S&P reaffirms AmanahRaya REIT rating

Posted on | October 24, 2007

By BERNAMA

KUALA LUMPUR: Standard & Poor’s (S&P) has reaffirmed its corporate rating of BBB-stable on AmanahRaya REIT (ARREIT).

This is following the approval of the second injection of five properties by the Securities Commission.

ARREIT said in a statement on Monday it was the only Malaysian real estate investment trust (REIT) rated by an international rating agency with an investment grade.

In a separate announcement, S&P said the key attributable factors for the ranking included robust rental income, underpinned by long lease maturity profile and a high level of tenant security deposits.

Other factors, it said, were above-average asset quality with minimal capital expenditure requirements and linkage to Government with ready pool of properties to acquire.

“The ‘stable’ outlook reflects the REIT’s stable rental income, long lease maturity profile, and high level of tenant security deposits,” it said.

ARREIT was set up with the objective of investing in income-producing real estate and real estate-related assets.

It was listed on Bursa Malaysia in February with an initial asset size of RM336mil.

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