Al-`Aqar Healthcare REIT Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS 18. UNITHOLDERS’ CAPITAL 2018 2017 No. of units RM No. of units RM The Group and the Fund At beginning of year 728,226,468 722,398,126 728,226,468 722,398,126 Issue of new units 7,758,620 9,000,000 - - At end of year 735,985,088 731,398,126 728,226,468 722,398,126 During the financial year, the Group and the Fund issued 7,758,620 new units at an issue price of RM1.16 per unit amounting to RM9,000,000. The proceeds from the issuance of new units was used to part finance the outstanding balance in relation to an investment property purchased in prior years amounting to RM38,900,000 as disclosed in Note 15. Details of units held by the Manager’s Directors and unitholders, and related parties which comprise companies related to Johor Corporation and KPJ Healthcare Berhad, substantial unitholders of the Fund, and their market value as of 31 December 2018 based on the Record of Depositors are as follows: 2018 2017 No. of units RM No. of units RM Related parties: Pusat Pakar Tawakal Sdn Bhd 54,648,534 71,589,579 54,648,534 78,147,404 Bandar Baru Klang Specialist Hospital Sdn Bhd 36,115,266 47,310,998 36,115,266 51,644,830 Selangor Medical Centre Sdn Bhd 35,000,000 45,850,000 35,000,000 50,050,000 Jeta Gardens (Qld) Pty Ltd 10,834,468 14,193,153 13,284,468 18,996,789 Seremban Specialist Hospital Sdn Bhd 23,731,000 31,087,610 23,731,000 33,935,330 Ampang Puteri Specialist Hospital Sdn Bhd 21,013,739 27,527,998 21,013,739 30,049,647 Medical Associates Sdn Bhd 19,055,000 24,962,050 19,055,000 27,248,650 Sentosa Medical Centre Sdn Bhd 15,653,000 20,505,430 15,653,000 22,383,790 Kedah Medical Centre Sdn Bhd 15,000,000 19,650,000 15,000,000 21,450,000 Johor Specialist Hospital Sdn Bhd 12,203,000 15,985,930 12,203,000 17,450,290 Puteri Specialist Hospital Sdn Bhd 12,000,000 15,720,000 12,000,000 17,160,000 Pusat Pakar Darul Naim Sdn Bhd 11,789,000 15,443,590 11,789,000 16,858,270 KPJ Healthcare University College Sdn Bhd 7,758,620 10,163,792 - - Kuantan Specialist Hospital Sdn Bhd 5,000,000 6,550,000 5,000,000 7,150,000 Kajang Specialist Hospital Sdn Bhd 4,487,000 5,877,970 4,487,000 6,416,410 Kota Kinabalu Specialist Hospital Sdn Bhd 3,500,000 4,585,000 3,500,000 5,005,000 Taiping Medical Centre Sdn Bhd 3,334,000 4,367,540 3,334,000 4,767,620 Johor Ventures Sdn Bhd 173,219 226,917 173,219 247,703 19. MANAGEMENT EXPENSE RATIO (“MER”) 2018 2017 % % MER 0.34 0.32 The calculation of MER is based on the total fees of the Fund incurred for the year, including the Manager’s fees, Trustee’s fees, audit fee, tax agent’s fee and administration expenses, to the average net asset value of the Fund during the year calculated on a monthly basis. Since the average net asset value is calculated on a monthly basis, comparison of the MER of the Fund with other Real Estate Investment Trusts (“REITs”) which use a different basis of calculation may not be an accurate comparison. FINANCIAL REPORTS 139 FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 (CONTINUED)