MARC Ratings has affirmed Segi Astana Sdn Bhd's RM415.0 million ASEAN Green Medium-Term Notes (MTN) rating at A+ and revised the rating outlook to positive from stable. Segi Astana is the concessionaire for the integrated complex, gateway@klia2, at Kuala Lumpur International Airport Terminal 2 (KLIA Terminal 2) in Sepang, Selangor. The gateway@klia2 complex comprises a landside mall, a multi-storey car park and a transportation hub, and commenced operations in May 2014.

The rating affirmation reflects Segi Astana's strong earnings uptrend in line with the increasing occupancy level at the mall in gateway@klia2, and its improving credit metrics. The positive outlook revision incorporates expectations that earnings will be further boosted by the increase in occupancy level to about 95% over the near term and higher car park fee collection, and the considerable easing in refinancing risk from the concession extension by Malaysia Airports Holdings Berhad (MAHB) by another 22 years to August 2069.

The occupancy level of the mall, which has a net lettable area (NLA) of around 380,000 sq ft, stood at 87.9% as at end-March 2024 (end-May 2022: 60%). The mall's rental and car park incomes, which rose 87.0% y-o-y to RM67.4 million and 71.5% y-o-y to RM43.9 million in 2023, remain on an uptrend. The rating agency views that management initiatives to optimise tenant mix and undertake asset
enhancement would continue to underpin Segi Astana's performance. The strong recovery in passenger traffic growth at KLIA Terminal 2, which rose to 10.4 million in 5M2024 (5M2023: 9.1 million) though still at around 76% of the pre-pandemic level (5M2019: 13.6 million), will be supported by the easing of visa restrictions for several countries.

For 1Q2024, total revenue rose 12.6% y-o-y to RM32.5 million and pre-tax profit rose 42.0% y-o-y to RM9.8 million. The current average gross rental rate of RM17.86 psf is expected to increase by 3% to RM18.40 psf in 2025, while the mall's avail