98 AL-SALAM REIT To enhance REIT’s compliance with anti-bribery and anti-corruption laws and to ensure regulatory compliance, the Manager has undertaken the following additional initiatives: conducting a refresher briefing and trainings to employees, as well as committing to due diligence on and through an integrity pledge by service providers or business partners. In addition, the previously established due diligence procedure for new tenants has been maintained, and risk assessments are being conducted on about 100% of internal activities over the reporting period. Recruitment, Business Associates & Outsourced Service Providers, Suppliers, Business Development & Investor Relations, and Operations have undergone this risk assessment. All information is recorded in an Integrity Risk register and provided to the BARC and Board Investment Committee (“BIC”). In all operations evaluated, no substantial risks have been identified. Neither corruption nor non-compliance occurred in FY2022. SUSTAINABLE TRUST FUND GRI 201-4 | 203-1 Financial Performance The REIT’s primary objective is to provide long-term, sustainable returns for its investors, while also contributing to the nation’s development and generating economic value by creating direct and indirect employment opportunities. As the nation approaches the endemic phase of COVID-19, businesses have begun to recover. Compared to the previous year, the REIT’s financial performance has improved significantly. As such, the government has not provided any financial support. As a result of this enhancement, the REIT generated RM 71,359,220 in revenue, compared to RM 54,133,438 the previous year, and maintained a profit of RM 16,201,218. The REIT plans to distribute at least 90% of its revenue to the unitholders. In addition, the REIT became the silver sponsor for the 3rd Annual Malaysian REIT Forum in FY2022. The Manager has also attended the M-REITs and The Road Ahead event. This event provided the REIT with an opportunity to interact with analysts, investment bankers, and potential investors as part of Al-Salām REITs’ investor relations efforts. Indirect Economic Impact Indirect economic impacts are the results of the direct impact of financial transactions and cash flows that occur between an organisation and its stakeholders. This encompasses the investments made for an organisation’s infrastructure and the services supported by these investments. With a multitude of property types within the REIT’s portfolio, including office spaces, shopping malls, and a supermarket, the REIT has observed a plethora of positive indirect economic impacts that originate from its operations. These include an increase in number and the creation of new service/maintenance-related jobs in the supply chain, which arose from the continued regional economic development with a focus on restaurants, small to medium enterprises, and residential areas. Furthermore, this healthy indirect economic growth has resulted in an increase in spending from local industries. PROCUREMENT AND SUPPLY CHAIN MANAGEMENT GRI 204-1 Per the business nature of the REIT as a fund manager and depending on the nature of the leasing agreement, Al-Salām REIT plays a minor role in the procurement of contractors and service providers for its properties. In the case of triple-net lease agreements, the tenant handles all supply chain decisions and property expenditures. Conversely, in the case of other properties, all construction work or total replacement of assets will require the approval of the REIT’s trustee, with all management services falling under the purview of the REIT’s property managers. The REIT is keenly aware that all procurement decisions and supply chain management will ultimately affect operations, and as a result, it closely monitors any decision made. After receiving approval to conduct construction work from its trustee, the REIT monitors its progress. In addition to this, it requires its property managers to report on water and electricity consumption within the properties in order to identify areas where optimisation is possible. The REIT will implement appropriate energy and water-saving initiatives based on the data collected. SUSTAINABILITY STATEMENT
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