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RAM Ratings affirms IJM Land’s A2(s) issue rating
Published on 16 Dec 2025.
RAM Ratings has affirmed the A2(s)/Stable rating of IJM Land Berhad’s RM2 bil Perpetual Sukuk Programme. The rating reflects the unconditional and irrevocable subordinated guarantee from its parent, IJM Corporation Berhad (IJM Corp or the Group), whose debt securities are rated AA3/Stable by RAM. The sukuk rating is two notches below IJM Corp’s rating, reflecting the deferrable nature of profit distributions and subordinated claims of sukukholders in the event of insolvency. The (s) modifier indicates a purchase undertaking by IJM Land to acquire sukukholders’ interests.
As the property development arm of IJM Corp, IJM Land has, on average, contributed over half of the Group’s pre-tax profits in the last three fiscal years and continues to benefit from consistent unsecured advances, underscoring its strategic importance to its parent. In FY Mar 2025, IJM Land recorded lower y-o-y sales (RM1.5 bil) and revenue (RM1.6 bil), primarily due to the timing of project launches – approximately 85% of gross development value was launched in the final quarter – and softer buyer sentiment. However, operating profit before depreciation, interest and tax and pre-tax profit remained resilient at a respective RM350.2 mil (+8.3% y-o-y) and RM318.9 mil (-10.0% y-o-y). IJM Land’s leverage stayed conservative, with a gearing ratio of 0.49 times (FY Mar 2024: 0.47 times), while funds from operations debt coverage was kept steady at 0.10 times (FY Mar 2024: 0.11 times).
Cooling property market conditions and ongoing economic uncertainties saw total residential property transactions nationwide retreat by 1.4% in 1H 2025, with total transaction value remaining broadly flat. Despite these headwinds, IJM Land’s large cash reserves (RM727.9 mil, excluding restricted balances in Housing Development Accounts), manageable debt maturities, extensive landbank and ongoing corporate support are expected to provide operational flexibility. These factors should enable the Group to adjust project launches as needed, drive sales of ongoing projects and convert unbilled sales (end-March 2025: RM1.5 bil) into revenue.
Analytical contacts
Ben Inn
(603) 2708 8290
ben@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
