Management Discussion and Analysis FINANCIAL REVIEW (CONT'D) Gearing Analysis and Capital Management Looking ahead, the Manager remains committed to capital management objectives, focusing on sustaining an optimal capital structure that supports long-term growth and delivers consistent returns to unitholders. As at 31 December 2024, Al-Salām REIT’s Islamic financing portfolio comprises the following: FY2024 FY2023 Total Islamic Financings (RM Millon) 639.8 639.6 Average Cost of Financing (%) 5.97 5.54 Fixed/Floating Ratio 100% floating 100% floating Average Maturity Period (years) 2 2 Financing Service Cover ratio (times) 1.60 2.08 Gearing ratio (%) 48.6 48.6 FY2024 (RM) FY2023 (RM) Non current Term Financing-i 118,000,000 - Business Financing-i 70,000,000 70,000,000 Sukuk Ijarah 409,500,000 455,000,000 Less: Transaction Cost 3,221,966 (3,318,926) Subtotal 594,278,034 521,681,074 Current Term Financing-i - 118,000,000 Business Financing-i - - Sukuk Ijarah 45,500,000 - Less: Transaction Cost - (65,675) Subtotal 45,500,000 117,934,325 Total Islamic Financing 639,778,034 639,615,399 Term Financing-i In March 2024, the principal amount was scheduled for repayment, however, on 4 March 2024, the Bank issued a formal letter agreeing to extend the financing tenure by an additional two years, thereby revising the maturity date to March 2026. This extension reflects the Bank's confidence in the REIT’s financial stability and commitment to fulfilling its obligations. The revised terms are expected to enhance cash flow management and support the continued optimisation of the capital structure. 1 ABOUT US 25 2 BUSINESS OVERVIEW 3 SUSTAINABILITY STATEMENT 4 CORPORATE GOVERNANCE 5 OTHER INFORMATION 6 FINANCIAL STATEMENTS
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