AL-SALAM REIT ANNUAL REPORT 2018

AL-SALĀM REIT ANNUAL REPORT 2018 37     Gross Rental Income (%)  Trade Sector by NLA (%) Departmental Store & Supermarket Fashion & Accessories Beauty& Wellness Food & Beverage Leisure Others 10 36 18 25 16 2 21 2 12 9 36 28 ii. Trade Sector Analysis (Gross Rental Income) The table below provides a breakdown of the diferent trade sectors represented in KOMTAR JBCC as at 31 December 2018. iii. Tenancy Expiry Proile (NLA) The majority of the tenancies will expire in FY2020 onwards. The Service Provider has managed to retain the existing tenants despite increased competition from other malls. The reconiguration will also include improving the circulation areas of the mall, creating more inviting and open retail space with better visibility and providing a better shopping experience while driving per-square-foot productivity of the mall. The reconiguration of the area will take into account, amongst others, the following criteria: a) No Anchor Tenant - Opportunity to create more space for mini anchors and specialty stores for better rental rate as well as reduce the risk associated with an anchor tenant. b) Increase of F&B – Area for F&B tenants will increase from the current 10% to approximately 20% of the NLA. c) Ground Floor Reconiguration – The coniguration of the area will be remodelled to cater the tenants from the newly opened Grade A oices in Menara JLand. The reconiguration of the area which involves approximately NLA of 127,000 sf is expected to be completed by end of FY2019. (ii)Revitalization and brightening the look of KOMTAR JBCC As part of our continuous eforts to revitalize KOMTAR JBCC, an upgrading of the façade that fronts Jalan Tun Abdul Razak has been undertaken since late 2018. The façade will also create an entrance statement for better access from the Jalan Tun Abdul Razak area. The estimated cost of the project is RM1.9 million and is expected to be completed by March 2019. To improve the advertising and signage at the external facade of KOMTAR JBCC, we have also undertaken to install signage facing at both Jalan Wong Ah Fook and Jalan Tun Abdul Razak, respectively. The project will cost approximately RM2.3 million and is expected to be completed by March 2019. Strategies The fund will continue to focus on the ongoing strengths of KOMTAR JBCC with its strategic location in the heart of the city centre and the new development of Ibrahim International Business District (IIBD). Komtar JBCC also has the edge over competitors by continuing to have a substantial number of unique and highly desirable tenants. i. To continue to focus on the strength of the higher end retailers to Johor Bahru e.g. Marks & Spencer. Installation of signage at KOMTAR JBCC 75 2 9 14 KEY: FYE 2019 FYE 2020 FYE 2021 > FYE 2021 * Based on NLA occupied excluding ex-Metrojaya area