INNOVATING FOR TOMORROW The Manager has developed a strategic 5-Year Plan (2024-2028) designed to leverage emerging opportunities and position itself at the forefront of ever-evolving healthcare trends. These trends encompass areas such as telemedicine, artificial intelligence-based diagnostics, wearable technology and precision medicine. With the implementation of the 5-Year Plan (2024-2028), the Manager anticipates the Group’s investment properties value to double to approximately RM3.0 billion by 2028 and the DPU to show a consistent increasing trend over the long term. APPRECIATION AND ACKNOWLEDGMENT I would like to thank Dato’ Wan Kamaruzaman bin Wan Ahmad who resigned as Independent Non-Executive Director, and Dato’ Salehuddin bin Hassan who resigned as Non-Independent Non-Executive Director, for their guidance and services during their tenure as the Board members. On behalf of the Board, Management and employees of the Manager, we wish them every success in their future endeavours. I also wish to extend my heartfelt appreciation to our unitholders, investors, clients, trustees, financiers, business partners, bankers, government and regulatory bodies for their unwavering support and trust in Al-`Aqar. Our appreciation is also expressed to our dedicated Management and loyal employees who consistently contribute their efforts and commitment, playing a vital role in shaping a resilient future for Al-`Aqar within the dynamic healthcare landscape. Looking forward, we will persist in fortifying our business and build a stronger portfolio, extending our reach within Malaysia and internationally. Thank you. DATO’ HAJI MOHD REDZA SHAH BIN ABDUL WAHID Chairman LETTER TO STAKEHOLDERS Over the next five years, the Group will meticulously assess potential asset acquisitions, ensuring alignment with the Group’s growth and diversification strategies. In addition, underperforming and underutilised assets will be strategically repositioned or divested to maximise returns, laying the foundation for a resilient portfolio capable of withstanding the test of time. The Manager is actively engaged in negotiations with KPJ Group, the promoter, and third-party asset owners/ operators, to acquire new healthcare properties. The Manager anticipates that Al-`Aqar will record transactions related to some of the growth initiatives below in 2024. To enhance competitiveness and strengthen relationship with tenants, the Manager is exploring new business model for Al-`Aqar’s current and future tenants. This may involve flexible and customised rental arrangements tailored to the needs of the tenants, including the creation of retail space at the healthcare properties to enhance tenants’ income. To expedite the fund transformation initiatives, the Manager has successfully executed digital and organisational transformation initiatives. Furthermore, the Manager continuously implements new measures, which include enhancing leadership development programmes, staying abreast of healthcare trends and international knowledge learning as well as increasing the frequency of engagements with all stakeholders to better understand the existing gaps. GROUP LEVEL – THE 5-YEAR PLAN (2024-2028) GROUP LEVEL – STRENGTHENING TENANT RELATIONSHIPS MANAGER LEVEL – PIONEERING INNOVATIONS AND IMPROVEMENTS DIVERSIFY CORE BUSINESS GROWTH IN NEW ECONOMIES Enlarge tenant base with different healthcare operators Diversify across value chain Grow complementary assets with KPJ Capitalise on aged care markets 1 2 3 4 14 BUSINESS OVERVIEW 1 3 4 5 6 AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2023
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