MARC RATINGS AFFIRMS SEGI ASTANA'S MTN RATING AT AA

MARC Ratings has affirmed its rating on Segi Astana Sdn Bhd's RM415.0 million ASEAN Green Medium-Term Notes (MTN) at AA-. The rating outlook is stable. Segi Astana is the concessionaire for the integrated complex, gateway@klia2, at the Kuala Lumpur International Airport Terminal 2 (KLIA Terminal 2) in Sepang, Selangor.

The rating affirmation reflects Segi Astana's stable operating performance, supported by sustained high occupancy at the gateway@klia2 shopping mall, and steady rental collection that generates strong cash flow. The rating also incorporates minimal refinancing risk with the extended concession agreement with Malaysia Airports Holdings Berhad (MAHB) to February 2069, from the original 2036 expiry. Moderating these strengths are the mall's dependence on passenger traffic volumes at KLIA Terminal 2, which are susceptible to disruptions in air travel demand, as well as tenancy renewal risk.

The outstanding amount under the rated MTN stands at RM195.0 million, with the upcoming scheduled repayment of RM25 million in January 2027 reducing the amount to RM170.0 million. The final MTN repayment of RM170.0 million is due in January 2028, for which Segi Astana is arranging a refinancing facility to be completed by early 2027.

The occupancy level of the mall, which has a net lettable area (NLA) of 379,000 sq ft, remained high at 95.9% as at end-2025 (2024: 96.5%). Rental collection increased to RM98.7 million in 2025 (2024: RM90.6 million), supported by strong tenancy, as reflected by the average turnover rent of RM3.35 psf in 2025, up from RM3.07 psf a year earlier. The average gross rental rate remained stable at RM17.97 psf (2024: RM17.81 psf).

The year 2026 is a major renewal period, with about 214,000 sq ft or 56.5% of tenanted NLA due for renewal. The rating agency understands that over 70% of the occupants have renewed their tenancy for another three years, with the remaining tenancies toi