FINANCIAL STATEMENT & OTHER INFORMATION 190 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 Al-`Aqar Healthcare REIT | Annual Report 2024 19. MANAGEMENT EXPENSE RATIO (“MER”) Fund 2024 % 2023 % MER 0.54 0.58 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. 20. SIGNIFICANT RELATED PARTY TRANSACTIONS Parties are considered to be related to the Group if the parties have the ability, directly or indirectly, to control the Group or exercise significant influence over the Group in making financial and operation decisions, or vice versa, or where the Group 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 4 from related parties. Significant related party charges/(credits) other than those disclosed in Note 4 are as follows: Group Fund 2024 RM 2023 RM 2024 RM 2023 RM Manager’s fee 4,651,967 4,430,769 4,651,967 4,430,769 Maintenance fee 1,197,120 1,202,160 1,197,120 1,202,160 Other income (532,000) (532,000) (532,000) (532,000) 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. 21. OPERATING LEASES - GROUP AS LESSOR The Group and the Fund lease out their investment properties under operating leases. The future minimum lease receivable under non-cancellable leases are as follows: Group Fund 2024 RM 2023 RM 2024 RM 2023 RM Less than one year 102,653,826 112,680,509 101,636,834 106,837,832 Between one and five years 402,334,543 444,072,309 396,936,228 413,058,669 504,988,369 556,752,818 498,573,062 519,896,501
RkJQdWJsaXNoZXIy NDgzMzc=