Management Discussion and Analysis FINANCIAL REVIEW (CONT'D) Statement of Financial Position Performance indicators FY2024 % FY2023 % Commentary Management Expense Ratio 0.67 0.72 The Management Expense Ratio improved slightly to 0.67% in FY2024 (FY2023: 0.72%), reflecting enhanced cost efficiency and tighter control over operating expenses relative to the asset base. Distribution Yield 1.87 2.53 Distribution Yield declined to 1.87% (FY2023: 2.53%), primarily due to lower distributable income and softening market conditions which impacted the unit price. Total Return (19.2) 30.90 Total return for the year turned negative, a reversal from the strong 30.9% recorded in FY2023 largely attributed to a decline in market valuation and unit price over the period, influenced by broader market volatility and sector-specific challenges. Average Annual Total Return (5 years) (8.1) (3.12) The Average Annual Total Return over 5 years registered -8.1%, compared to -3.12% in FY2023 as persistent market headwinds weighed on performance over the medium term. Average Annual Total Return (3 years) (1.7) 2.29 The 3-year Average Annual Total Return declined to -1.7% from a positive 2.29%. NAV per unit (RM) 1.1156 1.1135 Despite the external challenges, NAV per unit showed a marginal increase to RM1.1156 affirming the underlying resilience of the Fund’s asset portfolio and its long-term value preservation strategy. Statement of Cash Flow Activity FY2024 (RM million) FY2023 (RM million) Commentary Net Operating Activities 41.7 42.6 Marginal decline due to lower tenant collections amidst softer market dynamics. Net Investing Activities (1.0) (1.6) Lower outflows mainly for acquisition of equipment, capital expenditure, and pledged deposits. Net Financing Activities (44.1) (48.7) Reduced outflow mainly due to Islamic financing cost payments of RM38.5 million and income distribution RM3.3 million. Cash & Cash Equivalents (as at 31 December 2024) 26.0 29.4 YOY decrease of 11.6% due to higher financing obligations and reduced operating inflows. Fair Value of Investment Properties (as at 31 December 2024) 1.2 1.24 3.0% decline due to assets held for sale at RM37.1 million and net fair value loss RM1.9 million. Fair Value of Investment Properties As at 31 December 2024, Al-Salām REIT’s investment properties were valued at RM1.20 billion, a 3.0% decline from FY2023 valuation of RM1.24 billion. This represented a net fair value loss of RM1.9 million and reclassification of assets as held for sale of RM37.1 million. 1 ABOUT US 23 2 BUSINESS OVERVIEW 3 SUSTAINABILITY STATEMENT 4 CORPORATE GOVERNANCE 5 OTHER INFORMATION 6 FINANCIAL STATEMENTS
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