Find A Rating 
PRESS RELEASES
RAM Ratings affirms Pelaburan Hartanah
Published on 06 Aug 2025.
RAM Ratings has affirmed Pelaburan Hartanah Berhad’s (PHB or the Group) AAA/Stable/P1 corporate credit ratings and the same ratings of its RM5.0 bil Islamic Commercial Papers (2024/2031)/Islamic Medium-Term Notes (2024/-) Programme.
PHB is mandated to boost bumiputera ownership of prime commercial real estate, aligning with the Government of Malaysia’s (GoM) broader national development agenda to promote economic participation of the community. As a wholly-owned subsidiary of the GoM, PHB advances its mandate through managing Amanah Hartanah Bumiputera (AHB), a unit trust fund which had beneficial ownership of 21 out of 26 properties owned by the Group as at end-December 2024. Given its role, PHB is considered highly important to the government, both politically and institutionally. Government support has been strong, in the form of annual grants and tax exemptions. Accordingly, PHB’s ratings are underpinned by the robust credit fundamentals of the GoM.
In FY Dec 2024, PHB’s revenue increased by a robust 17% to RM464 mil (FY Dec 2023: RM396 mil), primarily driven by an uptick in occupancy and strong rental growth. Notwithstanding the higher revenue, property-related costs are well-contained, rising only 1.2% during the year as the Group started bringing its facility and lease management functions in-house. As a result, its net property income margin improved to 61% from 56% the previous year. Excluding property lease liabilities to AHB, the Group’s gearing and cash to short-term debt ratios stood at 0.29 times and 4.1 times, respectively, as at end-fiscal 2024 (end-2023: 0.23 times and 1.2 times). Gearing is expected to increase as its pipeline acquisitions of completed assets are to be partly funded by borrowings. PHB’s overall portfolio quality is average and still somewhat concentrated in the office sector though its portfolio rebalancing and rejuvenation exercise has yielded some improvements. Revenue contribution from the office portfolio decreased to 47% in 2024 from 55% in 2019.
Looking ahead, PHB’s property performance will remain challenged due to market conditions, i.e. the existing office space oversupply and rising costs. However, PHB’s continuous portfolio rebalancing efforts, the maturing of its recently completed assets and further cost savings from the insourcing of facility and lease management functions should help moderate these risks.
Analytical contacts
Lee Yee Von
(603) 2708 8217
yeevon@ram.com.my
Thong Mun Wai
(603) 2708 8255
munwai@ram.com.my
Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my
The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.
RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.
Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.
Published by RAM Rating Services Berhad
© Copyright 2025 by RAM Rating Services Berhad
