RAM Ratings affirms Pelaburan Hartanah's AAA rating

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,