YNH Property defers RM34.4m coupon payments to fund ongoing projects

KUALA LUMPUR (July 24): YNH Property Bhd (KL:YNHPROP) is deferring RM34.41 million in coupon payments across two tranches under its perpetual securities programme to preserve cash for its ongoing developments, including Solasta Dutamas and its township projects in Seri Manjung.

In filings with Bursa Malaysia on Thursday, the company said the total deferred amount comprises current coupon obligations, previously deferred amounts and additional coupons accrued to date.

The first RM87 million tranche involves a RM7.87 million coupon payment, originally due on July 30, 2026, which has been deferred to Jan 29, 2027.

The second RM263 million tranche involves a RM26.54 million coupon payment, originally due on Aug 7, 2026, which has been deferred to Feb 8, 2027.

Under the trust deed, all deferred amounts will continue to accrue additional coupon and compounding interest at the prevailing rates until they are fully settled, preserving the value of the securities for holders.

This marks the second time this year YNH Property has deferred coupon payments for both tranches. In January, the company also postponed payments due on Jan 30 and Feb 9, 2026, although the amount was not disclosed.

The group said the deferral, which is a contractual right, was undertaken in anticipation of completing its proposed RM455 million disposal of prime freehold land along Jalan Sultan Ismail in Kuala Lumpur to Chin Hin Property (JSI) Sdn Bhd (CHPJSI) in a cash-and-share deal. The land was originally earmarked for the development of Menara YNH, according to the company's FY2025 annual report.

Chin Hin Group Property Bhd (KL:CHGP) owns a 70% stake in CHPJSI, and the transaction is expected to generate RM409.48 million in cash for YNH Property.

"We remain focused on progressing the RM455 million transaction in an orderly manner while prudently managing the group's operational liquidity. The interests of the perpetual securities holders remain a paramount consideration throughout this transitionary process," YNH Property said.

The group had disclosed in its disposal announcement that RM375 million of the cash proceeds would be used to redeem perpetual securities secured against the land. YNH Property plans to fully redeem the perpetual securities and settle all outstanding coupon obligations, including accrued and compounded interest.

YNH Property said the deferral would allow it to continue funding its projects and unlock value from its broader asset portfolio without disrupting operations.

"By executing this contractual deferment, we are ensuring that our existing working capital remains dedicated to the execution of our active projects, including Solasta Dutamas and our township developments in Seri Manjung," the group said.

It added that the deferral does not constitute an event of default under the trust deed governing the perpetual securities programme.

The group had RM22.39 million in cash and deposits as at March 31, 2026 compared to RM26.83 million a year earlier.

Borrowings stood at RM379.8 million as at March 31, 2026, up from RM244.1 million a year earlier.

For the nine-month period ended March 31, 2026, the group posted a net loss of RM55.6 million on revenue of RM106.7 million, down 70% year-on-year, mainly due to a one-off impairment of RM34.98 million on other receivables.

YNH Property closed 6.41% or 36.5 sen lower on Thursday, giving the company a market capitalisation of RM204.9 million. Year to date, the stock is up 35%.

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