AL-SALAM REIT ANNUAL REPORT 2020

50 AL-SALĀM REIT MANAGEMENT DISCUSSION AND ANALYSIS OPERATIONAL REVIEW (ASSET PERFORMANCE) Non-F&B Restaurant - Malaysian College of Hospitality & Management OVERVIEW OF PROPERTY The property is a 4-storey building known as Malaysian College of Hospitality & Management (MCHM) located in Bandar Dato’ Onn, a self-contained, residential township located 12 km from Johor Bahru. The 597-hectare (1,474 acre) Bandar Dato’ Onn will be home to more than 90,000 residents across 19 neighbourhood upon expected completion in 2025. The building has a 100% occupancy rate as at 31 December 2020. RENTAL TERM MCHM is currently rented by two tenants. The tenancies for MCHM are for a term of 3 years subject to a compulsory renewal for further 2 terms of 3 years each per term. The current rental period will expire on 31 October 2022. MAJOR ASSET ENHANCEMENT INITIATIVE Given that the building is in good condition, no major expansion, renovation or asset enhancement initiatives are planned for the near future. Furthermore, there is no requirement from the existing tenants to expand their operations. OUTLOOK AND PROSPECTS The education market segment has remained resilient throughout the ongoing pandemic outbreak. Accordingly, MCHM being the Fund’s sole college property is expected to continue to provide stable earnings deriving from lease arrangement with KPJ Group’s education arm.