S E C T I O N 6 F I N A N C I A L R E P O R T S 125 MANAGER’S REPORT The Manager of Al-Salām Real Estate Investment Trust (the “Fund’), Damansara REIT Managers Sdn Berhad (the "Manager") hereby present their report and the audited financial statements of the Group and of the Fund for the financial year ended 31 December 2021. The Fund and its investment objective The Fund is a Malaysia-based real estate and investment trust established pursuant to the execution of a Trust Deed dated 26 March 2015 between the Fund, the Manager and AmanahRaya Trustees Berhad (the “Trustee”). The said Trust Deed was registered with the Securities Commission Malaysia on 30 March 2015 which is the Fund’s establishment date. The Fund was listed on the Main Market of Bursa Malaysia Securities Berhad on 29 September 2015. On 6 June 2019, at the Extraordinary General meeting the unitholders of the Fund has approved the proposed amendments and consolidation of the Trust Deed into Restated Trust Deed was executed and lodged on 25 November 2019 with the Securities Commission Malaysia. The Fund will continue its operations until such time as determined by the Trustee and the Manager as provided under the provision of the Restated Trust Deed (the “Deed”). The Fund’s key objective is to provide unitholders with regular and stable income distributions, sustainable long term unit prices and distributable income and capital growth, while maintaining an appropriate capital structure. The principal activity of the subsidiary is as a special-purpose company for the purpose of raising Islamic financing for Al-Salām Real Estate Investment Trust. This 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 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 principal activity during the financial year. Manager's investment strategies and policies The Fund is authorised to invest in real estate, special-purpose-vehicles (“SPVs”), real estate- related assets, non-real estaterelated assets, cash, Shariah-compliant deposits, Islamic money market instruments and any other investments not specified above but specified as a permissible investment in the Guidelines on Real Estate Investment Trust (the “REIT Guidelines”) and the Guidelines for Islamic Real Estate Investment Trust (the “Islamic REIT Guidelines”) as issued by the Securities Commission Malaysia or as otherwise permitted by the Securities Commission Malaysia. To achieve the Fund's primary objective, the Manager will seek to achieve the following strategies: (a) Active asset management strategy The Manager will seek to optimise the rental rates, occupancy rates and Net Lettable Area (“NLA”) of the Fund’s properties in order to improve the returns from the Fund’s property portfolio. (b) Acquisition growth strategy The Manager will source for and acquire properties that fit within the Fund’s investment strategy to enhance returns to unitholders and to capitalise on opportunities for future income and net asset value growth.
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