Letter to Stakeholders RENEWED STRATEGY FOR SUSTAINABLE RETURNS Our portfolio, valued at RM1.24 billion, continued to benefit from strategic AEIs, particularly our flagship assets, KOMTAR JBCC and Menara KOMTAR, creating sustainable, long-term value to the portfolio and also improved returns to shareholders. At KOMTAR JBCC, a revised tenant mix and repositioning strategy resulted in a 9.9% increase in revenue. New tenancy agreements with notable brands enriching the asset’s appeal. We also advanced enhancement efforts and pursued premium F&B tenants to elevate footfall and rental yield. Key initiatives include reconfiguring large vacant areas into mini-anchor tenants such as grocers, enhancing tenant mix with high-value and premium F&B brands, phasing out underperforming tenants, and renegotiating rental rates to improve yields. The strategy also targeted cross-border shoppers from Singapore with curated retail offerings. These initiatives strategically align with our objective to capitalise on the growth potential of JS-SEZ. Key enhancement works have commenced to position KOMTAR JBCC as a transitoriented retail destination. In addition, plans are underway for the development of a Pedestrian Overhead Bridge, which will provide direct connectivity between the JB-Singapore Rapid Transit System (“RTS”) station and KOMTAR JBCC, further strengthening the asset’s long-term value proposition. We are confident that these strategic enhancements and repositioning of the mall will attract a higher footfall traffic and bring in quality tenants, contributing towards a better NPI for KOMTAR JBCC. SUSTAINABILITY AND GOVERNANCE COMMITMENTS Sustainability remains integral to our value creation. In FY2024, we took measured steps towards integrating Environmental, Social, and Governance (“ESG”) considerations in our leasing practices and tenant engagement. Notable initiatives included the introduction of Green Lease clauses in our lease agreements and the installation of a Klean recycling machine at @Mart Kempas to promote circular economy behaviour among tenants and shoppers. On the governance front, a key leadership transition brought renewed strategic direction. The appointment of a new CEO and Board members has instilled greater operational focus, driving our turnaround strategy anchored on portfolio enhancement, operational efficiency, and strategic acquisitions or divestments. We continue to uphold strong corporate governance standards in line with regulatory expectations. Our governance framework supports transparency, risk management, and accountability, ensuring that our operations are conducted ethically and sustainably. 12 AL-SALĀM REIT ANNUAL REPORT 2024
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