KUALA LUMPUR (Dec 27): Sime Darby Property Bhd’s (SDP) sukuk musharakah programme was accorded the AA+ rating with a stable outlook by MARC Ratings Bhd for the third consecutive year.
In a statement on Wednesday, the property company said that the outstanding sukuk under the rated programme stood at RM1.4 billion as of Nov 30, 2023.
“MARC Ratings noted SDP’s strong sales track record in well-established townships, and strong balance sheet, characterised by low leverage as the key rating drivers.
“Other contributing factors for the rating included the overall take-up rate of launched projects in [the first] nine months ended [Sept 30,] 2023 (9MFY2023), with a combined gross development value (GDV) of RM3.2 billion, and a 75% take-up rate as of Nov 5, primarily within the group’s existing maturing townships,” it said.
It further stated that with unbilled sales of RM3.7 billion as at end-September 2023, the group had strong earnings visibility through 2026.
“The rating agency also stated that relative to the size of its projects, SDP’s completed inventory remained modest at RM433.1 million as of end-9MFY2023,” it said.
MARC Ratings also noted SDP’s strategy to transform from a pure-play property developer into a sustainable real estate player, with a broader presence in property development, investment and asset management.
“It noted that the group is focused on growing its industrial and logistics segment as part of product diversification, including build-to-lease properties to strengthen its recurring income stream.
“This was reflected in the group’s 9MFY2023 industrial launches, with a combined GDV of RM675.6 million, which had achieved an average take-up rate of 86% as of Nov 5, 2023,” it said.
SDP added that with its land bank standing at approximately 5,520 hectares, MARC Ratings sees that the group has strong potential to undertake further township and industrial developments.
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Source: EdgeProp.my
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