AL-SALAM REIT ANNUAL REPORT 2017

AL-SALĀM REIT ANNUAL REPORT 2017 37 STATEMENT OF CASH FLOWS Operating activities Net cash generated from operating activities was RM 47.8 million in FY2017, lower by RM 5.1 million than FY2016. This is mainly attributable to higher operating expenses in the current financial year in 2017. Investing activities Al-Salām REIT used RM 1.1 million for investing activities during the financial year compared to RM 0.5 million in the previous year. The main investing activities in the current year relate to acquisition of equipment, capex and pledged deposit with licensed banks. Financing activities Al-Salām REIT drew additional financing of RM 3.1 million during the financial year to pay deposit for one of its proposed acquisition. Interest paid during the year amounted to RM 17.5 million. Distribution paid in the current year was RM 36.2 million compared to RM 22.0 million in the previous year. Hence, as at 31 December 2017 cash and cash equivalent was at RM35.2million, a decrease of RM2.7million fromRM37.9million. FAIR VALUE OF INVESTMENT PROPERTIES As at 31 December 2017, the value of Al-Salām REIT’s properties was RM 927.5 million compared to RM 922.1 million as at 31 December 2016. The net fair value gain was RM 5.1 million mainly attributable to Menara KOMTAR, MCHM and certain QSR properties with an additional RM0.3 million of investment property. The portfolio property yield for FY2017 decreased from 6.17% to 6.13% due to lower NPI as well as higher properties value. Fair Value Fair Value Fair Value Property Yield Property Yield @ 31 Dec 2017 @ 31 Dec 2016 Gain 2017 2016 RM`000 RM`000 RM`000 % % Retail KOMTAR JBCC 465,000 465,000 - 5.92 5.91 @Mart Kempas 65,000 65,000 - 6.10 5.80 Office Menara Komtar 73,000 72,000 1,000 7.47 8.11 F&B Restaurants 22 KFC and/or Pizza Hut Outlets 161,670 158,590 3,080 6.05 6.17 F&B Non-Restaurants Industrial Premises 133,800 133,100 700 6.16 6.19 Malaysian College of Hospitality & Management 29,000 28,400 600 7.55 7.32 Total 927,470 922,090 5,380 6.13 6.17 1. Appraised value based on valuation carried out by an independent professional valuer, Cheston International (KL) Sdn Bhd. on 31 December 2017.