Table of Contents 1 172

AL-SALAM REIT ANNUAL REPORT 2017

ALSREIT Annual Report 2017 1
THE CONTENTS 4
CORPORATE OUTLOOK 7
HIGHLIGHTS & INSIGHTS 2017 8
POLICY, OBJECTIVE & STRATEGIES 9
CORPORATE PROFILE 10
CORPORATE INFORMATION 11
LETTER TO STAKEHOLDERS 13
SALIENT FEATURES 14
FINANCIAL PERFORMANCE 15
TRADING PERFORMANCE 16
DRIVING FORCE 19
TRUST STRUCTURE 20
ORGANISATION STRUCTURE 21
THE BOARD OF DIRECTORS 22
THE SHARIAH COMMITTEE 30
MANAGEMENT PROFILE 32
STRATEGIC PERFORMANCE 35
MANAGEMENT DISCUSSION & ANALYSIS 36
INVESTOR & PUBLIC RELATIONS 48
MARKET REPORT SUMMARY 50
SUMMARY OF INVESTMENT PORTFOLIO 54
SUSTAINABILITY STATEMENT 71
ABOUT THIS REPORT 72
OUR JOURNEY TOWARDS A SUSTAINABLE REIT 73
GOVERNANCE AND ACCOUNTABILITY 74
ENGAGING OUR STAKEHOLDERS 76
ASSESSING MATERIALITY MATTERS 78
SUSTAINABLE REIT 80
OUR ENVIRONMENT 82
OUR PEOPLE 83
OUR COMMUNITY 85
ESSENCE OF CORPORATE GOVERNANCE 87
BOARD CHARTER 88
CORPORATE GOVERNANCE STATEMENT 98
AUDIT COMMITTEE REPORT 106
STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL 108
FINANCIAL REPORTS 111
MANAGER’S REPORT 112
INDEPENDENT AUDITORS’ REPORT 118
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 123
STATEMENT OF FINANCIAL POSITION 125
STATEMENT OF CHANGES IN EQUITY 127
STATEMENT OF CASH FLOWS 128
NOTES TO THE FINANCIAL STATEMENTS 130
1. CORPORATE INFORMATION 130
2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS 131
3. SIGNIFICANT ACCOUNTING POLICIES 135
4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY 144
5. GROSS RENTAL INCOME 145
6. OTHER INCOME 145
7. INVESTMENT INCOME 146
8. INCOME TAX 146
9. EARNINGS PER UNIT 146
10. NET INCOME DISTRIBUTION 147
11. INVESTMENT PROPERTIES 148
12. EQUIPMENT 151
13. TRADE RECEIVABLES, OTHER RECEIVABLES AND PREPAID EXPENSES 151
14. CASH AND CASH EQUIVALENTS 153
15. OTHER PAYABLES AND ACCRUED EXPENSES 153
16. ISLAMIC FINANCING 154
17. UNITHOLDERS’ CAPITAL 155
18. MANAGEMENT EXPENSE RATIO (“MER”) 156
19. PORTFOLIO TURNOVER RATIO (“PTR”) 156
20. SIGNIFICANT RELATED PARTY TRANSACTIONS 157
21. FAIR VALUES OF FINANCIAL INSTRUMENTS 157
22. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES 158
23. SEGMENT REPORTING 161
24. CAPITAL MANAGEMENT 164
25. COMMITMENTS 165
26. SIGNIFICANT EVENT 165
STATEMENT BY THE MANAGER 166
DECLARATION BY THE DIRECTOR OF THE MANAGER 167
SHARIAH COMMITTEE REPORT 168
TRUSTEE’S REPORT 169
ANALYSIS OF UNITHOLDINGS 170

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