SECTION 03 pg. 18 AL-SALĀM REIT OPERATIONAL OVERVIEW FY2025 marked the start of a renewed strategy and a phase of recovery for Al-Salām REIT, as demonstrated by strong financial performance, with revenue of RM88.8 million, an improvement of 13.2% from FY2024. The delivery of Al-Salām REIT’s strong financial performance was anchored in three strategic areas, covering operations, capital management, and overall portfolio management: In FY2025, the REIT placed greater focus on its flagship assets, KOMTAR JBCC and Menara KOMTAR, which are strategically located within walking distance of the Customs, Immigration and Quarantine (“CIQ”) complex. Al-Salām REIT’s flagship assets benefit from this daily heavy traffic and footfall, driving vibrancy at the retail mall and increasing the appeal of Menara KOMTAR with excellent connectivity within the vicinity of the CIQ. In other segments, the REIT’s F&B and industrial portfolio provided income stability and earnings visibility through a master lease arrangement with QSR Brands, maintaining 100% occupancy in 2025. Al-Salām REIT takes an active portfolio management approach in reviewing the portfolio mix in preparation for the next phase of growth. The REIT regularly reviews its portfolio to ensure the relevance of its asset class and returns in the current market conditions. As part of the REIT’s realignment exercise, mature assets such as the Kuchai Lama KFC drivethru were disposed of in June 2025 for RM14.7 million, alongside the ongoing disposal of the Sunway KFC shop lot, expected to be finalised in the first half of 2026. In view of this, Al-Salām REIT will continue to strengthen its position as a retail REIT and gradually reduce exposure to non-core sectors, including the disposal of assets that have reached maturity within their investment horizons. Concurrently, the REIT will continue to actively explore acquisition opportunities for yield-accretive, core assets that align with Al-Salām REIT’s identity and commitment to the continuous improvement of its portfolio quality. BUSINESS REVIEW Improve Portfolio Identity Active Capital Management Achieve Share Price at Par with NAV Despite macroeconomic headwinds, Al-Salām REIT’s portfolio demonstrated resilience across the office, F&B, and industrial sectors, while achieving exemplary financial performance driven by the retail sector, underpinned by the successful first-phase rejuvenation of KOMTAR JBCC. More information on the REIT’s financial performance and portfolio capital management can be found in the Financial Capital and Portfolio Capital sections, respectively.
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