AL-SALAM REIT ANNUAL REPORT 2018

AL-SALĀM REIT ANNUAL REPORT 2018 101 MANAGER’S REMUNERATION Pursuant to the Trust Deed dated 26 March 2015, the Manager is entitled to receive from the Fund: (a) A base management fee of up to 1% per annum of total asset value (excluding cash and bank balances) of the Fund calculated on a monthly accrual basis; (b) An acquisition fee of 1% of the transaction value (being the total purchase price) of any investment property directly or indirectly acquired from time to time by the Trustee for and on behalf of the Fund pro-rated, if applicable, to the proportion of the Fund’s interest and payable to the Manager upon completion of the acquisition of the investment property; and (c) A disposal fee of 0.5% of the transaction value (being the total sales price) of any investment property directly or indirectly sold from time to time by the Trustee for and on behalf of the Fund pro-rated, if applicable, to the proportion of the Fund’s interest and payable to the Manager upon completion of the disposal of the investment property. SOFT COMMISSION During the year, the Manager did not receive any soft commission from its broker, by virtue of transactions conducted by the Fund. RESERVES AND PROVISIONS There was no material transfer to and from reserves or provisions during the inancial year. OTHER INFORMATION (a) Before the inancial statements of the Group and of the Fund were made out, the Manager took reasonable steps: (i) to ascertain that proper action had been taken in relation to the writing of of bad debts and the making of allowance for doubtful debts and had satisied themselves that there are no known bad debts to be written of and that no allowance for doubtful debts is necessary; and (ii) to ensure that any current assets which were unlikely to be realised in the ordinary course of business including the value of current assets as shown in the accounting records of the Group and of the Fund had been written down to an amount which the current assets might be expected so to realise. (b) At the date of this report, the Manager is not aware of any circumstances which would render: (i) it necessary to write of any bad debts or to make any allowance for doubtful debts in respect of the inancial statements of the Group and of the Fund; and (ii) the values attributed to the current assets in the inancial statements of the Group and of the Fund misleading. (c) At the date of this report, the Manager is not aware of any circumstances which have arisen which would render adherence to the existing method of valuation of assets or liabilities of the Group and of the Fund misleading or inappropriate. (d) At the date of this report, the Manager is not aware of any circumstances not otherwise dealt with in this report or inancial statements of the Group and of the Fund which would render any amount stated in the inancial statements misleading. Manager’s Report - Cont’d