KUALA LUMPUR: Sime Darby Property Bhd
continues to hold an AA+IS rating with a stable outlook on its RM4.5bil Islamic Medium-Term Notes (IMTN) Programme (Sukuk Musharakah), following a reaffirmation by MARC Ratings Bhd.
This marks the fifth consecutive year the property group has maintained the rating, underscoring its strong sales track record across established townships, sustained earnings performance supported by sound operating margins, and a strong balance sheet characterised by low leverage, MARC Ratings said.
MARC Ratings noted steady demand across Sime Darby Property’s established townships and integrated developments.
In the first nine months of FY25, the group launched projects with a combined gross development value of about RM2.5bil, achieving an average take-up rate of 60%.
Residential projects made up roughly 64% of total GDV launched, with the balance from industrial and commercial developments, reflecting the group’s diversified product mix and longer-term growth priorities.
MARC Ratings highlighted Sime Darby Property’s 11,100-acre landbank, largely within mature townships, which supports sustainable development over the medium to long term.
Unbilled sales of RM4.1bil provide earnings and cash flow visibility beyond the next three years, while completed inventories remained modest at RM154.3mil as at end-September 2025, reflecting a disciplined approach to project rollouts and delivery.
Additionally, beyond development activities, Sime Darby Property continues to expand its recurring income base through built-to-lease industrial and logistics projects and a growing portfolio of income-generating assets, including KL East Mall, Elmina Lakeside Mall and KLGCC Mall.
Investments in emerging asset classes such as hyperscale data centres are expected to strengthen long-term income stability and support the Group’s SHIFT25 strategy.
On the international front, MARC Ratings noted progress at Battersea Power Station in London, where Sime Darby Property holds a 40% joint-venture stake.
Phase 3B residential units achieved an 85% take-up rate as at end-September 2025, while occupancy at 50 Electric Boulevard stood at about 45% amid a soft UK office market. Planning for subsequent phases remains aligned with the group’s long-term objectives.
“The reaffirmation of our AA+IS rating reflects our conscious efforts on effective capital management and rigorous pursuit of growth strategies to broaden income streams, while maintaining financial resilience. In a landscape shaped by ongoing global and domestic uncertainties, we are positioning the group to seize opportunities and deliver sustainable returns for stakeholders across market cycles,” group managing director Datuk Seri Azmir Merican said.
Looking ahead, he said the Sukuk Musharakah Programme continues to provide the group with financial flexibility to support its strategic priorities, as it executes its growth plans responsibly with a clear long-term focus.
