Al-`Aqar Healthcare REIT Annual Report 2019

06 FINANCIAL STATEMENT 152 19. MANAGEMENT EXPENSE RATIO (“MER”) The Fund 2019 2018 % % MER 0.25 0.24 The calculation of MER is based on the total fees of the Fund incurred for the year, including the Manager’s fees, Trustee’s fees, audit fee, tax agent’s fee and administration expenses, to the average net asset value of the Fund during the year calculated on a monthly basis. Since the average net asset value is calculated on a monthly basis, comparison of the MER of the Fund with other Real Estate Investment Trusts (“REITs”) which use a different basis of calculation may not be an accurate comparison. 20. SIGNIFICANT RELATED PARTY TRANSACTIONS For the purposes of these financial statements, parties are considered to be related to the Group and the Fund if the Group and the Fund have the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group and the Fund and the party are subject to common control or common significant influence. Related parties may be individuals or other entities. The Group and the Fund derive all their rental income as disclosed in Note 5 from related parties. Significant related party (credits)/charges other than those disclosed in Note 5 are as follows: The Group The Fund 2019 2018 2019 2018 RM RM RM RM Directors’ fees 5,000 - - - Manager’s fee 1,719,328 1,674,718 1,719,328 1,674,718 Maintenance fee 998,385 162,600 998,385 162,600 Registrar fee 138,923 65,382 138,923 65,382 Secretarial fee 2,640 7,100 - - Other income (532,000) (487,667) (532,000) (487,667) Purchase of investment property 78,000,000 - 78,000,000 - Other income relates to the compensation received from Selangor Medical Centre Sdn Bhd for loss of opportunity and annual loss of potential income due to the deferment for the transfer of a Physician Consultant Building to the Fund. The related party transactions described above were entered into in the normal course of business and are based on negotiated and mutually agreed terms. Amounts due from a subsidiary represents unsecured advances given to a subsidiary from the proceeds raised from Islamic Financing and issuance of new units in previous years for the purpose of purchase of an investment property in Australia and profit sharing on the advances receivable from the subsidiary. Notes To The Financial Statements For The Financial Year Ended 31 December 2019 (Continued)