MARC Ratings has affirmed its AAIS rating on S P Setia Berhad's RM3.0 billion Islamic Medium-Term Notes (IMTN) Programme with a stable outlook.
The agency said the rating reflects S P Setia's established domestic market position in township development, its proven sales track record, and considerable landbank in strategic locations that would continue to provide strong developmental opportunities. Its earnings visibility from sizeable unbilled sales is also a key rating consideration. The rating incorporates a one-notch uplift on MARC Ratings' assumption of support extended by parent Permodalan Nasional Berhad, if needed. The rating is tempered by concerns over a potential increase in inventory levels should property demand soften.
MARC Ratings notes that S P Setia had a sizeable combined gross development value (GDV) of RM6.4 billion from its 36 ongoing domestic developments across various established townships in the Klang Valley, Johor and Penang, with unbilled sales of RM3.1 billion as at end-2023. This is expected to sustain its financial performance over the medium term. Of the total GDV, about 75% is made up of landed residential developments (mainly terrace houses) where demand is considered relatively resilient. With a median price of RM870K per unit, the terrace houses subsegment achieved a take-up rate of 61% as at end-2023 within a short launch period in the same year.
With regard to foreign property projects, the group delivered 273 units of the UNO Melbourne Phase 2 project between September and end-December 2023, enabling the group to recognise RM614 million in revenue in 2023. The remaining 118 units will be handed over once buyers finalise their financing arrangements. In the UK, where the group holds a 40% interest in the Battersea Power Station joint venture, Phase 3B of the project comprising 204 apartments was completed in December 2023 and achieved 45% sales. For this phase's 200,000 sq ft Grade A office building which was completed in February 2024, the rating agency understands that negotiations for occupancy are in the advanced stages.
For 1Q2024, group revenue increased by 52.5% y-o-y to RM1.5 billion driven by the sale of land parcels worth RM424.2 million. Accordingly, pre-tax profit rose by 56.3% y-o-y to RM181.2 million. The group is expected to undertake opportunistic land sales given its sizeable land holdings in the Klang Valley and Johor.
The Ratings agency notes that completed property inventory declined marginally to RM1.7 billion as at end-1Q2024 (end-2023: RM1.8 billion) and opines that this could increase if property market conditions weaken. Gross debt-to-equity ratio could improve to around 0.60x by year end from 0.62x as at end-1Q2024, from disposal proceeds of non-core land parcels. Total borrowings reduced to RM9.7 billion (end-2023: RM10.1 billion). A healthy liquidity position as reflected by cash balances of RM2.6 billion would provide a buffer to meet upcoming financial and contractual obligations .
MARC Ratings確認了對S P Setia Berhad的30億令吉伊斯蘭中期票據(IMTN)計劃的AAIS評級,評級展望爲穩定。
該機構表示,該評級反映了S P Setia在城鎮開發中確立的國內市場地位、其良好的銷售記錄以及戰略地點的大量土地儲備,這些土地儲備將繼續提供強勁的發展機會。其可觀的未開票銷售帶來的收益知名度也是一個關鍵的評級考慮因素。該評級對MARC Ratings假設的上調了一個檔次,即如果需要,母公司Permodalan Nasional Berhad會提供支持。由於擔心房地產需求疲軟庫存水平可能會增加,該評級受到抑制。
MARC評級指出,SP Setia在巴生谷、柔佛和檳城的各個已建城鎮的36個正在進行的國內開發項目中,總開發價值(GDV)相當可觀,爲64令吉,截至2023年底,未開票銷售額爲31令吉。預計這將維持其中期財務業績。在總國內生產總值中,約有75%由有地住宅開發項目(主要是排屋)組成,這些項目的需求被認爲相對具有彈性。排屋子板塊的中位價爲每套87萬令吉,在同年的短暫推出期內,截至2023年底,其使用率達到61%。
在外國房地產項目方面,該集團在2023年9月至12月底期間交付了墨爾本UNO第二階段項目的273套住房,使該集團能夠在2023年確認61400萬令吉的收入。剩餘的118個單元將在買家完成融資安排後移交。在英國,該集團持有巴特西發電站合資企業40%的權益,該項目包括204套公寓的第30期已於2023年12月完成,銷售額達到45%。該評級機構了解到,該階段的20萬平方英尺甲級辦公樓已於2024年2月完工,其入住談判已進入後期階段。
在 1Q2024 方面,集團收入同比增長52.5%,至15令吉,這要歸因於出售價值42.42萬令吉的地塊。因此,稅前利潤同比增長56.3%,至18120萬令吉。鑑於該集團在巴生谷和柔佛州擁有大量土地,預計將進行機會主義的土地出售。
該評級機構指出,截至2024年第一季度末,已完成的房地產庫存略有下降至17令吉(2023年底:18令吉),並認爲如果房地產市場狀況疲軟,庫存量可能會增加。非核心地塊處置收益的總債務權益比率可能會從2024年第一季度末的0.62倍提高到年底的0.60倍左右。借款總額減少到97令吉(2023年底:101令吉)。26令吉的現金餘額所反映的健康的流動性狀況將爲履行即將到來的財務和合同義務提供緩衝 。