Pelaburan Hartanah Berhad Attains Highest AAA Rating from RAM Ratings

Published on 19 Feb 2024.

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Kuala Lumpur, 19 February 2024 - Pelaburan Hartanah Berhad (PHB), an operational arm of Yayasan Amanah Hartanah Bumiputera, has been conferred with the highest possible long and short-term corporate credit ratings of AAA and P1, respectively, from RAM Rating Services Berhad (RAM Ratings). The assigned ratings, accompanied by a stable outlook, reflect PHB’s robust financial health in meeting its financial obligations, supported by its strategic role in carrying out the government’s mandate to increase Bumiputera ownership and participation in the country’s commercial real estate sector.

Since its incorporation in 2006, PHB has grown its real estate portfolio exponentially to RM11 billion as at end-October 2023 and is on track to reach RM25 billion by 2030. PHB’s commitment to enabling ownership participation by the Bumiputera is realised through the injection of the beneficial ownerships of its real estate assets into the shariah-compliant Amanah Hartanah Bumiputera (AHB) unit trust fund. 

Mohamad Damshal Awang Damit, Group Managing Director / Chief Executive Officer of PHB, says: “PHB’s success stems from its acquisition of commercial real estate in strategic locations around Malaysia. This is achieved by maintaining financial discipline and balancing rapid expansion with prudent financial management, as seen in our robust balance sheet and optimal liquidity position, to carry out our mandate successfully.” 

PHB’s financial position is strong, with a healthy gearing ratio of 0.28 times, and significant financial flexibility in the form of a large available credit line as of December 2022 to meet its short and long-term obligations. Tangible government support by way of both monetary and non-monetary assistance, e.g., tax exemption schemes and grants, help fund PHB’s property acquisitions and development projects and supplement its operational cashflows.

“As the government prioritises more prudent financial management, we believe the domestic capital market can be a good alternative source of funding for other similar government agencies to contribute to nation building,” says Awang Za’aba Awang Mahmud, RAM Ratings Chief Executive Officer. “PHB’s commendable credit standing demonstrates its dedication to transparency, enabling the company to expedite its expansion ambitions and provide diversification benefits to investors while also helping advance of Bumiputera economic wellbeing, in line with the broader national development agenda,” he adds.

The AHB is currently valued at RM4.85 billion, benefiting over 70,000 Bumiputera investors in Malaysia with a stable stream of yearly dividends ranging from 4.7% to 7.5% between 2011 and 2023. 

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Media Contact (PHB)
Wardatul Ithni Abd Rahman 
Manager, Corporate Communications
Office: 03-7711 3014 | Mobile: 012-351 4357
wardatul@phb.com.my 

Media Contact (RAM)
Sakinah Arifin
VP, Corporate Communications
Office: 03-3385 2500 | Mobile: 014-267 5030
sakinah@ram.com.my

 

ABOUT PELABURAN HARTANAH BERHAD

Established in May 2006, Pelaburan Hartanah Berhad (PHB) is a property investment company and a subsidiary of Yayasan Amanah Hartanah Bumiputera (YAHB). PHB is founded on the following core principles, enhancing shareholder and investor values, practising sound corporate governance, fostering innovation and growth and cultivating talent and reward performance. PHB’s goal is to enable long-term growth through managing, investing in and expanding its core businesses in the prime commercial real estate investment sector. More information can be found at https://www.phb.com.my/

ABOUT RAM RATING SERVICES BERHAD

Established in 1990, RAM Ratings is a leading credit rating agency in Malaysia and Southeast Asia, registered under the Securities Commission’s Guidelines on Credit Rating Agencies. In addition to the provision of credit ratings for corporate bonds and sukuk and their issuers, RAM Ratings also provides research and publications on Islamic finance, fixed income and macro-economic and industry analysis as well as data analytics relating to credit risk, counterparty assessments and other related domains.