pg. 213 Corporate Governance Report Integrated Annual Report 2025 INTERNAL CONTROL SYSTEM, REVIEW AND ASSURANCE MECHANISMS Al-Salām REIT’s control environment is built on strong governance practices, clear accountability and a culture of integrity that supports the management of real estate assets. The Board and the BARC set the tone at the top and oversee the effectiveness of internal controls across financial, operational, compliance and asset management activities. Documented policies, procedures and SOPs guide consistent execution of key processes, while the Code of Conduct, ABAC framework and whistleblowing arrangements reinforce ethical behaviour. Management ensures operational competency through ongoing training, particularly in areas relevant to facilities, tenancy management and regulatory compliance. Collectively, these measures underpin a robust control environment that supports sound stewardship of the REIT’s assets. Policies, Procedures and Standard Operating Controls The Manager maintains a structured governance framework supported by clear authority limits, approval hierarchies, and segregation of duties across key functions such as leasing, property management, procurement, finance, ICT, and outsourced service oversight. These controls ensure transparent decision-making, prevent management override, and promote compliance with regulatory requirements. For example, leasing, procurement, and financial processes operate under distinct roles for initiation, review, and approval, supported by vendor due diligence and multi-tier approval thresholds. This governance structure is reinforced by a suite of core policies—including the Limit of Authority, Internal Control, Compliance Management, AMLA, PDP, ABAC, No-Gift, Whistleblowing, Outsourcing, Procurement, Fit & Proper, BCM, and Investment Policies—which collectively promote integrity, accountability, regulatory compliance, and organisational resilience. Together, these policies underpin strong governance, effective risk management, and disciplined internal controls, ensuring that decisions across the REIT are made transparently and in the best interest of unitholders. During the year 2025, the Manager has revised and introduced the following policies and frameworks: No Policy/Document Description of Policy G R I C 1 Outsourcing Policy - New policy. Reviewed and approved by the Board on 4 December 2025 Governs outsourcing arrangements, including due diligence, monitoring, and vendor controls. - √ √ √ 2 Procurement Policy (with ESG Assessment) - Enhancement made during the year. Reviewed and approved by the Board on 4 December 2025 Governs procurement conduct, vendor evaluation, ESG screening, and conflict checks. - √ √ √ 3 Green Procurement Framework (Group) - New policy. Reviewed and approved by the Board on 25 August 2025. Encourages environmentally responsible purchasing and sustainable vendor selection. √ √ - √ 4 Sustainability Policy & Framework - Enhancement made during the year. Reviewed and approved by the Board on 26 November 2025. Sets sustainability principles, governance, and reporting expectations across the REIT. √ √ - √ 5 JLG Sustainability Finance Framework - New policy. Reviewed and approved by the Board on 15 July 2025 Outlines which projects qualify, how the REIT will be managed, and how progress will be reported to ensure transparency and accountability. √ √ - √ STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL
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