AMBANK (M) Bhd’s proposed acquisition of Menara AmBank and related assets from AmFirst Real Estate Investment Trust (AmFirst-REIT) for RM331mil may make strategic sense for the bank, but the bigger question is whether the deal leaves AmFirst-REIT worse off.

The transaction will see the REIT dispose of one of its key assets, anchored by a long-term tenant with a strong credit profile. For REIT investors, this is crucial because stable rental income is the foundation of distributable earnings.