Measuring Efficiency of Real Estate Investment Trust Using Data Envelopment Analysis Approach Siti Latipah Harun University Utara Malaysia Herniza Md Tahir & Zati Aqmar Zaharudin Universiti Teknologi MARA (UiTM), Shah Alam This paper represents in measuring the efficiency of Real Estate Investment Trust (REITs) of 13 companies in Malaysia by using Data Envelopment Analysis (DEA) technique. Four inputs are utilized which are operating expenses, administrative expenses, management fees and interest expenses. Meanwhile, outputs used are total assets, total revenue and net asset value. As results, of all 13 Malaysia REITs involved in this study, it shows that the average efficiency of Malaysia REIT in 2007 is 66.53% while in 2008 and 2009 are 67.91% and 74.12%, respectively. Conclude that most companies show the efficiency of Malaysia’s REIT is increases due to economic recovery. 1. Introduction Real Estate Investment Trust (REITs) has widely growth at the Middle East and Europe, however, in contrast, in Malaysia, REITs is still one of investment options that newly emerged with potential fair return of investment, and it known as Malaysia REITs (MREITs). The REIT-based companies will invest, manage and distribute rental as dividend to the investors. The investments are traded in Kuala Lumpur Stock Exchange (KLSE) with ease of buying and selling back like a normal equity. REITs were initially created as a tool in which small investors could gain access to large-scale, income – producing real estate properties. Therefore, small investors can easily obtain shares through the investment in REITs without need to go purchasing commercial REITs. The income – producing real estate assets owned by REITs companies may comprise of office buildings, shopping malls, apartments, hotels, resorts, self-storage facilities, warehouses, and mortgages or loans (SEC, 2011). REITs also can be classified as mutual funds that invest in properties and derive income from such investments for their unit holders. These investments are focusing on regional; and it also may be specified to a property type or combined investments. Global REIT Report 2007 stated the REIT is a rapidly growing asset class with market capitalization increased by 26% during the year of 2007. Whereas in 2008, Quarterly Report Global Property and REIT (2008) stated that the global total