Management Discussion and Analysis REVIEW OF OPERATIONS (CONT'D) RETAIL SECTOR (CONT'D) Situated in Kuala Terengganu, Mydin Hypermart Gong Badak is known for its commitment to providing affordable and quality products. The 2-storey hypermarket offers a wide array of items, from groceries and household necessities to clothing and electronics, catering to the diverse needs of the local community. Its expansive layout comprising conventional retail lots include F&B lots, promotion lots, kiosks, pushcarts, ancillary lots, bazaar lots and food court. It is designed as a modern shopping mall with a leisurely ambiance, established as a key hub in the region. Challenges and Prospects in the Retail Industry Aligned with Al-Salām REIT’s investment strategy to strengthen its diversified retail focus and enhance the value of existing assets, Mydin Hypermart Gong Badak, operating under a triple net lease arrangement, remains a stable contributor to the REIT’s core income. Positioned as a resilient community hypermarket, Mydin Gong Badak leverages competitive pricing strategies and strong community engagement initiatives to serve the needs of its captive market. The strength of the well established Mydin brand further reinforces the asset’s long-term appeal, and the Manager is confident that this synergistic approach will continue to drive sustainable footfall and income resilience, supporting the overall value optimisation of Al-Salām REIT’s retail portfolio. Existing use Community Hypermarket GFA (sq. ft.) 589,232 (including covered car park) 360,628 (excluding covered car park) NLA (sq. ft.) 253,784 Number of Car Park Bays 634 – covered bays 171 – surface bays Market Value RM173 million Occupancy Rate 100% *The fair value is at RM150 million, derived from the market value of RM173 million less unbilled rental income Mydin Hypermart Gong Badak 1 ABOUT US 31 2 BUSINESS OVERVIEW 3 SUSTAINABILITY STATEMENT 4 CORPORATE GOVERNANCE 5 OTHER INFORMATION 6 FINANCIAL STATEMENTS
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