AL-SALAM REIT ANNUAL REPORT 2018

AL-SALĀM REIT ANNUAL REPORT 2018 33 Business Review Retail segment remained as the key contributor to Al-Salām REIT with contribution to revenue and NPI of 63% (FY2017: 63%) and 55% (FY2017: 55%) respectively. The retail segment’s NPI increased by 2.8% to RM32.4 million from RM31.5 million in FY 2017. Despite lower NPI of KOMTAR JBCC (8.4% or RM2.3 million mainly due to rental rebate and lower percentage rent) and @Mart Kempas (8.4% or RM0.3 million mainly due to higher operating expenses) as compared to previous year, the NPI from the newly acquired Mydin Hypermart Gong Badak of RM3.5 million (which includes unbilled rental income) has resulted in the slight increase. The oice segment’s contribution to the total revenue and NPI was stable at 12% and 10% respectively. During the inancial year, Menara KOMTAR occupancy rate decreased slightly from 91% from 90%. The food and beverage segment witnessed a higher contribution of revenue and NPI as compared to those from previous year. This is due to the rental rate for restaurants increased by 3.71% starting May and September 2018. Profit For The Year Proit for the year was RM40.3 million (FY2017: RM40.6 million) comprising realised proit of RM31.9 million (FY2017: RM 35.5 million) and unrealised proit of RM8.4 million (FY2017: RM 5.1 million). Realised proit was lower 10.3% from the previous year mainly due to higher inancing cost of RM4.9 million. The unrealised proit of RM8.4 million comprised of fair value gain of RM7.6 million and unbilled rental income from Mydin Hypermart Gong Badak of RM0.8 million. The higher net fair value gain was mainly attributable to F&B related properties. Table 2 : Segmental Gross Revenue and NPI 2017-2018 Gross Revenue Net Property Income FY 2017 FY 2018 Change FY 2017 FY 2018 Change RM`000 RM`000 % RM`000 RM`000 % KOMTAR JBCC 43,090 40,817 (5.3) 27,521 25,204 (8.4) @Mart Kempas 7,209 7,553 4.8 3,967 3,632 (8.4) Mydin Hypermart Gong Badak - 3,522 100 - 3,522 100 Total Retail Segment 50,299 51,892 3.2 31,488 32,358 2.8 Menara Komtar 9,136 9,370 2.6 5,451 5,578 2.3 Total Oce Segment 9,136 9,370 2.6 5,451 5,578 2.3 22 KFC &/or Pizza Hut Outlets 9,803 9,963 1.6 9,790 9,947 1.6 Total F&B Restaurants 9,803 9,963 1.6 9,790 9,947 1.6 Industrial Premises 8,263 8,394 1.6 8,238 8,369 1.6 MCHM 2,532 2,532 - 2,190 2,263 3.5 Total F&B Non-Restaurants 10,795 10,926 1.2 10,428 10,632 2.0 Property Manager Fee - - - (270) (270) - TOTAL PORTFOLIO 80,033 82,151 2.6 56,887 58,245 2.4