AL-SALAM REIT ANNUAL REPORT 2018

AL-SALĀM REIT ANNUAL REPORT 2018 35 F air Value Fair Value Property Yield Property Yield @ 31 Dec 2017 @ 31 Dec 2018 2017 2018 RM`000 RM`000 % % Retail KOMTAR JBCC 465,000 465,000 5.92 5.42 @Mart Kempas 65,000 65,000 6.10 5.59 Mydin Hypermart Gong Badak - 158,000 ii - 8.75 iii O ce Menara KOMTAR 73,000 73,000 7.47 7.64 F&B Restaurants 22 KFC and/or Pizza Hut Outlets 161,670 165,697 6.05 6.00 F&B Non-Restaurants Industrial Premises 133,800 135,989 6.16 6.15 MCHM 29,000 30,000 7.55 7.54 TOTAL 927,470 1,092,686 6.13 6.27 Statement of Cash Flows Operating activities Net cash generated from operating activities was RM52.4 million in FY2018, higher by RM4.6 million than FY2017. This is mainly attributable to higher rental income in the current inancial year in 2018. Investing activities Al-Salām REIT used RM7.9 million from investing activities during the inancial year compared to generated RM0.1 million in the previous year. The main investing activities in the current year relate to acquisition of investment properties, equipment, capex and pledged deposit with licensed banks. Financing activities On 24 August 2018, Al-SalāmREIT, through Alsreit Capital Sdn Bhd issued RM162.8million of Islamic Medium Term Notes (“IMTN”) under Issue 1 of its Sukuk Ijarah Programme to satisfy the purchase consideration of Mydin Hypermart Gong Badak. Interest paid during the year amounted to RM 23.6 million. Distribution paid in the current year was RM29.9 million compared to RM36.2 million in the previous year. Hence, as at 31 December 2018 cash and cash equivalent was at RM 34.1 million, a decrease of RM 1.1 million from RM 35.2 million. Fair Value of Investment Properties As at 31 December 2018, the value of Al-Salām REIT’s properties was RM 1.09 billion compared to RM 927.5 million as at 31 December 2017. The increase was due to acquisition of Mydin Hypermart Gong Badak at purchase consideration of RM155.0 million and net fair value gain of RM7.6 million. The portfolio property yield for FY2018 slightly increased from6.13%to 6.27%mainly due to the introduction of Mydin Hypermart Gong Badak into Al-Salām REIT’s portfolio . i. Appraised value based on valuation carried out by an independent professional valuer, Cheston International (KL) Sdn Bhd, VPC Alliance (Kajang) Sdn Bhd and IM Global Property Consultant Sdn Bhd on 31 December 2018. ii. The acquisition of Mydin Hypermart Gong Badak was completed on 21 September 2018. iii. Annualised property yield computed based on NPI (which includes unbilled rental income) from completion date of acquisition to 31 December 2018.