MARC RATINGS AFFIRMS UEM SUNRISE'S RATINGS

MARC Ratings has affirmed its ratings of MARC-1IS/AA-IS on UEM Sunrise Berhad's Islamic Commercial Papers (ICP)/ Islamic Medium-Term Notes (IMTN) Programme (ICP/IMTN-3) with a combined nominal value of RM4.0 billion. Concurrently, the rating agency has also affirmed its rating of AA-IS on UEM Sunrise's two IMTN Programmes (IMTN-1 and IMTN-2) of RM2.0 billion each. The ratings outlook is stable.

UEM Sunrise's established property development track record, sizeable landbank, and healthy liquidity underpin its ratings, tempered by modest earnings relative to borrowings. The long-term ratings also incorporate a one-notch uplift from implicit parental support, given that the company is a key property development subsidiary of UEM Group Berhad.

As at end-June 2025, UEM Sunrise's ongoing domestic projects had a combined gross development value (GDV) of RM4.8 billion, with about 76% located in the Klang Valley. The overall average take-up rate stood at around 70%. Unbilled domestic sales of RM2.1 billion provide earnings visibility over the next four years. For 2025, the group had planned launches amounting to a total GDV of RM2.0 billion (versus RM904.3 million a year earlier), of which around RM413 million were launched during 1H2025. The group stands to benefit from renewed demand for developments in Johor, where it holds a sizeable landbank of about 4,560 acres (including joint-venture held land). Inventory stood low at RM133.9 million as at end-June 2025, which is expected to remain steady in the near term given the strong sales of nearly completed projects.

In the overseas market, UEM Sunrise's high-rise residential development in Subiaco East, Perth, with a GDV equivalent to about RM1.4 billion, was launched in July 2025, followed by launches in Kuala Lumpur and Singapore in September 2025, which have received encouraging interest. Construction is scheduled to begin in 3Q2026 and will be completed in 2029. The wh