Al-`Aqar Healthcare REIT Annual Report 2020

AL-`AQAR HEALTHCARE REIT Annual Report 2020 36 Management Discussion and Analysis FINANCIAL REVIEW CONTRIBUTION BY SEGMENT The Group’s segmental reporting is based on its geographical location of customers and assets as follows: i. Malaysia ii. Australia Management monitors the operating results of its business units separately for the purpose of making decisions on resource allocation and performance assessment. The segmental performance is evaluated based on operating profit. REVENUE CONTRIBUTION FY2019 FY2020 RM’000 RM’000 Malaysia 94,588 103,918 Australia 11,522 11,792 NPI CONTRIBUTION FY2019 FY2020 RM’000 RM’000 Malaysia 88,942 97,974 Australia 11,383 11,640 Malaysian Segment The Malaysian segment, as the key contributor, contributed 89.8% (FY2019: 89.1%) in terms of revenue, an increase by 9.9% to RM103.9 million in FY2020 from RM94.6 million in FY2019. NPI contributed 89.4% (FY2019: 88.7%), increased 10.1% from RM88.9 million to RM98.0 million. Australian Segment The Australian segment contributed 10.2% (FY2019: 10.9%) in terms of revenue, an increase by 2.3% to RM11.7 million in FY2020 from RM11.5 million in FY2019. NPI contribution increased 10.6% (FY2019: 11.3%), an increase of 2.2% from RM11.4 million to RM11.6 million. PROFIT FOR THE YEAR Profit for the year was RM12.6 million (FY2019: RM76.2 million) comprising realised profit of RM57.0 million (FY2019: RM63.4 million) and unrealised loss of RM44.4 million (FY2019: unrealised gain of RM12.7 million). Realised profit decreased 10.1% or RM6.4 million in FY2020 mainly due to COVID-19 rental support given to assist tenants during the year. The unrealised loss of RM44.4 million mainly related to fair value adjustment on the Australian property. INCOME AVAILABLE FOR DISTRIBUTION Total income available for distribution for FY2020 of the Fund was RM52.7 million. The Fund had distributed interim income distributions of 3.36 sen per unit amounting to approximately RM24.7 million for the period from 1 January to 30 June 2020. On 26 January 2021, the Fund declared a final income distribution of 3.45 sen per unit totalling RM25.3 million for the period from 1 July 2020 to 31 December 2020. The said distribution was paid on 26 February 2021. Total distribution per unit (‘’DPU’’) for FY2020 is 6.81 sen per unit totalling RM50.1 million, which represents 95% of the income available for distribution. Key Financials FY2019 FY2020 Growth (RM’000) (RM’000) (%) The Group: -Gross revenue 106,110 115,710 9.0 -Net Property Income (NPI) 100,326 109,614 9.2 -Expenditure 39,623 51,379 29.7 -Profit for the year (realised) 63,409 56,984 (10.1) -EPU (realised) (sen) 8.62 7.74 (10.2) The Fund: -Income available for distribution 60,005 52,737 (12.1) -DPU (sen) 7.75 6.81 (12.1)