S E C T I O N 3 S T R A T E G I C P E R F O R M A N C E 49 MANAGEMENT DISCUSSION AND ANALYSIS F&B RESTAURANT SEGMENT- KFC & PIZZA HUT OUTLETS KFC & Pizza Hut Restaurants OVERVIEW OF PROPERTY The Food & Beverage Restaurant segment comprises 43 restaurant properties located across Malaysia. The properties form part of the crucial downstream segment which houses fast food services operations for the renowned KFC and Pizza Hut household brands under QSR. Al-Salām REIT leases all properties to the QSR Group of Companies. Description No of Properties Market Value (RM) Restaurant located at shophouses /offices 23 RM75.0 million Single-storey restaurants building with drive through outlets 16 RM191.0 million Restaurants at mall 4 RM20.5 million Total 43 RM286.5 million LEASE TERM Pursuant to the master lease agreements, the properties are leased based on a Triple Net Lease for a term of 3 years, renewable every 3 years (Rental Period) up to a maximum of 15 years (Lease Term). Upon expiry, the Lease Term can be extended for a further period of 15 years (Extended Lease Term). No of Properties (Second Acquisition) No of Properties (Second Acquisition) First Rental Period 16 19 March 2019 – 18 March 2022 5 17 September 2020 – 16 September 2023 No of Properties (First Acquisition) Third Rental Period 11 6 May 2021 – 5 May 2024 10 29 September 2021 – 28 September 2024 Note : 1 property at Megamall Pinang Shopping Complex is currently untenanted since 29 September 2020 and the Manager has appointed a property agent to market the property to a prospect tenant.
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