47 ANNUAL REPORT 2022 MANAGEMENT DISCUSSION AND ANALYSIS RETAIL SEGMENT - KOMTAR JBCC Top 10 Tenants Tenant % Total Income RHB 14 Kiehl’s 6 Amazing Wellness 5 Caring Pharmacy 5 Kapitan Grocer 3 Common Sense 3 Thai Express 3 Kinsahi 3 Swensen’s 3 Guardian 3 CHALLENGES AND PROSPECTS During the course of the year, Al-Salām REIT had made some upgrades to KOMTAR JBCC with the aim to improve JBCC physical look including its façade, directional signage, lifestyle F&B Alfresco, digitalisation and cashless parking. In relation to that, Al-Salām REIT had renovated KOMTAR JBCC to continually refresh our offerings to remain competitive. KOMTAR JBCC’S strategic location to tap into Singaporean market remains as key competitive edge. The reopening of the Singapore – Johor Causeway has improved the mall’s performance. In order to cater to the changing demand of shopping mall patrons for experiential shopping, the Fund will reposition the shopping mall’s offerings with a mix of experiential retail and activity-based retail mix. The Johor Bahru-Singapore Rapid Transit System (“RTS”), scheduled for completion by 2026, also bodes well for the Johor Bahru city center. With a capacity of 10,000 passengers per hour, the 4-km-long railway shuttle link connects Woodlands North Station in Singapore to Bukit Chagar station in Johor Bahru. The proximity of Bukit Chagar station, located just 200 meters from KOMTAR JBCC and the forthcoming reconfiguration of the mall in response to the railway link, is anticipated to generate the desired knock-on effect, leading to an upsurge in both the number of incoming travelers to the region and retail expenditure. Al-Salām REIT is looking to capitalise on the e-commerce boom by partnering with e-commerce platform providers to provide omnichannel access to current/future tenants of the mall moving forward. We see this as an opportunity to strengthen physical store sales. The upcoming development of RM25 billion Ibrahim International Business District (“IIBD”) serves as a catalytic infrastructure development plan that will attract more retail footfall and should augur well for retailers based in the area. Other spill over effects includes appreciation of real estate within and adjacent to the IIBD. Existing use 4 level shopping mall GFA (sq. ft.) 623,374 NLA (sq. ft.) 402,027 Number of Car Park Bays Owned by ART 1,049 car parking bays and 480 motorcycle parking bays Market Value RM431 million Total Parking Bay 1,702 parking bay Occupancy Rate 62% 44% 27% 29% Lease Expiry Pro le Based on Occupied Net Lettable Area (%) 2023 2024 >2025 0 20 40 60 80 100 Average Occupancy Rate (%) 2018 2020 2021 2022 2019 95% 60% 57% 47% 62%
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