AL-SALAM REIT ANNUAL REPORT 2019

Non-F&B Restaurant Industrial Premises OPERATIONAL REVIEW 41 ANNUAL REPORT 2019 AL-SALĀM REIT • OVERVIEW OF PROPERTY There are 6 industrial/warehouse properties worth RM141.7 million in total market value. The 6 properties located across Malaysia support the Food & Beverage operations of KFC and Pizza Hut, the fast food brands under QSR Group of Companies. Al-Salām REIT is leasing 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. No. of properties First Rental Period 1 19 March 2019 – 18 March 2022 No. of properties Second Rental Period 2 6 May 2018 – 5 May 2021 3 29 September 2018 – 28 September 2021