MARC Ratings has affirmed its AA-IS rating on special purpose funding vehicle WM Senibong Capital Berhad’s (WMSC) Islamic Medium-Term Notes (Sukuk Wakalah) Programme of up to RM1.0 billion. The rating outlook is stable. WMSC is wholly owned by WM Senibong Berhad. The rating reflects the credit strength of property developer WM Senibong as the obligor of the Sukuk Wakalah Programme.
WM Senibong’s credit profile is underpinned by its established track record in niche property development in Johor, supported by strong project execution capabilities, healthy sales performance that generates sizeable unbilled sales, and a substantial landbank that provides long-term development visibility. The group continues to benefit from the technical expertise and project development know-how of its key shareholder, Australia-based Walker Group Holdings Pty Limited.
The group’s business profile is characterised by its strategically located developments in Johor Bahru, namely Senibong Cove, Crest@Austin, and The Kews, which have generally recorded strong sales performances. As at end-March 2026, the group’s ongoing projects had a combined gross development value (GDV) of RM2.4 billion with an average overall take-up rate of 62%. Cumulatively, WM Senibong has completed projects with a total GDV of RM3.0 billion. Sales momentum has been particularly strong in the landed residential sub-segment. The sizeable unbilled sales of RM651.5 million and planned launches with an aggregate GDV of RM6.7 billion are expected to provide earnings visibility through 2026–2030.
The rating also considers the group’s landbank of 1,426 acres, including the 960-acre site for its latest development near Crest@Austin, namely the Centennial ParcVista, which will comprise residential, commercial and light industrial components. MARC Ratings views positively WM Senibong’s disciplined launch approach, which mitigates inventory risks and helps manage working capital requirements. As a result of strong sales, completed inventories remained low at RM67.7 million as at end-March 2026.
The group has continued to maintain healthy profitability, with operating profit margins consistently above 30% over the past five years. Revenue increased to RM687.3 million in the financial year ended 30 June 2026 (FY2026) (FY2025: RM464 million), with OPBITDA interest coverage remaining robust at 11.3x despite higher financing costs.
The rating is moderated by the group’s higher leverage to fund land reclamation works at Senibong Cove and the acquisition of land at The Kews. Debt increased to RM692.2 million as at end-FY2026 (FY2025: RM389.4 million), raising the debt-to-equity (DE) ratio to 0.59x (FY2025: 0.38x). In July 2026, WM Senibong drew down another RM350 million under the rated programme, bringing the total borrowings to about RM1.05 billion with an estimated DE ratio of 0.89x. The group’s planned equity fundraising is expected to address the increased leverage and enhance its liquidity position. Nevertheless, liquidity remains adequate, supported by unencumbered cash balances of RM256.8 million as at end-FY2026 and available credit facilities of about RM755.3 million as at end-March 2026.