Al-`Aqar Healthcare REIT Annual Report 2020

AL-`AQAR HEALTHCARE REIT Annual Report 2020 98 Manager’s Report The Manager of Al-`Aqar Healthcare REIT (the “Fund”), Damansara REIT Managers Sdn Berhad (the “Manager”) have pleasure in presenting their report and the audited financial statements of the Group and of the Fund for the financial year ended 31 December 2020. THE FUND AND ITS INVESTMENT OBJECTIVE The Fund is a Malaysian-based real estate and investment trust, established on 28 June 2006 pursuant to the execution of a Trust Deed dated 27 June 2006 between the Manager and AmanahRaya Trustees Bhd (the “Trustee”). The Fund was listed on the Main Board of Bursa Malaysia Securities Berhad on 10 August 2006. On 17 April 2019, at the Annual General Meeting, the unitholders of The Fund approved the proposed amendments of the Restated Trust Deed dated 31 July 2013. The Second Restated Trust Deed was executed and lodged with the Securities Commission on 25 November 2019. The Fund will continue its operations until such time as determined by the Trustee and the Manager as provided under the provisions of the Second Restated Trust Deed. The key objective of the Fund is to provide unitholders with stable distributions per unit and the potential for sustainable long- term growth of such distributions and net asset value per unit. The objective is sought to be achieved by optimising the performance and enhancing the overall quality for a large and geographically diversified portfolio of Shariah-compliant real estate assets through various permissible investment and business strategies. THE MANAGER AND ITS PRINCIPAL ACTIVITY The Manager is a company incorporated in Malaysia and is a wholly-owned subsidiary of Damansara Assets Sdn Bhd, a company incorporated in Malaysia. The Directors of the Manager consider Johor Corporation as the ultimate holding corporation of the Manager, a body corporate established under the Johor Corporation Enactment No 4, 1968 (as amended by the Enactment No. 5, 1995). The principal activity of the Manager is that of managing real estate investment trusts. There has been no significant change in the nature of the activity during the financial year. MANAGER’S INVESTMENT STRATEGIES AND POLICIES To achieve the Fund’s primary objective, the Manager will seek to achieve the following strategies: (i) Portfolio composition The Fund’s investments may be allocated in the following manner, as prescribed by the Guidelines on Real Estate Investment Trust (“Guidelines on REITs”) and the Guidelines for Islamic Real Estate Investment Trust (“Guidelines on Islamic REITs”): (a) at least seventy-five percent (75%) of the total assets value must be invested in Real Estate that generates recurrent rental income at all times; (b) The Fund may invest in Real Estate where it does not have a majority ownership and control provided that the total value of these Real Estate does not exceed twenty-five percent (25%) of the total assets value at the point of acquisition, as the case may be; and (c) the aggregate investments in Property Development Activities (Property Development Costs) and Real Estate under construction must not exceed fifteen percent (15%) of the total assets value. For avoidance of doubt, such investments cannot be accounted towards meeting the requirement under Clause 6.3.1(a) of this Deed.