Management Discussion and Analysis FINANCIAL REVIEW (CONT'D) Segmental Performance In the retail sector, the overall industry experienced an improvement in footfall and sales in major shopping centres, particularly in Iskandar Malaysia, driving higher occupancy and positive rental reversions. In FY2024, Al-Salām REIT’s retail segment delivered a commendable performance, with total revenue rising by 9.9% YOY to RM43.4 million. This growth was primarily driven by KOMTAR JBCC, which recorded higher rental, parking, and promotional income. The segment’s NPI increased by 11.8% YOY, reflecting the increase in revenue, albeit partially offset by higher operating expenses incurred across all retail properties. The office segment recorded a total revenue of RM6.9 million, reflecting a YOY decline of RM1.2 million, primarily attributable to a lower average occupancy rate of 81% compared to 92% in the preceding year. As newer and higher quality buildings begin to capture demand, especially in areas in Johor with Singaporean business spillover, legacy buildings have started to face downward rental pressure. The corresponding NPI contracted by RM1.3 million, further impacted by an increase in operating costs amounting to RM0.1 million. The F&B segment posted a modest decline of 1.3% YOY in both revenue and NPI. The decrease was mainly due to the lower provision of deferred rental income during the year. Nevertheless, the segment remains resilient, supported by a stable triple net lease structure and a sustained 100% occupancy rate. For the Fund’s portfolio in the industrial and others segment, performance remained stable, registering a slight decrease in total revenue and NPI. Gross Revenue Net Property Income FY2024 RM'000 FY2023 RM'000 Change (%) FY2024 RM'000 FY2023 RM'000 Change (%) KOMTAR JBCC 20,746 16,982 22.2 4,209 1,788 135.4 @Mart Kempas 8,772 8,652 1.4 4,103 4,220 2.8 Mydin Hypermart Gong Badak 13,833 13,824 0.1 13,807 13,799 0.1 Unit No G-104, Megamall Pinang 64 35 82.8 63 35 80.0 Total Retail 43,415 39,493 9.9 22,182 19,842 11.8 Menara KOMTAR 6,875 8,141 -15.6 1,990 3,311 - 39.9 Total Office 6,875 8,141 -15.6 1,990 3,311 - 39.9 42 KFC and/or Pizza Hut Outlets 17,167 17,400 -1.3 17,135 17,368 -1.3 Total F&B Restaurant 17,167 17,400 -1.3 17,135 17,368 - 1.3 Industrial Premises 8,663 8,917 -2.8 8,648 8,901 -2.8 KPJIC 2,333 2,332 - 1,933 1,967 -1.7 Total Industrial & Others 10,996 11,249 -2.2 10,581 10,868 -2.6 Property Manager Fee (473) (481) 1.7 TOTAL PORTFOLIO 78,453 76,283 2.8 51,415 50,908 1.0 22 AL-SALĀM REIT ANNUAL REPORT 2024
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