ANNUAL REPORT 2021 BUILDING A RESILIENT TOMORROW
COVER RATIONALE As the world’s first Islamic Real Estate Investment Trust, Al-`Aqar is taking a proactive standpoint to be adaptable and innovative while remaining optimistic amid shifting global economic scenarios. We are unswervingly bridging the gap between common socio-economic progress and prosperity towards our core vision. By resetting our strategies, the Group has placed itself on a distinctive maturation and moving in the right direction progressively with synergy and multiple sources of strategies, which enable us to establish a strong and synergetic business within healthcare industry, while enhancing the values and long-term returns of investment for our customers, shareholders and investors. GET IT Download the “QR Code Reader” app from Google Play (Android Market), BlackBerry AppWorld, App Store (iOS/iPhone) or Windows Phone Store RUN IT Run the QR Code Reader app and point your camera at the QR Code ACCESS IT Get access to Al-`Aqar Healthcare REIT’s website SCAN ME Scan the QR Code by following these simple steps
WHAT’S INSIDE 1 3 5 6 CORPORATE OVERVIEW 003 2021 Highlights 004 Objective, Policy and Strategies 005 Corporate Profile 006 Corporate Information 008 Letter to Stakeholders 015 Salient Features 016 5-Year Financial Performance 018 Trading Performance 020 Analysis of Unitholdings 2 THE DRIVING FORCES 024 Trust Structure 025 Organisation Structure 026 The Board of Directors 033 The Shariah Committee 037 The Management Team STRATEGIC PERFORMANCE 042 Management Discussion and Analysis 042 Financial Review 046 Operations Review 052 Capital Review 054 Risk Management 056 Market Report Summary 064 Portfolio Summary and Details 4 SUSTAINABILITY STATEMENT 078 About This Report 079 Approach to Sustainable Development 082 Stakeholder Engagement 084 Material Sustainability Matters 088 Robust Corporate Governance 090 Sustainable Trust Fund 092 Strong Social Relationships 098 Environment Stewardship 099 Conclusion 099 GRI Content Index GOVERNANCE STRUCTURE 102 Corporate Governance Statement 110 Board Audit and Risk Committee Report 117 Statement on Risk Management and Internal Control 126 Additional Compliance Information 128 Shariah Committee’s Report 129 Trustee’s Report FINANCIAL REPORTS 131 Manager’s Report 136 Statement by the Directors of the Manager 136 Statutory Declaration 137 Independent Auditors’ Report 141 Statements of Comprehensive Income 143 Statements of Financial Position 145 Statements of Changes in Net Asset Value 147 Statements of Cash Flows 149 Notes to the Financial Statements
CORPORATE OVERVIEW 003 2021 Highlights 004 Objective, Policy and Strategies 005 Corporate Profile 006 Corporate Information 008 Letter to Stakeholders 015 Salient Features 016 5-Year Financial Performance 018 Trading Performance 020 Analysis of Unitholdings
2021 HIGHLIGHTS OCCUPANCY RATE 100% NUMBER OF ASSETS 23 GROSS FLOOR AREA 4.87 million sq. ft. DISTRIBUTION YIELD 6.72% PROPERTY VALUE RM1.54 billion DISTRIBUTION PER UNIT (DPU) 7.80 sen MARKET CAPITALISATION RM853.7 million GROSS REVENUE RM114.1 million NET REALISED INCOME RM65.2 million CORPORATE OVERVIEW STRATEGIC PERFORMANCE GOVERNANCE STRUCTURE THE DRIVING FORCES SUSTAINABILITY STATEMENT FINANCIAL REPORTS 003
OBJECTIVE, POLICY AND STRATEGIES OBJECTIVE To provide unitholders with stable distribution 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. STRATEGIES ACQUISITION STRATEGY To increase cash flow and enhance unit value through selective acquisitions. OPERATING STRATEGY To continue enhancing the performance of the properties by increasing yields and returns from the properties. This is being achieved through combination of: i. meeting needs of the tenants; ii. maintaining the quality and physical conditions of the properties; and iii. minimising interruptions in rental income and operational costs CAPITAL MANAGEMENT STRATEGY To optimise capital structure and cost of capital within the financing limits prescribed by the Guidelines on Listed Real Estate Investment Trusts 2019 (Listed REIT Guidelines) and intend to use a combination of debt and REIT units to fund future acquisitions and improvement works of the properties. AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2021 004
CORPORATE PROFILE Al-`Aqar Healthcare REIT (“Al- `Aqar” or the “Fund”) was listed on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Malaysia”) on 10 August 2006. Established with an initial portfolio of 6 properties, Al-`Aqar has grown its portfolio to currently 23 properties comprising 17 hospitals, 3 wellness/health centres, 2 colleges and 1 aged care & retirement village. Al-`Aqar is managed by Damansara REIT Managers Sdn Berhad (“DRMSB” or the “Manager”), a member of Johor Corporation Group of Companies and supported by KPJ Healthcare Berhad (“KPJ”). As of 31 December 2021, Al-`Aqar’s property value stood at RM1.54 billion with a market capitalisation of RM853.7 million. CORPORATE OVERVIEW STRATEGIC PERFORMANCE GOVERNANCE STRUCTURE THE DRIVING FORCES SUSTAINABILITY STATEMENT FINANCIAL REPORTS 005
CORPORATE INFORMATION MANAGER DAMANSARA REIT MANAGERS SDN BERHAD (200501035558) Registered Office: Level 14, Menara KOMTAR, Johor Bahru City Centre, 80000 Johor Bahru, Johor. Tel : (+607) 226 7692 / 226 7476 Fax : (+607) 222 3044 Principal Place of Business: Unit 1-19-02, Level 19, Block 1 V SQUARE, Jalan Utara, 46200 Petaling Jaya, Selangor. Tel : (+603) 7932 1692 / 7932 3692 Fax : (+603) 7932 0692 LISTING Main Market of Bursa Malaysia Securities Berhad Stock Name : ALAQAR Stock Code : 5116 WEBSITE www.alaqar.com.my TRUSTEE AMANAHRAYA TRUSTEES BERHAD (200701008892) Level 14, Wisma AmanahRaya, No 2, Jalan Ampang, 50508 Kuala Lumpur. Tel : (+603) 2036 5129 Fax : (+603) 2072 0320 Email : art@arb.com.my Website : www.artrustees.my SHARIAH COMMITTEE 1. Dato’ (Dr) Haji Nooh bin Gadot 2. Profesor Madya Dr Abdul Halim bin Muhammad 3. IBFIM (200701005076) Level 5, Bangunan AICB, No. 10, Jalan Dato’ Onn, 50480 Kuala Lumpur. Tel : (+603) 2031 1010 Fax : (+603) 2026 9988 Email : info@ibfim.com / shariah.advisory@ibfim.com Website : www.ibfimonline.com REGISTRAR JOHOR CORPORATION Level 16, Menara KOMTAR, Johor Bahru City Centre, 80000 Johor Bahru, Johor. Tel : (+607) 219 5064 Fax : (+607) 223 3175 AUDITOR ERNST & YOUNG PLT (LLP0022760-LCA) (AF 0039) Level 23A, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur. Tel : (+603) 7495 8000 Fax : (+603) 2095 5332 Website: www.ey.com SOLICITOR ABDUL RAMAN SAAD & ASSOCIATES C-2-1, Pacific Place Commercial Centre, Jalan PJU 1A/4, Ara Damansara, 47301 Petaling Jaya, Selangor. Tel : (+603) 7859 9229 Fax : (+603) 7734 5777 Email : arsakl@arsa.com.my Website : www.arsa.com.my KADIR ANDRI & PARTNERS Suite A-38-8, Level 38, Menara UOA Bangsar, 5, Jalan Bangsar Utama 1, 59000 Kuala Lumpur. Tel : (+603) 2780 2888 Fax : (+603) 2780 2833 Email : partner@kaaplaw.com Website : www.kaaplaw.com ALBAR & PARTNERS Suite 14-3, Level 14, Wisma UOA Damansara II, No. 6 Changkat Semantan, Damansara Heights, 50490 Kuala Lumpur. Tel : (+603) 7890 3288 Fax : (+603) 7890 3266 Email : albar@albar.com.my Website : www.albar.com.my AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2021 006
MOHAMED RIDZA & CO Unit No. 50-10-9, Level 10, Wisma UOA Damansara, No. 50, Jalan Dungun, Damansara Heights, 50490 Kuala Lumpur. Tel : (+603) 2092 4822 Fax : (+603) 2092 5822 Email : mrco@ridzalaw.com.my Website : ridzalaw.com.my PROPERTY MANAGER HEALTHCARE TECHNICAL SERVICES SDN BHD (199501012909) Level 17, Menara KPJ, No. 238, Jalan Tun Razak, 50400 Kuala Lumpur. Tel : (+603) 2681 6222 Fax : (+603) 2681 6888 CBRE (C) PTY LTD (64003205552) Level 3, Waterfront Place, 1 Eagle Street, Brisbane, Queensland 4000, Australia. Tel : (+617) 3833 9833 IM GLOBAL PROPERTY CONSULTANTS SDN BHD (200501019108) Board Registration No: (VEPM (1)0253) No. 47-2, 2nd Floor, Wisma IMG, Jalan 3/76D, Desa Pandan, 55100 Kuala Lumpur Tel : (+603) 9284 8884 Fax : (+603) 9281 1884 Email : info@img.com.my Website : www.img.com.my INDEPENDENT PROPERTY VALUER C H Williams Talhar & Wong Sdn Bhd (CBRE|WTW) (197401001098) 30-01, 30th Floor Menara Multi-Purpose@CapSquare 8, Jalan Munshi Abdullah, P.O. Box 12157, 50100 Kuala Lumpur. Tel : (+603) 2616 8888 Fax : (+603) 2616 8899 Email : kualalumpur@cbre-wtw.com.my Website : www.CBRE-WTW.com.my CORPORATE INFORMATION CORPORATE OVERVIEW STRATEGIC PERFORMANCE GOVERNANCE STRUCTURE THE DRIVING FORCES SUSTAINABILITY STATEMENT FINANCIAL REPORTS 007
LETTER TO STAKEHOLDERS Dear Valued Stakeholders, On behalf of the Board of Directors, it is my pleasure to present Al-`Aqar Healthcare REIT (“Al-`Aqar”, the “Fund” or the “Group”) Annual Report for the financial year ended 31 December 2021 (“FY2021”). The year 2021 is another challenging year with the resurgence of COVID-19 pandemic cases across Malaysia. The Country once again went into total lockdown with the implementation of Movement Control Order (“MCO 2.0 & 3.0”), which adversely impacted all businesses and the healthcare industry was not spared too. Despite the challenging operating environment, the Manager have taken all the initiatives to keep the long-standing business partnership with KPJ Group as the main sponsor of the fund. As the chairman of the Group, it is my pleasure to present the Annual Report for the year ended 2021 with a better distribution and investment return to unitholders. “ “ REVIEWING 2021: A TOUGH YEAR WITH GENUINE DOUBLE HAZARD PROBLEMS A year and a half tussle with COVID-19 pandemic, the global economy is back on the track of robust post-recession recovery in 2021 with better growth of global GDP at 5.5% as the relaxation of pandemic related lockdowns in many countries. However, the rebound is expected to remain varied across countries. For Malaysia, the year 2021 started with a full-blown pandemic and ended with a natural disaster of massive flood, which resulted in a weakened economic activity. However, the latest economic indicators show that there is a high frequency of economic activity recovered from July 2021 onwards, as the government has taken a rapid roll-out of the vaccination program and there is a declining number of cases daily. Malaysia’s 2021 GDP is projected to range between 3% to 4%, as there is an ease of movement restriction which allows interstate andmost of the sectors to return to their normal operation. COVID-19 pandemic outbreak has stretched Malaysia’s healthcare industry as public hospitals were overwhelmed with patients and they are struggling to cope with the surge of the number of patients daily. On the other hand, private hospitals have recorded a steep revenue drop by at least 50% during the year, due to the significant drop in nonemergency cases, as patients tend to delay or avoid visiting hospitals for their non-essential treatment. However, there is a gradual pick-up in private healthcare demand during the second half of the year due to the relaxation of containment measures. AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2021 008
2021 – A CHALLENGING AND POSITIVE TRANSITION YEAR Considering that private hospitals are generally not built to handle infectious diseases like COVID-19 cases, therefore KPJ Group’s focused mainly on the public-private partnership arrangement and treating non-COVID-19 patients. KPJ group has recorded a higher revenue in 2021 as there was a greater relaxation of containment measures by the Government during the second half of the year with a gradual pick-up of demand and better economic activities. However, higher fixed costs and the incremental cost for Standard Operating Procedure compliance has resulted to a lower performance in KPJ’s EBITDA financial performance. As a long-term business partner, Al-`Aqar has granted the rental support initiative to KPJ Group. For the business segment in Australia, the establishment of the Royal Commission into Aged Care Quality and Safety and ongoing COVID-19 pandemic have continued created an uncertainty within the aged care industry. Both events have contributed to the decline in demand for senior living facilities and indirectly affected the property value of such facilities in Australia. There is no exception to our property in Australia, Jeta Gardens (“JG”), as the occupancy rate of JG has fallen from 95% in 2018 to 79% in 2020 and subsequently contributed to the negative financial performance of JG. In October 2021, with the advice from the appointed valuer, CBRE Australia, Al-`Aqar has entered into rental revision with JG, to reflect current market rate and property value. DATO’ HAJI MOHD REDZA SHAH BIN ABDUL WAHID Chairman CORPORATE OVERVIEW STRATEGIC PERFORMANCE GOVERNANCE STRUCTURE THE DRIVING FORCES SUSTAINABILITY STATEMENT FINANCIAL REPORTS 009
LETTER TO STAKEHOLDERS 2021 AL-`AQAR FINANCIAL PERFORMANCE. The Fund recorded a slightly lower gross revenue of RM114.1 million in FY2021 (FY2020: RM115.7 million). The Group successfully recorded a higher profit at RM73.5 million (FY2020: RM12.6 million); comprising realised profit of RM65.2 million (FY2020: RM57.0 million) and unrealised profit of RM8.3 million (FY2020: unrealised loss of RM44.4 million). Realised profit increased by 14.4% or RM8.2 million in FY2021 mainly due to saving from refinancing exercise during the year. The unrealised gain of RM8.3 million mainly related to fair value adjustment of investment properties. 2021 – A CHALLENGING AND POSITIVE TRANSITION YEAR (CONT’D) 2021 AL-`AQAR INITIATIVES. Despite a challenging year, the Manager managed to sustain their business prospects by transforming the risks into opportunities through an effective and continuous Capital, Investment and Asset Management plan. Capital Management Cost-saving of RM6 million in 2021 and an expected full-year cost saving of RM10 million in 2022 from the refinancing of the principal amount of Issue 2 RM575 million under Al-`Aqar Sukuk Programme. Investment Management The Manager of Al-`Aqar has renewed the 15 years lease tenure of six KPJ Properties, that are contributing 37% of Al-`Aqar’s revenue, in June 2021. Asset Management The Manager has also managed to maintain a 100% occupancy rate for all of their assets leasing out to the lessees during the year. AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2021 010
LETTER TO STAKEHOLDERS GROSS REVENUE 2020 2021 RM115.7 million RM114.1 million PROFIT 2020 2021 RM12.6 million RM73.5 million REALISED PROFIT 2020 2021 RM57.0 million RM65.2 million UNREALISED PROFIT 2020 2021 (RM 44.4 million) RM8.3 million 2021 AL-`AQAR DISTRIBUTION. With total income available for distribution at RM59.6 million, the Fund total distribution per unit for FY2021 is 7.80 sen per unit - higher than pre-pandemic distribution in FY2019. (sen) 2015 7.70 2 0 4 6 8 2019 7.75 2017 7.70 2021 7.80 2016 7.70 2020 6.81 2018 7.70 CORPORATE OVERVIEW STRATEGIC PERFORMANCE GOVERNANCE STRUCTURE THE DRIVING FORCES SUSTAINABILITY STATEMENT FINANCIAL REPORTS 011
FUND LEVEL - FUND CHARACTERISTIC TRANSFORMATION. Hence, the Group is currently aimed to be a lucrative fund that is capable to generate a positive return and long-term growth investment by having various diversification plans through 4 key investment plans as follows: LETTER TO STAKEHOLDERS Diversification of Tenants Diversification by Geography Reposition / Divestment of Potential Underperformed / Underutilised Assets Diversification of Assets Class For more information on our 4 key investment plans, please refer to page 51. 2022 A KEY YEAR FOR THE CONSOLIDATION OF RECOVERY Amid exceptional uncertainty, the global economy is rebounding strongly in 2021 with aprojectedgrowthof4.4%in2022 supported by manufacturing, trade activity and improvement in labour market conditions. Whereas, for Malaysia, with the rebound in domestic demand, Malaysia economy is projected to grow by 5.8% in 2022. As the pandemic continues to unfold, the profound impact has altered the global outlook on the needs and demands of the healthcare system. The public is more health-conscious as they are moving from preventive measures to reactive measures in seeking medical treatment. BUILDING A RESILIENT TOMORROW The existing trends, which formerly grew incrementally, such as telemedicine and datadriven models, have accelerated substantially, resulting in a sooner-than-expected arrival of tomorrow’s healthcare ecosystem. From surviving mode, the Manager has activated various type of business transformation initiatives at both Fund and Manager levels. AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2021 012
FUND LEVEL - BUSINESS MODEL TRANSFORMATION. To remain competitive in the industry, the Group has re-designed its new business model and packages to include rental revision, rental rebate and other affordable packages offered to both existing and future tenants. This rental arrangement is flexible to cater to the needs and requirements of the tenants. MANAGER LEVEL - DIGITAL AND ORGANISATIONAL TRANSFORMATIONS. To expedite the implementation of fund transformation initiatives, the Manager has implemented various initiatives, such as digital transformation to promote flexible working arrangements during pandemic periods and organisational transformation to redirect the team to focus on strategic matters rather than administration or operational matters by having an inverted pyramid organisational structure. The above initiatives will act as a platform for the Group to optimise the assets as well as to expand its current portfolio. Currently, the Group is in the stage of negotiation with both KPJ and third parties asset owner / operator to inject the new healthcare properties. It is expected for Al-`Aqar to record a transaction involving the diversification initiatives by the first half of 2022. LETTER TO STAKEHOLDERS CORPORATE OVERVIEW STRATEGIC PERFORMANCE GOVERNANCE STRUCTURE THE DRIVING FORCES SUSTAINABILITY STATEMENT FINANCIAL REPORTS 013
APPRECIATION AND ACKNOWLEDGMENT In conclusion, I wish to express my sincere recognition to our shareholders, investors, clients, unitholders, trustees, financiers, business partners, bankers, government and regulatory bodies for their support and trust in Al-`Aqar. I would also like to take this opportunity to express my gratitude to the previous Directors, Zainah binti Mustafa and Mohd Yusof bin Ahmad for their positive contribution to the Board. Besides, I wish to express my cordial salutation to the newly joined Directors, Abdullah bin Abu Samah and Datuk Hashim bin Wahir as Independent Non-Executive Directors who have been appointed to the Board on 10 March 2021 and 24 January 2022 respectively. Our appreciation is also expressed to our Management and loyal employees who continue to put in their effort and commitment for the Company to endure during the pandemic period. Looking forward, we will continue to strengthen our business and presence throughout Malaysia and overseas. Thank you. DATO’ HAJI MOHD REDZA SHAH BIN ABDUL WAHID Chairman LETTER TO STAKEHOLDERS AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2021 014
SALIENT FEATURES Name of Fund Al-`Aqar Healthcare REIT Type of Fund Income and Growth Category of Fund Islamic Healthcare Real Estate and Healthcare Related Assets Distribution Policy At least 95% of distributable income Fund Size 735,985,088 units Occupancy Rate 100% Rental Review Every 3 years Listing Main Market of Bursa Malaysia Securities Berhad Listing Date 10 August 2006 Stock Name & Code ALAQAR (5116) Financial Year End 31 December CORPORATE OVERVIEW STRATEGIC PERFORMANCE GOVERNANCE STRUCTURE THE DRIVING FORCES SUSTAINABILITY STATEMENT FINANCIAL REPORTS 015
5-YEAR FINANCIAL PERFORMANCE FINANCIAL HIGHLIGHTS - GROUP 2017 2018 2019 2020 2021 Gross revenue (RM’000) 99,648 102,648 106,110 115,710 114,072 Net property income (RM’000) 93,207 96,609 100,326 109,614 108,222 Income before tax (RM’000) 86,154 92,292 76,148 13,624 72,781 Net income after tax - realised (RM’000) 59,852 61,032 63,409 56,984 65,218 - unrealised (RM’000) 22,350 30,342 12,753 (44,413) 8,331 Earnings per unit (sen) 11.83 12.66 10.35 1.71 9.99 Investment properties (RM’000) 1,459,703 1,485,727 1,569,814 1,534,501 1,538,210 Total asset value (RM’000) 1,556,425 1,580,468 1,674,352 1,647,986 1,664,733 Net asset value (RM’000) 923,290 947,798 958,513 943,490 945,002 NAV per unit - before distribution (RM) 1.2679 1.2878 1.3024 1.2819 1.2840 - after distribution (RM) 1.2284 1.2671 1.2822 1.2474 1.2660 FINANCIAL HIGHLIGHTS - FUND 2017 2018 2019 2020 2021 Gross revenue (RM’000) 88,550 91,097 94,588 103,918 104,245 Net property income (RM’000) 82,588 85,162 88,942 97,974 98,405 Income before tax (RM’000) 84,511 83,112 73,771 50,126 46,602 Net income after tax - realised (RM’000) 59,367 59,770 61,267 55,137 64,400 - unrealised (RM’000) 24,535 23,342 12,504 (7,545) (17,030) Earnings per unit (sen) 11.61 11.29 10.02 6.47 6.44 Investment properties (RM’000) 1,320,100 1,353,300 1,449,400 1,446,376 1,451,912 Total asset value (RM’000) 1,525,031 1,551,718 1,650,199 1,647,844 1,664,797 Net asset value (RM’000) 921,041 943,239 959,604 967,599 945,419 NAV per unit - before distribution (RM) 1.2648 1.2816 1.3038 1.3147 1.2846 - after distribution (RM) 1.2255 1.2609 1.2836 1.2802 1.2666 Market Capitalisation (RM’000) 1,041,364 964,140 971,500 964,140 853,743 Distribution Per Unit (sen) 7.70 7.70 7.75 6.81 7.80 Annualised Distribution Yield (%) 5.38 5.88 5.87 5.20 6.72 AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2021 016
5-YEAR FINANCIAL PERFORMANCE 2017 2017 2017 2017 2017 2017 2019 2019 2019 2019 2019 2019 2018 2018 2018 2018 2018 2018 2020 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 2021 GROSS REVENUE (RM’ mil) NET INCOMEAFTERTAXATION (REALISED) (RM’mil) ANNUAL TOTAL RETURN (%) NET ASSET VALUE (RM’ mil) DISTRIBUTION YIELD (%) DISTRIBUTION PER UNIT (sen) 99.6 59.9 (3.54) 923 5.38 7.70 102.6 61.0 (2.51) 948 5.88 7.70 106.1 63.4 6.63 959 5.87 7.75 115.7 57.0 4.44 943 5.20 6.81 114.1 65.2 (4.73) 945 6.72 7.80 CORPORATE OVERVIEW STRATEGIC PERFORMANCE GOVERNANCE STRUCTURE THE DRIVING FORCES SUSTAINABILITY STATEMENT FINANCIAL REPORTS 017
TRADING PERFORMANCE TRADING SUMMARY 2017 2018 2019 2020 2021 Closing Unit Price (RM) 1.43 1.31 1.32 1.31 1.16 52-week Highest Traded Price (RM) 1.67 1.41 1.55 1.42 1.37 52-week Lowest Traded Price (RM) 1.35 1.08 1.27 1.19 1.10 Price Movement (%) (8.9) (8.4) 0.8 (0.8) (11.5) Annual Total Return (%) (3.54) (2.51) 6.63 4.44 (4.73) Number of Units in Circulation (unit ‘000) 728,226 735,985 735,985 735,985 735,985 Market Capitalisation (RM’000) 1,041,364 964,140 971,500 964,140 853,743 MARKET CAPITALISATION, UNIT PRICE AND UNITS IN CIRCULATION 2018 2017 2019 2020 2021 1,041 1.43 1.31 1.16 964 736 728 736 736 736 0 0.4 0.6 1 1.4 0.2 0.8 1.2 1.6 972 964 1.31 1.32 200 400 600 800 1000 1200 0 Market Capitalisation (RM million) Units in circulation (million units) Unit price (RM) 854 AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2021 018
0.0 0 1% 2% 4% 3% 5% 6% 7% 1.050 50.0 150.0 1.150 250.0 1.250 100.0 1.100 200.0 1.200 1.300 300.0 Volume (‘000 units) Unit Price (RM) 1.350 73.4 Jan 1.75% Overnight Policy Rate 1.85% 12-month FD rate 3.68% 10-year Govt Security Al-`Aqar Distribution Yield 6.72% Mar Feb Apr May Jun Jul Aug Sep Oct Nov Dec 63.5 1.320 1.310 1.300 1.300 1.280 1.250 1.170 1.190 1.150 1.160 1.230 1.330 257.1 82.8 34.5 169.9 143.6 160.2 109.8 124.2 82.0 Average Daily Trading Volume (‘000 units) Closing Market Price Source: Bank Negara Malaysia, Maybank, Damansara REIT Managers 210.1 TRADING PERFORMANCE FY2021 TRADING PERFORMANCE COMPARATIVE YIELD CORPORATE OVERVIEW STRATEGIC PERFORMANCE GOVERNANCE STRUCTURE THE DRIVING FORCES SUSTAINABILITY STATEMENT FINANCIAL REPORTS 019
ANALYSIS OF UNITHOLDINGS UNITHOLDINGS STATISTICS AS AT 31 DECEMBER 2021 As per Record of Depositor Total Number of Units Issued : 735,985,088 units Fully Paid-Up Capital : RM731,398,126 BREAK DOWN OF UNITHOLDINGS No. of Size of Unitholdings Unitholders % No. of Units % Less than 100 372 8.16 14,893 0.00 100 – 1000 1,556 34.12 798,857 0.11 1,001 – 10,000 1,788 39.21 8,184,061 1.11 10,001 – 100,000 694 15.22 21,964,741 2.99 100,001 to less than 5% of Issued Capital 145 3.18 375,123,808 50.97 5% and above of Issued Capital 5 0.11 329,898,728 44.82 TOTAL 4,560 100.00 735,985,088 100.00 TOP THIRTY SECURITIES ACCOUNT HOLDERS (Without aggregating the securities from different securities accounts belonging to the same depositor) No. Name No. of Units % 1 Lembaga Tabung Haji 102,098,656 13.87 2 CitiGroup Noms (T) Sdn Bhd - A/C Employees Provident Fund Board 77,460,138 10.52 3 Kumpulan Wang Persaraan (Diperbadankan) 63,322,400 8.60 4 AmanahRaya Trustees Berhad - A/C Amanah Saham Bumiputera 46,000,000 6.25 5 Pusat Pakar Tawakal Sdn Bhd 41,017,534 5.57 6 Bandar Baru Klang Specialist Hospital Sdn Bhd 36,115,266 4.91 7 HSBC Noms (T) Sdn Bhd - A/C Pledged Securities Account For Selangor Specialist Hospital Sdn Bhd 35,000,000 4.76 8 Seremban Specialist Hospital Sdn Bhd 23,731,000 3.22 9 Ampang Puteri Specialist Hospital Sdn Bhd 21,013,739 2.86 10 Medical Associates Sdn Bhd 19,055,000 2.59 11 Waqaf An-Nur Corporation Berhad 18,251,870 2.48 12 AmanahRaya Trustees Berhad - A/C Amanah Saham Malaysia 3 16,857,430 2.29 13 Sentosa Medical Centre Sdn Bhd 15,653,000 2.13 14 Kedah Medical Centre Sdn Bhd 15,000,000 2.04 15 Pusat Pakar Tawakal Sdn Bhd 13,631,000 1.85 16 AmanahRaya Trustees Berhad - A/C Public Islamic Opportunities Fund 12,726,100 1.73 AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2021 020
ANALYSIS OF UNITHOLDINGS TOP THIRTY SECURITIES ACCOUNT HOLDERS (CONT’D) (Without aggregatingthesecurities fromdifferent securitiesaccountsbelongingto thesamedepositor) (cont’d) No. Name No. of Units % 17 Johor Specialist Hospital Sdn Bhd 12,203,000 1.66 18 Puteri Specialist Hospital (Johor) Sdn Bhd 12,000,000 1.63 19 Perdana Specialist Hospital Sdn Bhd 11,789,000 1.60 20 AmanahRaya Trustees Berhad - A/C Amanah Saham Bumiputera 3 - Didik 11,749,800 1.60 21 AmanahRaya Trustees Berhad - A/C Public Islamic Select Treasures Fund 8,414,572 1.14 22 KPJ Healthcare University College Sdn Bhd 7,758,620 1.05 23 CitiGroup Noms (T) Sdn Bhd - A/C Employees Provident Fund Board (ASIANISLAMIC) 5,767,400 0.78 24 Kuantan Specialist Hospital Sdn Bhd 5,000,000 0.68 25 Kajang Specialist Hospital Sdn Bhd 4,487,000 0.61 26 AmanahRaya Trustees Berhad - A/C Jeta Gardens (QLD) Pty Ltd 3,786,924 0.51 27 Kota Kinabalu Specialist Hospital Sdn Bhd 3,500,000 0.48 28 CIMB Group Noms (T) Sdn Bhd - A/C Aiiman Asset Management Sdn Bhd For Lembaga Tabung Haji 3,433,200 0.47 29 CitiGroup Noms (T) Sdn Bhd - A/C MCIS Insurance Berhad (LIFE PAR FD) 3,373,894 0.46 30 Maybank Noms (T) Sdn Bhd - A/C Exempt An For Maybank Islamic Asset Management Sdn Bhd 3,361,000 0.46 SUBSTANTIAL UNITHOLDERS (5% AND ABOVE) Direct Interest Deemed Interest No. Name No. of Units % No. of Units % 1 Johor Corporation - - 269,248,302 1 36.58 2 KPJ Healthcare Berhad - - 269,075,083 2 36.56 3 Lembaga Tabung Haji 105,531,856 14.34 - - 4 Employees Provident Fund 83,227,538 11.31 - - 5 Kumpulan Wang Persaraan (Diperbadankan) 65,390,800 8.88 - - 6 Pusat Pakar Tawakal Sdn Bhd 54,648,534 7.43 - - 7 Amanah Saham Bumiputera 46,000,000 6.25 - - Note : 1. Deemed Interested by virtue of interest in KPJ Healthcare Berhad under Section 8 of the Companies Act 2016. 2. Deemed Interested by virtue of interest as several unitholders of Al-`Aqar are part of the KPJ Group of Companies. CORPORATE OVERVIEW STRATEGIC PERFORMANCE GOVERNANCE STRUCTURE THE DRIVING FORCES SUSTAINABILITY STATEMENT FINANCIAL REPORTS 021
ANALYSIS OF UNITHOLDINGS UNIT ANALYSIS AS AT 31 DECEMBER 2021 ROD TOTAL BUMIPUTRA NON - BUMIPUTRA FOREIGN Holder No. of Units Holder No. of Units Holder No. of Units Holder No. of Units Government Bodies 3 6,049 3 6,049 - - - - Finance 20 269,445,482 20 269,445,482 - - - - Investment Trust 5 166,500 4 16,500 1 150,000 - - Nominees 1,156 158,108,951 906 18,440,119 218 137,280,297 32 2,388,535 Companies 78 269,711,928 52 268,934,148 26 777,780 - - Clubs / Association 1 895,400 1 895,400 - - - - Co - Operatives 7 606,250 5 506,650 2 99,600 - - Individuals 3,290 37,044,528 686 2,773,093 2,550 32,600,476 54 1,670,959 TOTAL 4,560 735,985,088 1,677 561,017,441 2,797 170,908,153 86 4,059,494 % 100.00 100.00 36.78 76.23 61.34 23.22 1.88 0.55 AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2021 022
THE DRIVING FORCES 024 Trust Structure 025 Organisation Structure 026 The Board of Directors 033 The Shariah Committee 037 The Management Team
TRUST STRUCTURE UNITHOLDERS SHARIAH MANAGER REIT PROPERTIES PROPERTY/ TRUSTEE COMMITTEE MAINTENANCE MANAGER Trustee’s fees Acts on behalf of unitholders Distributions Holding of units Advise on Shariah related matters Shariah Advisor’s Fee Management fees Management Services Ownership of Properties Net Property Income Property/ Maintenance & Management Fees Property/Maintenance & Management Services Healthcare Technical Services Sdn Bhd IM Global Property Consultants Sdn Bhd CBRE (C) Pty Limited DRM DAMANSARA REIT MANAGERS SDN BERHAD AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2021 024
ORGANISATION STRUCTURE COMPLIANCE OFFICER Head of Finance Head of Business Development & Investor Relations Head of Operations Head of Corporate Services Head of Compliance & Risk Management Finance Account Business Development & Investor Relations Operations Legal Human Resources & Administration Secretarial Compliance Risk Management BOARD INVESTMENT COMMITTEE BOARD NOMINATION & REMUNERATION COMMITTEE BOARD AUDIT & RISK COMMITTEE BOARD OF DIRECTORS CHIEF EXECUTIVE OFFICER / EXECUTIVE DIRECTOR GENERAL MANAGER CORPORATE OVERVIEW THE DRIVING FORCES STRATEGIC PERFORMANCE GOVERNANCE STRUCTURE SUSTAINABILITY STATEMENT FINANCIAL REPORTS 025
THE BOARD OF DIRECTORS DATO’ HAJI MOHD REDZA SHAH BIN ABDUL WAHID Chairman, Independent Non-ExecutiveDirector Nationality Malaysian Age 59 Gender Male Number of Meetings Attended 12/12 Committee Member Nil Date of Appointment 14 February 2020 Academic and Professional Qualifications • Bachelor of Science in Economic (Industry and Trade), London School of Economic, University of London, United Kingdom • Masterof Scienceof Economics (International Banking and Finance) University of Wales, Cardiff, United Kingdom • Member, Institute of Chartered Accountant in England and Wales (ICAEW) • Chartered Bankers, Asian Institute of Chartered Bankers Working Experience Present Appointment Nil Past Experiences 1. Chief Executive Officer, Bank Muamalat Malaysia Berhad (2019) 2. Group Chief Operating Officer, DRB-Hicom Berhad (2006) 3. Group Chief Executive Officer, Tradewinds Corporation Berhad (2005) 4. Chief Financial Officer, Silterra Malaysia Berhad (2001) Other Directorship 1. Listed Issuer • Al-Salām Real Estate Investment Trust • E.A. Technique (M) Berhad • KPJ Healthcare Berhad 2. Public Companies Nil 3. Others Chairman, Yayasan Pembangunan Ekonomi Islam Malaysia (YaPEIM) Course Attended • KualaLumpur IslamicFinanceForum2021 (KLIFF 2021) - Global Islamic Capital Market Outlook • Shariah Audit Best Practice Guide: Islamic Cooperatives&Ar-RahnuRoundtableDiscussion • Malaysian Institute of Accountants (MIA) Conference 2021 • WacanaAl Quran –Membangun SinergiWaqaf AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2021 026
THE BOARD OF DIRECTORS WAN AZMAN BIN ISMAIL Chief Executive Officer, Non-Independent Executive Director Nationality Malaysian Age 58 Gender Male Number of Meetings Attended 12/12 Committee Member Nil Date of Appointment 27 March 2017 Academic and Professional Qualifications • Bachelor of Arts (Hons) in Accounting and Financial Analysis, University of Newcastle upon Tyne, United Kingdom Working Experience Present Appointment Chief Executive Officer, Damansara REIT Managers Sdn Berhad Past Experiences 1. Vice President (Strategic Development Department), Johor Corporation (2017) 2. ManagingDirector, DamansaraRealtyBerhad (2014) 3. Senior Manager (Corporate Finance), Johor Corporation (2000) 4. Senior Manager (Corporate Finance), BSN Merchant Bank Berhad (1999) 5. Manager, PerwiraAffinMerchantBankBerhad(1996) Other Directorship 1. Listed Issuer • Al-Salām Real Estate Investment Trust 2. Public Companies Nil Course Attended • Financial Master Class-History repeats itself! Learn from the past financial market crashes & position for the future • Future Hospital Strategy & Development Forum 2021 • BusinessForesightForum2021:Transformative Innovation - Reshaping Business Realities in Extraordinary Times CORPORATE OVERVIEW THE DRIVING FORCES STRATEGIC PERFORMANCE GOVERNANCE STRUCTURE SUSTAINABILITY STATEMENT FINANCIAL REPORTS 027
THE BOARD OF DIRECTORS DATO’ WAN KAMARUZAMAN BIN WAN AHMAD Independent Non-Executive Director Nationality Malaysian Age 62 Gender Male Number of Meetings Attended 11/12 Committee Member • Chairman, Board Investment Committee • Member, Board Audit & Risk Committee • Member, Board Nomination and Remuneration Committee Date of Appointment 24 August 2020 Academic and Professional Qualifications • Bachelor of Economics with Hons (Analytical Economic), Universiti Malaya • Chartered Banker, Asian Institute of Chartered Banker Working Experience Present Appointment Nil Past Experiences 1. Chief Executive Officer, Kumpulan Wang Persaraan (Diperbadankan) (2018) 2. General Manager, Treasury Department, Employees Provident Fund (2013) 3. Finance Director, Izoma Sdn Bhd and Kemuncak Facilities Management Sdn Bhd (2007) 4. Chief Executive Officer, Affin Trust Management Bhd and Affin Fund Management Sdn Bhd (2005) 5. Chief Executive Officer, Affin Moneybrokers Sdn Bhd (2003) 6. FX Trader/Chief Dealer/Treasury Manager, Treasury Dept. KL, London and Hamburg, Malayan Banking Berhad (1994) Other Directorship 1. Listed Issuer • Al-Salām Real Estate Investment Trust • Malaysian Resources Corp Bhd (MRCB) • Bermaz Auto Berhad 2. Public Companies Nil 3. Others • Independent Director, Bond and Sukuk Information Exchange Sdn Bhd • Director, Malaysia Convention & Exhibition Bureau (MyCEB) • Director, Minority Shareholder Watchdog Group (MSWG) • Investment Panel Member of Employees Provident Fund (EPF) • Director, Global LNG Sdn Bhd • Director, Iris Capital Sdn Bhd • Director, MIF Investments Ltd • Director, Massive Equity Sdn Bhd Course Attended • Launch of the Malaysia Ageing and Retirement Survey (MARS) • Sustainability Day - In The New Normal • World Pension Summit 2021 • Majlis Amanat GLIC - Perkukuh Pelaburan Rakyat AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2021 028
ABDULLAH BIN ABU SAMAH Independent Non-Executive Director Nationality Malaysian Age 56 Gender Male Number of Meetings Attended 11/11 Committee Member • Chairman, Board Audit & Risk Committee • Member, Board Investment Committee • Member, BoardNominationandRemuneration Committee Date of Appointment 10 March 2021 Academic and Professional Qualifications • Master of Business Administration, University of Washington • Bachelor of Science in Business Administration, University of the Pacific • Member, Malaysian Institute of Accountants • Member, Malaysian Institute of Certified Public Accountants Working Experience Present Appointment Nil Past Experiences 1. Licensed Partner for Audit of Financial Statements of Companies Listed and Non Listed, KPMG Malaysia Partner (Audit) (1997) 2. Managing the Audit and the Financial Statements of Companies, KPMG Malaysia Audit Manager (1993) 3. Fieldwork of Audit of Financial Statements, KPMG Malaysia Audit Staff (1983) Other Directorship 1. Listed Issuer • Al-Salām Real Estate Investment Trust • Media Prima Berhad 2. Public Companies • Kulim (M) Berhad THE BOARD OF DIRECTORS Course Attended • Mandatory Accreditation Programme (MAP) • KPMG Tax and Business Summit 2021 • ManagingHumanRights: Why is it important to corporations CORPORATE OVERVIEW THE DRIVING FORCES STRATEGIC PERFORMANCE GOVERNANCE STRUCTURE SUSTAINABILITY STATEMENT FINANCIAL REPORTS 029
Course Attended • Khazanah Megatrends Forum 2021 DATUK HASHIM BIN WAHIR Independent Non-Executive Director Nationality Malaysian Age 64 Gender Male Number of Meetings Attended - Committee Member • Chairman, Board Nomination and Remuneration Committee (appointed w.e.f. 24 January 2022) Date of Appointment 24 January 2022 Academic and Professional Qualifications • Bachelor of Engineering (Honours) in Mechanical Engineering, Universiti Teknologi Malaysia • Executive Development Program, Ashridge Management College, United Kingdom • Executive Development Program, Johnson School of Management, Cornell University, USA Working Experience Present Appointment Nil Past Experiences 1. Director, PETRONAS Hartabina Sdn Bhd (2013) 2. CEO, KLCC REIT Management Sdn Bhd - Manager of KLCCP Stapled Group (5325SS) - (2013) 3. Group Chief Executive Officer/Executive Director - KLCC(Holdings) Sdn Bhd /KLCC Property Holdings Berhad (2007) 4. Country Chairman - Petronas Sudan Operations, Khartoum (2004) 5. General Manager, Planning and Resource Allocation - PETRONAS, Kuala Lumpur (2000) 6. General Manager of Chad/Cameroon JV Project, PCSB (1999) 7. Senior Manager, Petroleum Engineering Department of PETRONAS Carigali Sdn Bhd (1993) 8. Head of Production Technology - Baram Delta Operations, Miri, Sarawak (1983) 9. Engineer - Petronas Carigali Sdn Bhd (1981) Other Directorship 1. Listed Issuer • Al-Salām Real Estate Investment Trust 2. Public Companies Nil THE BOARD OF DIRECTORS AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2021 030
THE BOARD OF DIRECTORS DATUK Sr AKMAL BIN AHMAD Non-Independent Non-Executive Director Nationality Malaysian Age 56 Gender Male Number of Meetings Attended 12/12 Committee Member Member, Board Audit and Risk Committee Date of Appointment 21 January 2021 Academic and Professional Qualifications • Diploma in Quantity Surveying, Universiti Teknologi MARA • Bachelor of Science in Quantity Surveying, Universiti Teknologi MARA Working Experience Present Appointment 1. Director, Real Estate and Infrastructure Division, Johor Corporation 2. Group Managing Director, Johor Land Berhad Past Experiences 1. Chief Operating Officer, Iskandar Investment Berhad (2020) 2. Chief Executive Officer, Iskandar Development Management Services Sdn Bhd (IIB subsidiary) (2018) 3. Chief Development Officer, Iskandar Investment Berhad (2016) 4. Director of Operations, Iskandar Development Management Services Sdn Bhd (2013) 5. General Manager, Nusajaya Development Sdn Bhd (UEM Land Berhad subsidiary) (2007) 6. Project Manager 1, (Prince Court Medical Centre Project) KLCC Projeks Sdn Bhd (2007) 7. ProjectManager, (UniversityTechnologyofPetronas Development) KLCCProjeks SdnBhd (2003) 8. Project Manager, (Petronas Twin Towers FitOut) KLCC Projeks Sdn Bhd (1999) 9. Contract Management Executive, KLCCProjeks Sdn Bhd (1993) 10. Technical Services Executive, Island & Peninsular Berhad (1993) 11. Assistant Quantity Surveyor, Yong & Mohd Faiz Sdn Bhd (1989) Other Directorship 1. Listed Issuer • Al-Salām Real Estate Investment Trust • Damansara Holdings Berhad 2. Public Companies • Johor Land Berhad Course Attended • Mandatory Accreditation Programme (MAP) CORPORATE OVERVIEW THE DRIVING FORCES STRATEGIC PERFORMANCE GOVERNANCE STRUCTURE SUSTAINABILITY STATEMENT FINANCIAL REPORTS 031
Course Attended • Global HealthTransformationRoundtable (Asia-Pacific) • Exclusive Talks on Anti Bribery Management Systems (ABMS) ISO370001:2016&CorporateLiabilitySection17(A) • Virtual Business Dialogue on Indonesia New Economic Paradigm: Investment Opportunities in Special Economic Zones SHAMSUL ANUAR BIN ABDUL MAJID Non-Independent Non-Executive Director Nationality Malaysian Age 50 Gender Male Number of Meetings Attended 12/12 Committee Member • Member, Board Investment Committee Date of Appointment 24 August 2020 Academic and Professional Qualifications • Bachelor of Science (Honours), Chemistry, Imperial College London, United Kingdom • Master of Business Administration (MBA) Islamic Finance, International Islamic University Malaysia • Member, Chartered Financial Analyst (CFA), CFA Institute, Charlottesville, Virginia, USA Working Experience Present Appointment 1. Chief Investment Officer, Johor Corporation Past Experiences 1. General Manager, Johor Corporation (2017) 2. Director and Principal Partner, Fikiran Sepakat Sdn Bhd (2017) 3. Special Officer to the Managing Director, Iskandar Waterfront Holdings (2014) 4. Executive Vice President, Strategy & Feasibility, Iskandar Investment Berhad (2011) 5. Vice President, Finance and Special Projects, Greenland Malaysia (2007) 6. EnergySector Specialist, TheBostonConsulting Group (2001) 7. Planning Analyst, Downstream Economics Planning Department, Shell Malaysia (1999) Other Directorship 1. Listed Issuer • Al-Salām Real Estate Investment Trust • KPJ Healthcare Berhad • Damansara Holdings Berhad 2. Public Companies • QSR Brands (M) Holdings Berhad • Kulim (M) Berhad • Johor Land Berhad THE BOARD OF DIRECTORS Notes - None of the Directors have: • any family relationship with any Director of the Manager and/or major unitholder of Al-`Aqar; • any conflict of interest with Al-`Aqar; • any conviction of interest within the past 5 years (other than traffic offences); and • any public sanctions or penalties imposed by the relevant regulated bodies during the financial year ended 31 December 2021. AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2021 032
THE SHARIAH COMMITTEE DATO’ (DR) HAJI NOOH BIN GADOT Chairman, Shariah Committee Nationality Malaysian Age 76 Gender Male Appointment Date 22 June 2006 Academic and Professional Qualifications • Bachelor Islamic Law and Syariah Islamiah, Al-Azhar University, Egypt • Master of Arts, Asia e University • Doctor of Philosophy (Human Development), Universiti Tun Hussein Onn Malaysia Working Experience Currently, he is an Islamic Advisor to DYMM Sultan Johor andAdvisor to Johor State Islamic Council. He is a member of the Johor Royal Council and Islamic Religious Council (Johor). He retired as Mufti of Johor in November 2002 and continued his service until 13 November 2008 and now remains as the Advisor to the Islamic Religious Council (Johor). He was appointed as Federal Supreme Committee of Islamic Affairs Strengthening Management on 9 August 2018. His vast experience in Islamic practise and jurisprudence, juristic methodology, hadith and its sciences and spirituality were gained throughout his services as Acting Kadi, Syarie Lawyer Islamic Affair Officer Religious Department (Prime Minister Department), Acting Assistant Examination and Registrar Religious School of Johor State and Religious Teacher of Johor State. Other Directorship 1. Chairman of Shariah Committee, Al-Salām Real Estate Investment Trust 2. Chairman of Yayasan Infaq Angkasa 3. Shariah Adviser Member, Permodalan Nasional Berhad 4. Board Member, Universiti Tun Hussein Onn Malaysia 5. Board Member, Yayasan Wakaf Anak Yatim Malaysia 6. Committee Member, Johor Islamic Council including Zakat, Wakaf, Baitulmal, Teaching Certification and Education 7. Committee Member of various companies within the JCorp Group 8. Committee Member of various councils including the Johor Royal Congregational Council, Johor Islamic Council’s Finance and Investment, Planning and Development units CORPORATE OVERVIEW THE DRIVING FORCES STRATEGIC PERFORMANCE GOVERNANCE STRUCTURE SUSTAINABILITY STATEMENT FINANCIAL REPORTS 033
THE SHARIAH COMMITTEE PROFESOR MADYA DR ABDUL HALIM BIN MUHAMMAD Member, Shariah Committee Nationality Malaysian Age 77 Gender Male Appointment Date 22 June 2006 Academic and Professional Qualifications • Bachelor in Shariah, Al-Azhar University, Egypt • Doctor of Philosophy (PhD) in Shariah, University of St Andrews, Scotland Working Experience He began his career with Universiti Kebangsaan Malaysia as the Head of Department of Quran and Sunnah, Faculty of Islamic Studies and Lecturer at Faculty of Law Universiti Kebangsaan Malaysia. He has served as Shariah Advisor and Shariah committee member at several corporate organisation such as Tabung Haji, Bank Negara Malaysia, Dewan Bahasa dan Pustaka, Takaful Nasional and Terengganu Trust Fund as well as financial institutions namely, Bank Muamalat Malaysia Berhad, Bank Kerjasama Rakyat Malaysia Berhad, RHB Bank Berhad and Bank Pembangunan Malaysia Berhad. Other Directorship 1. Shariah Committee Member, Al-Salām Real Estate Investment Trust 2. Shariah Committee Member, Terengganu Trust Fund 3. Shariah Committee Member, Trust Fund Amanah Saham Darul Iman 4. Kelantan Ulama Council AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2021 034
THE SHARIAH COMMITTEE PROFILE OF DESIGNATED PERSON RESPONSIBLE FOR SHARIAH MATTERS RELATING TO AL-`AQAR In relation to Shariah matters, the designated persons responsible for the fund investment activities under Al-`Aqar are Mohamad Salihin Deris and Irma Namira Missnan. Mohamad Salihin Deris is the Director, Business Advisory of IBFIM. He brings with him approximately 20 years of blended experience in Islamic finance and Shariah advisory in both roles: as a policy maker in a regulatory authority and as an industry practitioner. At IBFIM, he leads the Shariah advisory and consultancy team helping the clients to achieve a comprehensive and optimal Shariah compliance solution. Mohamad Salihin started his career with Bank Negara Malaysia’s Islamic Banking & Takaful Department. He then served CIMB Islamic Bank, Hong Leong Islamic Bank and Association of Islamic Banking Institutions Malaysia (“AIBIM”) before joining Bank Pembangunan Malaysia Berhad (“BPMB”). He had gained experience in Shariah advisory, research, secretariat and review functions, developed and implemented the overall Shariah governance framework. He had involved in conversion into a full-fledged Islamic development bank initiative. Currently he is a Shariah Committee member of Affin Islamic Bank. About IBFIM IBFIM is a registered Shariah adviser under the Capital Market Services Act 2007 and has been providing a wide range of Shariah advisory and consultancy services for Islamic financial services industry since 2001. IBFIM is also a lifelong learning institution that specialises in technical certi cations for Islamic financial services industry. As Shariah Adviser to Al-`Aqar, IBFIM is providing necessary advice to ensure that Al-`Aqar business is Shariah compliant. IBFIM was appointed as the Shariah Adviser for Al-`Aqar effective 2 July 2020. CORPORATE OVERVIEW THE DRIVING FORCES STRATEGIC PERFORMANCE GOVERNANCE STRUCTURE SUSTAINABILITY STATEMENT FINANCIAL REPORTS 035
THE SHARIAH COMMITTEE PROFILE OF DESIGNATED PERSON RESPONSIBLE FOR SHARIAH MATTERS RELATING TO AL-`AQAR (CONT’D) Mohamad Salihin holds double-degree in LLB(Hons) and LLB(Shariah)(Hons) from International Islamic University Malaysia. He also holds Associate Qualification in Islamic Finance (“AQIF”) and has obtained Certified Shariah Advisor (“CSA”) from the Association of Shariah Advisors in Islamic Finance (“ASAS”). He is anexco, a trainer and reviewer of contents of the Shariah certification modules for ASAS. Occasionally, he speaks in Islamic finance events on Shariah governance. He is registered with the Securities Commission Malaysia as IBFIM’s designated person responsible for Shariah matters in relation to the Islamic capital market-related product and services. Irma Namira Missnan is currently a Manager, Business Advisory of IBFIM. She brings with her approximately 9 years of experience in Islamic finance and Shariah advisory. At IBFIM, she is responsible to lead and provide relevant inputs for the Shariah advisory, consultancy and research functions regarding Islamic banking, takaful, Islamic capital market, Islamic REITs and Islamic unit trust funds. Irma Namira started her career as a Shariah executive in RHB Islamic Bank Berhad since 2012. Specialising in Shariah advisory, governance and management portfolios, she was then entrusted as a Section Head of the Shariah Secretariat of RHB Islamic Bank from May 2015 until March 2020 before joining IBFIM. She is experienced in the Shariah application in Islamic products and services which includes retail banking, non-retail banking and Islamic capital markets. Irma Namira graduated with Bachelor of Shariah and Laws (Hons) from Universiti Sains Islam Malaysia and obtained Certificate in Islamic Law of Banking & Finance from International Islamic University Malaysia. She is a member of ASAS. She is registered with the Securities Commission Malaysia as IBFIM’s designated person responsible for Shariah matters in relation to the Islamic capital market-related product and services. Notes - None of the Shariah Committee members have:• • any family relationship with any Director of the Manager and/or major unitholder of Al-`Aqar; • any conflict of interest with Al-`Aqar; • any conviction of interest within the past 5 years (other than traffic offences); and • any public sanctions or penalties imposed by the relevant regulated bodies during the financial year ended 31 December 2021. COMPANY SECRETARIES ROHAYA BINTI JAAFAR (LS0008376) NURALIZABINTI A. RAHMAN (MAICSA 7067934) AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2021 036
THE MANAGEMENT TEAM WAN AZMAN BIN ISMAIL Chief Executive Officer, Non-Independent Executive Director Nationality Malaysian Age 58 Gender Male Appointment Date 27 March 2017 SHAHRIL ZAIRIS BIN RAMLI General Manager Nationality Malaysian Age 52 Gender Male Appointment Date 1 July 2012 For further information, please refer to the Board of Directors’ profile. Qualifications • Diploma in Investment Analysis, Universiti Teknologi MARA • Bachelor Banking and Finance, Bangor University, Wales, United Kingdom • Capital Markets Services Representative Licence Holder Directorship Nil Working Experience • Senior Manager, Tanjung Langsat Port Sdn Bhd (2012) • Senior Manager, Langsat Marine Base Sdn Bhd (2011) • Manager, Johor Corporation (2009) Responsibilities • Develop investment strategies and investment portfolio through strategic acquisitions • Responsible to overall day to day management and operations of Al-`Aqar ROZIAH BINTI ABU BAKAR Head of Compliance and Risk Management Nationality Malaysian Age 54 Gender Female Appointment Date 1 March 2016 Qualifications • Bachelor of Arts, International Relations, The University of British Columbia, Vancouver, Canada • Masters in Business Administration, Henley Business School, University of Reading • Enterprise Risk Advisor, Institute of Enterprise Risk Practitioners Directorship Nil Working Experience • Senior Manager, KFCH International College, 2013 • Manager, Akademi Johor Corporation, 2010 • Deputy Manager, Chief Operating Officer Office, Johor Corporation, 2004 • Senior Executive, Business Development Department, Johor Corporation, 2004 • Executive, Corporate Office, Johor Corporation, 2000 CORPORATE OVERVIEW THE DRIVING FORCES STRATEGIC PERFORMANCE GOVERNANCE STRUCTURE SUSTAINABILITY STATEMENT FINANCIAL REPORTS 037
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