Al-`Aqar Healthcare REIT Annual Report 2018

OBJECTIVE, POLICY AND STRATEGIES Al-`Aqar Healthcare REIT • Annual Report 2018 4 Objective To provide unitholders with stable distributions per unit with the potential for sustainable long-term growth of such distributions and the net asset value per unit Policy To diversify its Shariah-compliant real estate portfolio by property and location, primarily be focused on investing in healthcare related real estates and to look for opportunities that provide attractive returns Operating Strategy To continue enhancing the performance of the properties by increasing yields and returns from the properties through a combination of meeting needs of the tenants, maintaining the quality and physical conditions of the properties and minimising interruptions in rental income and operational costs Acquisition Strategy To increase cash flow and enhance unit value through selective acquisitions Capital Management Strategy To optimise capital structure and cost of capital within the financing limits prescribed by REIT Guidelines and intend to use a combination of debt and REIT units to fund future acquisitions and improvement works of the properties