Sime Darby Property retains AA+IS rating for RM4.5 bil sukuk for fourth year

• Datuk Seri Azmir Merican: “This balance between managing debt effectively and leveraging it for future growth enables us to advance our growth plans and diversify our income streams responsibly.”

KUALA LUMPUR (Dec 16): Sime Darby Property Bhd has retained the AA+IS rating with a stable outlook for its RM4.5 billion Islamic Medium-Term Notes (IMTN) Programme (Sukuk Musharakah) for the fourth consecutive year.

The rating, reaffirmed by MARC Ratings Bhd, applies to the RM1.4 billion outstanding under the programme as of Nov 30, 2024.

In a statement today, group managing director Datuk Seri Azmir Merican (pictured) said the reaffirmation reflects the group’s commitment to financial stability, enabling sustainable growth and income diversification.

“This balance between managing debt effectively and leveraging it for future growth enables us to advance our growth plans and diversify our income streams responsibly.

“As we continue to evolve as a sustainable real estate player, the Sukuk Musharakah Programme remains a key enabler of our strategic growth initiatives,” he said.

Sime Darby Property noted that the rating reflects the group's robust sales performance across its well-established townships, strong balance sheet and low leverage.

MARC Ratings shared that the group’s RM2.8 billion in gross development value launches for the first nine months of FY2024 (9M FY2024) had a strong overall take-up rate of 76 per cent for its diversified product mix of residential high-rise, landed, and industrial offerings located within populous townships with well-established connectivity.

“Sime Darby Property’s developable land bank of approximately 5,220.44 hectares excluding non-core lands continues to provide development opportunities for industrial and township projects,” it said.

MARC Ratings also assessed the progress on the Battersea Power Station development, in which Sime Darby Property holds a 40%, said the group.

“By September 2024, Phase 3B’s residential units reached a 61% sales rate, while the commercial building, 50 Electric Boulevard, achieved 45% occupancy, with negotiations for additional leases ongoing,” it added.

The group’s 9M FY2024 revenue grew by 35% year-on-year to RM3.3 billion, driven by higher sales and progress across projects primarily in its Klang Valley townships.

In the same period, its pre-tax profit stood at RM636.8 million, supported by higher revenue and non-core land parcel sales, offsetting provisions for rental guarantees related to Battersea Power Station’s 50 Electric Boulevard Grade A office building.

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