SUSTAINABLE TRUST FUND ECONOMIC PERFORMANCE SUPPLY CHAIN MANAGEMENT OUR APPROACH OUR APPROACH OUR PERFORMANCE As a healthcare REIT, our efforts to provide long-term value for our unitholders and tenants hinge on the robust growth and financial performance of our organisation. Upholding the value of our healthcare real estate assets enhances the Fund’s appeal to potential investors and guarantees tenant satisfaction. Furthermore, our financial performance has a significant influence on our capacity to broaden our portfolio, allowing us to pursue expansion opportunities and further contribute to the success of our stakeholders. Ensuring the seamless flow of materials, services and resources essential for property maintenance and management is vital for optimising operational efficiency within the Fund. Additionally, we strategically prioritise suppliers with environmentally friendly practices, thereby aligning with our overarching ESG objectives. Our property selection process during the acquisition stage is guided by a set of processes and criteria. This involves prioritising tenants at the forefront of innovation and strategically focus on assets with a forward-looking and high-tech profile. We also incorporate assets that align with ESG principles into our portfolio. Indirect economic impacts emanate from the financial transactions and cash flows between an organisation and its stakeholders. These extend to investments in infrastructure and the services facilitated by these investments. As a healthcare-focused real estate player, we positively contribute to the communities we serve. The majority of KPJ hospitals operate under a consolidated net lease agreement. Under this arrangement, tenants bear the responsibility for all supply chain decisions and property expenditures, engaging directly with contractors or service providers. To ensure adherence to internal and regulatory policies, it is mandatory to have a representative from the Manager present during the interview process with potential vendors. In the fiscal year 2023, the Fund diligently maintained the positive trajectory achieved in the previous year’s financial performance. Notably, the Fund remained self-sufficient, continuing its commendable record of not relying on any financial assistance from the government. (Source: Finance) Developing Expertise Advancing skills and expertise in healthcare services within professional networks and operational areas. Stimulating the Economy Spurring economic development in the surrounding areas. Generating Employment Opportunities Increasing healthcare, technical, maintenance and pharmaceutical jobs in the supply or distribution chain. Economic value generated (revenue) RM 104,587,721 RM 115,250,328 Retained economic value (Profits) RM 54,626,818 RM 71,543,213 FY2023 FY2022 62 SUSTAINABILLITY STATEMENTS 1 2 4 5 6 AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2023
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