125 ANNUAL REPORT 2022 TERMS OF REFERENCE The BIC is responsible for fulfilling the duties ascribed to it in the BIC Term of Reference (“BIC TOR”), including those specifically delegated to it from time to time by the Board of Directors. The duties and responsibilities of the BIC are set out in its Terms of Reference as follows: Objectives (a) Making recommendations to the Board on all acquisitions, investments and disposals; b) Making recommendations to the Board on any financing offers, capital management proposals and additional banking facilities; c) Reporting and recommending to the Board any corporate exercise, including the issuance of new REIT units; and d) Making recommendations to the Board on financial budgets. Roles and Responsibilities Subject at all times to the provisions of the Trust Deed, and to any other regulations or resolutions that may be adopted, the BIC is responsible for: (a) Reviewing all proposals regarding investments, dispositions, financings (and other relevant transactions) (“strategic transactions”) (b) To make recommendations on any other matters to the Board of Directors; (c) To review and monitor approved strategic transactions or other matters; (d) Ensuring that the REIT is managed in accordance with: • its investment objectives; • its Restated Deed; • its Prospectus; • the SC Guidelines and other securities laws; and • the internal investment restrictions and policies. (e) Carrying out other duties as may be determined from time to time by the Board. MATTERS DISCUSSED BY THE BIC IN THE FYE 2022 The BIC has undertaken the role of reviewing, recommending and monitoring to the Board of Directors pertaining to all proposals including strategic transactions i.e., investments in ensuring that the Fund practises sound capital preservation and safety margin levels, maintains optimally measured risk-reward thresholds, adopts prudent but pragmatic management style and attain adequate earnings potential and competitive advantages as well as growth. The following are key matters discussed by the BIC during the FYE2022: Investment (Acquisition & Disposal) The BIC has reviewed proposals of proposed acquisitions of shariah-compliant real estate to ensure these properties have good track record and/or good prospects of future net rental income of reasonable levels which have been shown by studies to be competitive and located within good catchment areas. Properties to be acquired are expected to at least maintain or enhance the earnings of the REIT fund. The BIC has reviewed and monitor proposal of divested of properties, namely where the investments have achieved the set targets, or have been assessed as not being able to derive any further value and or when an opportunity to maximize its value arises before the predetermined investment time horizon or other reason that may warrant divestment. The divestment plan also has taken into consideration the transformation in the respective industry. Asset Management The BIC has deliberated on proposals for asset enhancement initiatives of current properties that has the potential to further increase its returns and expected to generate accretive returns upon further expansion. The BIC has also reviewed proposals for repositioning of current properties within the Fund’s portfolio which do not meet certain criteria set beforehand and may require to be recapitalised to achieve portfolio optimization goals. BOARD INVESTMENT COMMITTEE REPORT
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