49 ANNUAL REPORT 2022 MAJOR ASSET ENHANCEMENT INITIATIVE As reported last year, the Fund has installed solar panels in Pasaraya Komuniti @Mart Kempas as part of Al-Salām REIT’s Energy Saving Programme. The project, which was completed in mid-2022, is expected to yield savings on the electricity tariff of up to 20%. CHALLENGES AND PROSPECTS Al-Salām REIT is currently considering an expansion plan for @mart Kempas due to the building’s near full occupancy resulting from its favorable business performance and strategic location. The expansion is aimed at meeting the changing demands of consumers, particularly by improving the building’s tenant mix through the addition of F&B and fashion offerings. By adding an additional 84,000 sq. ft. of the NLA, the proposed expansion of the building is expected to increase its yield from 5.6% to over 6%. Existing use Community Hypermarket GFA (sq. ft.) 164,625 NLA (sq. ft.) 98,247 Number of Car Park Bays 478 Market Value RM76 million Occupancy Rate 97% Top 10 Tenants Tenant % Total Income Unified Vision Sdn Bhd (Midas) 10 Linkme LM Trading Sdn Bhd 2 Pasaraya KU Trading (Melaka) Sdn Bhd 2 Lionmas Furnishers (M) Sdn Bhd 2 Kasut U Sdn Bhd 2 J&E Telecommunication Sdn Bhd 2 Green Point Departmental Store Sdn Bhd 2 Cosmo Restaurants Sdn Bhd 2 Ashri Soya Enterprise 2 Mr. D.I.Y. (Johor) Sdn Bhd 1 0 20 40 60 80 100 Average Occupancy Rate (%) 2018 2020 2021 2022 2019 99% 99% 96% 97% 97% MANAGEMENT DISCUSSION AND ANALYSIS RETAIL SEGMENT - @MART KEMPAS 64% 12% 21% 2023 2024 2025 Lease Expiry Pro le Based on Occupied Net Lettable Area (%)
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