75 SUSTAINABLE TRUST FUND SUSTAINABILITY STATEMENT ECONOMIC PERFORMANCE Economic performance directly influences the financial health and sustainability of businesses. Positive economic performance provides stable returns for investors and also enhances the REIT's capacity to pursue strategic initiatives, such as property acquisitions and expansions. Our Approach The REIT strategically approaches economic performance by diligently managing the annual budget for our buildings. Through prudent budget management, we align the allocation of resources with our financial objectives, allowing for effective cost control and optimal utilisation of funds. This approach enables us to navigate economic uncertainties and respond to market dynamics, ultimately contributing to the long-term financial stability of our real estate investment portfolio. Our Performance Source: Finance SUPPLY CHAIN MANAGEMENT Effective supply chain management is essential for sourcing quality materials, engaging reliable suppliers, and maintaining cost-efficient processes throughout the lifecycle of real estate assets. An optimised supply chain promptly meets tenants' needs, increases property value and contributes to the REIT's overall financial performance and sustained growth. Our Approach Considering the REIT's role as a fund manager and the diverse nature of leasing agreements, Al-Salām REIT has a limited involvement in the selection of contractors and service providers for our properties. Under triple-net lease agreements, supply chain decisions and property expenditures rest with the tenant. Conversely, for other properties, significant construction or asset replacement necessitates approval from the REIT's trustee, while management services fall under the jurisdiction of the REIT's property managers. The REIT acknowledges the impact of procurement decisions and supply chain management on our operations and, therefore, has vigilant oversight on all such determinations. Upon trustee approval for construction work, the REIT closely monitors the progress. Property managers are mandated to report on water and electricity consumption, with Al-Salām REIT utilising the gathered data to further implement targeted energy and water-saving initiatives that enhance operational efficiency. Furthermore, we manage our supply chain through a structured approval process, particularly concerning any total replacement of assets. For assets under Al-Salām REIT ownership, we obtain prior approval from the trustee before proceeding with any substantial replacement. The management services for properties under the purview of the Manager encompass a range of responsibilities, including maintenance, cleaning, security, and cover statutory property expenses such as quit rent and assessment, along with insurance. In the case of properties operating under triple-net lease arrangements, statutory property expenses and insurance remain integral aspects overseen by the REIT. Al-Salām REIT’s Economic Performance Total Amount (RM) Economic value generated (revenue) 76,282,819 Operating costs 25,374,399 Payments made to providers of capital (dividends) 6,959,952 Economic value retained (profits) 21,702,044
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