Management Discussion and Analysis REVIEW OF OPERATIONS (CONT'D) INDUSTRIAL & OTHERS SEGMENT (CONT'D) The KPJ International College of Nursing and Health Sciences in Johor Bahru, a key asset within our portfolio, serves as a pivotal institution in Malaysia's private healthcare education landscape. The college offers various tertiary level and post-graduate studies in Nursing and Health Science and Management, as well as short courses for healthcare assistants, addressing the growing demand for skilled healthcare professionals in the region. The college also conducts Continuous Professional Development (CPD) training programmes for KPJ Group of Hospitals and general public. Strategically located in Bandar Dato Onn, the campus accommodates up to 400 students and is equipped with stateof-the-art facilities, including nursing practical labs, IT labs, lecture rooms, and a resource centre, providing a conducive environment for comprehensive healthcare education. Rental Term KPJIC JB current rental term will expires on 31 October 2025 and is expected to be renewed accordingly. Challenges and Prospects The education portfolio, anchored by KPJ International College Johor Bahru (“KPJIC JB”), continues to deliver stable and resilient income for Al-Salām REIT. As of 31 December 2024, the property remained fully occupied under a long-term master lease agreement with KPJ Healthcare University College Sdn Bhd, ensuring a predictable rental income stream. Strategically located in Bandar Dato' Onn, a rapidly developing township in Johor Bahru, KPJIC JB benefits from strong demographic growth and enhanced accessibility, reinforcing its position as a premier institution for healthcare education. KPJIC JB’s integration with KPJ Healthcare Berhad’s extensive hospital network provides students with direct access to clinical training and practical experience, resulting in high employability rates and sustained enrolment demand. Looking ahead, the sector's growing focus on healthcare and technical training, coupled with KPJ’s ongoing commitment to academic excellence, is expected to further strengthen the college’s market relevance. In alignment with Al-Salām REIT’s strategic investment outlook, which prioritises resilience, thematic portfolio diversification, and long-term yield accretion, KPJIC JB is well-positioned to continue contributing positively to the REIT’s overall performance, ensuring sustainable value creation for unitholders. KPJ International College of Nursing and Health Sciences Johor Bahru (KPJIC JB) 36 AL-SALĀM REIT ANNUAL REPORT 2024
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