[RAM] RAM Ratings affirms ratings of AC First Genesis' Sukuk Ijarah

RAM Ratings has affirmed the ratings of the Class A and Class B First Tranche Sukuk Ijarah (collectively, the Senior Sukuk) issued under AC First Genesis Berhad’s (the Issuer) RM3 bil Sukuk Ijarah Programme (see table). The Senior Sukuk is backed by Aman Central Mall (the Mall), an eight-storey retail mall in Alor Setar, Kedah. The Issuer is a trust-owned special-purpose vehicle incorporated to facilitate the securitisation exercise under the sukuk programme.



The affirmations reflect the improved performance of Aman Central Mall, in line with our annual sustainable cashflow assumption of RM41.0 mil. With the Mall’s adjusted valuation of RM469 mil, the LTV ratios and stressed FSCRs remain supportive of the respective ratings. 

In FY Dec 2024, the Mall’s base rental income was higher y-o-y at RM51.94 mil on the back of better occupancy. Coupled with increased promotion income, its revenue and net property income (NPI) (excluding one-off capital expenditure (capex)) grew a respective 5% and 10% y-o-y to RM69.24 mil and RM41.53 mil. The NPI margin was also higher at 60% owing to lower staff and marketing expenses. We anticipate Aman Central Mall’s performance to improve steadily, driven by optimum tenant remixing, new brand entries, positive rental reversion and management’s proactive marketing campaigns.

Subsequent to its third renewal cycle, the Mall’s lease expiry profile is well spread, although a moderate level of concentration is expected in 2027. No major tenant movements are envisaged, aside from negotiations on expiring leases or tenant relocation. Planned capex and asset enhancement initiatives, including periodic inspections and maintenance, are  anticipated to preserve the Mall’s quality and operational efficiency, which should help bolster occupancy levels and rental yields going forward.


Analytical contacts
Joel Thum
(603) 2708 8232 
joel@ram.com.my

Lim Chern Yit
(603) 2708 8302 
chernyit@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my