AL-SALAM REIT ANNUAL REPORT 2019

Financial & Business Review 33 ANNUAL REPORT 2019 AL-SALĀM REIT • STATEMENT OF CASH FLOWS Operating activities Net cash generated from operating activities was RM63.2 million in FY2019, higher by RM10.8 million than FY2018. This is mainly attributable to higher rental income in the current financial year in 2019. Investing activities Al-Salām REIT used RM0.2 million from investing activities during the financial year compared to RM5.15 million in the previous year. The main investing activities in the current year relate to acquisition of equipment, capex and pledged deposit with licensed banks. Financing activities Net cash used in financing activities during the financial year was RM65.7 million, mainly related to payment of Islamic financing costs and income distribution of RM31.5 million and RM32.6 million respectively. Hence, as at 31 December 2019 cash and cash equivalent was at RM31.4 million, a decrease of RM2.7 million from RM34.1 million. FAIR VALUE OF INVESTMENT PROPERTIES As at 31 December 2019, the value of Al-Salām REIT’s properties was RM1.19 billion compared to RM1.09 billion as at 31 December 2018. The increase was due to acquisition of 17 QSR Properties at purchase consideration of RM86.7 million and net fair value gain of RM3.5 million and capex of RM4.7 million. The portfolio property yield for FY2019 decreased from 6.27% to 5.92% mainly due to the lower performance of KOMTAR JBCC during the year. Fair Value Fair Value Property Yield Property Yield @ 31 Dec 2018 @ 31 Dec 2019 2018 (%) 2019(%) Retail KOMTAR JBCC 465,000 462,000 5.42 4.54 @Mart Kempas 65,000 66,000 5.59 5.71 Mydin Hypermart Gong Badak 158,000 161,000 8.75 8.58 iii Office Menara KOMTAR 73,000 73,000 7.64 7.46 F&B Restaurants 38 KFC and/or Pizza Hut Outlets 165,697 253,935 ii 6.00 6.14 iii F&B Non-Restaurants Industrial Premises 135,989 141,700 ii 6.15 6.19 iii MCHM 30,000 30,000 7.54 7.77 TOTAL 1,092,686 1,187,635 6.27 5.92 i. Appraised value based on valuation carried out by by an inderpendent professional valuer, cheston International (KL) Sdn Bhd, VPC Alliance (Kajang) Sdn Bhd and IM Global Property Consultant Sdn Bhd on 31 December 2019. ii. The acquisition of 17 QSR Properties was complete on 19 March 2019. iii. Annualised property yield computed based on NPI (which includes unbilled rental income) from completion date of acquisition to 31 December 2019.