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WorksheetsShariah-Compliant Investment through Islamic REIT
Total questions: 10
Worksheet time: 5mins
1) What is Islamic Real Estate Investment Trust (REIT)?
Islamic REIT is a fund or a trust that invests in a portfolio of income-generating commercial real estate - shopping complexes, hospitals, plantations, industrial properties, and office blocks
Islamic REIT is a collective investment scheme in real estate, which the tenant(s) operates permissible activities according to Shariah
Islamic REIT permitted to acquire vacant land, an extension of loans and financing facilities or any other credit facility to any person
The following list outlines the prohibited criteria of Islamic REIT:
Conventional Banking
Gambling
Conventional Insurance
All of the above
What is the permissible % benchmark that was determined by the Syariah Advisory Council (SAC) of the Securities Commission for the criteria on rental from non-permissible activities?
5%
15%
20%
10%
Can an Islamic REIT own real estate in which all the tenants operate non-permissible activities?
Yes
No
Is an Islamic REIT required to use insurance scheme that comply with Shariah principles?
Yes
No
What is the main comparison in investing in Islamic REIT compared to Conventional REIT?
Islamic REIT must appoint a Syariah Committee/Advisor to ensure compliance with Syariah requirements
No restrictions in Financing
All activities carried out by tenants are allowed
Distribution of income should only be made from realized gains or realized income
How many REITs are there in Malaysia?
14
10
18
4
Following are the Islamic REITs that you can invest in:
KLCC REIT, Al-Aqar, Al-Salam & Pavilion
Al-Salam, Axis REIT, KLCC REIT & Al-Aqar
Al-Aqar, Al-Salam, IGB REIT & Pavilion
KLCC REIT, Sunway REIT, IGB REIT & Pavilion
Which are the following properties that are not part of KLCC Group structure?
PETRONAS Twin Towers
Menara Dayabumi
Pavilion Mall
Suria KLCC
What is the market capitalization composition of KLCC Group against the overall Malaysian REIT industry?
30%
32%
10%
20%
