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RAM Ratings affirms KIP REIT Capital’s 2024-Issue 4 MTN rating
Published on 03 Sep 2026.
RAM Ratings has affirmed the AAA/Stable rating of the RM240 mil 2024-Issue 4 Class A Medium-Term Notes (MTN) under KIP REIT Capital Sdn Bhd’s RM2.0 bil Perpetual MTN Programme. The MTNs are backed by four properties – KIPMall Tampoi (KMT), KIPMall Masai (KMM) and KIPMall Bangi (KMB) (collectively, KIPMalls) and AEON Mall Kinta City (AMKC). KIP REIT Capital is KIP Real Estate Investment Trust’s (KIP REIT or the REIT) funding conduit.
The affirmation reflects strong collateral and cashflow coverage from the securitised properties. The stable outlook reflects RAM’s expectation that the properties will perform in line with the revised SCF assumption. Their mature catchments, high occupancy, positive rental reversions as well as active asset and tenant-mix management support the rating. The portfolio’s revised RM57.0 mil sustainable cashflow assumption, raised from RM53.5 mil, captures sustained earnings outperformance, stronger occupancy and rental rates, car-park and turnover-based income, and higher rental under AMKC’s extended master lease.
The revised SCF supports an adjusted valuation of RM650.0 mil, equivalent to 83.3% of the latest RM780.0 mil market valuation. The Class A MTN’s loan-to-value ratio and stressed debt service coverage ratio improve to 36.9% and 2.79 times, respectively, from 39.3% and 2.62 times, providing ample headroom for the AAA rating, against weaker NPI or asset values.
Portfolio quality remains above average, and is diversified by geography, asset value, revenue and tenant mix, with each property contributing 18%-34% of portfolio NPI and ten largest tenant exposure still manageable in FY Jun 2026. Essential-services and fresh-market trades continue to anchor solid KIPMalls occupancy of 96.7% and 1%-8% rental reversions. Together with the REIT Manager’s cost-containment initiatives, this supported portfolio NPI margin that held firm at 79.0% in FY Jun 2026. Ongoing asset enhancement and tenant repositioning, as well as AMKC’s long-term triple-net lease with AEON CO. (M) BHD. will sustain portfolio yields, while AMKC’s proposed expansion coupled with KMM’s planned asset enhancement initiative provide potential upside that is not yet factored into RAM’s revised SCF assumption.
Analytical contacts
Tan Yan Choong
(603) 2708 8256
yanchoong@ram.com.my
Tan Han Nee
(603) 2708 8322
hannee@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 2026 by RAM Rating Services Berhad
