Al-`Aqar Healthcare REIT Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS 20. SIGNIFICANT RELATED PARTY TRANSACTIONS For the purposes of these financial statements, parties are considered to be related to the Group and the Fund if the Group and the Fund have the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group and the Fund and the party are subject to common control or common significant influence. Related parties may be individuals or other entities. The Group and the Fund derive all their rental income as disclosed in Note 5 from related parties. Significant related party (credits)/charges other than those disclosed in Note 5 are as follows: The Group The Fund 2018 2017 2018 2017 RM RM RM RM Manager’s fee 1,674,718 2,196,079 1,674,718 2,196,079 Maintenance fee 162,600 - 162,600 - Registrar fee 65,382 91,686 65,382 91,686 Secretarial fee 7,100 7,070 - - Other income (487,667) - (487,667) - Purchase of investment property - 13,000,000 - 13,000,000 Professional fee - 400,000 - 400,000 Other income relates to the compensation received from Selangor Medical Centre Sdn Bhd for loss of opportunity and annual loss of potential income due to the deferment for the transfer of a Physician Consultant Building to the Fund. The related party transactions described above were entered into in the normal course of business and are based on negotiated and mutually agreed terms. Amounts due from a subsidiary represents unsecured advances given to a subsidiary from the proceeds raised from Islamic financing and issuance of new units in previous years for the purpose of purchase of an investment property in Australia and profit sharing on the advances receivable from the subsidiary. Amount due to a subsidiary represents unsecured advances received from the proceeds raised from Islamic financing by the subsidiary and expenses. The finance costs and repayment terms of the unsecured advances mirror the finance costs and repayment terms of the Islamic financing of Sukuk Ijarah raised by the said subsidiary as disclosed in Note 17. Also included in the amount due to a subsidiary are cash reserves retained by the subsidiary, the accrued profit from the cash reserves and expenses paid on behalf for the subsidiary totaling RM18,019,434, that are presented as net amount as there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously. 21. COMMITMENTS Operating leases - as lessor The Group and the Fund lease out their investment properties under operating leases. The future minimum lease payments under non-cancellable leases are as follows: The Group The Fund 2018 2017 2018 2017 RM RM RM RM Less than one year 108,123,854 102,075,690 96,687,350 90,639,179 Between one and five years 306,507,852 415,235,842 296,977,432 369,489,800 414,631,706 517,311,532 393,664,782 460,128,979 Al-`Aqar Healthcare REIT • Annual Report 2018 140 FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 (CONTINUED)