KUALA LUMPUR: Malaysian Rating Corp Bhd (MARC) has affirmed its AA+IS rating with a steady outlook on Sime Darby Property Bhd
’s (SD Property) Islamic medium-term notes programme of RM4.5bil beneath the Shariah precept of Musharakah.
In an announcement, MARC stated SD Property’s well-established place as a township developer and its sturdy gross sales monitor document in home property growth stay key rating drivers.
“Its sizeable landbank of 15,199 acres in key population growth areas in the Klang Valley that offers prospects for development, and its low leverage position underpin the group’s credit profile.
“The rating incorporates a one-notch uplift for implicit support from parent Permodalan Nasional Bhd,” it stated.
MARC famous that within the first half of 2021, SD Property launched 20 home tasks with a mixed gross growth worth (GDV) of about RM1.6bil, bringing the overall GDV of ongoing tasks to RM7.5bil.
Of this, the Klang Valley accounted for a sizeable 86%, underscoring the sturdy common take-up price of 88%.
In addition to location, the great response is because of its property combine with a spotlight on landed residential models priced within the mid-market phase with sturdy freeway connectivity.
Unbilled gross sales of RM1.8bil as at end-June 2021, supplies wholesome earnings visibility. In phrases of stock degree, this was decrease at RM554.1mil.
For 1H2021, SD Property recorded y-o-y enchancment in income and working revenue to RM1.1bil and RM159.5mil.
Its borrowings elevated barely to RM3.4bil as at end-June 2021, with a low gross and internet debt-to-equity ratios of 0.37x and 0.29x.
This contains the excellent sukuk of RM800mil.
Moving ahead, its main commitments comprise funding necessities for industrial and logistics developments and a capital name of about RM663.2mil as at end-June 2021 for its Battersea Power Station challenge.
“SD Property has retained strong financial flexibility stemming from significant unutilised financing facilities and sizeable unencumbered landbank,” MARC stated.
