AL-SALAM REIT ANNUAL REPORT 2017

110 AL-SALĀM REIT ANNUAL REPORT 2017 MANAGER’S REPORT The Directors of DAMANSARA REIT MANAGERS SDN BERHAD (the “Manager’), the Manager of AL-SALĀM REAL ESTATE INVESTMENT TRUST (the “Fund”), have pleasure in submitting their report and the audited financial statements of the Fund for the financial year ended 31 December 2017. THE FUND AND ITS INVESTMENT OBJECTIVE The Fund is a Malaysia-based real estate and investment trust established pursuant to the execution of a Trust Deed dated 26 March 2015 between the Fund, the Manager and AmanahRaya Trustees Berhad (the “Trustee”). The said Trust Deed was registered with the Securities Commission Malaysia on 30 March 2015 which is the Fund’s establishment date. The Fund was listed on the Main Market of Bursa Malaysia Securities Berhad on 29 September 2015. The Manager’s key objective is to provide unitholders with regular and stable income distributions, sustainable long term unit prices and distributable income and capital growth, while maintaining an appropriate capital structure. This objective is sought to be achieved by optimising the performance and enhancing the overall quality for a large and geographically diversified portfolio of Shariah-compliant real estate assets through various permissible investment and business strategies. On 27 January 2017, the Manager, after consultation with the Trustee, declared a final income distribution of 3.40 sen per unit totalling RM19.72 million for the financial year ended 31 December 2016. The said distribution was paid on 28 February 2017. On 25 August 2017, the Manager, after consultation with the Trustee, declared an interim income distribution of 2.85 sen per unit totalling RM16.53 million for the financial year ended 31 December 2017. The said distribution was paid on 13 October 2017. THE MANAGER AND ITS PRINCIPAL ACTIVITY The Manager is a company incorporated in Malaysia and is a wholly-owned subsidiary of Damansara Assets Sdn Bhd, a company incorporated in Malaysia. The Directors of the Manager consider Johor Corporation as the ultimate holding entity of the Manager, a body corporate established under the Johor Corporation Enactment No. 4, 1968 (as amended by Enactment No. 5, 1995). The principal activity of the Manager is that of managing real estate investment trusts. There has been no significant change in the nature of the principal activity during the financial year.