong said income growth will be driven mainly by the full-year impact of leasing and rental reversion activity.

He said about 183,000 square feet of new leases signed progressively through FY2026 will contribute to a full year in FY2027. Growth in rental reversion, the change in rent between an expiring lease and a newly signed lease for the same property will help this fiscal year.

A new co-working space coming online, along with higher car park income from improved occupancy, is also expected to add to revenue, he added.

Tenants have been relatively unaffected by external uncertainties, including ongoing geopolitical tensions, head of leasing and marketing Danny Chee Kok Leong said at the same press conference.

Overall, there was not much impact, he said. “It's just so uncertain, because the situation over there [Middle East] is popping up every now and then, so everyone is probably just waiting and seeing.”