Management Discussion and Analysis REVIEW OF OPERATIONS (CONT'D) F&B RESTAURANT SEGMENT Challenges and Prospects QSR's robust brand loyalty, operational excellence, and adaptive strategies underscore its capacity to navigate challenging business environments. Al-Salām REIT remains committed to supporting such synergistic partnerships, reinforcing its position as a forward-looking Shariah-compliant REIT dedicated to sustainable growth and value creation. INDUSTRIAL & OTHERS SEGMENT Al-Salām’s industrial portfolio comprises 6 strategically located properties across Malaysia, integral to our diversified investment strategy. Leased to QSR under the triple net arrangement, these properties provide stable and long-term rental income streams. Positioned in key industrial hubs, these properties meet the demands of logistics and warehousing needs of our F&B operations supply chain of KFC and Pizza Hut. Lease Terms No of Properties (Second Acquisition) Third Rental Period 1 19 March 2025 – 18 March 2028 No of Properties (First Acquisition) Fourth Rental Period 2 6 May 2024 – 5 May 2027 3 29 September 2024 – 28 September 2027 Challenges and Prospects Al-Salām REIT’s industrial portfolio, which predominantly comprises upstream manufacturing facilities leased to QSR under triple net lease arrangements, continues to provide a stable and predictable income stream. These assets remain intrinsically linked to the operational performance of QSR, whose extensive network of KFC and Pizza Hut outlets supports sustained demand for its integrated supply chain. Notably, despite the temporary market headwinds, QSR’s upstream manufacturing operations have demonstrated resilience, reinforcing the strength and reliability of this segment within Al-Salām REIT’s diversified portfolio. Industrial Premises 1 ABOUT US 35 2 BUSINESS OVERVIEW 3 SUSTAINABILITY STATEMENT 4 CORPORATE GOVERNANCE 5 OTHER INFORMATION 6 FINANCIAL STATEMENTS
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