FINANCIAL STATEMENT & OTHER INFORMATION 196 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 Al-`Aqar Healthcare REIT | Annual Report 2024 23. SEGMENT REPORTING (CONT’D) Malaysia RM Australia RM Total RM 31 December 2023 Revenue 115,981,604 5,772,153 121,753,757 Total property expenses (13,948,546) (2,364,041) (16,312,587) Net property income 102,033,058 3,408,112 105,441,170 Investment revenue 1,450,856 - 1,450,856 Fair value adjustment on investment properties 8,735,161 (13,886,411) (5,151,250) Net investment income 112,219,075 (10,478,299) 101,740,776 Trust expenditure (1,668,776) (370,741) (2,039,517) Operating profit 110,550,299 (10,849,040) 99,701,259 Financing costs (39,147,086) - (39,147,086) Profit before tax 71,403,213 (10,849,040) 60,554,173 Tax credit 140,000 - 140,000 Profit after tax 71,543,213 (10,849,040) 60,694,173 Total assets 1,731,435,104 124,548,740 1,855,983,844 Total liabilities 782,552,573 1,133,814 783,686,387 24. CAPITAL MANAGEMENT The Group and the Fund manage their capital to ensure that entities in the Group and the Fund will be able to continue as going concerns while maximising the return to unitholders through the optimisation of the debt and equity balance. The capital structure of the Group and of the Fund consists of net debt (borrowings as detailed in Note 17 offset by cash and cash equivalents and unitholders’ fund of the Group and of the Fund (comprising unitholders’ capital and undistributed income). Gearing ratios are calculated based on the proportion of total borrowings to the total asset value in accordance with Securities Commission Malaysia (“SC”) Guidelines. The SC Guidelines require that the total borrowings of a fund (including borrowings through issuance of debt securities) should not exceed 50% of the total asset value of the Fund at the time the borrowings are incurred. Notwithstanding, the Fund’s total borrowings may exceed this limit with the sanction of the unitholders by way of an ordinary resolution. The Manager’s risk management committee reviews the capital structure of the Group and of the Fund on a regular basis to ensure that the SC Guidelines are complied with.
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