This study examines the effect of leverage as measured by debt to equity ratio, profitability as measured by return on assets, agency cost and inflation rate in predicting company factor of the financial distress with interest rate volatility as moderating variable. This study’s sample is 50 property and real estate companies listed on the Indonesia and Malaysia Stock Exchange from 2014to 2018. The statistical method used for hypothesis testing is obtained from logistic regression analysis with Financial Distress (Y) as the dummy variable. This study uses Altman Z-Score value as a prediction classification of companies experiencing financial distress or nonfinancial distress. The research results showed that leverage had a significant positive effect on financial distress, while the inflation rate had a significant adverse effect on financial distress with a level of significant below 0,05 (p≤ 0,05). The other ratio are profitability, agency cost, and interest rate volatility have no significant effect on the financial distress of property and real estate companies listed on Indonesia and Malaysia Stock Exchange from 2014 to 2018. The result of Moderated Regression Analysis (MRA)effect leverage, profitability, agency cost and inflation rate variable has valued above0,05 (p≥ 0,05), which means interest rate volatility has no significant effect as a moderating variable of leverage, profitability, agency cost and inflation rate on financial distress.