AL-SALAM REIT ANNUAL REPORT 2017

34 AL-SALĀM REIT ANNUAL REPORT 2017 OVERVIEW OF AL-SALĀM REIT Al-Salām REIT is a medium-sized diversified Malaysian REIT with a total portfolio asset value of RM927.5 million. Its investment properties’ gross floor area totals 1.9 million sq ft with 1.5 million sq ft of total net lettable area. Its properties are well diversified into retail, office, F&B Restaurants and F&B non-restaurant segments. FINANCIAL REVIEW Al-Salām REIT managed to deliver a stable DPU of 6.00 sen for FY2017 (FY2016: 6.00 sen) despite current challenging economic and market condition. Table 1: Key Financial Highlights MANAGEMENT DISCUSSION & ANALYSIS Commentaries (FY2017 vs FY2016) 1. Al-Salām REIT achieved a gross revenue of RM80.0 million for the financial year ended 31 December 2017, a moderate growth of 5.1% against RM76.1 million achieved in FY2016, mainly contributed by a stronger performance in the retail segment. However, net property income was slightly lower due to increase in property expenses in Menara KOMTAR. 2. The Fund registered a slightly lower realised EPU in FY2017 as a result of the above. Audited Audited FY 2017 FY 2016 Variance RM`000 RM`000 (%) Gross Revenue 80,033 76,135 5.1 Net Property Income 56,887 56,913 (0.1) Net Income (realised) 35,542 36,037 (1.4) Income available for distribution (realised) 35,542 36,037 (1.4) EPU (sen) - realised 6.13 6.21 (1.4) DPU (sen) 6.00 6.00