pg. 107 Sustainability Statement Integrated Annual Report 2025 ECONOMIC PERFORMANCE Al-Salām REIT recognises robust financial performance as a core aspect to ensure unitholders continue to receive returns while providing the REIT with the necessary capital to expand its properties and portfolios. By deploying robust cost controls and optimising resource allocation, the REIT ensures that its finances remain strong, securing its long-term financial stability and the desirability of its real estate portfolio. Direct Economic Impacts As part of the REIT’s commitment to improve the economic value generated for its stakeholders, Al-Salām REIT strives to continuously improve its economic performance. In addition to advancing its capital to expand its portfolio and properties, a robust economic performance allows the REIT to implement more sustainable initiatives that benefit its operations through measures such as investments in renewable energy, while creating community events and generating value that benefits its investors, among other notable benefits. Group Economic Performance (RM’000) FY2024 FY2025 Economic value generated (revenue) 78,453 88,825 Property Expenses 27,038 27,727 Fund Expenses (Manager fees, trustee fees, audit fees, and other related expenses) 44,834 45,416 Taxes paid to the government 248 215 Profit for the year (profit after tax) 5,284 13,621 The REIT’s approach to maximising economic performance is centred around the optimised and efficient budget allocation of its properties. This ensures that all of its capital is allocated to investments and properties with the highest possible returns. The REIT’s priorities also consider a balance between minimising risks and economic uncertainties, such as variability in market dynamics, while maximising portfolios with the highest potential for revenue generation. The REIT’s thorough examination and budget allocation allow it to create long-lasting economic value and financial stability for all its stakeholders and investors. Indirect Economic Impacts The REIT’s daily activities provide indirect economic benefits that benefit local communities, economies, and other external stakeholders. Among these benefits, the REIT’s commitment to prioritising local suppliers ensures that money is circulated in developing areas, stimulating regional economic growth and national economic wellbeing. The REIT’s prioritisation of local talent also provides job opportunities that contribute to reducing national unemployment. In addition to the advancement of the local economy, the REIT’s investments in commercial properties contribute to further job creation for other companies, which further propagates the local economy. Over time, commercial hubs become more developed, leading to further economic advancement of regions that support residential development and regional activity, creating a positive feedback loop that improves the livelihoods of local communities. SUSTAINABILITY STATEMENT
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