AL-SALAM REIT ANNUAL REPORT 2018

AL-SALĀM REIT ANNUAL REPORT 2018 39     Gross Rental Income (%)  Trade Sector by NLA (%) Wet Market Retail Kiosk Food Court Anchor Others 16 3 56 0 2 23 26 13 6 1 18 36 iii. Tenancy Expiry Proile The Service Provider has managed to retain the existing tenants albeit with increase competition from other malls. Major Asset Enhancement Initiative @Mart Kempas completed AEIs of RM354,582 during the inancial year which covers the repainting works at the external façade and upgrading of road and washrooms. Strategies 1. Explore new target market through media social connectivity. 2. To develop mall-wide campaigns aimed at increasing customer spending through rewards or redemptions. 3. Explore other income such as renting advertising space, creating new tenanted areas and promotion areas. 4. Work with tenants to attract more visitors to shop by doing promotional activities and also ofer quality products at afordable prices. Challenges And Prospects Lingering uncertainty on the economy at large coming into the new year will soften the consumer retail market as shoppers become more cautious in their spending habit. However, conversely demand for staple goods and bargain household products is expected to be buoyed by the slowdown in tandem with the shift in consumer preference. @Mart Kempas being a community mart which ofers shoppers a good range of necessary household products, will remain resilient in this economic situation as evidenced by the improvement in its occupancy rate. As such, the property manager will continue to strenghten the retail mart’s revenue and bottom line via: i. Reassessment and repositioning of lessee trade mix to suit changes in consumer demand in eforts to increase rental rate ii. To diversify sources of income by renting advertising space, creating new tenanted and promotion areas iii. Drive footfall through promotional activities, revenue-maximizing events as well as continuing to ofer quality products at afordable prices.    69 14 17 KEY: FYE 2019 FYE 2020 FYE 2021