AL-SALAM REIT ANNUAL REPORT 2020

11 ANNUAL REPORT 2020 LOOKING FORWARD Prospects for FY2021 remain challenging. The imposition of the second MCO on 13 January 2021 will stifle the nascent recovery of the economy and the retail sector. It is likely that initial GDP growth forecast of between 6.5%-7.5% may need to be reassessed. Al-Salām REIT’s sizable triple net lease assets portfolio (consisting of Mydin Hypermart Gong Badak and QSR related properties) will continue to provide sustained core income for unitholders. Menara KOMTAR is expected to maintain its position as a strategic office space in Johor Bahru as the property is a uniquely defensive asset in a challenging sector. QSR’s continued operational excellence and market leadership position will provide the fund with a sustainable source of income and a measure of stability in FY2021. @Mart Kempas continues to prove its resilience as a community-centric hypermarket offering essential provisions throughout the restrictive movement policy implementation. The continued closure of the Malaysia-Singapore border poses further risk of low customer volume for KOMTAR JBCC. However, in the medium to long-term, KOMTAR JBCC retains its value and competitive advantages. With a progressive return to normalcy in the second half of 2021, the asset should recover to its potential in the long run. APPRECIATION AND ACKNOWLEDGEMENTS The Board wishes to express its heartfelt appreciation to the Manager and its employees for their business acumen and proactiveness in making timely, necessary and strategic decisions to ensure the Fund’s robustness during FY2020. As Chairman of the Board, I wish to extend my gratitude to my fellow members of the Board whose wise counsel and astute leadership have been pivotal in steering a continued path of progress for Al-Salām REIT. LETTER TO STAKEHOLDERS In particular, I wish to recognise outgoing directors, Dato’ Amiruddin Bin Abdul Satar, Dato’ Dr. Rahah Binti Ismail, Dr. Mohd Hafetz Bin Ahmad, and Yusaini Bin Hj Sidek all of whom have chosen to pursue personal interests and other opportunities. The Board wishes them well in their future undertakings, and thanks them for their sterling contributions during their tenure with the Fund. In their stead, the Board has the pleasure of welcoming Dato’ Wan Kamaruzaman Bin Wan Ahmad who was appointed as an Independent Non-Executive Director with Shamsul Anuar Bin Abdul Majid and Datuk Sr Akmal Bin Ahmad who were appointed as Non-Independent Non-Executive Directors on 24 August 2020 and 21 January 2021, respectively. Gratitude is also extended to the Shariah Committee for their guidance and advice towards ensuring that Al-Salām REIT’s assets remained shariah compliant throughout FY2020. The Board also wishes to recognise an outgoing member of the Shariah Advisory Committee, Professor Md Som Bin Sujimon and welcoming IBFIM as a new Shariah Advisory Committee member. The Board is also thankful to our unitholders, our trustees, financiers, business partners, regulatory authorities and other stakeholders for their support to Al-Salām REIT during the financial year. In what has been a most eventful FY2020, Al-Salām REIT has managed to weather a tumultuous operating environment with many lessons learnt and insights gained. These will hold us in good stead going forward as we continue to take strategic measures to bolster the resilience and overall sustainability of the Fund. DATO’ HJ. MOHD REDZA SHAH BIN ABDUL WAHID CHAIRMAN