54 AL-SALAM REIT INDUSTRIAL PREMISES INDUSTRIAL PREMISES Al-Salām REIT has 6 industrial / warehouse properties with a cumulative market value of RM150.3 million. The 6 properties located across Malaysia form part of the crucial F&B operations supply chain of KFC and Pizza Hut. LEASE TERM No of Properties (Second Acquisition) Second Rental Period 1 19 March 2022 – 18 March 2025 No of Properties (First Acquisition) Third Rental Period 2 6 May 2021 – 5 May 2024 3 29 September 2021 – 28 September 2024 CHALLENGES AND PROSPECTS QSR has identified its upstream segment as a key enabler of the group’s future revenue expansion. Therefore, Al-Salām REIT’s incoming growth of QSR assets will be in line with the group’s forward focus on strengthening/optimising its upstream capabilities whilst aiming to be a regional exporter of halal products. The Manager will continue to engage with QSR to identify and undertake development/ sale and leaseback of potential assets within this segment. Al-Salām REIT also plans to diversify the fund’s current portfolio into industrial assets given the challenging landscape of the retail sector. However, challenging capital market environment and the economy at large are impeding the Fund’s ability to expand assets in FY2022. Nonetheless, Al-Salām REIT has commenced the process to explore industrial assets under Johor Corporation Group as well as 3rd party assets in the medium and long term. The Fund is exploring opportunities to undertake sale leaseback arrangements of assets located within Johor Corp’s four major industrial parks namely the Tanjung Langsat Industrial Park, Muar Furniture Park; Pengerang Industrial Park and the upcoming Sedenak Tech Park (“STeP”). MANAGEMENT DISCUSSION AND ANALYSIS I-N IDNUDSUTSRTI AR ILA L& PORTEHMEIRSSE SS E G M E N T
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