pg. 39 Approach to Value Creation Integrated Annual Report 2025 FINANCIAL CAPITAL PERFORMANCE BENCHMARK Performance indicators FY2025 FY2024 Commentary Management Expense Ratio (MER) (%) 0.82 0.67 The Management Expense Ratio increased to 0.82% in FY2025, compared to 0.67% in FY2024, reflecting higher compliance, governance, and operational costs to support portfolio management. Total Return (%) 35.2 (19.2) Total return for FY2025 turned positive, reversing the -19.2% recorded in FY2024, reflecting higher market valuations and an increased unit price supported by stronger performance during the year. Average Total Return (3 years) (%) 15.6 (1.7) The 3-year Average Annual Total Return increased to 15.6% in FY2025, compared to -1.7% in FY2024, reflecting higher unit prices supported by stronger portfolio performance. Average Total Return (5 years) (%) 4.6 (8.1) The Average Annual Total Return over 5 years registered 4.6% in FY2025, compared to -8.1% in FY2024, reflecting higher unit prices and stronger portfolio performance Distribution Yield (%) 4.49 1.87 Distribution Yield increased to 4.49% (FY2024: 1.87%), reflecting higher distributable income supported by stronger market conditions. NAV per unit (after income distribution) (RM) 1.1171 1.1156 NAV per unit increased marginally to RM1.1171 in FY2025, compared to RM1.1156 in FY2024, supported by stable asset valuations and consistent income generation. Notes: i. The ratio of expenses incurred in operating Al-Salām REIT of RM5.3 million (FY2024: RM4.3 million) to the weighted average NAV of Al-Salām REIT of RM650.7 million (FY2024: RM648.9 million). ii. Total return represents the change in unit price during the year plus distribution yield for the year. iii.Average total return is the sum of the return rates of Al-Salām REIT over a given number of years divided by that number of years. iv.Based on DPU of 2.20 sen (FY2024: 0.70 sen) divided by its closing price as at 31 December 2025 of RM0.49 (FY2024: RM0.375). v. Net asset value per unit is determined by deducting the value of all Al-Salām REIT’s liabilities from the total asset value divided by total issued units. CAPITAL REVIEW Al-Salām’s primary objective centres on delivering risk-adjusted, long-term capital growth for its unitholders through strategic portfolio investments. Within a disciplined risk management framework, the Manager facilitates both operational and acquisition-driven expansion by implementing an efficient capital management strategy. The Manager considers a robust capital management approach as essential for enhancing total returns and mitigating risks, primarily by ensuring the financial agility needed to fund capital expenditures. To remain responsive to the prevailing economic climate and evolving investment landscape, the Manager maintains a rigorous review process of its capital strategies to align with Al-Salām’s specific growth requirements.
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