AL-SALAM REIT ANNUAL REPORT 2019

F&B Restaurant KFC & Pizza Hut 40 OPERATIONAL REVIEW ANNUAL REPORT 2019 The breakdown of the restaurant properties and non-restaurant properties together with their market values are set out below: No. of Market Description Properties Value (RM) Restaurant located at shophouses/ offices 21 71.3 Single-storey restaurants building with drive-through outlets 13 161.5 Restaurant at mall 4 21.1 TOTAL 38 253.9 No. of properties First Rental Period 16 19 March 2019 – 18 March 2022 No. of properties Second Rental Period 11 6 May 2018 - 5 May 2021 10 29 September 2018 - 28 September 2021 1 Month to month basis OVERVIEW OF PROPERTY The Food & Beverage Restaurant segment comprises 38 restaurant properties located across Malaysia. The properties support the food and beverage operations of QSR, specifically in relation to the operations of fast food brands namely KFC and Pizza Hut. Al-Salām REIT is leasing all the properties to QSR Group of Companies. LEASE TERM Pursuant to the master lease agreements, the properties are leased based on a Triple Net Lease for a term of 3 years, renewable every 3 years (Rental Period) up to a maximum of 15 years (Lease Term). The Lease Term can be extended for a further period of 15 years (Extended Lease Term). The current Rental Period of the properties are as follows: MAJOR ASSET ENHANCEMENT INITIATIVE The properties are on a Triple Net Lease arrangement and there was no major asset enhancement initiative undertaken for year 2019. The Fund will continue to enhance the relationship with the tenants and proactively attend to tenants’ need and requirements. AL-SALĀM REIT •