AL-SALAM REIT ANNUAL REPORT 2019

Manager’s Report AL-SALĀM REIT • 103 ANNUAL REPORT 2019 (Cont’d) Number of options over ordinary shares As of As of 1.1.2019 Acquired Disposed 31.12.2019 Related companies - KPJ Healthcare Berhad Dato’ Amiruddin bin Abdul Satar 2,000,000 - - 2,000,000 Dr. Mohd Hafetz bin Ahmad 330,000 - - 330,000 Except as disclosed above, none of the other Directors of the Manager in office at the end of the financial year had any interest in shares in the Fund or its related corporations during and at the end of the financial year. MANAGER’S REMUNERATION Pursuant to the Deed dated 25 November 2019, the Manager is entitled to receive from the Fund: (a) A base management fee of up to 1% per annum of total asset value (excluding cash and bank balances) of the Fund calculated on a monthly accrual basis; (b) An acquisition fee of 1% of the transaction value (being the total purchase price) of any investment property directly or indirectly acquired from time to time by the Trustee for and on behalf of the Fund pro-rated, if applicable, to the proportion of the Fund’s interest and payable to the Manager upon completion of the acquisition of the investment property; and (c) A disposal fee of 0.5% of the transaction value (being the total sales price) of any investment property directly or indirectly sold from time to time by the Trustee for and on behalf of the Fund pro-rated, if applicable, to the proportion of the Fund’s interest and payable to the Manager upon completion of the disposal of the investment property. SOFT COMMISSION During the year, the Manager did not receive any soft commission from its broker, by virtue of transactions conducted by the Fund. RESERVES AND PROVISIONS There was no material transfer to and from reserves or provisions during the financial year other than those disclosed in the financial statements. OTHER INFORMATION (a) Before the financial statements of the Group and of the Fund were made out, the Manager took reasonable steps: (i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of allowance for doubtful debts and had satisfied themselves that there are no known bad debts to be written off and that no allowance for doubtful debts is necessary; and (ii) to ensure that any current assets which were unlikely to be realised in the ordinary course of business including the value of current assets as shown in the accounting records of the Group and of the Fund had been written down to an amount which the current assets might be expected so to realise. (b) At the date of this report, the Manager is not aware of any circumstances which would render: (a) it necessary to write off any bad debts or to make any allowance for doubtful debts in respect of the financial statements of the Group and of the Fund; and (b) the values attributed to the current assets in the financial statements of the Group and of the Fund misleading. (c) At the date of this report, the Manager is not aware of any circumstances which have arisen which would render adherence to the existing method of valuation of assets or liabilities of the Group and of the Fund misleading or inappropriate.