FINANCIAL REVIEW (CONT'D) Fair Value of Investment Properties (Cont'd) Fair Value @ 31 December 2024 (RM'000) Fair Value @ 31 December 2023 (RM'000) Retail KOMTAR JBCC 431,000 431,000 @Mart Kempas 78,000 78,000 Mydin Hypermart Gong Badak 149,863 151,954 Unit No G-104, Megamall Pinang 1,130 1,130 Office Menara KOMTAR 70,000 70,000 F&B Restaurant 42 KFC and/or Pizza Hut Outlets 314,030 313,730 Industrial & Others Industrial Premises 158,600 157,000 KPJIC 36,200 36,200 Total portfolio value 1,238,823 1,239,014 Less: Investment properties classified as held for sale 37,100 - Total Investment Property 1,201,723 1,239,014 Gearing Analysis and Capital Management Al-Salām’s capital management strategy in FY2024 focused on maintaining a prudent gearing level and securing favourable financing terms to ensure the Fund's ability to meet its Islamic financing obligations and liabilities. This approach aimed to enhance cash flow and liquidity while optimising distributable earnings. Key strategies implemented during the year included: As of the end of December 2024, the Fund's gearing ratio was at 48.6%. In view of this, the management is actively reviewing and considering various options to optimise capital structure of the Fund. Management Discussion and Analysis Diversifying debt funding sources, encompassing Islamic term financing and Sukuk, to mitigate reliance on a single funding avenue. Ensuring sufficient cash reserves to service all financing obligations, thereby maintaining financial stability. Conducting ongoing reviews of the debt portfolio to identify optimal refinancing strategies aimed at reducing funding costs. Actively managing the maturity profiles of various financing obligations, such as Sukuk, to minimise refinancing risk and optimise the cost of capital. 24 AL-SALĀM REIT ANNUAL REPORT 2024
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