YNH Property Quick Update - Exercises Option to Defer Perpetual Securities Coupon

• On 23 January 2026, YNH Property Berhad (YNH) announced it would defer upcoming coupon payments under its Perpetual Securities Issuance Programme as part of a strategic cash conservation plan, allowing the Group to prioritise resources for ongoing development projects and operational needs.

• The deferral applies to both outstanding perpetual securities tranches:

• Importantly, deferred coupon payments do not constitute as an event of default. Unpaid coupons are cumulative, will continue to accrue in accordance with the Trust Deed, and remain payable to holders of the perpetual securities at a call date. For perpetual securities, an event of default is only triggered by non-payment without a valid deferral (failing to provide written notice at least 5 days before the coupon payment date) or in the event of issuer winding-up.

• Both tranches carry an initial coupon rate of 6.85% per annum and are redeemable at YNH Property’s option at the end of five years after issuance and on each subsequent semi-annual coupon payment date.

• YNH’s flagship development, Solasta Dutamas (Mont Kiara), with a gross development value (GDV) of RM720 million, recorded a 70% take-up rate as of end-July 2025. In FY2026, YNH plans to launch 432 landed units in Sri Manjung, Perak, with a combined GDV of RM91 million. However, cash flow remains concentrated in these two projects, highlighting the need for prudent liquidity management.

• On 1 October 2025, Kar Sir Bhd (YNH’s wholly owned subsidiary) entered a joint venture with Genland Sdn Bhd to develop Residence Bangsar South with a GDV of RM333 million.

• Revenue increased by 138% YoY to RM62.7 million in 1QFY26 (Sep 2025) from RM26.4 million in 1QFY25 (Sep 2024), mainly driven by the sale of development land in Mont Kiara, completion of the disposal of AEON Seri Manjung, progressive profit recognition from Solasta Dutamas, and inventory sales from Manjung Point Seksyen II.

• In February 2025, YNH completed the repayment of RM153.0 million of sukuk under its rated programme.

• Liquidity remains tight, with cash and short-term deposits of RM20.7 million against total borrowings of RM759.3 million, resulting in a net gearing ratio of 110%. In the short term, RM204.4 million of borrowings are maturing, which cannot be fully covered by available cash. To manage debt and meet working capital needs, the group is actively disposing of assets.

• One key initiative is the 5.098-acre freehold land disposal in Desa Sri Hartamas to Sunway Bhd for RM170 million, first announced in May 2023. The completion deadline has been extended multiple times, most recently on 12 November 2025 by YNH’s subsidiary Kar Sin Bhd to mid-June 2026, pending Sunway’s approval of the required development order.

• We view that YNH may continue to defer coupon payments on its perpetual securities in the near term, given tight liquidity and ongoing project commitments, while preserving cash for operations and asset disposals.

• The sukuk secured from 1.5 to 1.6 times with pledged lands does provide some, depending on the eventual sale as show in table 1.

• For now, our view aligns with MARC ratings, which places YNH with a negative outlook.

• That said, we continue to closely monitor YNH’s financial performance and developments, where we periodically reassess and update our views as new information becomes available.

Table 1: YNH Existing Bond