AL-SALAM REIT ANNUAL REPORT 2019

Financial & Business Review 31 ANNUAL REPORT 2019 AL-SALĀM REIT • OVERVIEW OF AL-SALĀM REIT Al-Salām REIT is a medium-sized diversified Malaysian REIT with a total portfolio asset value of RM1.19 billion. Its investment properties’ gross floor area totals 2.21 million sq ft with 1.90 million sq ft of total net lettable area. The properties are well diversified into retail, office, F&B Restaurants and F&B non restaurant segments. FINANCIAL REVIEW Al-Salām REIT deliver a lower DPU of 4.75 sen for FY2019 due to lower realised net income from retail segments. Table 1: Key Financial Highlights Audited Audited FY 2018 FY 2019 Variance RM`000 RM`000 (%) Gross Revenue 82,151 94,912 15.5 Net property Income 58,245 69,121 18.7 Net income (realised) 31,867 28,395 (10.9) Income available for distribution (realised) 31,867 28,395 (10.9) EPU (sen )- realised 5.49 4.90 (10.9) DPU (sen)- realised 5.35 4.75 (11.2) Commentaries (FY2019 vs FY2018): 1. Al-Salām REIT achieved a gross revenue of RM94.9 million for the financial year ended 31 December 2019, a growth of 15.5% against RM82.2 million achieved in FY2018, mainly contributed by additional rental income from Mydin Hypermart Gong Badak and 17 QSR Properties, of which the acquisition completed on 21 September 2018 and 19 March 2019 respectively. Despite the increase in revenue, Al-Salām REIT registered a lower realised EPU in FY 2019 mainly due to lower NPI contribution from KOMTAR JBCC of RM21.0 million as compared to RM25.2 million in 2018. Gross Revenue Net Property Income FY 2018 FY 2019 Change FY 2018 FY 2019 Change RM`000 RM`000 % RM`000 RM`000 % KOMTAR JBCC 40,817 38,140 (6.6) 25,204 20,980 (16.8) @Mart Kempas 7,553 7,898 4.6 3,632 3,767 3.7 Mydin Hypermart Gong Badak 3,522 13,825 292.5 3,522 13,810 292.1 Total Retail Segment 51,892 59,863 15.4 32,358 38,557 19.2 Menara KOMTAR 9,370 9,235 (1.4) 5,578 5,447 (2.3) Total Office Segment 9,370 9,235 (1.4) 5,578 5,447 (2.3) 38 KFC &/or Pizza Hut Outlets 9,963 14,503 45.6 9,947 14,472 45.5 Total F&B Restaurants 9,963 14,503 45.6 9,947 14,472 45.5 Industrial Premises 8,394 8,748 4.2 8,369 8,727 4.3 MCHM 2,532 2,563 1.2 2,263 2,331 3.0 Total F&B Non-Restaurants 10,926 11,311 3.5 10,632 11,058 4.0 Property Manager Fee - - - (270) (413) 53.0 TOTAL PORTFOLIO 82,151 94,912 15.5 58,245 69,121 18.7