Sime Darby Property Berhad has maintained the AA+IS rating with a stable outlook for its RM4.5 billion Islamic Medium-Term Notes ("IMTN") Programme ("Sukuk Musharakah"). This investment-grade rating was reaffirmed by MARC Ratings Berhad ("MARC Ratings") for the fourth consecutive year.
The outstanding under the rated programme stood at RM1.4 billion as of 30 November 2024. This rating reflects Sime Darby Property's robust sales performance across its well- established townships and its strong balance sheet, supported by low leverage. MARC Ratings noted the Group's RM2.8 billion in gross development value launches for the first nine months of FY2024, with a strong overall take-up rate of 76% for its diversified product mix of residential high-rise, residential landed, and industrial offerings located within populous townships with well-established connectivity. Unbilled sales of RM3.7 billion provide the Group with earnings visibility over the next three years. Completed inventory remained modest relative to the size of the Group's projects, stood at RM185.5 million as of September 2024, reflecting efficient management of project rollouts.
The rating agency highlighted the Group's ongoing diversification into industrial and logistics property development, including built-to-lease projects aimed at generating recurring income. Sime Darby Property's developable landbank of approximately 12,900 acres (excluding non- core lands), continues to provide development opportunities for industrial and township projects.
MARC Ratings also assessed the progress on the Battersea Power Station development, in which Sime Darby Property holds a 40% stake. By September 2024, Phase 3B's residential component reached a 61% sales rate, while the commercial building, 50 Electric Boulevard, achieved 45% occupancy, with negotiations for additional leases ongoing.
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. The period's 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.
Gearing level remained low, with borrowings reduced slightly to RM2.8 billion as compared to the previous year (end-2023: RM2.9 billion), and a gross debt-to-equity ratio of 0.27x. Cash balances of RM790.7 million reflect a healthy liquidity position.
Sime Darby Property's Group Managing Director, Dato' Seri Azmir Merican, said, "The reaffirmation of our AA+IS rating reflects our commitment to financial stability, which is key to delivering consistent results. This stability, indicating a strategic balance between managing debt effectively and leveraging it for future growth opportunities, enables us to responsibly advance our growth plans and diversify our income streams. As we continue to evolve as a sustainable real estate player, the Sukuk Musharakah Programme remains a key enabler of our strategic growth initiatives."
