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.
