AL-SALAM REIT ANNUAL REPORT 2017

AL-SALĀM REIT ANNUAL REPORT 2017 163 25. COMMITMENTS The Fund leases out its investment properties under operating leases. The future minimum lease payments to be received under non-cancellable leases are as follows: 2017 2016 RM RM Less than one year 50,262,021 66,604,586 Between one and five years 211,516,053 196,673,027 More than five years 168,244,931 221,489,942 430,023,005 484,767,555 26. SIGNIFICANT EVENT On 3 October 2017, the Fund made an announcement in Bursa Malaysia Securities Malaysia Berhad (“Bursa Malaysia”) to announce that the Trustee, for and on behalf of the Fund, had entered into a conditional sale and purchase agreement with Mydin Wholesale Cash And Carry Sdn Bhd (“MWCC”) for the acquisition of a double storey hypermarket, each floor with a mezzanine level together with 796 car park bays (634 covered parking bays and 162 surface car parking bays), located at Lot 52606 (formerly PT No. 35511), Dataran Austin, Jalan Gong Pak Damat, 21200 Kuala Terengganu, Terengganu Darul Iman for a purchase consideration of RM155 million to be satisfied entirely in cash. Subsequently, on 4 December 2017, the Fund announced that the Trustee, for and on behalf of the Fund, had entered into 3 conditional sale and purchase agreements with Kentucky Fried Chicken (Malaysia) Sdn Bhd, KFC (Peninsular Malaysia) Sdn Bhd, KFC (Sabah) Sdn Bhd and SPM Restaurants Sdn Bhd on 30 November 2017 for the acquisition of 22 properties located across Malaysia for a purchase consideration of RM115 million. The purchase consideration to be satisfied entirely in cash and is intended to be funded via proceeds from the proposed placement and borrowings. The proposed acquisitions are conditional upon the leaseback agreement with QSR Stores Sdn Bhd and Pizza Hut Restaurants Sdn Bhd for the lease of the properties for a period of 3 years commencing from the completion of the proposed acquisitions. The lease is renewable every 3 years up to a maximum of 15 years with an option to renew for a further period of 15 years. As of the date of the issuances of these financial statements, both acquisitions have not been completed. NOTES TO THE FINANCIAL STATEMENTS - CONT’D