AL-SALAM REIT ANNUAL REPORT 2017

AL-SALĀM REIT ANNUAL REPORT 2017 35 Gross Revenue Net Property Income FY 2017 FY 2016 Change FY 2017 FY 2016 Change RM`000 RM`000 % RM`000 RM`000 % KOMTAR JBCC 43,090 39,915 8.0 27,521 27,467 0.2 @Mart Kempas 7,209 6,781 6.3 3,967 3,772 5.2 Total Retail Segment 50,299 46,696 7.7 31,488 31,239 0.8 Menara Komtar 9,136 9,033 1.1 5,451 5,839 (6.6) Total Office Segment 9,136 9,033 1.1 5,451 5,839 (6.6) 22 KFC &/or Pizza Hut Outlets 9,803 9,803 - 9,790 9,787 - Total F&B Restaurants 9,803 9,803 - 9,790 9,787 - Industrial Premises 8,263 8,263 - 8,238 8,237 - KFCH International College 2,532 2,340 8.2 2,190 2,081 5.2 Total F&B Non-Restaurants 10,795 10,603 1.8 10,428 10,318 1.1 Property Manager Fee - - - (270) (270) - Total Portfolio 80,033 76,135 5.1 56,887 56,913 (0.1) BUSINESS REVIEW Retail segment remained as the key contributor to Al-Salām REIT with contribution to revenue and NPI of 63% (FY2016: 61%) and 55% (FY2016: 55%) respectively. The retail segment’s revenue increased by 7.7% to RM50.3 million from RM46.7 million in FY2016. The significant increase is mainly attributable to an increase in occupancy rate for KOMTAR JBCC of 95% as compared to 93% in FY2016 and @Mart Kempas of 92% as compared to 90% in FY2016. The office segment’s contribution to the total revenue and NPI was stable at 11% and 10% respectively. During the financial year, Menara KOMTAR occupancy rate decreased to 91% from 93%. The Service Provider is currently searching to secure replacement tenants for the vacant space. The food and beverage segment witnessed a higher contribution of revenue and NPI as compared to those from previous year. This is due to the rental rate for Malaysian College of Hospitality & Management (MCHM) — formerly known as KFCH International College— rental rate increased by 10% starting November 2016. Table 2 : Segmental Gross Revenue and NPI 2016-2017