Management Discussion and Analysis REVIEW OF OPERATIONS (CONT'D) F&B RESTAURANT SEGMENT The F&B restaurant segment remains a cornerstone of Al-Salām REIT’s diversified portfolio, comprising 42 strategically located properties across Malaysia, all fully leased to QSR Brands Group of Companies, the operator of renowned fast-food chains KFC and Pizza Hut. These assets operate under a triple net lease arrangement, wherein QSR assumes responsibility for all property-related expenses, ensuring a stable and predictable income stream for the REIT. Description No. of Properties Market Value (RM mil) Restaurant located at shophouses/offices 23 84.7 Single-storey restaurant buildings with drive through outlets 16 207.8 Restaurants at mall 3 21.5 Total 42 314.0 Lease Terms No of Properties (Second Acquisition) Second Rental Period 5 17 September 2023 – 16 September 2026 No of Properties (Second Acquisition) Third Rental Period 16 19 March 2025 – 18 March 2028 No of Properties (First Acquisition) Fourth Rental Period 19 6 May 2024 – 5 May 2027 10 29 September 2024 – 28 September 2027 *KFC Bandar Sunway an KFC Kuchai Lama are in process for disposal. Challenges and Prospects During the review period, Al-Salām REIT's F&B segment encountered significant headwinds, primarily due to geopolitical tensions. Despite these challenges, QSR demonstrated resilience by maintaining its lease obligations, ensuring uninterrupted rental income for Al-Salām REIT. 34 AL-SALĀM REIT ANNUAL REPORT 2024
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