SECTION 07 pg. 208 AL-SALĀM REIT Mitigation Actions Undertaken and Planned The Manager continues to implement mitigation measures aligned with the REIT’s risk appetite, execution capacity, and longterm strategic objectives. Strategic Mitigation • Continued management-level oversight of acquisition, divestment, and yield enhancement initiatives • Strengthened internal challenge on execution assumptions and delivery timelines • Ongoing development of a structured portfolio optimisation and rebalancing roadmap Financial Mitigation • Proactive monitoring of refinancing timelines and capital market readiness • Maintenance of liquidity buffers and covenant headroom • Sustained engagement with lenders, advisers, and capital market participants • Clear investor communication to manage expectations and sentiment Operational & ESG Mitigation • Improved project governance for sustainability-related initiatives • Progressive embedding of ESG considerations into asset management and leasing • Monitoring of execution risks to prevent slippage in ESG and operational programmes Valuation & Asset Resilience Mitigation • Regular asset health diagnostics to inform prioritised AEI and capex planning • Alignment of asset enhancement initiatives with yield, resilience, and ESG outcomes • Integration of ESG and resilience considerations into transaction assessments Market & Sentiment Mitigation • Ongoing benchmarking against peer REITs and market indicators • Consistent IR messaging on DPU outlook, execution progress, and sustainability initiatives • Enhanced transparency to support investor confidence and trust SPECIAL ASSESSMENT MADE DURING THE YEAR Consistent with COSO, the Manager evaluates fraud exposure across selected business functions, including property management, leasing, procurement, asset enhancement, finance, and governance processes. Corruption Risk Assessment on Key Business Processes As part of the Group’s ongoing compliance and integrity enhancement efforts, a targeted Corruption Risk Assessment (CRA) was conducted on several high-risk business processes within the Manager. This assessment was led by the JLG Group Risk & Governance team and is aligned with the MACC Act Section 17A, Adequate Procedures (T.R.U.S.T.), and the Group’s AntiBribery & Corruption (ABAC) Policy. The CRA focused on identifying potential corruption, bribery, fraud, and abuse of authority risks embedded within core operational and financial processes. The assessment also evaluated whether existing controls were adequate, effective, and consistently implemented across functions. STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL
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