AL-SALAM REIT ANNUAL REPORT 2018

AL-SALĀM REIT ANNUAL REPORT 2018 98 The Directors of DAMANSARA REIT MANAGERS SDN BERHAD (the “Manager"), the Manager of AL-SALĀM REAL ESTATE INVESTMENT TRUST (the “Fund”), have pleasure in submitting their report and the audited inancial statements of the Group and of the Fund for the inancial year ended 31 December 2018. THE FUND AND ITS INVESTMENT OBJECTIVE The Fund is a Malaysia-based real estate and investment trust established pursuant to the execution of a Trust Deed dated 26 March 2015 between the Fund, the Manager and AmanahRaya Trustees Berhad (the “Trustee”). The said Trust Deed was registered with the Securities Commission Malaysia on 30 March 2015 which is the Fund’s establishment date. The Fund was listed on the Main Market of Bursa Malaysia Securities Berhad on 29 September 2015. The Manager’s key objective is to provide unitholders with regular and stable income distributions, sustainable long term unit prices and distributable income and capital growth, while maintaining an appropriate capital structure. This objective is sought to be achieved by optimising the performance and enhancing the overall quality for a large and geographically diversiied portfolio of Shariah-compliant real estate assets through various permissible investment and business strategies. On 29 January 2018, the Manager, after consultation with the Trustee, declared a inal income distribution of 3.15 sen per unit totalling RM18.27 million for the inancial year ended 31 December 2017. The said distribution was paid on 28 February 2018. On 24 May 2018, the Manager, after consultation with the Trustee, declared a irst interim income distribution of 1.00 sen per unit totalling RM5.80 million for the inancial year ended 31 December 2018. The said distribution was paid on 9 July 2018. On 29 August 2018, the Manager, after consultation with the Trustee, declared a second interim income distribution of 1.00 sen per unit totalling RM5.80 million for the inancial year ended 31 December 2018. The said distribution was paid on 19 October 2018. On 30 November 2018, the Manager, after consultation with the Trustee, declared a third interim income distribution of 1.00 sen per unit totalling RM5.80 million for the inancial year ended 31 December 2018. The distribution was approved by the Trustee and has been included as a liability in the inancial statements. The said distribution was paid on 14 January 2019. On 30 January 2019, the Manager, after consultation with the Trustee, declared a third interim income distribution of 2.35 sen per unit totalling RM13.63 million for the inancial year ended 31 December 2018. The distribution was approved by the Trustee and has not been included as a liability in the inancial statements. The total distributions for the inancial year ended 31 December 2018 amount to RM31,030,000 (2017: RM34,799,868). Total distribution is 5.35 sen per unit (2017: 6.00 sen per unit). THE MANAGER AND ITS PRINCIPAL ACTIVITY The Manager is a company incorporated in Malaysia and is a wholly-owned subsidiary of Damansara Assets Sdn Bhd, a company incorporated in Malaysia. The Directors of the Manager consider Johor Corporation as the ultimate holding entity of the Manager, a body corporate established under the Johor Corporation Enactment No. 4, 1968 (as amended by Enactment No. 5, 1995). The principal activity of the Manager is that of managing real estate investment trusts. There has been no signiicant change in the nature of the principal activity during the inancial year. On 1 March 2018, the Fund has set up a wholly-owned subsidiary, ALSREIT Capital Sdn. Bhd., a company incorporated in Malaysia. MANAGER’S REPORT