AL-SALAM REIT ANNUAL REPORT 2020

37 ANNUAL REPORT 2020 MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL AND BUSINESS REVIEW The F&B non-restaurant segment recorded a slight increase of 0.3% in total revenue and slight decrease of 0.5% in net property income in FY2020. The decrease in net property income was mainly due to higher operating expenses at MCHM. Gross Revenue Net Property Income FY2019 RM’000 FY2020 RM’000 Change (%) FY2019 RM’000 FY2020 RM’000 Change (%) KOMTAR JBCC 38,140 27,501 (27.9) 20,981 14,444 (77.0) @Mart Kempas 7,898 7,750 (1.9) 3,767 4,209 (18.5) Mydin Hypermart Gong Badak 13,825 14,165 2.5 13,810 14,149 (4.5) Total Retail Segment 59,863 49,416 (17.5) 38,557 32,802 (14.9) Menara KOMTAR 9,235 9,173 (0.7) 5,447 5,520 1.3 Total Office Segment 9,235 9,173 (0.7) 5,447 5,520 1.3 43 KFC &/or Pizza Hut Outlets 14,503 16,164 11.5 14,472 16,132 11.5 Total F&B Restaurants 14,503 16,164 11.5 14,472 16,132 11.5 Industrial Premises 8,748 8,798 0.6 8,727 8,776 0.6 MCHM 2,563 2,550 (0.5) 2,331 2,224 (4.6) Total F&B Non-Restaurants 11,311 11,348 0.3 11,058 11,000 (0.5) Property Manager Fee - - - (413) (484) 17.2 TOTAL PORTFOLIO 94,912 86,101 (9.3) 69,121 64,970 (6.0) PROFIT FOR THE YEAR For FY2020, Al-Salām REIT recorded a realised profit of RM14.6 million (FY2019: RM28.4 million) and an unrealised loss of RM28.1 million (FY2019: unrealised gain of RM7.8 million). Realised profit was lower by 48.7% or RM13.8 million mainly attributed to the drop in NPI of RM4.2 million and provision of rental support of RM13.4 million, cushioned by lower Islamic financing costs of RM4.9 million during the FY2020. The unrealised loss of RM28.1 million was attributed to fair value loss from the revaluation of investment properties of RM31.3 million and deferred tax expense of RM1.2 million, less of unbilled rental income of RM4.4 million. DISTRIBUTION PER UNIT Total income available for distribution for FY2020 was RM12.6 million (FY2019: RM28.4 million). This was derived from net realised income of RM14.6 million, less capital expenditures of RM2.0 million paid by internal cash during the year. The Fund had distributed an interim income distribution of 0.86 sen per unit amounting to approximately RM5.0 million for the period from 1 January to 29 February 2020 on 15 April 2020. On 26 January 2021, the Manager, declared a final income distribution of 1.22 sen per unit totalling RM7.1 million. The said distribution was paid on 26 February 2021 and has not been included as a liability in the financial statements as of 31 December 2020. Total income distribution for FY2020 is 2.08 sen per unit (FY2019: 4.75 sen) totalling RM12.1 million, which represents 96% of the income available for distribution.