AL-SALAM REIT ANNUAL REPORT 2018

AL-SALĀM REIT ANNUAL REPORT 2018 41 Overview Of Property Rejuvenated and refreshed, Menara KOMTAR has undertaken major refurbishment in 2013. The 25-level purpose-built oice tower located in Flagship Zone A of Iskandar Malaysia which is established with the key development strategy to regenerate Johor Bahru into a vibrant economic centre while preserving its cultural and heritage values. It is also located strategically within the proximity to world’s most dynamic economic at the conluence of important East-West trade routes and part of the Indonesia-Malaysia-Singapore Growth Triangle. The table below sets out a summary on oice building as at 31 December 2018. ii. Trade Sector Analysis (Gross Rental Income) JCorp Group of Companies occupied about 78% of the NLA. The gross rental income contributed by JCorpwas 76%. iii. Tenancy Expiry Proile TENANT PROFILE i. Major Tenants       Existing Use OŠce Building GFA 242,195 sq ft NLA 160,592 sq ft Number of Car Park Bays 208 Market Value RM73,000,000 Number of Tenancies 22 Occupancy Rate 90% Major Asset Enhancement Initiative There was no major asset enhancement initiative undertaken for year 2018. Strategies 1. Continuous eforts in improving space occupancy including implementing initiatives to minimize rental attrition /improve rental reversion levels to achieve top line performance target 2. Streamlining operating costs to deliver sustainable earnings quality in light of challenging commercial oice landscape 3. Maintaining close engagement with tenants and to act as a synergetic partner in ensuring commercial success of the asset Challenges And Prospects The surplus overhang in oice space within Klang Valley will continue to dampen rental and occupancy rates coming into the new year. Comparatively, Johor Bahru’s oice space performance is faring better than its northern counterpart as the Iskandar Region continues to receive substantial investments for future economic developments. Menara KOMTAR is expected to maintain its position as a substantial yield contributor to the Fund as the property owes its stability of revenue due to it being a part of KOMTAR JBCC’s burgeoning commercial scene. Menara KOMTAR also houses the main oice of JCorp thus assuring stable long term income accruing from the tenant’s established reputation as one of Malaysia’s best performing state agency. Apart from this, the Manager continues to engage with the tenants by further developing relationship to enhance the level of service and experience of tenants in Menara KOMTAR. 37 59 4 KEY: FYE 2019 FYE 2020 FYE 2021 76 8 6 10 KEY: JCorp TPMTechnopark Sdn Bhd Damansara Assets Sdn Bhd Others