MANAGEMENT DISCUSSION AND ANALYSIS INCOME AVAILABLE FOR DISTRIBUTION Total income available for distribution for FY2021 of the Fund was RM59.6 million. The Fund had distributed interim income distributions of 6.00 sen per unit amounting to approximately RM44.1 million for the period from 1 January to 30 September 2021. On 26 January 2022, the Fund declared a final income distribution of 1.80 sen per unit totalling RM13.2 million for the period from 1 October 2021 to 31 December 2021. The said distribution was paid on 28 February 2022. Total distribution per unit (‘’DPU’’) for FY2021 is 7.80 senperunittotallingRM57.4million,whichrepresents 96% of the income available for distribution STATEMENT OF FINANCIAL POSITION Al-`Aqar’s total asset value increased by RM16.7 million to RM1.66 billion for the current year. The increase was mainly relating to increase in trade receivables. Al-`Aqar’s financing increased from RM683.6 million to RM683.9 million, resulting in a gearing ratio of 41.08% against the previous yearend of 41.48%. STATEMENT OF CASH FLOWFOR EACHACTIVITY: Operating Activities Net cash generated from operating activities was RM88.6 million in FY2021 which was higher than RM82.6 million in FY2020. The higher amount in FY2021 was mainly due to saving from refinancing exercise and lower COVID-19 rental rebate given to tenants during the year. Investing Activities Al-`Aqar received income on investment of RM0.6 million during the year. Financing Activities Net cash used in financing activities was RM66.5 million, contributed by income distribution to unitholdersof RM54.8million, financingcost of RM31.3 million and partially offset by decrease in restricted cash of RM14.6 million as well as net proceeds from financing amounting of RM5.0million. Cash and bank balances stood at RM82.9 million as of 31 December 2021, higher by RM21.8million from RM61.1 million in FY2020. PERFORMANCE BENCHMARK Performance Benchmark FY2020 FY2021 Commentary Management expense ratio (%) 0.32 0.29 Management expenses ratio decreased by 9.4% mainly due to decrease in miscellaneous expenses. Total return (%) 4.44 (4.73) Total return for the financial year was negative due to lower closing price of RM1.16 compared to RM1.31 in FY2020. Average annual total return (5 years) (%) 4.41 0.06 The 5-year average annual total return decreased due to lower closing price in FY2021. Average annual total return (3 years) (%) 2.80 2.11 The 3-year average annual total return decreased due to lower closing price in FY2021. Distribution yield (%) 5.20 6.72 Distribution yield has increased from 5.20% to 6.72% due to increase in DPU and lower closing price in FY2021. NAV per unit (RM) 1.2819 1.2840 NAV per unit recorded an increase of 0.2% due to the total comprehensive income recorded for the year 2021 (RM71.0 million) and payment of final income distribution in FY2020 (RM 25.4 million) and interim income distribution in FY2021 (RM44.1 million). CORPORATE OVERVIEW STRATEGIC PERFORMANCE THE DRIVING FORCES SUSTAINABILITY STATEMENT 043 GOVERNANCE STRUCTURE FINANCIAL REPORTS
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