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RAM Ratings affirms Pelaburan Hartanah’s AAA rating
Published on 08 Sep 2026.
RAM Ratings has affirmed Pelaburan Hartanah Berhad’s (PHB) AAA/Stable/P1 corporate credit ratings and the same ratings of its RM5.0 billion Islamic Commercial Papers (2024/2031)/Islamic Medium-Term Notes (2024/-) Programme.
PHB’s ratings remain aligned with the government’s credit strength. Our support assessment continues to be anchored by PHB’s strategic public policy role of facilitating bumiputera commercial real estate ownership through Amanah Hartanah Bumiputera (AHB), its full ownership by Yayasan Pelaburan Bumiputra – a government-backed foundation under the purview of the Prime Minister’s Department – and its long record of direct and indirect government support. Since inception, PHB has benefited from grants, tax exemptions and land injections that have supported the expansion of its asset base and fulfilment of policy objectives.
PHB’s 2025-2027 strategic plan aims to lift portfolio yield and lease-and-hibah coverage. Achieving these targets would strengthen the sustainability of distributions and reduce reliance on external support measures such as grants, although execution risks remain given the scale of planned acquisitions and asset optimisation initiatives. Its strategy focuses on increasing exposure to income generating assets secured by predominantly single-tenanted defensive assets under double or triple-net lease structures, while recycling, divesting or partnering on lower yielding assets and undeveloped land.
As at end-2025, PHB owned 29 investment properties valued at RM8.43 bil. Recent acquisitions have diversified beyond its core office and retail properties, increasing exposure to industrial and healthcare assets, enhancing tenant and sector resilience although still subject to asset specific execution risks. Revenue rose 20% to RM556 mil in FY Dec 2025 while net property income margin improved to 65% from 60% a year earlier, backed by contributions from newly acquired assets, higher occupancy and improved cost discipline. Nonetheless, profit before tax remains sensitive to fair value movements.
Funding needs are expected to increase as PHB executes its acquisition pipeline and pursues portfolio optimisation initiatives. Borrowings rose to RM1.8 bil following a RM300 mil sukuk issuance in April 2026, with a further RM400 mil issuance planned for later this year. Consequently, sukuk outstanding is projected to reach RM2.2 bil by end-2026, with gearing increasing to about 0.41 times from 0.28 times at end-2025, although still below PHB’s internal limit of 0.5 times. PHB’s funding diversification through sukuk proceeds, AHB unit sales, internally generated cash and capital recycling, should partly mitigate refinancing and funding risks.
PHB’s liquidity profile remains constrained by substantial funding requirements for acquisitions, lease and hibah commitments to AHB, as well as potential support for AHB unit redemptions. Management manages its liquidity position by maintaining a minimum redemption liquidity coverage, and targets RM300 to RM 400 mil of cash reserves, alongside term financing lines and standby borrowing arrangements. Nonetheless, continued asset injections into AHB, unit monetisation, portfolio occupancy improvements and disciplined capital recycling will remain important to improving coverage and preserving liquidity headroom without dependence on grants.
Analytical contacts
Lee Yee Von
(603) 2708 8217
yeevon@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.
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Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.
Published by RAM Rating Services Berhad
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