17 LETTER TO STAKEHOLDERS BUSINESS OVERVIEW Of utmost importance is the strategic repositioning of KOMTAR JBCC, a collaborative effort involving the Manager, the property manager as well as 3rd party retail advisors. Together, we have replanned the tenant mix and layout configuration, with primary focus on beauty, premium and mainstream fashion, as well as F&B outlets. The mall will also feature al fresco spaces, adding a vibrant and open-air dimension to its offerings. Currently, the mall is undergoing an asset enhancement exercise, with the targeted completion of initial phase set by Q3 2024. The Manager expects a marked improvement to the mall’s yield performance by the end of 2025 and greater success by 2027. Additionally, the Johor Bahru-Singapore Rapid Transit System (“RTS”) scheduled for completion by 2026 also bodes well for Johor, especially KOMTAR JBCC. With a capacity of 10,000 passengers per hour, the Johor Bahru-Singapore RTS is wellequipped to handle the anticipated increase in incoming travelers to the region and the subsequent rise in retail spending. Al-Salām REIT will also undertake the development of the Pedestrian Overhead Bridge ("POB") to connect KOMTAR JBCC to the above-mentioned RTS development via the RTS Link Bukit Chagar Station. Expected to be opened in 2027, measuring 42 metres in length and 4 to 8 metres in width, the air-conditioned POB of KOMTAR JBCC will offer commuters a seamless, safe and convenient link between the station, the mall and the surrounding Ibrahim International Business District ("IIBD"). We are eagerly anticipating several forthcoming catalytic initiatives poised to attract valuable foreign direct investment and foster local economic growth. Among these, the development of the RM25 billion IIBD, Johor-Singapore Special Economic Zone ("SEZ") and Johor-Singapore Special Financial Zone ("SFZ") hold considerable promise. In addition, the potential revival of the Kuala LumpurSingapore high-speed rail ("KL-SG HSR") project provides added confidence in the prospects of Johor’s real estate industry, resulting in a beneficial spillover effect on the office market, particularly on Menara KOMTAR. Moreover, the Manager is exploring avenues for asset diversification and geographical expansion, placing a greater focus on the industrial market segment. Currently, the Manager is assessing opportunities to undertake sale leaseback arrangements involving industrial assets including modern warehouses, factories situated at the major industrial areas across Peninsular Malaysia as well as long term forays into the data centre market segment. Assets under JCorp at major industrial parks in Johor, such as Tanjung Langsat Industrial Park, Muar Furniture Park, Pengerang Industrial Park and the upcoming Sedenak Tech Park (“STeP”), are being considered as part of the long-term asset pipeline for the Fund. With a steadfast commitment to unitholders’ interests, the Manager will thoroughly evaluate any asset acquisitions to ensure alignment with the Fund’s objective of sustainable long-term growth in EPU and DPU. APPRECIATION AND ACKNOWLEDGEMENTS I extend my heartfelt thanks to our dedicated team for their unwavering support and commitment. It is through our collective efforts that we have successfully navigated the complexities of 2023 and are poised for growth in the coming year. I would like to thank Dato’ Wan Kamaruzaman bin Wan Ahmad who resigned as Independent Non-Executive Director, and Dato’ Salehuddin bin Hassan who resigned as Non-Independent NonExecutive Director, for their guidance and services during their tenure as the Board members. On behalf of the Board, Management and employees of the Manager, we wish them every success in their future endeavours. On behalf of the Board, I would also like to thank our unitholders, trustees, Shariah Committee, business partners, bankers, government authorities and other stakeholders for their continued support and confidence in the Fund. We are excited about the opportunities that 2024 holds and are confident in our ability to continue to deliver stronger performance in the years ahead. Thank you. DATO’ HAJI MOHD REDZA SHAH BIN ABDUL WAHID Chairman Signing Ceremony of MoU between Al-Salām REIT and MRTS.
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