AL-SALAM REIT ANNUAL REPORT 2018

AL-SALĀM REIT ANNUAL REPORT 2018 32 Overview Of Al-Salām REIT Al-Salām REIT is a medium-sized diversiied Malaysian REIT with a total portfolio asset value of RM1.09 billion. Its investment properties’ gross loor area totals 2.5 million sq ft with 1.8 million sq ft of total net lettable area. The properties are well diversiied into retail, oice, F&B Restaurants and F&B non- restaurant segments. Financial Review Al-SalāmREIT deliver a lower DPU of 5.35 sen for FY2018 (FY2017: 6.00 sen) due to lower realised net income on the back of higher inancing cost. Table 1: Key Financial Highlights Financial & Business Review Commentaries (FY2018 vs FY2017): 1. Al-Salām REIT achieved a gross revenue of RM82.2 million for the inancial year ended 31 December 2018, a growth of 2.6% against RM80.0 million achieved in FY2017, mainly contributed by additional rental income fromMydin Hypermart Gong Badak, of which the acquisition completed on 21 September 2018. 2. The Group registered a lower realised EPU in FY 2018 due to: (a) Lower NPI of KOMTAR JBCC of RM25.2 million as compared to RM27.5 million in 2017. (b) Higher Islamic inancing costs mainly due to an increase in Overnight Policy Rate ("OPR") of 25bps on 25 January 2018 by Bank Negara Malaysia. Audited Audited FY 2017 FY 2018 Variance RM`000 RM`000 (%) Gross Revenue 80,033 82,151 2.6 Net Property Income 56,887 58,245 2.4 Net Income (realised) 35,542 31,867 (10.3) Income available for distribution (realised) 35,542 31,867 (10.3) EPU (sen) - realised 6.13 5.49 (10.3) DPU (sen) 6.00 5.35 (12.5)