Table of Contents 1 161

AL-SALAM REIT ANNUAL REPORT 2019

ALSREIT Annual Report 2019 1
Contents 2
Corporate Overview 3
Highlights & Insights 2019 4
Policy, Objective & Strategies 5
Corporate Profile 6
Corporate Information 8
Letter to Stakeholders 10
Salient Features 12
Financial Performance 13
Trading Performance 14
Corporate Structure & Leadership 16
Trust Structure 17
Organisation Structure 18
Board of Directors Profile 19
Shariah Committee 27
Management Profile 29
Management Discussion & Analysis 32
Financial & Business Review 33
Operational Review 36
Capital Management 45
Risk Management 47
Investor & Public Relations Report 48
Market Report Summary 50
Summary of Investment Portfolio 54
Marketing Activities 68
Sustainability Report 72
ABOUT THIS REPORT 73
THE SUSTAINABLE REIT 74
GOVERNANCE AND ACCOUNTABILITY 75
ENGAGING STAKEHOLDERS 75
MATERIALITY ASSESSMENT 76
SUSTAINABILITY PILLARS 76
GOVERNANCE 77
ENVIRONMENT 78
PEOPLE 79
PARTNER 81
CORPORATE SOCIAL INVESTMENT 81
Corporate Governance 82
Board Charter 83
Corporate Governance Statement 89
Audit Committee Report 94
Statement On Risk Management & Internal Control 96
Financial Reports 101
Manager’s Report 102
Independent Auditors’ Report 107
Statements of Comprehensive Income 110
Statement of Financial Position 112
Statement of Changes In Equity 113
Statements of Cash Flows 114
Notes To The Financial Statements 116
CORPORATE INFORMATION 116
BASIS OF PREPARATION OF FINANCIAL STATEMENTS 117
SIGNIFICANT ACCOUNTING POLICIES 118
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY 126
GROSS RENTAL INCOME 127
OTHER INCOME 127
INVESTMENT INCOME 128
TAX 128
EARNINGS PER UNIT 128
NET INCOME DISTRIBUTION 129
INVESTMENT PROPERTIES 130
INVESTMENT IN SUBSIDIARY 134
EQUIPMENT 134
TRADE RECEIVABLES, OTHER RECEIVABLES AND PREPAID EXPENSES 134
CASH AND CASH EQUIVALENTS 136
OTHER PAYABLES AND ACCRUED EXPENSES 136
ISLAMIC FINANCING 137
UNITHOLDERS’ CAPITAL 141
MANAGEMENT EXPENSE RATIO (“MER”) 142
SIGNIFICANT RELATED PARTY TRANSACTIONS 142
FAIR VALUES OF FINANCIAL INSTRUMENTS 143
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES 143
SEGMENT REPORTING 147
CAPITAL MANAGEMENT 152
COMMITMENTS 152
SIGNIFICANT EVENTS 153
COMPARATIVE FIGURES 153
Statement By The Directors of The Manager 154
Declaration By The Director of The Manager 155
Shariah Committee Report 156
Trustee’s Report 157
Analysis of Unitholdings 158

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