141 BOARD INVESTMENT COMMITTEE REPORT CORPORATE GOVERNANCE MATTERS DISCUSSED BY THE BIC IN THE FY2023 The BIC has undertaken the role of reviewing, recommending and monitoring to the Board 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 FY2023: 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 maximise 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 optimisation goals. Capital Management The BIC has reviewed funding proposals to ensure each investment made by the Fund shall have a funding structure appropriate to the investment profile. In general, the capital structure of REIT should be financed by a combination of equity, debt and other financing instruments. Portfolio Monitoring The BIC also undertook periodic monitoring on all investments including reviewing performance of the investment portfolio to ensure consistency with Fund’s objectives and direction and transformation in the respective relevant industries. SUMMARY OF MEETINGS IN THE YEAR Items discussed 15 Feb 2023 18 May 2023 16 Aug 2023 19 Sep 2023 16 Nov 2023 (Special) Investment Asset Management Capital Management Portfolio Monitoring
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