Al-`Aqar Healthcare REIT Annual Report 2020

Objective, Policy and Strategies OBJECTIVE To provide unitholders with stable distribution per unit with the potential for sustainable long-term growth of such distributions and the net asset value per unit. POLICY To diversify its Shariah-compliant real estate portfolio by property and location, primarily be focused on investing in healthcare related real estates and to look for opportunities that provide attractive returns. ACQUISITION STRATEGY To increase cash flow and enhance unit value through selective acquisitions. OPERATING STRATEGY To continue enhancing the performance of the properties by increasing yields and returns from the properties. This being achieved through combination of: (i) meeting needs of the tenants; (ii) maintaining the quality and physical conditions of the properties; and (iii) minimising interruptions in rental income and operational costs. CAPITAL MANAGEMENT STRATEGY To optimise capital structure and cost of capital within the financing limits prescribed by the Guidelines on Listed Real Estate Investment Trusts 2019 (Listed REIT Guidelines) and intend to use a combination of debt and REIT units to fund future acquisitions and improvement works of the properties. AL-`AQAR HEALTHCARE REIT Annual Report 2020 04