pg. 15 Business Overview Integrated Annual Report 2025 LETTER TO STAKEHOLDERS 10.5% Total Return: 5.9% Average Distribution Yield: OVERVIEW OF M-REITS The M-REIT sector in 2025 experienced strong growth, supported by resilient fundamentals and a stable interest-rate environment. The 25bps OPR cut in July boosted market sentiment, while the retail and hospitality segments drove growth, aided by strong consumer activity and tourism recovery. The 8% Sales and Services Tax on rental and leasing had minimal impact, as landlords maintained occupancy and achieved favourable rental reversions. Following the expiry of the concessional 10% withholding tax Al-Salām REIT’s FY2025 Unit Price Performance vs Benchmark Indices Dec 2024 0% Mar 2025 Jun 2025 Sep 2025 Dec 2025 31% 8% 2% -1% -6% Al-Salām REIT Al-Salām REIT Bursa Malaysia REIT Index (BM REIT) FTSE Bursa Malaysia Top 100 Index (FBM T100) Bursa Malaysia Property Index (BM Property) FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) rate on REIT distributions effective from Year of Assessment 2026, the tax treatment of REIT distributions will revert to prevailing tax rates applicable to different investor categories. This development may have implications for investor demand and market sentiment, particularly among affected investor groups. 35.2% Total Return: 4.5% Distribution Yield: AL-SALĀM REIT EXCEEDS M-REITS Al-Salām REIT exceeded M-REITs by 31%, surpassing the Bursa Malaysia REIT and Property Index and the FBM KLCI. Its total return reached 35%, reflecting the REIT’s ability to generate substantial returns for investors. Despite global economic uncertainties, Al-Salām REIT capitalised on its defensive nature, offering stability amid volatility. Al-Salām REIT Distribution Yield, Expense Ratio and Total Return FY2021 FY2022 FY2023 FY2024 FY2025 Distribution yield (%) Management expense ratio (%) Total return (%) 4.74% 0.63% -7.08% 6.76% 0.69% -16.95% 30.90% 2.53% 0.72% 1.87% 0.67% -19.19% 35.16% 4.49% 0.82% 0%
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