MARC Ratings has affirmed its AAIS rating on Fortune Premiere Sdn Bhd's RM3.0 billion Multi-Currency Islamic Medium-Term Notes Programme (Sukuk Murabahah). The rating outlook is stable. Fortune Premiere is a wholly-owned funding vehicle of IOI Properties Group Berhad (IOI Properties). The rating reflects the credit strength of IOI Properties which has provided an unconditional and irrevocable guarantee on the programme.

IOI Properties' well established market position and lengthy track record in property development, underpinned by low land costs that have afforded healthy margins, are key rating drivers. Key moderating factors are the potential increase in leverage from increased borrowings mainly to fund asset acquisitions, and the fairly high inventory level that has weighed on profitability.

IOI Properties acquired two hotels, W Kuala Lumpur in February 2024 and Courtyard by Marriott Penang in July 2024, for a combined RM435 million. Additionally, the group is completing the acquisition of Tropicana Gardens Mall by 1Q2025 for RM680 million. The acquisition of the mall will further enlarge IOI Properties' current investment property portfolio that consists of several malls, office buildings, and hotels in Malaysia, Singapore, and Xiamen, China. MARC Ratings' concerns on the largely debt-funded acquisitions are allayed by the increase in recurrent cash flows from strong occupancy levels (excluding domestic office buildings) that has resulted in property investment accounting for 22.0% of total revenue of RM2.9 billion in fiscal year 2024, up from 18.9% in the previous year. Combined with the hotels and leisure segment, non-property development revenue accounts for a third of group revenue. The total net lettable area (NLA) of its malls will increase to a sizeable 5.3 million sq ft on adding the 1.0 million sq ft of Tropicana Gardens Mall. Of its office buildings, the recently completed IOI Central Boulevard Towers in Singapore with NLA of 1.29 million sq ftc