AL-SALAM REIT ANNUAL REPORT 2020

39 ANNUAL REPORT 2020 MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL AND BUSINESS REVIEW Financing activities Net cash used in financing activities during the financial year was RM29.3 million, mainly related to payment of Islamic financing costs and income distribution of RM27.0 million and RM13.1 million, respectively. Hence, as at 31 December 2020, the Fund’s cash and cash equivalent position stood at RM28.8 million, a decrease of RM2.6 million from FY2019. Fair Value of Investment Properties As at 31 December 2020, the value of Al-Salām REIT’s properties stood at RM1.19 billion (FY2019: RM1.19 billion), an increase of 0.15%. The increase was due to the acquisition of 5 QSR Properties at a purchase consideration of RM28.3 million, offsetted by net fair value loss of RM31.3 million. The portfolio property yield for FY2020 decreased from 5.92% to 5.56%mainly due to the lower performance of KOMTAR JBCC during the financial year. Fair Value @ 31 Dec 2019 (RM’000) Fair Value @ 31 Dec 2020 (RM’000) Property Yield 2019 (%) Property Yield 2020 (%) Retail Komtar JBCC 462,000 432,000 4.54 3.34 @Mart Kempas 68,000 70,000 5.71 6.01 Mydin Hypermart Gong Badak 161,000 164,000 8.58 8.63 iii Office Menara KOMTAR 73,000 73,000 7.46 7.56 F&B Restaurants 38 KFC and/or Pizza Hut Outlets 253,935 284,464 iii 6.14 6.11 ii F&B Non-Restaurants Industrial Premises 141,700 141,590 6.19 6.20 MCHM 30,000 33,800 7.77 6.58 TOTAL 1,187,635 1,198,854 5.92 5.56 Notes: i. Appraised value based on valuation carried out by an independent professional valuer, Cheston International (KL) Sdn Bhd, VPC Alliance (Kajang) Sdn Bhd and IM Global Property Consultant Sdn Bhd on 31 December 2020. ii. The acquisition of 5 QSR Properties was completed on 17 September 2020. iii. Annualised property yield computed based on NPI (which includes unbilled rental income) from completion date of acquisition to 31 December 2020.