AL-SALAM REIT ANNUAL REPORT 2017

AL-SALĀM REIT ANNUAL REPORT 2017 41  Gross Rental Income (%)  Trade Sector by NLA (%) 76 37 63 15%  JCorp  TPM Technopark Sdn Bhd  Damansara Assets Sdn Bhd  Others 10% 12% 63% The table below sets out a summary on Menara KOMTAR JBCC as at 31 December 2017. Existing Use Office Building GFA (sq. ft.) 242,195 NLA (sq. ft.) 160,592 Number of Car Park Bays 145 Market Value RM73 million Number of Tenancies 23 Occupancy Rate 91% r t l I ( ) r t r ( ) J r r r t t r 63% l l . i ti ffi il i ( . .) , ( . .) , l il i i OPERATIONAL REVIEW OFFICE SEGMENT MENARA KOMTAR OVERVIEW OF PROPERTY Menara KOMTAR is a 25 storey office building located in Johor Bahru City Centre, Johor Bahru. Menara KOMTAR has undertaken major refurbishment works since July 2013 with the internal works and the external works on the facade fully completed in the end of November 2015. Similar to KOMTAR JBCC, Menara KOMTAR is located within the integrated development of Johor Bahru City Centre which forms part of the revitalization and redevelopment program in Flagship A of Iskandar Malaysia. ii. Trade Sector Analysis (Gross Rental Income) JCorp Group of Companies occupied about 85% of the NLA. The gross rental income contributed by JCorpwas 76%. iii. Tenancy Expiry Profile TENANT PROFILE i. Major Tenants MAJOR ASSET ENHANCEMENT INITIATIVE There was no major asset enhancement initiative undertaken for year 2017. CHALLENGES AND PROSPECTS In general, the occupancy of office building especially in Klang Valley remains sluggish as a result of oversupply in the past few years. However, the situation in Johor Bahru is still under control. Meanwhile, providing continuous strong income to the Fund is Menara KOMTAR. This property owes its stability of revenue to it being a part of KOMTAR JBCC which enhances its prospects in view of the strategic location within the integrated development. In addition, being utilised as the main head office of JCorp will allow Menara KOMTAR to enjoy stable rental income in the long run, which is in a strategic location and undergoing redevelopment for better customer experience. The Manager will continue to engage with the tenants by further developing relationship to enhance the level of service and experience of tenants in Menara KOMTAR. This is done by maintaining a high level of tenants’ satisfaction by responding to tenants’ request, undertaking preventive maintenance and where appropriate, servicing the expansion needs of existing tenants. 38% 57%  FYE 2018  FYE 2019  FYE 2020 5% State Conglomerate Professional Services 24 37