BUSINESS OVERVIEW 26 Al-`Aqar Healthcare REIT | Annual Report 2024 PROGRESS REPORT ON THE FIVE-YEAR STRATEGIC PLAN (2024-2028) In 2024, Al-`Aqar advanced its strategic objectives by successfully executing key asset disposals, reallocating capital towards higher-yielding investments. The ongoing disposal of Jeta Gardens Aged Care Facility is expected to further enhance portfolio quality upon completion. Efforts to strengthen financial resilience included active management of financing costs, exploration of refinancing opportunities and refined debt management strategies, all contributing to sustained profitability and stable returns for unitholders. THE FIVE-YEAR PLAN – 2024-2028 • Increase investment properties’ value to RM2.5 billion by 2028. • Build a sustainable, future-proof portfolio aligned with healthcare trends. • Sustain long-term growth in DPU. The plan focuses on strengthening financial resilience, expanding the asset base and optimising capital structure resulting in improved profitability and the ability to deliver consistent returns to unitholders. The primary focus of the 5-Year Plan (2024-2028) lies in acquiring high quality assets, diversifying across the value chain and expanding geographically: 5-YEAR PLAN (2024-2028) GROWTH INITIATIVES ASSET TYPE RATIONALES Diversify Core Growth In New Economics Complementary to hospital portfolio • Hub and spoke model • Targeting multidisciplinary Ambulatory Care Centres (“ACC”) Grow complementary assets with KPJ 2 Ambulatory Care Centers (ACCs) Expansion into upstream healthcare segment • Sale-leaseback for medical devices and pharmaceutical players with existing built-up assets • Identifying partner(s) for Build-to-Suit Diversify across value chain 3 Healthcare Related Assets Diversification of tenants, geographical expansion • Exploring independent hospitals in Malaysia • Exploring healthcare group with large network of hospitals overseas Enlarge tenant base with different healthcare operators 1 Hospitals, Specialist Centers Diversification of assets • Meeting the demand for quality nursing home locally Capitalise on aged care markets 4 Nursing home MANAGEMENT DISCUSSION & ANALYSIS
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