42 AL-SALAM REIT OVERVIEW OF AL-SALĀM REIT Al-Salām REIT is a diversified Malaysian REIT with a total portfolio asset value of RM1.22 billion. The asset portfolio comprises retail, office, F&B restaurant, industrial and a college. FINANCIAL REVIEW Table 1: Key Financial Highlights The Group FY2021 (RM`000) FY2022 (RM`000) Variance (%) Gross Revenue 71,543 71,800 0.4 Net Property Income 54,994 51,439 (6.5) Trust Expenses 39,396 32,624 (17.2) Profit for the Year (Realised) 14,644 15,733 7.4 Income Available for distribution (Realised) 14,644 15,733 7.4 EPU (Realised) (Sen) 2.52 2.71 7.4 DPU (Sen) 2.30 2.50 8.7 As opposed to an increment in revenue by 0.4%, Al-Salām REIT registered a lower net property income (“NPI”) of RM51.4 million (FY2021: RM55.0 million). The increment in revenue was mainly recorded from F&B restaurant segment due to revenue sharing from QSR properties. The reduction in NPI was mainly derived from the retail segment particularly KOMTAR JBCC due to the continuous impact of the COVID-19 pandemic but was mitigated by the performance of other segments. In addition, the Fund has provide lower rental assistance totalling RM0.14 million (FY2021: RM9.5 million) which was recognised in the trust expenses. However, this was offsetted by higher Islamic financing costs of RM2.3 million due to increase in OPR. As a result, Al-Salām REIT registered higher realised earnings per unit (“EPU”) of 2.71 sen for FY2022 (FY2021: 2.52 sen). SEGMENTAL PERFORMANCE The retail segment reported total revenue of RM34.1 million and NPI of RM18.5 million, a decrease of RM0.4 million and RM3.7 million compared to the preceding year, respectively. The decline in NPI was mainly attributable to lower rental income from KOMTAR JBCC and higher operating expenses of RM3.3 million. The office segment reported total revenue of RM8.7 million and NPI of RM4.8 million, an increase of RM0.4 million and a decrease of RM0.2 million as compared to FY2021 respectively. The decrease in NPI in was due to higher operating expenses of RM4.0 million (FY2021: 3.4 million). The F&B segment recorded a total revenue and NPI of RM17.8 million in FY2022, an increase of RM0.4 million as compared to FY2021. This was due to upward rental reversion for 22 QSR properties effective in May and September 2021. All F&B segment properties are on a triple net arrangement with 100% occupancy rate (2021: 100%). The industrial & others’ segment recorded a decrease of 2% in total revenue and NPI as compared to FY2021. The decrease was mainly due to lower revenue and higher operating expenses of KPJIC. MANADNAAGNEAMLEYNSTISDISCUSSION
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