The performance of Real Estate Investment Trust (REIT) issuers in Australia and Southeast Asia should remain strong despite uncertainties around trade, underpinned by their asset quality and revenue, Fitch Ratings said in a report on Thursday.

Most issuers benefit from long weighted-average lease expiry profiles, well-spread schedules for the expiry of leases, as well as tenant leases with operational cost pass-through provisions, annual rental escalations, or inflation indexation. However, suburban offices and business parks remain under pressure amid high vacancies in most markets as uncertainty increases.

Australia's Mirvac Group (ASX:MGR) was assigned an "A-" issuer default rating with a stable outlook, due to steady recurring cash flow based on a quality portfolio.

The "bbb+" property portfolio rating supports the firm's rating as Fitch expects the highest-rated property portfolios to include high-quality assets in attractive locations, supporting an issuer's ability to draw investors and lenders to leverage or sell their assets through the cycle.

It has the lowest rental income risk among its peers. Its portfolio occupancy has remained above 95% through the cycle, excluding build-to-rent projects that are scaling up, supported by high tenancy demand and lease renewal rates.

Mirvac has a AU$7 billion development pipeline, and its development exposure is likely to be above 10% of assets. It supported its development pipeline through capital partnerships, asset sales, and pre-sale hurdles before construction, while maintaining balance-sheet flexibility and portfolio strength.

It has strong access to capital, including equity market access, capital partnerships, and asset sales that help fund its development pipeline.