Contents. Kandungan ANNUAL REPORT. laporan tahunan

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2 ANNUAL REPORT Contents Corporate Information Financial Highlights Unitholders Statistics Statement of Interests of Directors Awards and Recognition Board of Directors Profile of the Board of Directors Profile of Syariah Committee Corporate Statement Statement of Corporate Governance Manager s Report Salient Features Property Portfolio The Structure of Al- Aqar KPJ REIT In the News Highlights of 2009 Financial Statements Kandungan laporan tahunan Maklumat Korporat Maklumat Utama Kewangan Statistik Pemegang Unit Penyata Kepentingan Pengarah Anugerah dan Pengiktirafan Lembaga Pengarah Profil Lembaga Pengarah Profil Jawatankuasa Syariah Perutusan Korporat Penyata Tadbir Urus Korporat Laporan Pengurus Ciri-ciri Utama Portfolio Hartanah Struktur Al- Aqar KPJ REIT Liputan Berita Sorotan Tahun 2009 Penyata Kewangan

3 Corporate Information Maklumat Korporat MANAGER PENGURUS Damansara REIT Managers Sdn Berhad ( V) Registered Office Pejabat Berdaftar Level 2 PERSADA Johor International Convention Centre Jalan Abdullah Ibrahim Johor Bahru Johor Darul Takzim Tel : Fax : Principal Place of Business Pejabat Urusan Lot G12-14, Level 5 Block G (North), Pusat Bandar Damansara Kuala Lumpur Tel : / Fax : BOARD OF DIRECTORS LEMBAGA PENGARAH Non-Independent Non-Executive Chairman Pengerusi Bukan Bebas Bukan Eksekutif Tan Sri Dato Muhammad Ali Hashim Non-Independent Non-Executive Directors Pengarah Bukan Bebas Bukan Eksekutif Datin Paduka Siti Sa diah binti Sheikh Bakir Kamaruzzaman bin Abu Kassim Lukman bin Haji Abu Bakar Independent Non-Executive Directors Pengarah Bebas Bukan Eksekutif Dr. Mohd Hafetz bin Ahmad Zainah binti Mustafa Non-Independent Executive Director Pengarah Eksekutif Bukan Bebas Yusaini bin Haji Sidek MANAGEMENT TEAM KUMPULAN PENGURUSAN Yusaini bin Haji Sidek, Executive Director & CEO Suhaimi bin Saad, Senior Operation Executive Azlan bin Abd Malek, Account Executive Shareen Zurina binti Md. Dzulkifli, Strategic Planning & Investors Relationship Executive COMPANY SECRETARY SETIAUSAHA SYARIKAT Salmah binti Hj Abd Wahab (LS 02140) 15 Jalan 5/15, Taman Setia Indah Johor Bahru MAINTENANCE MANAGER PENGURUS PENYELENGGARAAN Healthcare Technical Services Sdn Bhd ( A) Mezzanine Floor, Bangunan PharmaCARE 129 Jalan Pahang Barat Kuala Lumpur Tel : Fax : TRUSTEE PEMEGANG AMANAH AmanahRaya Trustees Berhad ( T) Tingkat 4, Wisma TAS No.21 Jalan Melaka Kuala Lumpur Tel : Fax: SYARIAH COMMITTEE MEMBER AHLI JAWATANKUASA SYARIAH Dato Haji Nooh bin Gadot Datuk Haji Md Hashim bin Haji Yahaya Prof. Madya Dr. Ab Halim bin Muhammad REGISTRAR PENDAFTAR Pro Corporate Management Services Sdn Bhd ( M) Suite 2, 17th Floor, KOMTAR Jalan Wong Ah Fook Johor Bahru Johor Darul Takzim Tel : / 4044 Fax : ANNUAL REPORT AL- AQAR KPJ REIT

4 corporate information maklumat korporat AUDITORS AND REPORTING ACCOUNTANTS JURUAUDIT DAN AKAUNTAN PELAPOR Deloitte KassimChan (AF0080) Level 19, Uptown 1 1 Jalan SS21/5B Damansara Uptown Petaling Jaya, Selangor Tel : / Fax : / 8986 INDEPENDENT PROPERTY VALUER PENILAI HARTANAH BEBAS C H Williams Talhar & Wong Sdn Bhd (18149-U) 32nd Floor Menara Tun Razak Jalan Raja Laut P.O. Box Kuala Lumpur Tel : Fax : TAXATION ADVISER PENASIHAT CUKAI Deloitte KassimChan Tax Services Sdn Bhd (36421-T) Level 16, Uptown 1 1 Jalan SS21/5B Damansara Uptown Petaling Jaya, Selangor Tel : / Fax : / 69 SOLICITORS PEGUAMCARA Abdul Raman Saad & Associates Level 8, Bangunan KWSP No. 3, Changkat Raja Chulan Off Jalan Raja Chulan Kuala Lumpur Tel : Fax : PRINCIPAL BANKERS BANK-BANK UTAMA AmInvestment Bank Berhad (23742-V) 22nd Floor, Bangunan AmBank Group 55, Jalan Raja Chulan Kuala Kuala Lumpur Tel : / 44 / 55 Fax : AmIslamic Bank Berhad ( U) Regional Business Centre - South 31st Floor, Selesa Tower Jalan Dato Abdullah Tahir Johor Bahru, Johor Tel : Fax : Kuwait Finance House (M) Berhad ( T) Level 13, Tower 2, Etiqa Twins 11 Jalan Pinang Kuala Lumpur Tel : Fax : ISSUING HOUSE PEJABAT PENERBITAN SAHAM MIDF Consultancy and Corporate Services Sdn Bhd (11324-H) 12th Floor, Bangunan MIDF 195A, Jalan Tun Razak Kuala Lumpur Tel : Fax : ADVISER, MANAGING UNDERWRITER & PLACEMENT AGENT PENASIHAT, PENGURUS PENAJA JAMIN & AJEN PENEMPATAN AmInvestment Bank Berhad (23742-V) 22nd Floor, Bangunan AmBank Group 55, Jalan Raja Chulan Kuala Kuala Lumpur Tel : / 44 / 55 Fax : UNDERWRITERS PENAJA JAMIN AmInvestment Bank Berhad (23742-V) 22nd Floor, Bangunan AmBank Group 55, Jalan Raja Chulan Kuala Kuala Lumpur Tel : / 44 / 55 Fax : AmSecurities Bank Berhad (92977-V) 22nd Floor, Bangunan AmBank Group 55, Jalan Raja Chulan Kuala Kuala Lumpur Tel : Fax : LISTING PENYENARAIAN Main Board of Bursa Securities Papan Utama Bursa Securities WEBSITE LAMAN WEB AL- AQAR KPJ REIT laporan tahunan

5 Financial Highlights for the year ended 31 december 2009 The Group The Fund RM RM RM RM RM RM RM Net income 53,696,784 43,853,741 25,338,057 53,919,182 43,395,088 25,343,157 23,579,764 Income Distribution 39,658,557 34,726,401 24,890,000 39,658,557 34,726,401 24,890,000 9,248,000 Earnings Per Unit (sen) Distribution Per Unit Distribution Per Unit (sen) - First Interim Second Interim Final Distribution Date - First Interim 4/10/09 9/26/08 8/24/07 4/10/09 9/26/08 8/24/ Second Interim 9/11/09-1/25/08 9/11/09-1/25/ Final 3/26/10 3/27/09 4/18/08 3/26/10 3/27/09 4/18/08 2/23/07 Distribution yield Portfolio Turnover Ratio Annualised Management Expense Ratio (%) Total Assets 1,011,311, ,774, ,925, ,451, ,590, ,926, ,026,776 Total Borrowing 436,411, ,279, ,420, ,646, ,420, ,258,206 Total Unitholders Fund 540,455, ,721, ,709, ,224, ,267, ,715, ,283,339 Market Capitalisation 510,591, ,987, ,800,00 510,591, ,987, ,800, ,000,000 Total Borrowings to Total Assets (%) Total Net Asset Value 540,455, ,721, ,709, ,224, ,267, ,715, ,283,339 Net Asset Value Per Unit (sen) Highest NAV during the year/period Lowest NAV during the year/period Market Price Per Unit (sen) - as at 31 December Highest traded price for the year/period Lowest traded price for the year/period No. of Units in Circulation 518,367, ,721, ,000, ,367, ,721, ,000, ,000,000 No. of Unitholders 2,891 2,356 2,491 2,891 2,356 2, Note: 1. The Trust was established on 27 June 2006 and commenced business on 10 August Past performance is not necessarily indicative of future performance and unit prices and investment returns may fluctuate ANNUAL REPORT AL- AQAR KPJ REIT

6 maklumat utama kewangan bagi tahun berakhir 31 disember 2009 Kumpulan Dana RM RM RM RM RM RM RM Pendapatan Bersih 53,696,784 43,853,741 25,338,057 53,919,182 43,395,088 25,343,157 23,579,764 Pengagihan Pendapatan 39,658,557 34,726,401 24,890,000 39,658,557 34,726,401 24,890,000 9,248,000 Pendapatan Seunit (sen) Pengagihan Seunit Pengagihan Seunit (sen) - Interim Pertama Interim Kedua Akhir Tarikh Pengagihan - Interim Pertama 4/10/2009 9/26/2008 8/24/2007 4/10/2009 9/26/2008 8/24/ Interim Kedua 9/11/2009-1/25/2008 9/11/2009-1/25/ Akhir 3/26/2010 3/27/2009 4/18/2008 3/26/2010 3/27/2009 4/18/2008 2/23/2007 Hasil Pengagihan (%) Nisbah Pusingan Portfolio Nisbah Perbelanjaan Pengurusan Tahunan (%) Jumlah Aset 1,011,311, ,774, ,925, ,451, ,590, ,926, ,026,776 Jumlah Pinjaman 436,411, ,279, ,420, ,646, ,420, ,258,206 Jumlah Dana Pemegang Unit 540,455, ,721, ,709, ,224, ,267, ,715, ,283,339 Permodalan Pasaran 510,591, ,987, ,800, ,591, ,987, ,800, ,000,000 Jumlah Pinjaman atas Jumlah Aset (%) Jumlah Nilai Aset Bersih (NAV) 540,455, ,721, ,709, ,224, ,267, ,715, ,283,339 Nilai Aset Bersih Seunit (sen) NAV tertinggi sepanjang tahun/tempoh NAV terendah sepanjang tahun/tempoh Harga Pasaran Seunit (sen) - pada 31 Disember Harga niaga tertinggi bagi tahun/tempoh Harga niaga terendah bagi tahun/tempoh Bilangan Unit dalam Edaran 518,367, ,721, ,000, ,367, ,721, ,000, ,000,000 Bilangan Pemegang Unit 2,891 2,356 2,491 2,891 2,356 2, Nota: 1. Dana Amanah ditubuhkan pada 27 Jun 2006 dan urusniaga bermula pada 10 Ogos Pencapaian yang lalu tidak semestinya menjadi ukuran pencapaian akan datang. Harga unit dan pulangan pelaburan boleh berubah-ubah. AL- AQAR KPJ REIT laporan tahunan

7 Financial Highlights maklumat utama kewangan NET INCOME PENDAPATAN BERSIH (RM 000) TOTAL ASSETS JUMLAH ASET (RM 000) UNITS IN CIRCULATION JUMLAH UNIT TEREDAR (RM 000) Total Revenue Jumlah Hasil 29% Net Asset Value Nilai Aset Bersih 22% Income After Taxation (Realised) Pendapatan Selepas Cukai (Nyata) Distribution (sen/unit) Pengagihan (sen/unit) 22% 8.10 No. of Assets Bilangan Aset Gearing Gearan 73% 45% Increase Meningkat Decrease Menurun Total Asset Jumlah Aset 44% Total of Unit in Circulation Jumlah Unit dalam Edaran 21% Maintain Kekal PORTFOLIO COMPOSITION OF THE TRUST AS AT 31 DECEMBER 2009 SUSUNAN PORTFOLIO DANA AMANAH PADA 31 DISEMBER 2009 No Real Estate Location Type of Building Value Bil. Hartanah Lokasi Jenis Bangunan Nilai (RM 000) % 1. KPJ Ampang Puteri Specialist Hospital Ampang, Selangor Hospital 129, KPJ Damansara Specialist Hospital Petaling Jaya, Selangor Hospital 110, KPJ Johor Specialist Hospital Johor Bahru Hospital 76, KPJ Ipoh Specialist Hospital Ipoh, Perak Hospital 69, Puteri Specialist Hospital Johor Bahru Hospital 39, KPJ Selangor Specialist Hospital Shah Alam, Selangor Hospital 62, Perdana Specialist Hospital Kota Bharu, Kelantan Hospital 42, Kuantan Specialist Hospital Kuantan, Pahang Hospital 20, Sentosa Medical Centre Kuala Lumpur Hospital 26, KPJ Kajang Specialist Hospital Kajang, Selangor Hospital 42, Kedah Medical Centre Alor Setar, Kedah Hospital 48, Taiping Medical Centre Taiping, Perak Hospital 9, Damai Specialist Hospital Kota Kinabalu, Sabah Hospital 14, Bukit Mertajam Specialist Hospital Pulau Pinang Hospital 16, Tawakal Hospital Kuala Lumpur Hospital 37, Selesa Tower Johor Bahru Office Building/Hotel 91, KPJ International College Nilai, Negeri Sembilan Nursing College 16, Seremban Specialist Hospital Seremban, Negeri Sembilan Hospital 54, KPJ Penang Specialist Hospital Pulau Pinang Hospital 56, , ANNUAL REPORT AL- AQAR KPJ REIT

8 unitholders statistics for the year ended 31 december 2009 statistik pemegang unit bagi tahun berakhir 31 disember 2009 ANALYSIS OF UNITHOLDINGS ANALISA PEGANGAN UNIT Size of Unitholdings No. of Unitholders % No. of Units % Saiz Pegangan Unit Bil. Pemegang Unit Bil. Unit Less than ,612 - Kurang dari ,000 1, , ,001-10, ,944, , , ,910, ,001 to less than 5% of Issued Capital ,312, ,001 hingga kurang dari 5% Modal Diterbitkan 5% and above of Issued Capital ,534, % dan lebih dari Modal Diterbitkan TOTAL 2, ,367, JUMLAH TOP THIRTY SECURITIES ACCOUNT HOLDERS TIGA PULUH PEMEGANG AKAUN SEKURITI TERTINGGI 1. Lembaga Tabung Haji 98,113, HSBC Noms (T) Sdn Bhd A/C Selangor Medical Centres Sdn Bhd ( ) 35,000, Hotel Selesa (JB) Sdn Bhd 27,421, Seremban Specialist Hospital Sdn Bhd 23,731, Ampang Puteri Specialist Hospital Sdn Bhd 22,191, Medical Associates Sdn Bhd 19,055, Kumpulan Waqaf An-Nur Berhad 18,199, Sentosa Medical Centre Sdn Bhd 15,653, Damansara Specialist Hospital Sdn Bhd 15,233, Kedah Medical Centre Sdn Bhd 15,000, Pusat Pakar Tawakal Sdn Bhd 13,631, Employees Provident Fund Board 12,663, Johor Specialist Hospital Sdn Bhd 12,203, Puteri Specialist Hospital (Johor) Sdn Bhd 12,000, Pusat Pakar Darul Naim Sdn Bhd 11,789, Kuantan Specialist Hospital Sdn Bhd 10,705, Koperasi Permodalan Felda Berhad 10,000, Kajang Specialist Hospital Sdn Bhd 9,574, Kota Kinabalu Specialist Hospital Sdn Bhd 9,100, Bukit Mertajam Specialist Hospital Sdn Bhd 8,608, HSBC Noms (A) Sdn Bhd - A/C Exempt An for BNP Paribas Securities Services (Dublin USD) 8,172, Citigroup Noms (A) Sdn Bhd - A/C Exempt An for American International Assurance Berhad 7,094, Malaysian Assurance Alliance Berhad 6,068, AmanahRaya Trustees Berhad - A/C Public Islamic Dividend Fund 5,803, Uni.Asia General Insurance Berhad 3,795, Taiping Medical Centre Sdn Bhd 3,334, Mayban Noms (T) Sdn Bhd - A/C Mayban Life Assurance Berhad (Par Fund) 3,326, Mayban Noms (T) Sdn Bhd - A/C Mayban Life Assurance Berhad (Non-Par Fund) 3,225, Malaysia Noms (T) Sdn Bhd - A/C Great Eastern Life Assurance (M) Berhad (LGF) 3,200, Mayban Noms (T) Sdn Bhd - A/C Etiqa Takaful Berhad (Family Fund) 3,147, Note: Without aggregating the securities from different securities accounts belonging to the same depositor. Nota: Tanpa mengagregat sekuriti dari akaun-akaun sekuriti lain kepunyaan penyimpan yang sama. No. of Units % Bil. Unit AL- AQAR KPJ REIT laporan tahunan

9 unitholders statistics statistik pemegang unit SUBSTANTIAL UNITHOLDERS PEMEGANG UNIT UTAMA Direct Indirect No. of Units % No. of Units % Langsung Tidak Langsung Bil. Unit Bil. Unit 1. Lembaga Tabung Haji 98,113, HSBC Noms (T) Sdn Bhd A/C Selangor Medical Centres Sdn Bhd ( ) 35,000, ,422, Hotel Selesa (JB) Sdn Bhd 27,421, ,001, ANALYSIS OF UNITHOLDERS ANALISA PARA PEMEGANG UNIT No. of Unitholders % No. of Units % Bil. Pemegang Unit Bil. Unit Malaysian Warganegara Malaysia - Bumiputra ,886, Others 2, ,393, Foreign ,086, Warga Asing TOTAL 2, ,367, JUMLAH Statement of Interests of Directors of the Manager Penyata Kepentingan Pengarah Bagi Pengurus No. of Unit % Bil. Unit Tan Sri Dato Muhammad Ali Hashim Direct - 3 A/Cs 49, Indirect (Puan Sri Noorzilah binti Mohammed Ali) 3,600 - Datin Paduka Siti Sa diah binti Sheikh Bakir Direct - 2 A/Cs 99, Indirect (Amy Nadzlina binti Mohamed) 2,500 - Kamaruzzaman bin Abu Kassim 10,000 - Dr. Mohd Hafetz bin Ahmad 2,400 - Zainah binti Mustafa - - Lukman bin Abu Bakar - - Yusaini bin Haji Sidek ANNUAL REPORT AL- AQAR KPJ REIT

10 awards and recognitions anugerah dan pengiktirafan 2008 EUROMONEY ISLAMIC FINANCE AWARDS MOST INNOVATIVE ISLAMIC FINANCE DEAL 2008 ISLAMIC FINANCE NEWS AWARDS REAL ESTATE DEAL OF THE YEAR 2007 ALPHA SOUTHEAST ASIA ANNUAL INAUGURAL DEAL AWARDS BEST ISLAMIC REIT DEAL IN SOUTHEAST ASIA 2009 RAM LEAGUE AWARDS RAM AWARDS OF DISTINCTION 2008 BLUEPRINT AWARDS NEW REAL ESTATE BENCHMARK DEAL 2006 ISLAMIC FINANCE NEWS AWARDS I-REIT DEAL OF THE YEAR World s First Listed Islamic REIT REIT Islam Terulung Disenarai didunia - Alpha Southeast Asia, 2007 AL- AQAR KPJ REIT laporan tahunan

11 Board of Directors Ahli Lembaga Pengarah from left dari kiri Yusaini, Datin Paduka Siti Sa diah, Salmah, Tan Sri Dato Muhammad Ali, Dr. Hafetz, Zainah, Kamaruzzaman, & Lukman Non-Independent Non-Executive Chairman Pengerusi Bukan Bebas Bukan Eksekutif Non-Independent Non-Executive Directors Pengarah Bukan Bebas Bukan Eksekutif Independent Non-Executive Directors Pengarah Bebas Bukan Eksekutif Non-Independent Executive Director / Chief Executive Officer Pengarah Eksekutif Bukan Bebas / Ketua Pegawai Eksekutif Company Secretary Setiausaha Syarikat Tan Sri Dato Muhammad Ali Hashim Datin Paduka Siti Sa diah binti Sheikh Bakir Kamaruzzaman bin Abu Kassim Lukman bin Haji Abu Bakar Dr. Mohd Hafetz bin Ahmad Zainah binti Mustafa Yusaini bin Hj Sidek Salmah binti Hj Abd Wahab ANNUAL REPORT AL- AQAR KPJ REIT

12 PRofile of the board of Directors Tan Sri Dato Muhammad Ali Hashim Chairman Tan Sri Dato Muhammad Ali Hashim, a Malaysian aged 62, was appointed as the Non-Independent Non-Executive Chairman of Damansara REIT Managers Sdn Berhad (DRMSB) since 22 June Tan Sri is the President and CEO of Johor Corporation (JCorp), the ultimate holding corporation of DRMSB, and has held that position since January He graduated from the University of Malaya with a Bachelor of Economics (Honors) Degree in 1969 and participated in the Senior Executive Program, Stanford University, United States of America in Tan Sri was conferred the Honorary Doctorate of Management by Universiti Teknologi Malaysia on 19 August, 2000; Honorary Doctorate in Entrepreneurship by Universiti Teknologi MARA on 24 May 2007; and Honorary Doctorate in Technology Management by Universiti Tun Hussien Onn Malaysia on 2 September Tan Sri s tenacity, business acumen and entrepreneurial leadership had enabled JCorp to grow into one of Malaysia s leading conglomerates with more than 280 companies, eight of which are listed on Bursa Malaysia and another on the London Stock Exchange. Market capitalization of JCorp s portion of PLC shares stood at RM10.4 billion at end This highly diversified Group offers meaningful career opportunities to more than 50,000 employees. As CEO of JCorp Group, Tan Sri had also successfully steered the Group through extreme business challenges, especially when the JCorp Group was hard hit by the 1997 Asian Crisis. In , JCorp, through Kulim (Malaysia) Berhad had also successfully acquired two PLCs namely QSR Brands Bhd and KFC Holdings (Malaysia) Bhd, overcoming a protracted hostile challenge. This had led to the exercise becoming one of Malaysia s landmark corporate acquisitions. JCorp, has also successfully managed Malaysia s one and only market-driven local authority, namely the Pasir Gudang Local Authority (PGLA), with Tan Sri Ali as President with mayorial responsibilities since January 1982 up to July JCorp was the single most important agency responsible for Pasir Gudang s development into one of Malaysia s vibrant and dynamic industrial townships. PGLA made history by becoming the first business-driven local authority in Malaysia to issue a Mudharabah Bond rated triple A by Rating Agency Malaysia Berhad. After 32 years, JCorp has since ceased to manage the Pasir Gudang township. Tan Sri sits as Chairman of Kulim (Malaysia) Berhad, KPJ Healthcare Berhad, QSR Brands Bhd and KFC Holdings (Malaysia) Bhd, Sindora Berhad, Johor Land Berhad and Damansara Realty Berhad, which are JCorp s subsidiaries listed on the Main Board of the Bursa Malaysia. Tan Sri is also active as a Council Member of Malaysian Industrial Development Authority, President of the Malaysian Kite Council and President of Malaysian Yachting Association; Vice President of the Malaysian Islamic Chamber of Commerce and Chairman of the MICC Corporate Bureau, and Chairman of Waqaf An-Nur Corporation Berhad, an Islamic endowment institution that spearheads JCorp Group s CSR programs, including the unique Corporate Waqaf Concept initiated by JCorp. AL- AQAR KPJ REIT laporan tahunan

13 profil lembaga pengarah Tan Sri Dato Muhammad Ali Hashim Pengerusi Tan Sri Dato Muhammad Ali Hashim, warganegara Malaysia berusia 62 tahun, telah dilantik sebagai Pengerusi Bukan Bebas Bukan Eksekutif Damansara REIT Managers Sdn Berhad (DRMSB) dari 22 Jun Beliau juga menyandang jawatan sebagai Presiden dan Ketua Pegawai Eksekutif, Johor Corporation (JCorp), syarikat induk DRMSB sejak Januari Beliau berkelulusan ijazah Sarjana Muda Ekonomi (Kepujian) dari Universiti Malaya pada tahun 1969 dan menyertai Program Eksekutif Kanan, di Universiti Stanford Amerika Syarikat pada tahun YBhg Tan Sri dianugerahkan ijazah Kehormat Doktor Falsafah bidang Pengurusan oleh Universiti Teknologi Malaysia pada 19 Ogos 2000, ijazah Kehormat Doktor Falsafah bidang Keusahawanan dari Universiti Teknologi Mara pada 24 Mei 2007, dan ijazah Kehormat Doktor Falsafah bidang Pengurusan dari Universiti Tun Hussein Onn pada 2 September Atas kegigihan Tan Sri, pengetahuan dan pengalaman perniagaan yang mendalam serta kepimpinan keusahawan yang cemerlang beliau telah dapat membawa Johor Corporation berkembang pesat sebagai salah satu konglomerat Malaysia yang tersohor dengan lebih dari 280 anak syarikat yang mana lapan daripadanya tersenarai di Bursa Malaysia dan satu di Bursa Saham London. Modal pasaran bahagian syarikat awam JCorp berjumlah RM10.4 bilion pada akhir tahun Sebagai satu kumpulan syarikat dengan pelbagai bidang perniagaan, ia telah mewujudkan peluang pekerjaan yang bermakna kepada lebih 50,000 pekerja. Sebagai Ketua Pegawai Eksekutif, Tan Sri telah berjaya menerajui Kumpulan JCorp mengharungi berbagai dugaan perniagaan yang amat mencabar terutamanya ketika Kumpulan itu dilanda Krisis Asia Pada tahun , JCorp melalui Kulim (Malaysia) Berhad berhasil memperoleh dua syarikat awam iaitu QSR Brands Bhd dan KFC Holdings (Malaysia) Bhd, setelah mengatasi tentangan hebat yang berpanjangan. Kejayaan ini telah menjadi satu mercu tanda bersejarah dalam proses pengambilalihan syarikat di Malaysia. JCorp juga berjaya mentadbir Pihak Berkuasa Tempatan Pasir Gudang (PBTPG), satu-satunya Pihak Berkuasa Tempatan yang berteraskan pasaran bersama Tan Sri sebagai Presiden dengan tanggungjawab setaraf Yang Di Pertua dari tahun 1982 sehingga Julai JCorp adalah agensi utama terpenting yang bertanggung jawab bagi pembangunan Pasir Gudang sehingga menjadi satu bandar industri yang pesat membangun dan dinamik di Malaysia. PBTPG telah menempa sejarah apabila menjadi Pihak Berkuasa Tempatan pertama yang berteraskan perniagaan di Malaysia yang menerbitkan Bon Mudaharabah yang mendapat pengiktirafan AAA oleh Rating Agency Malaysia Berhad. Selepas 32 tahun, JCorp tidak lagi menguruskan pentadbiran perbandaran Pasir Gudang. Tan Sri juga menyandang jawatan Pengerusi Kulim (Malaysia) Berhad, KPJ Healthcare Berhad (KPJ), QSR Brands Berhad dan KFC Holdings (Malaysia) Berhad, Sindora Berhad, Johor Land Berhad, dan Damansara Realty Berhad, dimana kesemuanya anak syarikat JCorp yang tersenarai di Papan Utama Bursa Malaysia. Tan Sri juga aktif sebagai Ahli Majlis Lembaga Pembangunan Perindustrian Malaysia (MIDA), Presiden Persatuan Bola Sepak Johor, Presiden Majlis Pelayang Malaysia, Presiden Persatuan Pelayar Malaysia, Naib Presiden Dewan Perniagaan Islam Malaysia (DPIM), Pengerusi Biro Korporat DPIM, serta Pengerusi Waqaf An-Nur Corporation Berhad, sebuah badan kebajikan yang menerajui program CSR kumpulan JCorp, termasuk Konsep Waqaf Korporat unik yang dimulakan oleh JCorp ANNUAL REPORT AL- AQAR KPJ REIT

14 profile of the board of directors profil ahli lembaga pengarah Datin Paduka Siti Sa diah binti Sheikh Bakir Datin Paduka Siti Sa diah Sheikh Bakir, a Malaysian aged 57, has been a Non-Independent Non-Executive Director of Damansara REIT Managers Sdn Berhad (DRMSB) since Datin Paduka Siti Sa diah is the Managing Director of KPJ Healthcare Berhad (KPJ), a post she has held since She graduated with a Bachelor in Economics degree from University of Malaya in 1974, and holds a Master of Business Administration from Henley Management College of London. Her career with Johor Corporation (JCorp) commenced in 1974 and she has been directly involved in JCorp s Healthcare Division since Datin Paduka was appointed as the Chief Executive of Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB) in 1989 and held the post until the listing of KPJ. She currently serves as the Chairman of various companies and hospitals in the KPJ Group. She is also a Director of Kulim (Malaysia) Berhad, KFC Holdings (Malaysia) Bhd, QSR Brands Bhd, Puteri Hotels Sdn Bhd as well as a Director of Waqaf An-Nur Corporation Berhad, a non-governmental organisation dedicated to the provision of healthcare services to the less fortunate. Committed to promoting excellence in healthcare, Datin Paduka is the President of the Malaysian Society of Quality in Health, elected since its inception in 1997 until today. Datin Paduka is a Board member of MATRADE since 1999, a member of the Malaysia Productivity Corporation (MPC) Consultative Panel on Healthcare since 2001, and a member of the National Patient Safety Council, Ministry of Health (MOH) since Datin Paduka is also an Independent Non-Executive Director of Bursa Malaysia, elected since In 2009, Datin Paduka was appointed as a member of the Malaysian Healthcare Travel Council, Ministry of Health. Datin Paduka Siti Sa diah Sheikh Bakir, warganegara Malaysia berusia 57 tahun, telah dilantik sebagai Pengarah Bukan Bebas Bukan Eksekutif Damansara REIT Managers Sdn Berhad (DRMSB) sejak Datin Paduka Siti Sa diah merupakan Pengarah Urusan KPJ Healthcare Berhad (KPJ), jawatan yang disandangnya sejak Beliau mendapat ijazah Sarjana Muda Ekonomi dari Universiti Malaya pada tahun 1974 dan juga berkelulusan MBA dari Henley Management College of London. Kerjaya beliau di Johor Corporation (JCorp) bermula dalam tahun 1974 dan telah terlibat secara langsung di Bahagian Prisihatin JCorp dari Datin Paduka dilantik Ketua Eksekutif Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB) pada 1989 dan menyandang jawatan sehingga penyenaraian KPJ. Datin Paduka kini memegang jawatan Pengerusi beberapa syarikat dan hospital Kumpulan KPJ. Beliau juga adalah Pengarah Kulim (Malaysia) Berhad, KFC Holdings (Malaysia) Bhd, QSR Brands Bhd, Puteri Hotels Sdn Bhd, serta juga Pengarah Waqaf An-Nur Corporation Berhad, organisasi bukan kerajaan yang diwujudkan untuk menyediakan perkhidmatan prisihatin kepada golongan yang kurang bernasib baik. Kerana komited kearah kecemerlangan perkhidmatan prisihatin, Datin Paduka telah dilantik Presiden Malaysian Society for Quality in Health, dari tarikh penubuhannya pada 1997 sehingga kini. Datin Paduka adalah Ahli Lembaga Pengarah MATRADE sejak 1999, ahli Panel Perunding Sektor Prisihatin, Perbadanan Produktiviti Negara (MPC) dari tahun 2001, dan Ahli Majlis Keselamatan Pesakit, Kementerian Kesihatan sejak Datin Paduka juga adalah Pengarah Bebas Bukan Eksekutif Bursa Malaysia, dilantik dari tahun Pada 2009, Datin Paduka dilantik sebagai ahli Majlis Pelancongan Prisihatin Malaysia, Kementerian Kesihatan. AL- AQAR KPJ REIT laporan tahunan

15 profile of the board of directors profil ahli lembaga pengarah Kamaruzzaman bin Abu Kassim Kamaruzzaman Abu Kassim, a Malaysian aged 46, was appointed as a Non- Independent Non-Executive Director of Damansara REIT Managers Sdn Berhad (DRMSB) on 12 January He is currently the Senior Vice President of Johor Corporation (JCorp). He graduated with a Bachelor of Commerce majoring in Accountancy from the University of Wollongong, New South Wales, Australia in He embarked his career as an Audit Assistant with Messrs K.E Chen & Associates in May 1988 and later joined Coopers & Lybrand (currently known as PricewaterhouseCoopers) in Johor Bahru. In December 1992, he left the firm to join JCorp as Deputy Manager, Corporate Finance Department. He was later promoted to become the Executive Director at Damansara Realty Berhad (a company of which JCorp is the majority shareholder) in 1999 until September He is also the Managing Director of Damansara Realty Berhad and Director of Kulim (Malaysia) Berhad (a subsidiary of JCorp), listed on the main board of Bursa Malaysia. Kamaruzzaman Abu Kassim, warganegara Malaysia berusia 46 tahun, telah dilantik sebagai Pengarah Bukan Bebas Bukan Eksekutif Damansara REIT Managers Sdn Berhad (DRMSB) pada 12 Januari Beliau kini merupakan Naib Presiden Kanan Johor Corporation (JCorp). Beliau berkelulusan Sarjana Muda Perdagangan dengan pengkhususan Perakaunan dari University of Wollongong, New South Wales, Australia pada Kamaruzzaman memulakan kerjayanya sebagai Penolong Audit di Tetuan K.E. Chen & Associates pada bulan Mei Beliau kemudian menyertai Coopers and Lybrand (kini dikenali sebagai PricewaterhouseCoopers) di Johor Bahru. Pada Disember 1992 beliau meninggalkan firma untuk menyertai JCorp sebagai Penolong Pengurus, Jabatan Kewangan Korporat. Beliau kemudian dilantik sebagai Pengarah Eksekutif Damansara Realty Berhad (syarikat dimana saham majoriti milik JCorp) dari 1999 sehingga September Beliau juga merupakan Pengarah Urusan Damansara Realty Berhad dan Pengarah Kulim (Malaysia) Berhad (anak syarikat JCorp) yang tersenarai di papan utama Bursa Malaysia ANNUAL REPORT AL- AQAR KPJ REIT

16 profile of the board of directors profil ahli lembaga pengarah Lukman bin Haji Abu Bakar Lukman Haji Abu Bakar, a Malaysian aged 50, was appointed as a Non-Independent Non-Executive Director of Damansara REIT Managers Sdn Berhad (DRMSB) on 12 January He graduated with a Bachelor of Urban and Regional Planning from the Universiti Teknologi Malaysia in 1982 before joining Johor Corporation (JCorp) as a Town Planning Officer in the same year. He also holds a Post Graduate Diploma (Housing, Building and Planning) from Institute for Housing Studies, Rotterdam, Holland. On 1 September 1993, Lukman was appointed as the Deputy General Manager (Down Stream Processing Division) of Sindora Berhad and later promoted to the position of General Manager in 1995, a company within JCorp Group. In April 2004, he became the Secretary of Pasir Gudang Local Authority cum Senior General Manager of JCorp. On 1 July 2008, he was appointed as the President of Majlis Perbandaran Pasir Gudang until 1st September He is currently the Senior Vice President of Johor Corporation as well as Managing Director of Johor Land Berhad. He also sits as Director of Damansara Realty Berhad, a public listed company and as a Director of Syarikat Pengangkutan Maju Berhad and Penawar Ekspress Line Berhad, as well as few other public companies within the JCorp Group. Apart from that, he also sits as a director in numerous private companies within the Group. Lukman Haji Abu Bakar, warganegara Malaysia berusia 50 tahun, telah dilantik sebagai Pengarah Bukan Bebas Bukan Eksekutif Damansara REIT Managers Sdn Berhad (DRMSB) pada 12 Januari Beliau berkelulusan ijazah Sarjana Muda Perancangan Bandar dan Wilayah dari Universiti Teknologi Malaysia pada 1982, sebelum menyertai Johor Corporation (JCorp) sebagai Pegawai Perancang Bandar pada tahun yang sama. Beliau juga memegang Diploma Post Graduate (Perumahan, Bangunan dan Perancangan) dari Institute for Housing Studies, Rotterdam, Holland. Pada 1 September 1993, Lukman telah dilantik sebagai Timbalan Pengurus Besar (Bahagian Down Stream Processing ) dan kemudian dinaikkan pangkat ke jawatan Pengurus Besar pada 1995 di Sindora Berhad, anak syarikat Kumpulan JCorp. Pada April 2004, beliau menerima jawatan Setiausaha Pihak Berkuasa Tempatan Pasir Gudang merangkap Pengurus Besar Kanan JCorp. Beliau dilantik sebagai Presiden Majlis Perbandaran Pasir Gudang pada 1 Julai 2008 hingga 1 September Kini beliau merupakan Naib Presiden Kanan Johor Corporation dan Pengarah Urusan Johor Land Berhad. Beliau juga adalah Pengarah Damansara Realty Berhad, syarikat yang disenaraikan dan Pengarah Syarikat Pengangkutan Maju Berhad dan Penawar Ekpress Line Berhad serta beberapa syarikat awam Kumpulan JCorp. Selain dari itu, beliau merupakan Pengarah beberapa syarikat sendirian berhad dalam Kumpulan. AL- AQAR KPJ REIT laporan tahunan

17 profile of the board of directors profil ahli lembaga pengarah Dr. Mohd Hafetz bin Ahmad Dr. Mohd Hafetz Ahmad, a Malaysian aged 59, was appointed as the Independent Non-Executive Director of Damansara REIT Managers Sdn Berhad (DRMSB) on 22 June Dr. Hafetz obtained his Medical Degree from University of Malaya in He did his housemanship in Hospital Sultanah Aminah, Johor Bahru and continued as Medical Officer in the same hospital until 1978, when he did his specialist training in Obstretrics and Gynaecology at the University Hospital, Kuala Lumpur. He served as Trainee Lecturer and then as Lecturer at the Department of Obstretrics and Gynaecology, University of Malaya until He joined Johor Specialist Hospital (JSH) in 1983 as Consultant Obstetrician and Gynaecologist. In the mid 1980 s, Dr. Hafetz served for several years as a member of the Visitors Board, Jubilee Home, Johor Bahru. Besides his clinical practice, Dr. Hafetz has been involved in various aspects of Hospital Management and Clinical Governance in his capacity as Chairman, JSH Consultant s Advisory Committee ( ) and Medical Director (1994 to-date). He also sits on the Board of Directors of Johor Specialist Hospital Sdn Bhd, Director of Wakaf An-Nur Corporation Berhad, and Johor Land Berhad since 22 May Dr. Hafetz was the President of Obstetrical and Gynaecological Society of Malaysia (OGSM) from 2004 to 2005 and served as a Council member of the OGSM from 2003 to He is a member of the Malaysian Medical Association, Malaysian Menopause Society, and Persatuan Perubatan Islam Malaysia. Dr. Mohd Hafetz Ahmad, warganegara Malaysia berusia 59 tahun, telah dilantik sebagai Pengarah Bebas Bukan Eksekutif Damansara REIT Managers Sdn Berhad (DRMSB) pada 22 Jun Dr. Hafetz memperolehi Ijazah Perubatan dari Universiti Malaya pada tahun Beliau memulakan kerjayanya sebagai Doktor Residen di Hospital Sultanah Aminah, Johor Bahru dan kemudiannya sebagai Pegawai Perubatan di hospital tersebut sehingga 1978, apabila beliau menjalani latihan kepakaran Sakit Puan di Hospital Universiti, Kuala Lumpur. Dr. Hafetz juga pernah menjadi Pensyarah Pelatih dan kemudiannya sebagai Pensyarah di Bahagian Sakit Puan Universiti Malaya sehingga Beliau menyertai Hospital Pakar Johor pada tahun 1983 sebagai Perunding Sakit Puan. Dipertengahan 1980an, Dr. Hafetz bertugas sebagai Ahli Lembaga Pelawat, Jubilee Home di Johor Bahru buat beberapa tahun. Selain menguruskan klinik, Dr. Hafetz juga terlibat dalam pelbagai aspek Pengurusan Hospital dan Tadbir Urus Klinikal selaku Pengerusi, Jawatankuasa Penasihat Perunding Hospital Pakar Johor ( ) dan Pengarah Perubatan (1994 sehingga kini). Beliau juga adalah Ahli Lembaga Pengarah Hospital Pakar Johor Sdn Bhd, Pengarah Wakaf An-Nur Corporation Berhad, dan Johor Land Berhad dari 22 Mei Dr. Hafetz pernah menyandang Presiden Persatuan Sakit Puan Malaysia dari 2004 hingga 2005 dan juga sebagai Ahli Majlis persatuan dari 2003 sehingga Beliau adalah ahli Persatuan Perubatan Malaysia, Persatuan Menopos Malaysia, dan Persatuan Perubatan Islam Malaysia ANNUAL REPORT AL- AQAR KPJ REIT

18 profile of the board of directors profil ahli lembaga pengarah Zainah binti Mustafa Zainah Mustafa, a Malaysian aged 54, was appointed on 16 February 2007 as the Independent Non-Executive Director of Damansara REIT Managers Sdn Berhad (DRMSB) and a member of the DRMSB Audit Committee. She also sits on the board of three other companies in the JCorp Group of Companies namely KPJ Healthcare Berhad (KPJ), Damansara Realty Berhad and Puteri Hotels Sdn Bhd. She started her career as an Assistant Senior Auditor in Perbadanan Nasional Berhad in 1977 after graduating from Institut Teknologi MARA (presently Universiti Teknologi MARA). Zainah obtained her Association of Chartered Certified Accountants (ACCA) United Kingdom in She joined JCorp in October 1978 and rose through the ranks to the Group Chief Financial Officer before retiring on 31 October Zainah Mustafa, warganegara Malaysia berusia 54 tahun, telah dilantik sebagai Pengarah Bebas Bukan Eksekutif Damansara REIT Managers Sdn Berhad (DRMSB) dan ahli Jawatankuasa Audit DRMSB pada 16 Februari Beliau juga adalah pengarah tiga anak syarikat di bawah Kumpulan JCorp iaitu KPJ Healthcare Berhad, Damansara Realty Berhad dan Puteri Hotels Sdn Bhd. Beliau memulakan kerjaya sebagai Penolong Juruaudit Kanan di Perbadanan Nasional Berhad pada 1977 selepas menamatkan pengajian di Institut Teknologi MARA (kini Universiti Teknologi MARA). Zainah memperoleh Association of Chartered Certified Accountants (ACCA) United Kingdom pada Beliau menyertai JCorp pada Oktober 1978 sehingga menyandang jawatan Ketua Pegawai Kewangan Kumpulan sebelum bersara pada 31 Oktober AL- AQAR KPJ REIT laporan tahunan

19 profile of the board of directors profil ahli lembaga pengarah Yusaini bin Haji Sidek Yusaini Hj Sidek, a Malaysian aged 41, was appointed as the Non-Independent Executive Director of Damansara REIT Managers Sdn Berhad (DRMSB) on 7 January He graduated with a Bachelor in Business Administration from Universiti Kebangsaan Malaysia in 1999 after obtaining a Diploma in Valuation in 1989 from Universiti Teknologi Malaysia. He has vast experience in the area of building management for nearly 20 years which include preparation of valuation reports for various properties inclusive of commercial, residential, retail property and others. He also prepares analytical reports on property market movements. He gained professional experience via attachment with a number of companies such as Colliers Jordan Lee & Jaafar, Jabatan Penilaian dan Perkhidmatan Harta, Kementerian Kewangan Malaysia, Bank Industri Malaysia Berhad, Fima Corporation Berhad, CSM Corporation Berhad and Empire Tower (M) Sdn Bhd. Some of the buildings managed by him are Bank Industri Building, Airtel Complex, Plaza Damansara, Menara CSM, Empire Tower and City Square Complex. He was vastly involved in the planning and operation of building management, primarily in the areas of Tenancy Management, Marketing, Promotion and Maintenance Management. He was previously employed by Harta Consult Sdn Bhd since February 2001 as Senior Manager, which had enabled him to capitalize his expertise in property management to ensure the smooth operation of the buildings of Damansara Assets Sdn Bhd. Yusaini Sidek, warganegara Malaysia berusia 41 tahun, telah dilantik sebagai Pengarah Eksekutif Bukan Bebas Damansara REIT Managers Sdn Berhad (DRMSB) pada 7 Januari Beliau telah menamatkan pengajian dengan kelulusan Sarjana Muda Pentadbiran Perniagaan dari Universiti Kebangsaan Malaysia pada 1999 selepas menerima Diploma Penilaian pada 1989 dari Universiti Teknologi Malaysia. Beliau mempunyai pengalaman luas dalam bidang pengurusan bangunan selama hampir 20 tahun termasuk penyediaan laporan penilaian bagi pelbagai hartanah termasuk perdagangan, kediaman, hartanah runcit dan lain-lain. Beliau juga menyediakan laporan analitikal mengenai pengerakan pasaran hartanah. Beliau memperoleh pengalaman profesional setelah berkhidmat dengan beberapa syarikat seperti Colliers Jordan Lee & Jaafar, Jabatan Pernilaian dan Perkhidmatan Harta, Kementerian Kewangan Malaysia, Bank Industri Malaysia Berhad, Fima Corporation Berhad, CSM Corporation Berhad dan Empire Tower (M) Sdn Bhd. Diantara bangunan yang diuruskan beliau termasuk bangunan Bank Industri, Kompleks Airtel, Plaza Damansara, Menara CSM, Menara Empire dan Kompleks City Square. Beliau terlibat secara meluas dalam perancangan dan operasi pengurusan bangunan, terutamanya dalam bidang Pengurusan Penghunian, Pemasaran, Promosi dan Pengurusan Penyelenggaraan. Beliau sebelum ini pernah bersama Harta Consult Sdn Bhd sejak Februari 2001 sebagai Pengurus Kanan, dimana beliau menggunakan kemahirannya dalam pengurusan hartanah bagi memastikan kelancaran operasi bangunan-bangunan Damansara Assets Sdn Bhd ANNUAL REPORT AL- AQAR KPJ REIT

20 Profile of syariah committee profil jawatankuasa syariah Dato Haji Nooh bin Gadot Dato Haji Nooh Gadot, a Malaysian aged 64, was appointed on 22 June 2006 as the Syariah Committee member for Al- Aqar KPJ REIT. He graduated from the Al-Azhar University in Egypt with a Bachelor in Islamic Law and Syariah. He also obtained his tertiary Islamic education from various Islamic schools in Johor Bahru. Dato started his career as an Islamic teacher with the state government of Johor in 1967 and rose through the ranks to the high position in Islamic Law and Syariah Department of Johor. In the mid 1980 s, he served for several years as Qadi and Syariah Adviser in various departments at Jabatan Agama Johor. His involvement as the Chairman and member of committees has gained him with extensive experience and recognition not only from the state but up to the national level. At present, Dato Haji Nooh is the Adviser for Majlis Agama Islam Johor. Dato Haji Nooh Gadot, warganegara Malaysia berusia 64 tahun, telah dilantik sebagai ahli Jawatankuasa Syariah Al- Aqar KPJ REIT pada 22 Jun Beliau memiliki Ijazah Sarjana Perundangan Islam dan Syariah dari Universiti Al-Azhar di Mesir. Beliau juga mendapat pendidikan Islam dari beberapa sekolah pengajian agama di Johor Bahru. Dato memulakan kerjaya sebagai seorang guru agama kepada kerajaan negeri Johor pada tahun Bermula dari situ, beliau mendaki dari pangkat ke pangkat sehingga berjawatan tinggi di Jabatan Perundangan Islam dan Syariah Johor. Pada pertengahan 1980an, beliau berkhidmat sebagai Kadi dan Penasihat Syariah di beberapa jabatan di Jabatan Agama Johor. Penglibatan beliau selaku Pengerusi dan ahli beberapa jawatankuasa menghasilkan pengalaman yang meluas dan pengiktirafan bukan sahaja di negeri malah sehingga peringkat negara. Dato Haji Nooh kini merupakan Penasihat kepada Majlis Agama Islam Johor. AL- AQAR KPJ REIT laporan tahunan

21 profile of syariah committee profil jawatankuasa syariah Datuk Haji Md. Hashim bin Haji Yahaya Datuk Haji Md. Hashim Haji Yahaya, a Malaysian aged 71, was appointed on 22 June 2006 as the Syariah Committee member for Al- Aqar KPJ REIT. He obtained his Diploma in Education majoring in Ain Shams and later graduated with both Bachelor and Master from the Al-Azhar University in Egypt. Datuk started his career in 1970 as a lecturer at Higher Education Centre Nilam Puri. He later joined University of Malaya in 1980 as a lecturer at Islamic Academy. In 1995, Datuk was appointed the Mufti for Federal Territory of Kuala Lumpur until He served as a member of Syariah committee and Syariah advisor for Bank Negara Malaysia, Securities Commission of Malaysia, and Islamic Development Bank of Jeddah. At present Datuk Haji Hashim is the Fellow Honourable in Academic at Islamic International University of Malaysia. Datuk Haji Md. Hashim Haji Yahaya, warganegara Malaysia berusia 71 tahun, telah dilantik sebagai ahli Jawatankuasa Syariah Al- Aqar KPJ REIT pada 22 Jun Beliau memiliki Diploma Pendidikan, khusus dalam bidang Ain Shams dan kemudiannya menjadi graduan Ijazah dan Sarjana dari Universiti Al-Azhar di Mesir. Datuk memulakan kerjayanya pada 1970 sebagai pensyarah di Pusat Pengajian Tinggi Nilam Puri. Mulai tahun 1980, beliau berkhidmat sebagai pensyarah di Akademi Islam Universiti Malaya. Pada 1995, Datuk dilantik sebagai Mufti Wilayah Persekutuan Kuala Lumpur sehingga Beliau pernah berkhidmat sebagai ahli Jawatankuasa Syariah dan penasihat Syariah untuk Bank Negara Malaysia, Suruhanjaya Sekuriti Malaysia, dan Bank Pembangunan Islam Jeddah. Kini Datuk Haji Hashim adalah Felo Kehormat Akademi di Universiti Islam Antarabangsa Malaysia ANNUAL REPORT AL- AQAR KPJ REIT

22 profile of syariah committee profil jawatankuasa syariah Prof. Madya Dr. Ab. Halim bin Muhammad Prof. Madya Dr. Ab. Halim Muhammad, a Malaysian aged 65, was appointed in 22 June 2006 as the Syariah Committee member for Al- Aqar KPJ REIT. He graduated from the Al-Azhar University in Egypt with a Bachelor in Syariah in 1972 and subsequently obtained his PhD in Syariah from the St. Andrews, University of Scotland in Dr. Halim began his career with Universiti Kebangsaan Malaysia as the Head of Department of Quran and Sunnah, Faculty of Islamic Studies. He also assessed thesis papers from PhD students majoring in Islamic Jurisprudence. He has served as Syariah adviser and Syariah committee member at several corporate organisations such as Tabung Haji, Bank Negara Malaysia, Dewan Bahasa dan Pustaka, Takaful Nasional, Terengganu Trust Unit, and Angkasa Trust Unit, as well as at several banks namely Bank Muamalat, Bank Rakyat, RHB Bank, and Bank Pembangunan. Prof. Madya Dr. Ab. Halim Muhammad, warganegara Malaysia berusia 65 tahun, telah dilantik sebagai ahli Jawatankuasa Syariah Al- Aqar KPJ REIT pada 22 Jun Beliau adalah graduan Universiti Al-Azhar di Mesir dengan Ijazah bidang Syariah pada tahun 1972 dan kemudiannya memperoleh Doktor Falsafah bidang Syariah dari St. Andrews, University of Scotland pada Dr. Halim memulakan kerjayanya di Universiti Kebangsaan Malaysia sebagai Ketua Jabatan Quran dan Sunnah, Fakulti Pengajian Islam. Beliau juga menilai kertaskerja thesis pelajar PhD khusus dalam bidang Perundangan Islam. Beliau telah berkhidmat sebagai penasihat Syariah dan ahli Jawatankuasa Syariah di beberapa organisasi korporat seperti Tabung Haji, Bank Negara Malaysia, Dewan Bahasa dan Pustaka, Takaful Nasional, Unit Amanah Terengganu, dan Unit Amanah Angkasa, serta di beberapa bank seperti Bank Muamalat, Bank Rakyat, RHB Bank, dan Bank Pembangunan. AL- AQAR KPJ REIT laporan tahunan

23 Corporate Statement On behalf of the Board of Directors of Damansara REIT Managers Sdn Berhad, and the managers of Al- Aqar KPJ Real Estate Investment Trust (Al- Aqar KPJ REIT), it gives me great pleasure to present Al- Aqar KPJ REIT s Annual Report for the financial year ended 31 December THE AL- AQAR KPJ REIT MALAYSIA S FIRST ISLAMIC REIT Malaysia continues to date to take the lead in the development of Islamic Financial Services, namely through product innovation and regulatory measures. The Islamic Financial Services sector now offers investment opportunities in accordance with the principles of the Syariah. Investors now have more options to invest in a holistic Islamic manner and take full advantage of Malaysia s positioned as a premier international financial centre. The introduction of the Securities Commission Malaysia guidelines on Islamic REITs in 2005 kick-started the industry in Malaysia. The Al- Aqar KPJ REIT had benefited tremendously from these guidelines, enabling it to become the first Islamic REIT to be listed on Bursa Malaysia on 10 August 2006, as well as the first of its kind in the world. Al- Aqar KPJ REIT has generated a very steady income stream since its inception, both from rental as well as capital gains on its portfolio of assets. Its unique feature is the exclusive sell and lease back arrangement it has with KPJ Healthcare Berhad as the owners of the assets. This arrangements provides Al- Aqar KPJ REIT with a secure source of income and avoids the problem of finding alternative long term tenants and buyers for the properties at the end of their respective tenures OPERATIONAL REVIEW Despite the volatility and uncertainties in the economy due to the protracted global financial crisis, Al- Aqar KPJ REIT managed to record strong growth in year The value of Al- Aqar KPJ REIT was successfully enhanced to exceed more than RM 1 billion as at 31 December This is indeed an outstanding achievement, considering that Al- Aqar KPJ REIT has just completed its 3rd full year of operations. For the year under review, Al- Aqar KPJ REIT acquired nine properties to its portfolio with the promise of high-yields as well as a diversified properties base. The properties, valued at RM 398 million, included the Seremban Specialist Hospital Building, Taiping Medical Centre Building, Damai Specialist Hospital Building, Bukit Mertajam Specialist Hospital Building, Tawakal Existing Building and KPJ Penang Specialist Hospital Building. Two additional properties are not hospital-related but are complementary to the health tourism industry, namely Selesa Tower and KPJ International College Complex. These two latter properties house the KPJ International College of Nursing and Health ANNUAL REPORT AL- AQAR KPJ REIT

24 Perutusan Korporat Bagi pihak Lembaga Pengarah Damansara REIT Managers Sdn Berhad, dan Pengurus kepada Al- Aqar KPJ Real Estate Investment Trust (Al- Aqar KPJ REIT), saya dengan sukacitanya membentangkan Laporan Tahunan Al- Aqar KPJ REIT bagi tahun kewangan berakhir pada 31 Disember AL- AQAR KPJ REIT - REIT ISLAM YANG PERTAMA DI MALAYSIA Malaysia sehingga kini terus mengambil peranan penting selaku peneraju dalam pengembangan Perkhidmatan Kewangan Islam, melalui produk berinovasi dan langkah-langkah kawalan. Bidang Perkhidmatan Kewangan Islam kini menawarkan peluang pelaburan yang memenuhi prinsip-prinsip Syariah. Para pelabur sekarang mempunyai lebih banyak pilihan untuk melabur secara menyeluruh dengan cara Islam dan mengambil kesempatan penuh kedudukan Malaysia sebagai pusat kewangan antarabangsa utama. Pengenalan garis panduan Suruhanjaya Sekuriti Malaysia untuk REIT Islam pada tahun 2005 merupakan titik permulaan industri ini di Malaysia. Al- Aqar KPJ REIT telah mendapat manfaat yang banyak dari garis panduan ini, dimana telah membolehkannya menjadi REIT Islam yang pertama disenaraikan di Bursa Malaysia pada 10 Ogos 2006, serta yang pertama sepertinya di dunia. Al- Aqar KPJ REIT telah menjana satu aliran pendapatan yang berterusan dan mantap sejak penubuhannya, melalui sewaan serta laba modal portfolio aset-asetnya. Ciri yang unik bagi Al- Aqar KPJ REIT adalah perjanjian eksklusif jual dan pajak balik dengan KPJ Healthcare Berhad sebagai pemilik aset-aset tersebut. Perjanjian ini memperkukuhkan sumber pendapatan Al- Aqar KPJ REIT dan menghindari dari masalah mendapatkan penyewa dan pembeli jangka masa panjang selepas tempoh pegangan hartanah tersebut tamat. TINJAUAN PENGENDALIAN 2009 Walaupun kemeruapan dan ketidakpastian ekonomi akibat krisis kewangan global yang berlanjutan, Al- Aqar KPJ REIT telah berjaya mencatatkan pertumbuhan kukuh pada Nilai Al- Aqar KPJ REIT berjaya ditingkatkan menjangkau lebih dari RM 1 bilion pada 31 Disember Ini sesungguhnya merupakan satu pencapaian cemerlang, memandangkan bahawa Al- Aqar KPJ REIT baru hanya beroperasi sepenuhnya selama tiga (3) tahun. Untuk tahun yang dalam ulasan ini, Al- Aqar KPJ REIT telah memperolehi sembilan hartanah buat portfolionya dengan harapan pulangan pelaburan yang tinggi serta kepelbagaian segmen hartanah. Hartanah yang bernilai RM 398 juta termasuk bangunan-bangunan Hospital Pakar Seremban, Pusat Perubatan Taiping, Hospital Pakar Damai, Hospital Pakar Bukit Mertajam, Hospital Tawakal dan Hospital Pakar KPJ Pulau Pinang. Dua lagi hartanah tambahan diluar kategori hospital tetapi pelengkap untuk AL- AQAR KPJ REIT laporan tahunan

25 corporate statement Sciences (KPJ IC), the nursing educational institution of KPJ Healthcare Bhd. One other hospital property, namely the new KPJ Tawakkal Hospital Building is under construction and is due for completion and shall commence its operation within the first quarter of year Taken together, all these properties would further boost Al- Aqar KPJ REIT s rental income stream as they are located in prime areas, promising further potential for medium and long term capital growth. In total, as at end 2009, Al- Aqar KPJ REIT owns nineteen comprising hospitals and medical centres, a nursing college, an office building and a hotel. The anchor properties KPJ Ampang Puteri Specialist Hospital Building, KPJ Damansara Specialist Hospital Building, KPJ Selangor Specialist Hospital Building, all three in Klang Valley; KPJ Johor Specialist Hospital Building and Puteri Specialist Hospital Building, both in Johor Bahru; and KPJ Ipoh Specialist Hospital Building, in Ipoh, Perak. All six properties were acquired through the first acquisition exercise in m Total gross floor area, in square feet RM1.06b Asset size to date 580m Total units in capital-raising Following the initial acquisition exercise, the fund was further strengthened by the injection of additional five hospital buildings in year 2008, bringing the total number of properties to eleven hospital buildings, namely Perdana Specialist Hospital Building in Kota Bharu, Kelantan; Kuantan Specialist Hospital Building, Pahang; Sentosa Medical Centre Building, Kuala Lumpur; KPJ Kajang Specialist Hospital Building in Kajang; Selangor and Kedah Medical Centre Building, in Alor Setar, Kedah. With the current strength of nineteen properties the total floor area under Al- Aqar KPJ REIT stood at 3.7 million square feet, comprising of 3.2 million square feet under hospitals and 0.5 million square feet under healthcare related activities. The Healthcare related portfolios in particular performed well during the year, notwithstanding the softening market conditions during the last several quarters. Year 2009 also marked a notable increase in income through Al- Aqar KPJ REIT s acquisition strategies. The overall portfolio occupancy of 100% was maintained as at 31 December With the effect of a significantly weakened US economy rippling across the world, a continuing global uncertainty looms ahead and economic growth for 2010 is expected to slow down. The global financial crisis is poised to continue its negative impact on Malaysia s property sector. Remaining focused on our core strengths, barring any unforeseen circumstances, we expect Al- Aqar KPJ REIT to be able to sustain performance, with the promise of sustainable income streams from hospital and healthcare related portfolios to continue in the years ahead. THE AL- AQAR KPJ REIT LARGEST ISLAMIC HEALTHCARE REIT Alhamdulillah, with the latest proposed acquisitions, Al- Aqar KPJ REIT as the first Islamic Healthcare REIT in the world continued to make history, by also becoming the largest in terms of the number of assets/properties in an Islamic Real Estate Investment Trust in the region. Upon completion of KPJ Tawakkal Specialist Hospital in first quarter of 2010, Al- Aqar KPJ REIT asset size increased to RM1.06 billion. This is a substantial increase of more than 50% from original asset size upon listing of Al- Aqar KPJ REIT on Bursa Securities in This translates into making Al- Aqar KPJ REIT the largest private healthcare facilities owner in Malaysia. Going forward, based on the increased income from existing portfolio as well as the newly expanded portfolio, which shall be contributing as early as from the first quarter of 2010, our unitholders can anticipate better results and returns. THE AL- AQAR KPJ REIT PIONEER IN ISLAMIC FINANCING MECHANISM Since Al- Aqar KPJ REIT commenced operations in middle of 2006, the number of units in issue; acquisitions and operational activities have increased substantially. Cumulative proceeds from the initial issuance of units totalled 340 million in year 2006 increased to 518 million in financial year ended 31 December Alhamdulillah, despite the economic uncertainties, Al- Aqar Capital Sdn Bhd, a wholly owned subsidiary of Al- Aqar KPJ REIT was able to garner the confidence of the financial sector. Its Ijarah Commercial Paper (ICP) and/or Islamic Medium Term Notes (IMTN) under the Sukuk Ijarah Programme amounting to RM 300 million in nominal value were able to maintain the favorable ratings of AAA, AA2 and AAA (bg) from the Malaysian accredited rating agency, Rating Agency Malaysia. This had directly translated into Al- Aqar KPJ REIT s ability to fund acquisitions of the expanded portfolio at the lowest possible cost. AmInvestment Bank and Kuwait Finance House was mandated by Al- Aqar KPJ REIT, as joint lead arrangers of Syndicated Ijarah Facility, to provide the Ijarah Muntahiah Bitamlik, with facilities up to RM 250 million, to finance the third acquisition exercise worth RM 398 million. Again, Al- Aqar KPJ REIT enjoyed attractive blended yields from these financing facilities. The issuance of the financing facilities created another significant milestone in Malaysia s Real Estate Investment Trust as Al- Aqar KPJ REIT is the first Islamic REIT in the world to procure the first syndicated Ijarah Facility that is fully syariah compliant by both the Kuwait Finance House, Gulf Cooperation Council (GCC) Standards as well as the Malaysian Standards. These compliances augur well for Al- Aqar KPJ REIT in the event it plans to enter the Middle East market in future ANNUAL REPORT AL- AQAR KPJ REIT

26 perutusan korporat industri pelancongan kesihatan, iaitu Selesa Tower dan Kompleks Kolej Antarabangsa KPJ. Kedua-dua hartanah ini menempatkan KPJ International College of Nursing dan Health Sciences (KPJ IC), institusi pendidikan kejururawatan KPJ Healthcare Bhd. Satu lagi hartanah hospital iaitu bangunan Hospital Pakar KPJ Tawkkal masih dalam pembinaan dan dijadualkan selesai, akan memulakan operasinya pada suku pertama tahun Secara bersama, kesemua hartanah-hartanah ini akan terus meningkatkan hasil Al- Aqar KPJ REIT dari aliran pendapatan sewaan kerana terletak di lokasi utama, dan menjanjikan potensi pertumbuhan modal untuk tempoh sederhana dan panjang. Pada keseluruhannya diakhir 2009, Al- Aqar KPJ REIT memiliki sembilan belas hartanah yang terdiri dari hospital dan pusat perubatan, kolej kejururawatan, bangunan pejabat dan hotel. Hartanah utamanya adalah bangunan-bangunan Hospital Pakar KPJ Ampang Puteri, Hospital Pakar KPJ Damansara, Hospital Pakar KPJ Selangor, ketiga-tiganya di Lembah Kelang; Hospital Pakar KPJ Johor dan Hospital Pakar Puteri, yang terletak di Johor Bahru; dan Hospital Pakar KPJ Ipoh di Ipoh, Perak. Kesemua enam hartanah diperoleh melalui pengambilalihan pertama pada j Keluasan lantai kasar, dalam kaki persegi RM1.06b Saiz aset setakat ini 580j Jumlah unit penambahan modal Susulan pengambilalihan awal, dana ini telah diperkukuh dengan suntikan tambahan lima bangunan hospital pada 2008, yang mana meningkatkan bilangan hartanah kepada sebelas bangunan hospital iaitu Hospital Pakar Perdana di Kota Bharu, Kelantan; Hospital Pakar Kuantan, Pahang; Pusat Perubatan Sentosa, Kuala Lumpur; Hospital Pakar KPJ Kajang di Kajang, Selangor dan Pusat Perubatan Kedah di Alor Setar, Kedah. Dengan kekuatan sembilan belas hartanah yang mempunyai jumlah keluasan lantai seluas 3.7 juta kaki persegi di bawah Al- Aqar KPJ REIT, yang terdiri dari 3.2 juta kaki persegi bangunan hospital dan 0.5 juta kaki persegi di bawah kegiatan yang berkaitan prisihatin. Portfolio prisihatin khususnya menunjukkan prestasi yang baik sepanjang tahun, walaupun keadaan pasaran agak lembab buat beberapa suku terakhir. Tahun 2009 juga merakamkan peningkatan ketara pendapatan Al- Aqar KPJ REIT kerana strategi pengambilalihan. Pada keseluruhannya jumlah penghunian 100% telah dapat dipertahankan sehingga tarikh 31 Disember Berpunca dari kelemahan ekonomi AS kesannya ketara di seluruh dunia, dan ketidakpastian ekonomi dunia masih dihadapi, pertumbuhan ekonomi tahun 2010 dijangkakan lembab. Krisis kewangan global akan terus memberi kesan negatif terhadap sektor hartanah Malaysia. Tetap dengan fokus pada kekuatan sendiri, dengan mengambil kira keadaan luar dugaan, kami berkeyakinan Al- Aqar KPJ REIT akan dapat mempertahankan prestasi, melalui pendapatan berterusan dari portfolio hospital dan prisihatin yang berlanjutan pada tahun-tahun akan datang. AL- AQAR KPJ REIT - REIT PRISIHATIN ISLAM TERBESAR Alhamdulillah, dengan cadangan pengambilalihan yang terbaru, Al- Aqar KPJ REIT sebagai REIT Prisihatin Islam pertama di dunia telah terus menempa sejarah, dengan juga menjadi yang terbesar dari segi bilangan aset/hartanah dalam Pelaburan Amanah Hartanah Islam di rantau. Setelah siapnya Hospital Pakar KPJ Tawakkal pada suku pertama 2010, saiz aset Al- Aqar KPJ REIT akan meningkat kepada RM1.06 bilion. Ini adalah satu pertumbuhan besar melebihi 50% dari saiz aset asal ketika penyenaraian Al- Aqar KPJ REIT di Bursa Sekuriti pada Dalam ertikata lain, ini menjadikan Al- Aqar KPJ REIT pemilik terbesar kemudahan prisihatin swasta di Malaysia. Memandang ke hadapan, berdasarkan peningkatan pendapatan dari portfolio sedia ada serta perkembangan baru portfolio, yang akan memberikan sumbangan seawal dari suku pertama 2010, pemegang Unit boleh menganggarkan keputusan dan pulangan yang lebih baik. AL- AQAR KPJ REIT - PERINTIS MEKANISMA PEMBIAYAAN ISLAM Sejak Al- Aqar KPJ REIT bermula operasi pada pertengahan 2006, bilangan unit yang ditawarkan; pengambilalihan dan aktiviti pengendalian telah mengalami peningkatan yang hebat. Hasil kumulatif bermula dari tawaran unit berjumlah 340 juta pada 2006 bertambah menjadi 518 juta unit bagi tahun kewangan berakhir 31 Disember Alhamdulillah, meskipun dalam keadaan ketidakpastian ekonomi, Al- Aqar Capital Sdn Bhd, anak syarikat milik penuh Al- Aqar KPJ REIT telah mampu mendapat kepercayaan dari sektor kewangan. Program Sukuk Ijarahnya melalui Ijarah Commercial Paper (ICP) dan/atau Islamic Medium Term Notes (IMTN) sebanyak RM 300 juta dalam nilai nominal mampu mempertahankan pengiktirafan yang baik AAA, AA2 dan AAA (bg) dari agensi penilaian terkemuka Malaysia, Rating Agency Malaysia. Secara langsung ini membuktikan kemampuan Al- Aqar KPJ REIT membiayai pengambilalihan untuk perkembangan portfolio pada kos serendah mungkin. Al- Aqar KPJ REIT telah memberi mandat kepada AmInvestment Bank dan Kuwait Finance House sebagai pembiaya utama bersama Kemudahan Ijarah Bersindiket, untuk menyediakan kemudahan Ijarah Muntahiah Bitamlik sehingga RM 250 juta bagi membiayai langkah pengambilalihan ketiga bernilai RM 383 juta. Sekali lagi, Al- Aqar KPJ REIT menikmati hasil faedah yang menarik dari kemudahan pembiayaan ini. Penerbitan kemudahan ini mencipta satu lagi peristiwa penting dalam industri REIT di Malaysia dimana Al- Aqar KPJ REIT adalah REIT Islam yang pertama di dunia memperoleh Kemudahan Ijarah Bersindiket yang mematuhi syariah oleh kedua-dua Kuwait Finance House, Piawaian Gulf Cooperation Council (GCC) serta Piawaian Malaysia. Pematuhan ini selaras dengan Al- Aqar KPJ REIT apabila bersedia merancang untuk menembusi pasaran Timur Tengah kelak. AL- AQAR KPJ REIT laporan tahunan

27 corporate statement HIGHLIGHTS OF FINANCIAL PERFORMANCE The Al- Aqar KPJ REIT recorded additional contribution to the income from the revaluation of properties in conformance with Financial Reporting Standard 140 (FRS 140) requiring the revaluation of all properties annually. The revaluation, announced on 31 December 2009, increased the valuation of the nineteen properties by RM 17 million, concurrently increasing the Al- Aqar KPJ REIT s market value to RM 962 million. Upon the full completion of the third acquisition in early 2010, Al- Aqar KPJ REIT s assets value strengthened further from RM 481 million as at year 2006 to RM 1.06 billion, an increase of more than 50%. For the financial year ended 31 December 2009, Al- Aqar KPJ REIT had recorded an income of RM million with a commendable profit of RM million. On 3 February 2010, the Board of Directors of Damansara REIT Managers Sdn Berhad announced a final distribution of 3.8 sen per unit in respect of the profit from the financial period ended 31 December 2009, representing approximately 98.5% of Al- Aqar KPJ REIT s income after taxation for the financial period under review. This is testimony to the manager s absolute commitment in fulfilling the expectation of Al- Aqar KPJ REIT s unitholders to maintain the yearly distribution per unit ( DPU ) at 8.10 sen per unit. The distribution was approved by the trustees, AmanahRaya Trustee Berhad, for payout in the first quarter This distribution represents an annualised yield of 8.20% based on the average price per unit of RM per unit in year The yearly distribution of income to unitholders represents 5% higher than the projected distribution of 7.70 sen per unit as stated in the Prospectus RECOGNITION FOR AL- AQAR KPJ REIT In recognition of its status as the first listed Islamic REIT in the world, in early 2009, Al- Aqar KPJ REIT through its 100% subsidiary, Al- Aqar Capital Sdn Bhd was awarded the inaugural Deal of the Year Awards in the Real Estate Deal of the Year Category by the Islamic Finance News (IFN). Previously, Al- Aqar KPJ REIT had won the same award under the First Islamic Category. Additionally, during the financial year ended 2009, Al- Aqar KPJ REIT marked another history by winning RAM League Awards 2009, RAM Award of Distinction 2008, Blueprint Awards, New Real Estate Benchmark Deal category. FUTURE PROSPECTS The Manager remains firmly committed to ensuring that Al- Aqar KPJ REIT s unitholders are well-rewarded by their investment and, to this end, will continue to explore acquisition opportunities of suitable properties, the key requirements being that they are yield accretive and shall complement the Trust s existing portfolio. The Manager is also optimistic about prospect in leveraging their expertise in managing Syariah compliant healthcare properties regionally. Al- Aqar KPJ REIT marked another history by winning RAM League Awards 2009, RAM Award of Distinction 2008, Blueprint Awards, New Real Estate Benchmark Deal category. Amidst the current climate of financial instability, our effort to deliver premium value to our unitholders remain unwavering. We will continue to pursue timely strategies to further strengthen Al- Aqar KPJ REIT s assets and financial position and contribute back to our deserving unitholders with rewarding returns. APPRECIATION Since listing, Al- Aqar KPJ REIT has grown from strength to strength. I would like to take this opportunity to express my appreciation to all our Unitholders, business partners and KPJ Healthcare Berhad for their continued support over the years and their confidence in us. I would also like to thank the members of the Board for your invaluable contributions. Lastly, a heartfelt appreciation goes to the management team for their dedication towards achieving the mission of Al- Aqar KPJ REIT, and I look forward to another fruitful and prosperous year ahead with the continued support of my fellow Board members and our valued stakeholders. TAN SRI DATO MUHAMMAD ALI HASHIM Chairman Damansara REIT Managers Sdn Berhad ANNUAL REPORT AL- AQAR KPJ REIT

28 perutusan korporat PRESTASI KEWANGAN UTAMA Al- Aqar KPJ REIT merekodkan sumbangan tambahan kepada pendapatan dari penilaian semula hartanah selaras dengan Piawaian Laporan Kewangan 140 (Financial Reporting Standard 140) yang menuntut penilaian semula semua hartanah setiap tahun. Penilaian semula yang diumumkan pada 31 Disember 2009 telah menambah nilai sembilan belas hartanah sehingga RM 17 juta, serentak meningkatkan nilai aset Al- Aqar KPJ REIT kepada RM 962 juta. Apabila selesainya pengambilalihan ketiga diawal 2010, nilai aset Al- Aqar KPJ REIT menjadi lebih kukuh dari RM 481 juta pada tahun 2006 ke RM 1.06 bilion, satu pertambahan yang melebihi 50%. Untuk tahun kewangan berakhir 31 Disember 2009, Al- Aqar KPJ REIT telah mencatatkan pendapatan berjumlah RM juta dengan jumlah keuntungan yang memberangsangkan sebanyak RM juta. Pada 3 Februari 2010, lembaga pengarah Damansara REIT Managers Sdn Berhad telah mengumumkan pengagihan akhir sebanyak 3.8 sen seunit dari segi keuntungan pada tempoh kewangan berakhir pada 31 Disember 2009, yang mewakili anggaran 98.5% pendapatan selepas cukai Al- Aqar KPJ REIT untuk tempoh tahun kewangan dalam ulasan. Ini merupakan bukti komitmen mutlak pihak pengurusan dalam menepati jangkaan pemegang unit Al- Aqar KPJ REIT demi mengekalkan pengagihan seunit ( DPU ) tahunan pada kadar 8.10 sen seunit. Pengagihan telah diluluskan oleh pemegang amanah, Amanahraya Trustee Berhad, untuk pembayaran dalam suku pertama Pengagihan ini mewakili hasil faedah tahunan sebanyak 8.20% berdasarkan harga purata RM seunit dalam tahun Agihan pendapatan tahunan pemegang unit mewakili peningkatan lebih 5% berbanding unjuran agihan 7.70 sen seunit yang dinyatakan dalam Prospektus PENGIKTIRAFAN UNTUK AL- AQAR KPJ REIT Bagi mengiktiraf statusnya sebagai REIT Islam yang pertama di dunia, pada awal 2009 Al- Aqar KPJ REIT melalui 100% anak syarikatnya, Al- Aqar Capital Sdn Bhd dianugerah Deal of the Year Awards pertama dalam kategori Real Estate Deal of the Year dari Islamic Finance News (IFN). Sebelum ini, Al- Aqar KPJ REIT diberi anugerah serupa dalam kategori REIT Islam. Disamping itu, semasa tahun kewangan berakhir 2009 Al- Aqar KPJ REIT mencatatkan satu lagi sejarah dengan memenangi RAM League Awards 2009, RAM Award of Distinction 2008, Blueprint Awards dalam kategori New Real Estate Benchmark Deal. PROSPEK MASA DEPAN Pihak Pengurusan tetap dengan penuh kesanggupan untuk mempastikan Pemegang unit Al- Aqar KPJ REIT sentiasa mendapat pulangan pelaburan yang terbaik dan, hingga akhir ini, akan terus meneroka peluang-peluang pengambilalihan hartanah yang sesuai, berdasarkan syarat utama iaitu penghasilan yang mampan dari hartanah yang diperolehi dan menjadi pelengkap kepada portfolio amanah sedia ada. Pihak pengurusan juga optimistik tentang prospek dalam keumpilan kepakaran mereka menguruskan hartanah-hartanah prisihatin serantau yang berlandaskan Syariah. Al- Aqar KPJ REIT mencatat satu lagi sejarah dengan memenangi RAM League Awards 2009, RAM Award of Distinction 2008, Blueprint Awards dalam kategori New Real Estate Benchmark Deal. Dicelah gelombang ketidakstabilan kewangan, usaha kami bagi menghasilkan nilai premium untuk pemegang unit tetap kekal teguh. Kami akan terus mengkaji strategi-strategi bagi memperkukuhkan lagi kedudukan aset-aset dan kewangan Al- Aqar KPJ REIT serta menyumbang kembali kepada pemegang unit dengan pulangan yang berganda. PENGHARGAAN Sejak penyenaraian, Al- Aqar KPJ REIT telah berkembang kerana keupayaan dayamajunya. Saya ingin mengambil peluang ini untuk merakamkan penghargaan saya kepada semua Pemegang Unit, rakan-rakan niaga dan KPJ Healthcare Berhad atas sokongan yang berterusan sejak bertahun-tahun dan keyakinan mereka terhadap kami. Saya juga ingin mengucapkan terima kasih kepada ahli-ahli Lembaga Pengarah atas segala sumbangan tidak ternilai mereka. Akhir sekali, satu penghargaan tulus untuk pihak pengurusan atas dedikasi mereka demi mencapai misi Al- Aqar KPJ REIT, dan saya berharap agar dapat meraih hasil yang subur dan makmur pada tahun-tahun mendatang dengan sokongan berlanjutan dari ahli Lembaga Pengarah dan pemegang saham yang kami hargai. TAN SRI DATO' MUHAMMAD ALI HASHIM Pengerusi Damansara REIT Managers Sdn Berhad AL- AQAR KPJ REIT laporan tahunan

29 Statement of corporate governance Al- Aqar KPJ Real Estate Investment Trust ( Al- Aqar KPJ REIT or Trust ) was established on 28 June 2006 pursuant to a trust deed ( Deed ) entered into between Damansara REIT Managers Sdn Berhad ( DRMSB or Manager ) and AmanahRaya Trustees Berhad ( Trustee ). Al- Aqar KPJ REIT has been listed on the Main Market of Bursa Malaysia Securities Berhad ( Bursa Securities ) since 10 August The Board of Directors of DRMSB ( Board ) is firmly committed to ensuring that the Manager implements and operates good corporate governance practices in its management of the Trust. In developing its system of corporate governance, the Directors have been guided by the measures set out in the Guidelines on Real Estate Investment Trusts issued by the Securities Commission ( REIT Guidelines ), the Listing Requirements of Bursa Securities ( Listing Requirements ) and the Malaysian Code on Corporate Governance ( Code ). THE MANAGER OF AL- AQAR KPJ REIT Al- Aqar KPJ REIT is managed and administered by the DRMSB, who has the primary objectives of: (a) providing unitholders of the Trust ( Unitholders ) with stable cash distributions with the potential for sustainable growth, principally from the ownership of properties; and (b) enhancing the Net Asset Value of Al- Aqar KPJ REIT s units ( Units ). The objectives are sought to be achieved by optimizing the performance and enhancing the overall quality for a large and geographically diversified portfolio of Syariah-compliant real estate assets through various permissible investment and business strategies. The Manager is required to ensure that the business and operations of Al- Aqar KPJ REIT are carried on and conducted in a proper, diligent and efficient manner, and in accordance with acceptable and efficacious business practices in the real estate investment trust industry in Malaysia. Subject to the provisions of the Deed, the Manager has full and complete powers of management and must manage the Al- Aqar KPJ REIT (including all assets and liabilities of Al- Aqar KPJ REIT) for the benefit of its unitholders. The Board recognises that an effective corporate governance framework is critical in order to achieve these objectives, to fulfil its duties and obligations and to ensure that Al- Aqar KPJ REIT continues to perform strongly. The general functions, duties and responsibilities of the Manager include the following: Investment Strategy formulate and implement Al- Aqar KPJ REIT s investment strategy, including determining the location, sub-sector, market risk, type and other characteristic of AmFIRST s property portfolio. Acquisition and Divestment make recommendations to and co-ordinate with the Trustee and implement the acquisition of new assets and divestment of Al- Aqar KPJ REIT s existing investments. Asset Management supervise and oversee the management of Al- Aqar KPJ REIT s properties including preparing property plans on an annual basis for review by the Directors of the Manager which may contain proposals and forecasts on net income, capital expenditure, sales and valuations, explanation of major variances to previous forecasts, written commentary on key issues and underlying assumptions on rental rates, occupancy costs and any other relevant assumptions. The purpose of these plans is to explain the performance of Al- Aqar KPJ REIT s assets. Financing formulate plans for equity and debt financing for Al- Aqar KPJ REIT s funding requirements. Accounting Records keep books and prepare or cause to be prepared accounts and annual reports, including annual budgets for Al- Aqar KPJ REIT. Supervisory Services supervise day-to-day administrative service as Al- Aqar KPJ REIT s representative, including administrative services relating to meetings of unitholders when such meetings are convened. Investor Relations Co-ordinate, communicate and liaise with unitholders / Investors. Compliance Management supervise all regulatory filings on behalf of Al- Aqar KPJ REIT, and ensure that Al- Aqar KPJ REIT is in compliance with the applicable provisions of the Securities Commission Act, the SC REIT Guidelines, Bursa Listing Requirements, the Trust Deed, and all relevant contracts ANNUAL REPORT AL- AQAR KPJ REIT

30 penyata tadbir urus korporat Al- Aqar KPJ Real Estate Investment Trust ("Al- Aqar KPJ REIT" atau "Amanah") ditubuhkan pada tarikh 28 Jun 2006 sesuai dengan Surat Ikatan Amanah ("Surat Ikatan") yang ditandatangani antara Damansara REIT Managers Sdn Berhad ("DRMSB" atau "Pengurus") dan AmanahRaya Trustee Berhad ("Pemegang Amanah"). Al- Aqar KPJ REIT telah didaftarkan pada Papan Utama Bursa Securities Malaysia Berhad ("Bursa Sekuriti") sejak 10 Ogos Lembaga Pengarah DRMSB ("Lembaga Pengarah") adalah komited sepenuhnya untuk memastikan Pihak Pengurusan melaksanakan dan mengendalikan tadbir urus korporat yang baik dalam pengurusan Amanah. Dalam merangka sistem tadbir urus korporat, Lembaga Pengarah telah dibimbing dengan langkah-langkah yang ditetapkan dalam Garis Panduan Amanah Pelaburan Hartanah (Real Estate Investment Trust Guidelines) yang diterbitkan Suruhanjaya Sekuriti ("Garis Panduan REIT"), Tuntutan Penyenaraian Bursa Sekuriti ("Tuntutan Penyenaraian") dan Kod Tadbir Urus Negara Malaysia ("Kod"). PENGURUSAN AL- AQAR KPJ REIT Al- Aqar KPJ REIT diurus dan ditadbir oleh DRMSB, yang mempunyai tujuan utama: (a) menyediakan Pemegang unit Amanah ( Pemegang Unit ) dengan pengagihan wang yang kukuh dengan potensi untuk pertumbuhan mampan, terutamanya daripada pemilikan hartanah; dan (b) mempertingkatkan Nilai Aset Bersih unit Al- Aqar KPJ REIT ( Unit ). Matlamat ini akan tercapai dengan mengoptimakan prestasi dan mempertingkatkan kualiti keseluruhan portfolio hartanah yang meluas dan pelbagai kedudukan geografikal yang mematuhi Syariah dan melalui pelbagai pelaburan yang dibenarkan dan strategi-strategi perniagaan. Pihak Pengurusan dituntut untuk memastikan bahawa perniagaan dan pengendalian Al- Aqar KPJ REIT dilaksanakan dan dikelolakan secara beradab, teliti dan cekap, dan selaras dengan amalan-amalan perniagaan yang diterima pakai oleh industri Amanah Pelaburan Hartanah di Malaysia. Tertakluk kepada peruntukan-peruntukan yang ada dalam Surat Ikatan, Pengurus mempunyai kuasa pengurusan yang mutlak dan mesti mengurus Al- Aqar KPJ REIT (termasuk semua aset dan tanggungan Al- Aqar KPJ REIT) demi kepentingan Pemegang-pemegang unitnya. Lembaga Pengarah mengenalpasti bahawa rangkakerja tadbir urus korporat yang berkesan amat penting kearah mencapai matlamat ini, untuk memenuhi kewajipan dan tangungjawab dan untuk memastikan bahawa Al- Aqar KPJ REIT terus kukuh dalam perlaksanaannya. Fungsi umum, tugas dan tanggungjawab Pengurus adalah seperti berikut: Strategi Pelaburan merumuskan dan melaksanakan strategi pelaburan Al- Aqar KPJ REIT, termasuk menentukan lokasi, sub-sektor, risiko pasaran, jenis dan ciri-ciri lain portfolio hartanah Al- Aqar KPJ REIT. Pengambilalihan dan Pemberhentian Pelaburan - membuat cadangan kepada dan menyelaras bersama Pemegang Amanah dan melaksana pengambilalihan aset-aset baru dan pemberhentian pelaburan-pelaburan sedia ada Al- Aqar KPJ REIT. Pengurusan Aset - menyelia dan mengurus selia pengurusan hartanah Al- Aqar KPJ REIT termasuk menyediakan perancangan hartanah secara tahunan untuk kaji semula oleh Lembaga Pengarah bagi pihak Pengurusan yang boleh mengandungi cadangan dan anggaran keatas pendapatan bersih, perbelanjaan modal, jualan dan penilaian-penilaian, penjelasan tentang perbezaan besar untuk anggaran terdahulu, ulasan bertulis pada isu-isu utama dan andaian-andaian dasar kadar sewa, kos-kos kepenghunian dan mana-mana andaian-andaian lain yang berkaitan. Tujuan perancangan ini adalah untuk memperjelaskan prestasi aset-aset Al- Aqar KPJ REIT. Pembiayaan merumus perancangan untuk ekuiti dan pembiayaan hutang untuk keperluan-keperluan pembiayaan Al- Aqar KPJ REIT. Rekod Perakaunan - menyimpan rekod kewangan dan menyediakan atau bersedia untuk menyediakan akaun-akaun dan laporan tahunan, termasuk belanjawan tahunan untuk Al- Aqar KPJ REIT. Perkhidmatan Penyeliaan - menyelia khidmat pentadbiran harian sebagai wakil Al- Aqar KPJ REIT, termasuk khidmat pentadbiran berkaitan perihal mesyuarat apabila mesyuarat pemegang unit bersidang. Perhubungan Pelabur - Menyelaras, berkomunikasi dan berhubungan dengan Pemegang unit / Pelabur. Pematuhan Pengurusan - menyelia semua pemfailan regulatori bagi pihak Al- Aqar KPJ REIT, dan memastikan Al- Aqar KPJ REIT mematuhi segala peruntukan-peruntukan yang boleh digunakan seperti yang telah ditetapkan oleh Akta Suruhanjaya Sekuriti, Garis Panduan REIT SC, Tuntutan Penyenaraian Bursa, Surat Ikatan Amanah, dan semua kontrak yang berkaitan. AL- AQAR KPJ REIT laporan tahunan

31 statement of corporate governance NOMINATION AND REMUNERATION In line with Johor Corporation s ( JCorp ) Group wide corporate practice, the functions and responsibilities of DRMSB s Nomination and Remuneration Committees ( NRC ) are vested with JCorp Group NRC. This approach in centralising NRC functions is not an uncommon practice among top global companies and leading multi national corporations. The prime consideration is the strategic advantage that the Centre provides by allowing wider access and greater reach to a much larger pool of talent, skills and expertise as well as to benchmark remunerations on a group-wide basis. DRMSB is directly and substantially represented in the JCorp NRC in which three out of seven of the NRC s current members are DRMSB Directors including its Chairman. The JCorp NRC members are as follows: 1. Tan Sri Dato Muhammad Ali Hashim - Chairman 2. Tan Sri Datuk Arshad Ayub 3. Datin Paduka Siti Sa diah Sheikh Bakir 4. Ahamad Mohamad 5. Rozan Mohd Sa at 6. Jamaludin Md Ali 7. Kamaruzzaman Abu Kassim 8. A.F.M Shafiqul Hafiz DRMSB is represented by: 1. Tan Sri Dato Muhammad Ali Hashim - Chairman 2. Datin Paduka Siti Sa diah Sheikh Bakir 3. Kamaruzzaman Abu Kassim In accordance with the terms of reference, the meeting of NRC was last held on 22 December THE DIRECTORS OF DAMANSARA REIT MANAGERS SDN BERHAD The Manager is led and managed by an experienced Board of Directors ( Board ) with a wide and varied range of expertise. This broad spectrum of skills and experience gives added strength to the leadership, thus ensuring the Manager is under the guidance of an accountable and competent Board. The Directors recognise the key role they play in charting the strategic direction, development and control of the Manager and have adopted the primary responsibilities as listed in the REIT Guidelines, all of which facilitate the discharge of the Directors stewardship responsibilities. The Board currently has seven Directors comprising five non-independent members, two independent members and one Executive Director. The Executive Director is responsible for the Manager s operations and for ensuring that the strategies proposed by the Board are fully discussed and examined, and take account of the long term interests of the unitholders. Together, the Directors possess the wide range of business, commercial and financial experience essential for the management and direction of its operations. Board Meetings Board meetings are scheduled at least four times per annum to review the operations of Al- Aqar KPJ REIT and to approve the interim and annual financial statements of Al- Aqar KPJ REIT. The Board met four times during the financial year ended 31 December The number of meetings attended by each Director is as follow: Directors Attendance Tan Sri Dato Muhammad Ali Hashim 4/4 Datin Paduka Siti Sa diah binti Sheikh Bakir 4/4 Kamaruzzaman bin Abu Kassim 2/4 Lukman bin Abu Bakar 4/4 Dr. Mohd Hafetz bin Ahmad 3/4 Zainah binti Mustafa 4/4 Yusaini bin Haji Sidek 4/4 The Directors Full Access to and Supply of Information and Advice The Directors have full and unrestricted access to all information pertaining to the business and affairs of Al- Aqar KPJ REIT, both as a full Board and in their individual capacity, to enable them to discharge their duties. There are matters specifically reserved for the Board s decision to ensure that the direction and control of the Manager is firmly in its hands. Prior to Board meetings, all Directors receive the agenda together with a full set of Board papers containing information relevant to the business of the meeting. This allows the Directors to obtain further explanations/clarifications, where necessary, in order to be properly briefed before the meetings. A record of the Board s deliberations of the issues discussed and conclusions reached in discharging its duties and responsibilities is captured in the minutes of each meeting, prepared by the Company Secretary. All Directors have full access to the advice and services of the Company Secretary who ensures that Board procedures are adhered to at all times during meetings and advises the Board on matters including corporate governance issues and the Directors responsibilities in complying with relevant legislation and regulations. Directors Training The Directors are fully cognisant of the importance and value of attending seminars, training programmes and conferences in order to update themselves on developments and changes in the REIT industry, as well as wider economic, financial and governance issues to enhance their skills, knowledge and expertise in their respective fields. All Directors have attended and completed the Mandatory Accreditation Programme prescribed by Bursa Securities, and the Board will continue to evaluate and determine the training needs of its Directors on an ongoing basis ANNUAL REPORT AL- AQAR KPJ REIT

32 penyata tadbir urus korporat JAWATANKUASA PENCALONAN DAN IMBUHAN Selaras dengan amalan korporat Kumpulan Johor Corporation ( JCorp ), fungsi-fungsi dan tanggungjawab Jawatankuasa Pencalonan dan Imbuhan ( NRC ) DRMSB kini telah diambil alih oleh NRC Kumpulan JCorp. Langkah memusatkan fungsi NRC di peringkat Kumpulan adalah satu amalan lazim bagi mana-mana syarikat global dan multinasional utama. Faktor utama adalah kelebihan strategik yang dapat disumbangkan melalui akses yang lebih meluas dan pilihan yang lebih banyak untuk mengesan pekerja-pekerja berbakat, berkemahiran dan mempunyai kepakaran disamping sebagai menentukan tanda aras imbuhan di peringkat Kumpulan secara menyeluruh. DRMSB diwakili secara langsung dan bilangan besar dalam NRC JCorp di mana tiga daripada tujuh ahli NRC adalah ahli-ahli Pengarah DRMSB termasuk Pengerusinya. Ahli NRC JCorp adalah seperti berikut: 1. Tan Sri Dato Muhammad Ali Hashim - Pengerusi 2. Tan Sri Datuk Arshad Ayub 3. Datin Paduka Siti Sa diah Sheikh Bakir 4. Ahamad Mohamad 5. Rozan Mohd Sa at 6. Jamaludin Md Ali 7. Kamaruzzaman Abu Kassim 8. A.F.M Shafiqul Hafiz DRMSB diwakili oleh: 1. Tan Sri Dato Muhammad Ali Hashim - Pengerusi 2. Datin Paduka Siti Sa diah Sheikh Bakir 3. Kamaruzzaman Abu Kassim Selaras dengan terma-terma rujukan, mesyuarat NRC yang terkini telah diadakan pada 22 Disember LEMBAGA PENGARAH DAMANSARA REIT MANAGERS SDN BERHAD Pihak Pengurusan diketuai dan diurus oleh ahli-ahli lembaga pengarah berpengalaman ( Lembaga Pengarah ) dengan kepakaran yang luas dan berbagai-bagai. Spektrum yang luas melalui kemahiran-kemahiran dan pengalaman yang ada menambahkan kekuatan untuk kepimpinan, demikian menjamin Pihak Pengurusan adalah di bawah bimbingan Lembaga Pengarah yang bertanggungjawab dan cekap. Lembaga Pengarah sedar peranan penting mereka dalam mencarta arah strategik, pembangunan dan kawalan Pengurusan dan memikul tanggung jawab utama sebagaimana yang tersenarai didalam Garis Panduan REIT, kesemuanya telah memudahkan perlaksanaan tugas dan tanggungjawab Lembaga Pengarah. Lembaga Pengarah kini mempunyai tujuh orang anggota yang terdiri daripada lima ahli bukan bebas, dua ahli bebas dan seorang Pengarah Eksekutif. Pengarah Eksekutif bertanggungjawab dalam operasi Pihak Pengurusan dan untuk memastikan strategi- strategi yang dicadangkan oleh Lembaga Pengarah adalah sepenuhnya dibincangkan dan diperiksa, dan mengambil kira segala kepentingan jangka panjang Pemegang unit. Bersama, Ahli Lembaga Pengarah memiliki pengalaman luas dalam pelbagai bidang perniagaan, perdagangan dan kewangan yang penting bagi pengurusan dan halatuju operasinya. Mesyuarat Lembaga Pengarah Mesyuarat Lembaga Pengarah dijadualkan sekurang-kurangnya empat kali setiap tahun untuk mengkaji semula operasi Al- Aqar KPJ REIT dan untuk meluluskan penyata-penyata kewangan interim dan tahunan Al- Aqar KPJ REIT. Lembaga Pengarah bermesyuarat sebanyak empat kali disepanjang tahun kewangan berakhir 31 Disember Bilangan mesyuarat yang dihadiri oleh Ahli Lembaga Pengarah adalah seperti berikut: Pengarah Kehadiran Tan Sri Dato Muhammad Ali Hashim 4/4 Datin Paduka Siti Sa diah binti Sheikh Bakir 4/4 Kamaruzzaman bin Abu Kassim 2/4 Lukman bin Abu Bakar 4/4 Dr. Mohd Hafetz bin Ahmad 3/4 Zainah binti Mustafa 4/4 Yusaini bin Haji Sidek 4/4 Akses Menyeluruh Ahli Lembaga Pengarah kepada Maklumat dan Nasihat Ahli Lembaga Pengarah mempunyai akses sepenuhnya dan tanpa batas keatas semua maklumat yang berkaitan perniagaan dan hal-ehwal Al- Aqar KPJ REIT, selaku Ahli Lembaga Pengarah dan kuasa individu masing-masing, bagi membolehkan mereka menjalankan tugas. Terdapat perkara- perkara khusus untuk keputusan Lembaga Pengarah demi memastikan halatuju dan kawalan Pengurusan adalah kemas dan terkawal Sebelum mesyuarat Lembaga Pengarah, semua Pengarah menerima agenda mesyuarat berserta satu set lengkap kertas kerja Lembaga Pengarah yang mengandungi maklumat-maklumat berkaitan. Ini membolehkan Pengarah untuk mendapatkan penghuraian/penerangan lanjut, jika perlu, agar menerima taklimat yang betul sebelum mesyuarat. Satu rekod semua pertimbangan Lembaga Pengarah tentang isu perbincangan dan kesimpulan yang diperolehi dalam melaksanakan tugas dan tanggungjawab dicatatkan dalam minit setiap mesyuarat, yang disediakan oleh Setiausaha Syarikat. Semua Pengarah mempunyai akses penuh perkhidmatan dan nasihat Setiausaha Syarikat yang memastikan bahawa prosedur Lembaga Pengarah dipatuhi sepanjang masa mesyuarat dan menasihat Lembaga Pengarah mengenai hal-hal termasuk isu-isu tadbir urus korporat dan tanggungjawab Pengarah dalam mematuhi undang-undang dan peraturan yang berkenaan. Latihan Ahli Lembaga Pengarah Ahli Lembaga Pengarah sedar sepenuhnya kepentingan dan nilai menghadiri seminar, program latihan dan persidangan dalam rangka mengemaskini diri tentang perkembangan dan perubahan dalam industri REIT, serta perkembangan ekonomi, kewangan dan isu-isu tadbir urus yang lebih meluas bagi meningkatkan kemahiran, pengetahuan dan kepakaran dalam bidang masingmasing. Semua Pengarah telah menghadiri dan tamat Program Akreditasi Mandatori yang ditetapkan oleh Bursa Sekuriti, dan Lembaga Pengarah akan terus menilai dan menentukan keperluan latihan untuk Ahli Lembaga Pengarah secara berterusan. AL- AQAR KPJ REIT laporan tahunan

33 statement of corporate governance Throughout the financial year under review, the Directors attended various conferences, programmes and speaking engagements covering areas that included corporate governance, leadership, updates on the REIT industry and global business developments. Convictions for Offences None of the Directors has been convicted for offences within the past 10 years. ACCOUNTABILITY AND AUDIT Financial Reporting and Audit The Directors are responsible for ensuring that financial statements of the Trust are drawn up in accordance with applicable approved accounting standards in Malaysia, the provisions of the Companies Act 1965, the REIT Guidelines and the Deed. In presenting the financial statements, the Manager has used appropriate accounting policies, consistently applied and supported by reasonable and prudent judgements and estimates. The Directors also strive to ensure that financial reporting presents a fair and understandable assessment of the position and prospects of Al- Aqar KPJ REIT. Interim financial statements are reviewed and approved by the Directors prior to release to the relevant regulatory authorities. Internal Control The Board is responsible for maintaining a system of internal control that covers financial and operational controls and risk management. The system provides reasonable but not absolute assurance against material misstatement of management and financial information or against financial losses and fraud. IRELATED PARTY TRANSACTIONS AND CONFLICT OF INTEREST Conflict of Interest Save for the Directors interests in Al- Aqar KPJ REIT (as disclosed under Statement of Interest of Directors of the Manager) and the transactions with companies related to the Manager (as disclosed in the notes to the financial statements), no conflict of interest has arisen during the financial year under review. The Manager will establish procedures that will ensure that related party transactions and conflicts of interest are undertaken in full compliance with the SC REIT Guidelines, the Trust Deed and the Bursa Listing Requirements. Material Contracts There were no material contracts entered by the Trust that involved the Directors of the Manager or substantial Unitholders of the Trust during the financial year under review. Communication with Unitholders and Investors The Board recognises the importance of timely dissemination of information to shareholders and accordingly ensures that they are well informed of any major developments of Al- Aqar KPJ REIT. Such information is communicated through the annual report, the Trust s various disclosures and announcements to Bursa Securities, including quarterly and annual results, and the corporate website. Relationship with the Auditors The Board has established a formal and transparent arrangement for maintaining an appropriate relationship with the auditors of Al- Aqar KPJ REIT. Auditors report their findings to members of the Board as part of the audit process on the statutory financial statements each financial year. From time to time, the auditors highlight matters that require attention to the Board. The auditors appointed must be independent of the Manager and Trustee ANNUAL REPORT AL- AQAR KPJ REIT

34 penyata tadbir urus korporat Sepanjang tahun kewangan dalam ulasan, Ahli Lembaga Pengarah telah menghadiri pelbagai persidangan, program dan ceramah yang merangkumi topik-topik tadbir urus korporat, kepimpinan, maklumat baru industri REIT dan perkembangan perniagaan global. Tuduhan kesalahan Tiada Ahli Lembaga Pengarah telah disabitkan dengan apa-apa kesalahan dalam tempoh 10 tahun yang lepas. KEBERTANGGUNGJAWABAN DAN AUDIT Laporan Kewangan dan Audit Kesemua Ahli Lembaga Pengarah bertanggungjawab untuk memastikan bahawa penyata kewangan Amanah disusun rapi selaras dengan piawaian perakaunan yang berkenaan yang diluluskan di Malaysia, peruntukan-peruntukan dalam Akta Syarikat 1965, Garis Panduan REIT dan Surat Ikatan. Dalam membentangkan penyata kewangan, Pihak Pengurusan telah menggunakan dasar perakaunan yang tepat, yang diterapkan secara konsisten dan disokong dengan penilaian dan anggaran yang munasabah dan cermat. Pengarah juga berusaha untuk memastikan bahawa penyata kewangan menghasilkan penilaian kedudukan dan prospek Al- Aqar KPJ REIT yang saksama dan mudah difahami. Penyata kewangan interim dipantau dan diluluskan oleh Lembaga Pengarah sebelum diserahkan kepada pihak berkuasa yang berkenaan. Kawalan Dalaman URUSNIAGA-URUSNIAGA PIHAK BERKAITAN DAN PERCANGGAHAN KEPENTINGAN Percanggahan Kepentingan Selain dari kepentingan Pengarah dalam Al- Aqar KPJ REIT (seperti yang tertera dalam Penyata Kepentingan Lembaga Pengarah pihak Pengurus) dan urusniaga dengan syarikat-syarikat yang berkaitan dengan Pengurus (seperti yang tertera dalam nota penyata kewangan), tiada percanggahan kepentingan telah timbul semasa tahun kewangan dalam ulasan. Pengurus akan menetapkan prosedur yang akan memastikan bahawa urusniaga pihak berkaitan dan percanggahan kepentingan diberi perhatian selaras dengan Garis Panduan REIT SC, Surat Ikatan dan Tuntutan Penyenaraian Bursa. Kontrak-kontrak yang Penting Tiada sebarang kontrak yang penting yang dipersetujui pihak Amanah melibatkan Ahli Lembaga Pengarah pihak Pengurus atau Pemegang unit Amanah pada tahun kewangan dalam ulasan. Komunikasi dengan Pemegang Unit dan Pelabur Lembaga Pengarah mengakui pentingnya penyebaran maklumat yang bertepatan waktu kepada para Pemegang unit dan memastikan mereka mendapat maklumat yang cukup bagi setiap perkembangan penting dalam Al- Aqar KPJ REIT. Maklumat tersebut dihebahkan melalui laporan tahunan, dan pelbagai penyataan dan pengumuman Amanah kepada Bursa Sekuriti, termasuk keputusan suku tahun dan tahunan, dan laman web korporat. Lembaga Pengarah bertanggungjawab untuk memelihara sistem kawalan dalaman yang meliputi kawalan kewangan dan pengendalian dan pengurusan risiko. Sistem memberikan maklumat munasabah tanpa memberi jaminan muktamad terhadap tersilap bentang bahan maklumat pengurusan dan kewangan atau terhadap kerugian kewangan dan penipuan.. Hubungan dengan Juruaudit Lembaga Pengarah telah menerapkan panduan rasmi dan telus untuk menjalin hubungan yang bersesuaian dengan juruaudit Al- Aqar KPJ REIT. Juruaudit melaporkan penemuan mereka kepada Ahli Lembaga Pengarah sebagai sebahagian dari proses audit keatas penyata kewangan berdasarkan undang-undang setiap tahun kewangan. Dari masa ke masa, juruaudit mengemukakan hal-hal yang memerlukan perhatian Lembaga Pengarah. Juruaudit yang dilantik mestilah bebas dari Pengurus dan Pemegang Amanah. AL- AQAR KPJ REIT laporan tahunan

35 Manager s Report For the financial year ended 31 December 2009 Damansara REIT Managers Sdn Berhad (DRMSB), the Manager of Al- Aqar KPJ Real Estate Investment Trust (Al- Aqar KPJ REIT) have pleasure in submitting their report to the Unitholders of Al- Aqar KPJ REIT together with the audited financial statements of Al- Aqar KPJ REIT for the financial year ended 31 December THE TRUST AND THE MANAGER Al- Aqar KPJ REIT is a Malaysian-based real estate and investment trust, established on 28 June 2006 pursuant to the execution of a Trust Deed dated 27 June 2006 between the Manager ( DRMSB ), and the Trustee ( Amanah Raya Berhad ). It was listed on the Main Board of Bursa Malaysia on 10 August Al- Aqar KPJ REIT was initially formed to own and invest in Syariah acceptable properties which comprise of KPJ Ampang Puteri Specialist Hospital Building, KPJ Damansara Specialist Hospital Building, KPJ Johor Specialist Hospital Building, KPJ Ipoh Specialist Hospital Building, Puteri Specialist Hospital Building and KPJ Selangor Specialist Hospital Building. Second acquisition in year 2008 inclusive of Perdana Specialist Hospital Building, Kuantan Specialist Hospital Building, Sentosa Medical Centre Building, KPJ Kajang Specialist Hospital and Kedah Medical Centre Building. Third acquisition consists of Seremban Specialist Hospital Building, Taiping Medical Centre Building, Damai Specialist Hospital Building, Bukit Mertajam Specialist Hospital Building, Tawakal Existing Building and KPJ Penang Specialist Hospital Building. Two additional properties are not hospital-related but are complementary to the health tourism industry, namely Selesa Tower and KPJ International College Complex (collectively the Properties ). The Manager, incorporated in Malaysia, is a wholly-owned subsidiary of Damansara Assets Sdn Bhd, a subsidiary of Johor Corporation. The principal activity of the Manager is management of real estate investment trusts. There has been no significant change in the nature of the activity during the period. FUND OBJECTIVE Our key objective of Al- Aqar KPJ REIT is to provide Unitholders with stable distributions per unit with the potential for sustainable long-term growth of such distributions and Net Asset Value (NAV) per unit. The objective is sought to be achieved by optimising the performance and enhancing the overall quality for a large and geographically diversified portfolio of Syariah-compliant real estate assets through various permissible investment and business strategies. For the period ended 31 December 2009, the Al- Aqar KPJ REIT has declared an income distribution of 8.10 sen per unit which is in line with the objective of providing the unitholders with a steady stream of income. CATEGORY OF FUND TYPE OF FUND Income and growth. TERM OF THE FUND The Fund has no fixed termination date. However, the Trust Deed does provide for a number of circumstances under which the Fund may be terminated. INVESTMENT POLICIES i. Portfolio Composition Al- Aqar KPJ REIT s investments maybe allocated in the following manner, as prescribed by the Guidelines on Real Estate Investment Trust ( Guidelines on REITs ) and the Guidelines for Islamic Real Estate Investment Trust ( Guidelines on Islamic REITs ):- a. at least 75% of Al- Aqar KPJ REIT s total assets shall be invested in Syariah-compliant real estate, single-purpose companies which are Syariah-compliant, Syariah-compliant real estate-related assets or liquid assets; b. at least 50% of Al- Aqar KPJ REIT s total assets must be invested in Syariah-compliant real estate or single-purpose companies which are Syariah-compliant; and c. the remaining 25% of Al- Aqar KPJ REIT s total assets may be invested in other Syariah-compliant assets (i.e. Syariah-compliant real estate-related assets, Syariah-compliant non-real estate-related assets or Islamic asset-backed securities). ii. Diversification Al- Aqar KPJ REIT will seek to diversify its Syariah-compliant real estate portfolio by property and location type. Al- Aqar KPJ REIT will primarily be focused on investing in real estates which are primarily used for healthcare purposes and will continue to look for opportunities that will provide attractive returns. iii. Leverage Al- Aqar KPJ REIT will be able to leverage on its financing to make the permitted investments. Leveraging on its financing will enable the returns to unitholders to increase. Real estate and real estate-related assets ANNUAL REPORT AL- AQAR KPJ REIT

36 laporan pengurus bagi tahun kewangan berakhir pada 31 Disember 2009 Damansara REIT Managers Sdn Berhad (DRMSB), Pengurus Amanah Pelaburan Hartanah Islam Al- Aqar KPJ (Al- Aqar KPJ REIT) dengan sukacitanya membentangkan Laporan Pengurus kepada Pemegang Unit Al- Aqar KPJ REIT berserta dengan penyata kewangan Al- Aqar KPJ REIT bagi tahun kewangan berakhir pada 31 Disember DANA AMANAH, PENGURUS DAN AKTIVITI UTAMA Al- Aqar KPJ REIT adalah sebuah dana amanah pelaburan hartanah yang berpangkalan di Malaysia telah ditubuhkan pada 28 Jun 2006 dengan termeterainya Surat Ikatan bertarikh 27 Jun 2006 diantara Pengurus (DRMSB) dan Pemegang Amanah (Amanah Raya Berhad). Ia telah disenaraikan di Papan Utama Bursa Malaysia pada 10 Ogos Al- Aqar KPJ REIT pada asalnya ditubuhkan untuk memiliki dan melabur dalam hartanah yang boleh diterima Syariah yang terdiri daripada Bangunan Hospital Pakar KPJ Ampang Puteri, Bangunan Hospital Pakar KPJ Damansara, Bangunan Hospital Pakar KPJ Johor, Bangunan Hospital Pakar KPJ Ipoh, Bangunan Hospital Pakar Puteri dan Bangunan Hospital Pakar KPJ Selangor. Pemilikan kedua pada tahun 2008 termasuk Bangunan Hospital Pakar Perdana, Bangunan Hospital Pakar Kuantan, Bangunan Pusat Perubatan Sentosa, Bangunan Hospital Pakar KPJ Kajang dan Bangunan Pusat Perubatan Kedah. Pemilikan ketiga terdiri dari Bangunan Hospital Pakar Seremban, Bangunan Pusat Perubatan Taiping, Bangunan Hospital Pakar Damai, Bangunan Hospital Pakar Bukit Mertajam, Bangunan sedia ada Tawakal dan Bangunan Hospital Pakar KPJ Pulau Pinang. Dua hartanah tambahan diluar kategori hospital tetapi pelengkap industri pelancongan kesihatan, iaitu Menara Selesa dan Kompleks Kolej Antarabangsa KPJ (dikenali sebagai hartanah ). Diperbadankan di Malaysia, Pengurus adalah syarikat milik penuh Damansara Assets Sdn Bhd yang merupakan anak syarikat Johor Corporation. Aktiviti utama Pengurus adalah pengurusan amanah pelaburan hartanah. Tiada sebarang perubahan ketara di dalam aktiviti utama di sepanjang tempoh ini. Aktiviti utama Al- Aqar KPJ REIT adalah melabur dalam hartanah yang berlandaskan syariah dengan objektif utamanya untuk menyediakan pengagihan pendapatan yang stabil dan berpotensi untuk mengekalkan pertumbuhan jangka masa panjang dan peningkatan modal. MATLAMAT DANA Matlamat utama dana Al- Aqar KPJ REIT adalah menyediakan pengagihan pendapatan seunit yang stabil dengan potensi pertumbuhan jangka panjang boleh kekal bagi pengagihan pendapatan dan Nilai Aset Bersih (NAB) seunit kepada pemegang unit. Adalah dihasratkan matlamat ini akan tercapai dengan memantapkan prestasi dan mempertingkatkan mutu keseluruhan portfolio aset hartanahyang meluas dan pelbagai kedudukan geografikal yang mematuhi Syariah menerusi beberapa strategi perniagaan dan pelaburan yang dibenarkan. Bagi tempoh berakhir 31 Disember 2009, Al- Aqar KPJ REIT telah mengisytiharkan pengagihan pendapatan sebanyak 8.10 sen seunit, sejajar dengan matlamatnya untuk menyediakan pendapatan yang stabil kepada pemegang unit. GOLONGAN DANA Hartanah dan aset-aset berkaitan hartanah. JENIS DANA Pendapatan dan pertumbuhan. TEMPOH DANA Tiada ditetapkan tarikh penamatan dana. Walaubagaimanapun, Surat Ikatan Amanah ada memperuntukkan keadaan-keadaan dimana dana boleh ditamatkan. POLISI-POLISI PELABURAN i. Komposisi Portfolio Pelaburan Al- Aqar KPJ REIT mungkin diperuntukkan dengan komposisi berikut, seperti yang dinyatakan di dalam Garis Panduan bagi Amanah Pelaburan Hartanah (Garis Panduan REIT) dan Garis Panduan bagi Amanah Pelaburan Hartanah Islam (Garis Panduan REIT Islam):- a. Sekurang-kurangnya 75% dari jumlah aset Al- Aqar KPJ REIT perlu dilaburkan dalam hartanah yang mematuhi Syariah, syarikat bertujuan khusus yang mematuhi Syariah, aset-aset berkaitan hartanah atau aset cair yang mematuhi Syariah; b. Sekurang-kurangnya 50% dari jumlah aset Al- Aqar KPJ REIT mesti dilaburkan dalam hartanah yang mematuhi Syariah atau syarikat bertujuan khusus yang mematuhi Syariah; dan c. Baki 25% dari jumlah aset Al- Aqar KPJ REIT boleh dilaburkan dalam lain-lain aset yang mematuhi Syariah (contoh: aset-aset berkaitan hartanah yang mematuhi Syariah, aset-aset tiada berkaitan hartanah yang mematuhi Syariah atau sekuriti sokongan aset Islam) ii. Kepelbagaian Al- Aqar KPJ REIT akan mempelbagaikan portfolio hartanah yang mematuhi Syariah berdasarkan ciri-ciri harta dan lokasi. Al- Aqar KPJ REIT akan memberikan tumpuan utamanya pada pelaburan dalam hartanah dimana bidang prisihatin merupakan kegunaan utama dan akan terus mencari peluang-peluang yang akan menghasilkan pulangan menarik. iii. Penuasan Al- Aqar KPJ REIT boleh menuaskan pembiayaannya untuk membuat pelaburan yang dibenarkan. Penuasan keatas pembiayaan dapat meningkatkan pulangan kepada pemegang unit. AL- AQAR KPJ REIT laporan tahunan

37 manager s report PROPERTY PROFILE The details of real estate properties under Al- Aqar KPJ REIT are as follows: 1. KPJ Ampang Puteri Specialist Hospital The building is a purpose built private specialist hospital comprising of six storey main building with a lower ground floor and a four storey annex block specialists' centre, together with open car parks. Address: No. 1, Jalan Mamanda 9, Taman Dato' Ahmad Razali, Ampang, Selangor Title Details: Leasehold land under title no. HS(M) 26550, Lot No. PT 25119, Mukim of Ampang, District of Hulu Langat, Selangor. Year of Completion: 1995 Occupancy: 100% by Ampang Puteri Specialist Hospital Sdn Bhd, the operator of KPJ Ampang Puteri Specialist Hospital. Land Area: 21,664 square meter Gross Floor Area: 39,360 square meter 3. KPJ Selangor Specialist Hospital The building is a six storey purpose built private hospital with basement, together with all fixtures and fittings. Address: Lot 1, Jalan Singa 20/1, Shah Alam, Selangor. Title Details: Leasehold land under title no. HSD , Lot No. PT 2, Section 20, Town of Shah Alam, District of Petaling, Selangor. Year of Completion: 1996 Occupancy: 100% by Selangor Specialist Hospital Sdn Bhd, the operator of KPJ Selangor Specialist Hospital. Land Area: 18,894 square meter Gross Floor Area: 19, square meter 4. KPJ Ipoh Specialist Hospital The building is a 200-bed medical centre annexe with an extension of 66-bed, five (5) storey building with a basement, together with all fixtures and fittings. Address: No. 26, Jalan Raja DiHilir, Ipoh, Perak. 2. KPJ Damansara Specialist Hospital The building is a six storey purpose built private hospital with a basement, inclusive of approximately one and a half levels of shell floors, together with open car parks. Address: No 119, Jalan SS 20/10 Damansara Utama, Petaling Jaya, Selangor. Title Details: Freehold land under title no. HSD , Lot No. PT 1856, Mukim of Sungai Buloh, District of Petaling, Selangor. Year of Completion: 1998 Occupancy: 100% by Damansara Specialist Hospital Sdn Bhd, the operator of KPJ Damansara Specialist Hospital. Title Details: Leasehold lands under title nos. PN 6451, PN and HSD , Lot Nos , 10490, and PT , Town of Ipoh, District of Kinta, Perak. Year of Completion: Main Building Extension Occupancy: 100% by Ipoh Specialist Hospital Sdn Bhd, the operator of KPJ Ipoh Specialist Hospital. Land Area: 13,276 square meter Gross Floor Area: Main building - 12,173 meter persegi Extension - 20, meter persegi Land Area: 16,710 square meter Gross Floor Area: 41,354 square meter ANNUAL REPORT AL- AQAR KPJ REIT

38 laporan pengarah PROFAIL HARTANAH Butiran terperinci hartanah milik Al- Aqar KPJ REIT adalah seperti berikut: 1. Hospital Pakar KPJ Ampang Puteri Bangunan hospital pakar dibina khas dengan bangunan utama enam tingkat dan tingkat bawah tanah, dan blok tambahan pusat pakar empat tingkat juga berserta tingkat bawah tanah. Terdapat juga medan kereta terbuka. Alamat: No. 1, Jalan Mamanda 9, Taman Dato' Ahmad Razali, Ampang, Selangor. Keterangan Pegangan: Pegangan pajak hak milik no. HS(M) 26550, No. Lot PT 25119, Mukim Empang, Daerah Hulu Langat, Selangor. Tahun Siap: 1995 Penghunian: 100% oleh Puteri Specialist Hospital Sdn Bhd, operator Hospital Pakar KPJ Ampang Puteri. Keluasan Tanah: 21,664 meter persegi Keluasan Lantai Kasar: 39,360 meter persegi 3. Hospital Pakar KPJ Selangor Bangunan hospital swasta enam tingkat berserta tingkat bawah tanah, berserta semua lekapan dan kelengkapan. Alamat: Lot 1, Jalan Singa 20/1, Shah Alam, Selangor. Keterangan Pegangan: Pegangan pajak hak milik no. HSD , No. Lot PT 2, Sekyen 20, Bandar Shah Alam, Daerah Petaling, Selangor. Tahun Siap: 1996 Penghunian: 100% oleh Selangor Specialist Hospital Sdn Bhd, operator Hospital Pakar KPJ Selangor. Keluasan Tanah: 18,894 meter persegi Keluasan Lantai Kasar: 19, meter persegi 4. Hospital Pakar KPJ Ipoh Bangunan merupakan pusat perubatan 200 katil dengan bangunan lima tingkat tambahan 66 katil dan satu tingkat bawah tanah, berserta semua lekapan dan kelengkapan. Alamat: No. 26, Jalan Raja DiHilir, Ipoh, Perak. 2. Hospital Pakar KPJ Damansara Bangunan hospital swasta dibina khas enam tingkat dengan tingkat bawah tanah termasuk hampir satu setengah aras tingkat kosong, berserta medan kereta terbuka. Alamat: No 119, Jalan SS 20/10 Damansara Utama, Petaling Jaya, Selangor. Keterangan Pegangan: Pegangan kekal hak milik no. HSD , No. Lot PT 1856, Mukim Sungai Buluh, Daerah Petaling, Selangor. Tahun Siap: 1998 Penghunian: 100% oleh Damansara Specialist Hospital Sdn Bhd, operator Hospital Pakar KPJ Damansara. Keterangan Pegangan: Pegangan pajak hak milik no. PN 6451, PN 6450, PN dan HSD , No. Lot 10259, 10490, 34494, dan PT , Bandar Ipoh, Daerah Kinta, Perak. Tahun Siap: Bangunan utama 1980 Bangunan tambahan Penghunian: 100% oleh Ipoh Specialist Hospital Sdn Bhd, operator Hospital Pakar KPJ Ipoh. Keluasan Tanah: 13,276 meter persegi Keluasan Lantai Kasar: Bangunan utama - 12,173 meter persegi Bangunan Tambahan 20, meter persegi Keluasan Tanah: 16,710 meter persegi Keluasan Lantai Kasar: 41,354 meter persegi AL- AQAR KPJ REIT laporan tahunan

39 manager s report 5. Puteri Specialist Hospital The building is a six storey purpose built private hospital, together with all fixtures and fittings. Address: No. 33, Jalan Tun Abdul Razak (Susur 5), Johor Bahru, Johor. Title Details: Leasehold land held under title no. HS(D) , Lot No. PTB 21513, Township of Johor Bahru, District of Johor Bahru, Johor. Year of Completion: 1986 Occupancy: 100% by Puteri Specialist Hospital (Johor) Sdn Bhd, the operator of Puteri Specialist Hospital. Land Area: 6,680 square meter Gross Floor Area: 12, square meter 7. Perdana Specialist Hospital A five storey private specialist hospital with a sub-basement, together with all fixtures and fittings. Address: No. PT 37 and PT 600, Jalan Bayam, Section 14, Kota Bharu, Kelantan. Title Details: Leasehold land under title no. HSD 917, Lot No. PT 616, Section 14, Town of Kota Bharu, district of Kota Bharu, Kelantan. Year of Completion: 2002 Occupancy: 100% by Perdana Specialist Hospital Sdn Bhd, the operator of Perdana Specialist Hospital. Land Area: 8,282 square meter Gross Floor Area: 13,628 square meter 6. KPJ Johor Specialist Hospital The building is a purpose built private hospital comprising six level with mezzanine floor main hospital building, a four level physician consulting building together with a two level basement car parks and open car parks. Address: No. 39-B, Jalan Abdul Samad, Johor Bahru. Title Details: Leasehold land under title no. HS(D) 46353, Lot No. PTB 12319, Township of Johor Bahru, District of Johor Bahru, Johor. Year of Completion: Main hospital building Physician Consulting Building Occupancy: 100% by Johor Specialist Hospital Sdn Bhd, the operator of KPJ Johor Specialist Hospital. Land Area: 20,234 square meter Gross Floor Area: 25,044 square meter 8. Kuantan Specialist Hospital A purpose-built private specialist hospital comprising a three storey Block A, a five storey annexe Block B and an open car park. Address: No. 51 Jalan Alor Akar, Taman Kuantan, Kuantan, Pahang. Title Details: Freehold land under title nos. GM 3441, GM 3442, GM 3466, GM 2827, GM 2823, GM 3443, GM 1575, GM 6875, Lot nos. 5885, 5886, 5888, 5889, 58901, 5891, and respectively, Mukim of Kuala Kuantan, district of Kuantan in Pahang. Year of Completion: Block A in 1983 and Block B in Occupancy: 100% by Kuantan Specialist Hospital Sdn Bhd, the operator of Kuantan Specialist Hospital. Land Area: 6,700 square meter Gross Floor Area: 6,708 square meter ANNUAL REPORT AL- AQAR KPJ REIT

40 laporan pengarah 5. Hospital Pakar Puteri Bangunan dibina khas untuk hospital swasta enam tingkat, berserta semua lekapan dan kelengkapan. Alamat: No. 33, Jalan Tun Abdul Razak (Susur 5), Johor Bahru, Johor. Keterangan Pegangan: Pegangan pajak hak milik no. HS(D) 72199, No. Lot PTB 21512, Bandar Johor Bahru, Daerah Johor Bahru, Johor. Tahun Siap: 1986 Penghunian: 100% oleh Puteri Specialist Hospital (Johor) Sdn Bhd, operator Hospital Pakar Puteri. Keluasan Tanah: 6,680 meter persegi Keluasan Lantai Kasar: 12, meter persegi 7. Hospital Pakar Perdana Bangunan dibina khas untuk hospital swasta lima tingkat dengan aras bawah, berserta semua lekapan dan kelengkapan. Alamat: No. PT 37 and PT 600, Jalan Bayam, Seksyen 14, Kota Bharu, Kelantan. Keterangan Pegangan: Pegangan pajak hak milik no. HSD 917, Lot No. PT616, Seksyen 14, Bandar Kota Bahru, Daerah Kota Bahru, Kelantan. Tahun Siap: 2002 Penghunian: 100% oleh Perdana Specialist Hospital Sdn Bhd, operator Hospital Pakar Perdana. Keluasan Tanah: 8,282 meter persegi Keluasan Lantai Kasar: 13,628 meter persegi 6. Hospital Pakar KPJ Johor Bangunan adalah sebuah hospital swasta dibina khas terdiri dari enam aras berserta tingkat mezanin di bangunan utama, bangunan pakar perunding perubatan khas empat aras berserta dua medan kereta aras bawah dan terbuka. Alamat: No. 39-B, Jalan Abdul Samad, Johor Bahru. Keterangan Pegangan: Pegang pajak hak milik no. HS(D) 46353, No. Lot PTB Bandar Johor Bahru, Daerah Johor Bahru, Johor. Tahun Siap: Bangunan utama Bangunan perunding pakar Penghunian: 100% oleh Johor Specialist Hospital Sdn Bhd, operator Hospital Pakar KPJ Johor. Keluasan Tanah: 20,234 meter persegi Keluasan Lantai Kasar: 25,044 meter persegi 8. Hospital Pakar Kuantan Hospital pakar swasta yang dibina khas terdiri dari Blok A tiga tingkat, tambahan Blok B lima tingkat dan medan kereta terbuka Alamat: No. 51 Jalan Alor Akar, Taman Kuantan, Kuantan, Pahang. Keterangan Pegangan: Pegangan kekal hak milik no. GM 3441, GM 3442, GM 3466, GM 2827, GM 2823, GM 3443, GM 1575, GM 6875, No. Lot 5885, 5886, 5888, 5889, 58901, 5891, dan 10748, Mukim Kuala Kuantan, Daerah Kuantan di Pahang. Tahun Siap: Blok A Blok B Penghunian: 100% oleh Kuantan Specialist Hospital Sdn Bhd, operator Hospital Pakar Kuantan. Keluasan Tanah: 6,700 meter persegi Keluasan Lantai Kasar: 6,708 meter persegi AL- AQAR KPJ REIT laporan tahunan

41 manager s report 9. Sentosa Medical Centre A seven storey private specialist hospital with a lower ground floor, together with all fixtures and fittings. Address: No. 36 Jalan Chemur Damai Complex, Kuala Lumpur. Title Details: Freehold land under title no. GRN 43923, Lot No. 671, Town of Kuala Lumpur, District of Kuala Lumpur, Federal Territory of Kuala Lumpur. Year of Completion: 1993 Occupancy: 100% by Sentosa Medical Centres Sdn Bhd, the operator of Sentosa Medical Centre. Land Area: 2,198 square meter Gross Floor Area: 9,931 square meter 11. Kedah Medical Centre A ten storey private specialist hospital, inclusive of two shell floors, with three storey annexe block, together with all fixtures and fittings. Address: Pumpong, Alor Setar, Kedah Darul Aman. Title Details: Freehold land under title no. HSM 10923, Lot No. PT 1280, Bandar Alor Setar and title nos. HSM 1/1997, GM 1436 and GM 1437, Lot Nos. PT 1350, 336 and 337 respectively, Mukim of Alor Merah, all in the District of Kota Setar, Kedah Year of Completion: Three storey block 1987, and 10 storey block in 2004 Occupancy: 100% by Kedah Medical Centre Sdn Bhd, the operator of Kedah Medical Centre. Land Area: 7,729 square meter Gross Floor Area: 20,748 square meter 10. KPJ Kajang Specialist Hospital A seven storey purpose built specialist hospital with a lower ground floor, together with all fixtures and fittings. Address: Jalan Cheras, Kajang, Selangor Darul Ehsan. Title Details: Freehold land under title no. HSM 22394, Lot No , Mukim of Kajang, District of Hulu Langat, Selangor. Year of Completion: 2006 Occupancy: 100% by Kajang Specialist Hospital Sdn Bhd, the operator of KPJ Kajang Specialist Hospital. Land Area: 6,404 square meter Gross Floor Area: 17,758 square meter 12. Bukit Mertajam Specialist Hospital An existing six storey purpose built private specialist hospital building with a basement level and car parks together with all fixtures and fittings. Address: No. 565, Jalan Sungai Rambai, Bukit Mertajam, Pulau Pinang Title Details: Freehold land under title nos. GRN and 19017, Lot Nos 1417 and 54, and two parcels of development land held under title nos. GRN and HSD 47983, Lot Nos. 55 and 1529, all situated at Section 5, Town of Bukit Mertajam, Seberang Perai Tengah, Pulau Pinang. Year of Completion: 1995 Occupancy: 100% by Bukit Mertajam Specialist Hospital Sdn Bhd, the operator of Bukit Mertajam Specialist Hospital. Land Area: 12,455.9 square meter Gross Floor Area: 3,917.1 square meter ANNUAL REPORT AL- AQAR KPJ REIT

42 laporan pengarah 9. Pusat Perubatan Sentosa Bangunan tujuh tingkat hospital pakar dengan tingkat bawah berserta semua lekapan dan kelengkapan. Alamat: No. 36 Jalan Chemur, Kompleks Damai, Kuala Lumpur. Keterangan Pegangan: Pegangan kekal hak milik no. GRN 43923, Lot No. 671, Bandar Kuala Lumpur, Daerah Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur. Tahun Siap: 1993 Penghunian: 100% oleh Sentosa Medical Centres Sdn Bhd, operator Pusat Perubatan Sentosa. Keluasan Tanah: 2,198 meter persegi Keluasan Lantai Kasar: 9,931 meter persegi 11. Pusat Perubatan Kedah Hospital pakar swasta sepuluh tingkat, termasuk dua aras kosong dan blok tiga tingkat, berserta semua lekapan dan kelengkapan. Alamat: Pumpong, Alor Setar, Kedah Darul Aman. Keterangan Pegangan: Pegangan kekal hak milik no. HSM 1/1997, GM 1436 and GM 1437, Lot No. PT 1350, 336 dan 337, Mukim Alor Merah, Daerah Kota Setar, Kedah Darul Aman. Tahun Siap: Blok 3 tingkat 1987 Blok 10 tingkat Penghunian: 100% oleh Kedah Medical Centre Sdn Bhd, operator Kedah Medical Centre. Keluasan Tanah: 7,729 meter persegi Keluasan Lantai Kasar: 20,748 meter persegi 10. Hospital Pakar KPJ Kajang Hospital pakar swasta tujuh tingkat dibina khas dengan tingkat bawah, berserta semua lekapan dan kelengkapan. Alamat: Jalan Cheras, Kajang, Selangor Darul Ehsan. Keterangan Pegangan: Pegangan kekal hak milik no HSM 22394, Lot No , Mukim Kajang, Daerah Hulu Langat, Selangor. Tahun Siap: 2006 Penghunian: 100% oleh Kajang Specialist Hospital Sdn Bhd, operator Hospital Pakar KPJ Kajang. Keluasan Tanah: 6,404 meter persegi Keluasan Lantai Kasar: 17,758 meter persegi 12. Hospital Pakar Bukit Mertajam Hospital pakar swasta dibina khas enam tingkat dengan tingkat bawah dan medan kereta, berserta semua lekapan dan kelengkapan. Alamat: No. 565, Jalan Sungai Rambai, Bukit Mertajam, Pulau Pinang Keterangan Pegangan: Pegangan kekal dengan nos. GRN dan 19017, Lot No 1417 dan 54, dan dua (2) parcel pembinaan dengan no. GRN dan HSD 47983, Lot No. 55 dan 1529, terletak di Seksyen 5, Bandar Bukit Mertajam, Seberang Perai Tengah, Pulau Pinang. Tahun Siap: 1995 Penghunian: 100% oleh Bukit Mertajam Specialist Hospital Sdn Bhd, operator Hospital Pakar Bukit Mertajam. Keluasan Tanah: 12,455.9 meter persegi Keluasan Lantai Kasar: 3,917.1 meter persegi AL- AQAR KPJ REIT laporan tahunan

43 manager s report 13. Damai Specialist Hospital A five-storey purpose built private specialist hospital building together with all fixtures and fittings. Address: Lorong Tepus 1, Off Jalan Damai, Kota Kinabalu, Sabah. Title Details: Leasehold land under title no. Town Lease situated at Kota Kinabalu. Year of Completion: 1993 Occupancy: 100% by Kota Kinabalu Specialist Hospital Sdn Bhd, the operator of Damai Specialist Hospital. Land Area: 3,157.6 square meter Gross Floor Area: 3,713.0 square meter 15. KPJ Tawakkal Specialist Hospital A seven storey specialist hospital building with a single podium as the main lobby and a three level elevated car park, together with all fixtures and fittings. Address: Jalan Pahang Barat/Jalan Sarikei, Kuala Lumpur. Title Details: Freehold land under title no. HSB , Lot No. PT 135 situated at Section 85A, Town of Kuala Lumpur, District of Kuala Lumpur, Federal Territory of Kuala Lumpur. Year of Completion: Under construction and expected to commence operation in first quarter of Occupancy: Nil Land Area: 8,284.0 square meter Gross Floor Area: 31,228.3 square meter 14. KPJ International College A private nursing and health sciences college comprising administrative and academic block, a block of students hostel and car parks together with all the fixtures and fitting. Address: PT 17010, Persiaran Seriemas, Kota Seriemas, Nilai, Negeri Sembilan. Title Details: Freehold lands under title nos. HS(D) , Lot No. PT 7, Bandar Baru Kota Sri Mas and HS(D) , Lot No. PT 29560, Mukim of Labu, District of Seremban, Negeri Sembilan. Year of Completion: 2007 Occupancy: 100% by Puteri Nursing College Sdn Bhd, the operator of KPJ International College. Land Area: 19,223.8 square meter Gross Floor Area: 11,939.7 square meter 16. KPJ Penang Specialist Hospital A purpose built private specialist hospital building comprising a five storey main hospital building together with all fixtures and fittings. Address: No. 570, Jalan Perda Utama, Bandar Perda, Bukit Mertajam, Pulau Pinang. Title Details: Freehold land held under title no. HSM 375, Lot No. PT 799 situated at Mukim 7, Seberang Perai Tengah. Year of Completion: 2008 Occupancy: 100% by Perai Sdn Bhd, operator of KPJ Penang Specialist Hospital. Land Area: 20,234.3 square meter Gross Floor Area: 17,524.9 square meter ANNUAL REPORT AL- AQAR KPJ REIT

44 laporan pengarah 13. Hospital Pakar Damai Bangunan dibina khas untuk hospital pakar swasta lima tingkat, berserta semua lekapan dan kelengkapan. Alamat: Lorong Tepus 1, Off Jalan Damai, Kota Kinabalu, Sabah. Keterangan Pegangan: Pegangan pajak dengan Town Lease di Kota Kinabalu Tahun Siap: 1993 Penghunian: 100% oleh Kota Kinabalu Specialist Hospital Sdn Bhd, operator Hospital Pakar Damai. Keluasan Tanah: 3,157.6 meter persegi Keluasan Lantai Kasar: 3,713.0 meter persegi 15. Hospital Pakar KPJ Tawakkal Bangunan hospital pakar swasta tujuh tingkat dengan satu podium sebagai lobi utama dan tiga tingkat medan kereta, berserta semua lekapan dan kelengkapan. Alamat: Jalan Pahang Barat/Jalan Sarikei, Kuala Lumpur. Keterangan Pegangan: Pegangan bebas bernombor HSB , Lot no. PT 135 terletak di Seksyen 85A, Bandaraya Kuala Lumpur, Daerah Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur. Tahun Siap: Dalam pembinaan dan dijangka memulakan operasi pada suku pertama Penghunian: Tiada Keluasan Tanah: 8,284.0 meter persegi Keluasan Lantai Kasar: 31,228.3 meter persegi 14. Kolej Antarabangsa KPJ Kompleks dibina khas untuk kolej swasta kejururawatan dan sains kesihatan dengan blok akademik dan pentadbiran, blok hostel pelajar dan medan kereta. Alamat: PT 17010, Persiaran Seriemas, Kota Seriemas, Nilai, Negeri Sembilan. Keterangan Pegangan: Pegangan kekal dengan nombor HS(D) , Lot No. PT 7, Bandar Baru Kota Sri Mas dan HS(D) , Lot No. PT 29560, Mukim Labu, Daerah Seremban, Negeri Sembilan. Tahun Siap: 2007 Penghunian: 100% oleh Puteri Nursing College Sdn Bhd, operator Kolej Antarabangsa KPJ. Keluasan Tanah: 19,223.8 meter persegi Keluasan Lantai Kasar: 11,939.7 meter persegi 16. Hospital Pakar KPJ Penang Bangunan hospital pakar swasta dibina khas dengan bangunan utama lima tingkat berserta semua lekapan dan kelengkapan. Alamat: No. 570, Jalan Perda Utama, Bandar Perda, Bukit Mertajam, Pulau Pinang. Keterangan Pegangan: Pegangan kekal dengan nombor HSM 375, Lot No. PT 799 terletak di Mukim 7, Seberang Perai Tengah. Tahun Siap: 2008 Penghunian: 100% oleh Perai Sdn Bhd, operator Hospital Pakar KPJ Penang. Keluasan Tanah: 20,234.3 meter persegi Keluasan Lantai Kasar: 17,524.9 meter persegi AL- AQAR KPJ REIT laporan tahunan

45 manager s report 17. Selesa Tower An integrated commercial development comprising a four star hotel known as Hotel Selesa and a block of office building known as Metropolis Tower together with basement/ elevated car parks together with all the fixtures and fittings. Address: Hotel Selesa and Metropolis Tower (Selesa Tower), Jalan Dato Abdullah Tahir/ jalan Tebrau, Johor Bahru. Title Details: Freehold land held under title No. HSD , Lot No. PTB 19109, Township of Johor Bahru, District of Johor Bahru, Johor. Year of Completion: 1995 Occupancy: 100% by Hotel Selesa Sdn Bhd, the operator of Hotel Selesa. Land Area: 5,156.6 square meter Gross Floor Area: 70,691.0 square meter 19. Taiping Medical Centre A purpose-built private specialist hospital comprising a four storey main hospital building and a parcel of commercial lot with a single storey store building together with all fixtures and fittings. Address: No. 39, 41, 43, 45, 47 & 49, Jalan Medan Taiping 2, Medan Taiping, Taiping, Perak. Title Details: Leasehold land held under title nos. PN PN , PN , PN and HSD 2094/89, Lot Nos and PT 1106 situated in Bandar Taiping, Daerah Larut & Matang, Perak. Year of Completion: 1993 Occupancy: 100% by Taiping Medical Centre Sdn Bhd the operator of Taiping Medical Centre. Land Area: 4,439.2 square meter Gross Floor Area: 3,641.8 square meter 18. Seremban Specialist Hospital A five storey purpose-built private specialist hospital building together with all fixtures and fittings. Address: Lot 6219 & 6220, Jalan Toman 1, Kemayan Square, Seremban, Negeri Sembilan. Title Details: Freehold land held under title nos. GRN 51612, GRN 51630, Lot Nos , and on a leasehold land PN 25974, Lot No situated in Pekan Bukit Kepayang, District of Seremban, Negeri Sembilan. Year of Completion: 2004 Occupancy: 100% by Seremban Specialist Hospital Sdn Bhd, the operator of Seremban Specialist Hospital. Land Area: 16,823 square meter Gross Floor Area: 14,651.6 square meter 20. Tawakal Hospital A renovated four storey shop office building comprising eighteen units together with all fixtures and fittings. Address: No. 202A, Jalan Pahang, Kuala Lumpur. Title Details: Freehold land held under title nos. GRN 4412 to GRN 4425, GRN 4432 to GRN 4436, Lot Nos. 78 to 91, Lot Nos. 98 to 102 and leasehold land held under title nos. PN 6271 to PN 6272, Lot Nos. 124 to 125 situated at Section 85A, Town of Kuala Lumpur, District of Kuala Lumpur, Federal Territory of Kuala Lumpur. Year of Completion: 1983 Occupancy: 100% by Pusat Pakar Tawakal Sdn Bhd, the operator of Tawakal Hospital. Land Area: 2,827.8 square meter Gross Floor Area: 11,141.4 square meter ANNUAL REPORT AL- AQAR KPJ REIT

46 laporan pengarah 17. Menara Selesa Pembangunan perdagangan yang dibina khas menggabungkan hotel empat bintang dikenali sebagai Hotel Selesa dan satu blok bangunan pejabat dikenali sebagai Menara Metropolis, berserta medan kereta tingkat bawah dan atas. Alamat: Hotel Selesa dan Metropolis Tower (Selesa Tower), Jalan Dato Abdullah Tahir/Jalan Tebrau, Johor Bahru. Keterangan Pegangan: Pegangan kekal dengan nombor HSD , Lot No. PTB 19109, Bandaraya Johor, Daerah Johor Bahru, Johor. Tahun Siap: 1995 Penghunian: 100% oleh Hotel Selesa Sdn Bhd, operator Hotal Selesa. Keluasan Tanah: 5,156.6 meter persegi Keluasan Lantai Kasar: 70,691.0 meter persegi 19. Pusat Perubatan Taiping Bangunan dibina khas untuk pusat perubatan swasta empat tingkat dengan bangunan lot perdagangan setingkat, berserta semua lekapan dan kelengkapan. Alamat: No. 39, 41, 43, 45, 47 & 49, Jalan Medan Taiping 2, Medan Taiping, Taiping, Perak. Keterangan Pegangan: Pegangan pajak hakmilik PN PN , PN , PN dan HSD 2094/89, Lot Nos dan PT 1106 terletak di Bandar Taiping, Daerah Larut & Matang, Perak. Tahun Siap: 1993 Penghunian: 100% oleh Taiping Medical Centre Sdn Bhd, operator bangunan Taiping Medical Centre. Keluasan Tanah: 4,439.2 meter persegi Keluasan Lantai Kasar: 3,641.8 meter persegi 18. Hospital Pakar Seremban Hospital pakar swasta dibina khas lima tingkat berserta semua lekapan dan kelengkapan. Alamat: Lot 6219 & 6220, Jalan Toman 1, Kemayan Square, Seremban, Negeri Sembilan. Keterangan Pegangan: Pegangan kekal milik GRN 51612, GRN 51630, Lot Nos , dan sebidang tanah sewaan iaitu PN 25974, Lot No terletak di Pekan Bukit Kepayang, Daerah Seremban, Negeri Sembilan. Tahun Siap: 2004 Penghunian: 100% oleh Seremban Specialist Hospital Sdn Bhd, operator Hospital Pakar Seremban. Keluasan Tanah: 16,823 meter persegi Keluasan Lantai Kasar: 14,651.6 meter persegi 20. Hospital Tawakal Bangunan empat tingkat ini terdiri dari lapan belas unit lot kedai dan pejabat diubahsuai kepada hospital swasta, berserta seua lekapan dan kelengkapan. Alamat: No. 202A, Jalan Pahang, Kuala Lumpur. Keterangan Pegangan: Pegangan kekal no. GRN 4412 hingga GRN 4425, GRN 4432 hingga GRN 4436, Lot No. 78 hingga 91, Lot Nos. 98 hingga 102 dan pegangan pajak iaitu PN 6271 to PN 6272, Lot Nos. 124 to 125 terletak di Seksyen 85A, Bandaraya Kuala Lumpur, Daerah Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur. Tahun Siap: 1983 Penghunian: 100% oleh Pusat Pakar Tawakal Sdn Bhd, operator Hospital Tawakal. Keluasan Tanah: 2,827.8 meter persegi Keluasan Lantai Kasar: 11,141.4 meter persegi AL- AQAR KPJ REIT laporan tahunan

47 SALIENT Features Ciri-ciri UTAMA PURCHASE CONSIDERATION First Acquisition: At RM million, a 4.1 percent discount to total asset value of RM481 million Second Acquisition: At RM million, a 5.0 percent discount to total asset value of RM179.9 million Third Acquisition: At RM280.4 million, a 3.7 percent discount to total asset value of RM295.8 million DISTRIBUTABLE INCOME Up to 99 percent TENANTED AREA 100 percent FORECAST DISTRIBUTION PER UNIT 8.10 percent per annum (FYE 31 December 2009) DISTRIBUTION PER UNIT Minimum 6.5 percent per annum RENTAL REVIEW Every 3-year LEASE TERM 15-year renewable for another 15 years GEARING RATIO 45.0 percent FINANCING Financing facilities of up to RM300 million nominal value Islamic CP/MTN programme under the Syariah Principles of Ijarah (Sukuk Ijarah Programme) through its wholly owned special purpose company Al- Aqar Capital and up to RM250 million of the Ijarah Muntahiah Bitamlik under the Syndicated Ijarah Facility. RM st Acquisition, in Million Pengambilalihan Pertama, dalam Juta RM nd Acquisition, in Million Pengambilalihan Ke-2, dalam Juta RM rd Acquisition, in Million Pengambilalihan Ke-3, dalam Juta 8.10 % Forecast Distribution per Unit Ramalan Pengagihan Seunit Lease Term, in years Terma Pajakan, dalam tahun 45.0 % Gearing Ratio Nisbah Gearan PERTIMBANGAN BELIAN Pengambilalihan Pertama: Pada RM juta, 4.1 peratus diskaun dari jumlah aset bernilai RM481 juta Pengambilalihan Kedua: Pada RM juta, 5.0 peratus diskaun dari jumlah aset yang bernilai RM179.9 juta Pengambilalihan Ketiga: Pada RM280.4 juta, 3.7 peratus diskaun dari jumlah aset yang bernilai RM295.8 juta PENDAPATAN YANG DIAGIHKAN Sehingga 99 peratus KAWASAN DISEWA 100 peratus RAMALAN PENGAGIHAN SEUNIT 8.10 peratus setiap tahun (bagi tahun kewangan berakhir 2009) PENGAGIHAN SEUNIT Minima 6.5 peratus setiap tahun KAJIAN SEMULA SEWAAN Setiap 3 tahun TERMA PAJAKAN 15 tahun, tempoh boleh diperbaharu 15 tahun lagi NISBAH GEARAN 45.0 peratus PEMBIAYAAN Kemudahan pembiayaan sehingga RM300 juta nilai nominal berteraskan Islam program CP/MTN dibawah Prinsip Ijarah Syariah (Program Sukuk Ijarah) melalui syarikat milikpenuh khusus, Al- Aqar Capital dan sehingga RM250 juta dari Ijarah Muntahiah Bitamlik dibawah Kemudahan Bersindikasi Ijarah. PROJECTED AND FORECAST DISTRIBUTION YIELD Financial Year 31 December Distribution/Unit (sen) Distribution Yield based on RM1.00/unit (%) RAMALAN DAN JANGKAAN PENGAGIHAN KADAR HASIL Tahun Kewangan 31 Disember Pengagihan/Unit (sen) Kadar Hasil Pengagihan pada harga RM1.00/unit (%) ANNUAL REPORT AL- AQAR KPJ REIT

48 property portfolio portfolio hartanah KPJ Ampang Puteri Specialist Hospital Hospital Pakar KPJ Ampang Puteri No.1 Jalan Mamanda 9 Taman Dato Ahmad Razali, Ampang Selangor Darul Ehsan First Acquisition The initial investments of Al- Aqar KPJ REIT comprise of six properties where the tenants are operating as private specialist hospitals. The activities involve healthcare sector which are permissible according to Syariah and approved by Syariah Committee members. Pengambilalihan Pertama Pelaburan awal Al- Aqar KPJ REIT meliputi enam bidang hartanah dimana penyewa mengendalikan hospital pakar swasta. Kegiatan dalam sektor prisihatin yang terlibat adalah yang mematuhi Syariah dan diluluskan oleh ahli Jawatankuasa Syariah. AL- AQAR KPJ REIT laporan tahunan

49 property portfolio portfolio hartanah KPJ Selangor Specialist Hospital Hospital Pakar KPJ Selangor Lot 1, Jalan Singa 20/1 Section 20, Shah Alam Selangor Darul Ehsan KPJ Ipoh Specialist Hospital Hospital Pakar KPJ Ipoh No. 26, Jalan Raja di Hilir Ipoh, Perak Darul Redzuan ANNUAL REPORT AL- AQAR KPJ REIT

50 property portfolio portfolio hartanah Puteri Specialist Hospital Hospital Pakar Puteri No.33, Jalan Tun Abdul Razak (Susur 5), Johor Bahru Johor Darul Takzim KPJ Damansara Specialist Hospital Hospital Pakar KPJ Damansara No.119 Jalan SS 20/10 Damansara Utama, Petaling Jaya Selangor Darul Ehsan KPJ Johor Specialist Hospital Hospital Pakar KPJ Johor No. 39-B, Jalan Abdul Samad Johor Bahru Johor Darul Takzim AL- AQAR KPJ REIT laporan tahunan

51 property portfolio portfolio hartanah Kuantan Specialist Hospital Hospital Pakar Kuantan No.51, Jalan Alor Akar Taman Kuantan Kuantan Pahang Darul Makmur Sentosa Medical Centre Pusat Perubatan Sentosa No.36, Jalan Chemur Damai Complex, Kuala Lumpur Second Acquisition The fund of Al- Aqar KPJ REIT was further strengthened by the injection of five additional hospital buildings, bringing the total number of properties to eleven by end of Pengambilalihan Kedua Dana Al- Aqar KPJ REIT terus diperkukuhkan dengan pengambilalihan tambahan lima lagi bangunan hospital, yang mana meningkatkan bilangan keseluruhan hartanah kepada sebelas pada akhir tahun ANNUAL REPORT AL- AQAR KPJ REIT

52 property portfolio portfolio hartanah KPJ Kajang Specialist Hospital Hospital Pakar KPJ Kajang Jalan Cheras, Kajang Selangor Darul Ehsan Kedah Medical Centre Pusat Perubatan Kedah Pumpong, Alor Setar Kedah Darul Aman Perdana Specialist Hospital Hospital Pakar Perdana No.PT 37 & PT 600, Jalan Bayam Section 14, Kota Bharu Kelantan Darul Naim AL- AQAR KPJ REIT laporan tahunan

53 property portfolio portfolio hartanah Note: Property to be completed in 1st Quarter, Nota: Hartanah bakal siap pada Suku Pertama KPJ Tawakkal Specialist Hospital Hospital Pakar KPJ Tawakkal Jalan Pahang Barat / Jalan Sarikei Kuala Lumpur ANNUAL REPORT AL- AQAR KPJ REIT

54 property portfolio portfolio hartanah Damai Specialist Hospital Hospital Pakar Damai Lorong Tepus 1, Off Jalan Damai Kota Kinabalu Sabah KPJ Penang Specialist Hospital Hospital Pakar KPJ Penang No. 570, Jalan Perda Utama Bandar Perda, Bukit Mertajam Pulau Pinang Tawakal Hospital Hospital Tawakal No. 202A, Jalan Pahang Kuala Lumpur Third Acquisition The largest acquisition exercise by Al- Aqar KPJ REIT with the injection of nine additional buildings, bringing the total number of properties to twenty. Pengambilalihan Ketiga Pengambilalihan terbesar oleh Al- Aqar KPJ REIT dengan pemilikan tambahan sembilan lagi bangunan, menjadikan bilangan keseluruhan hartanah kepada dua puluh. AL- AQAR KPJ REIT laporan tahunan

55 property portfolio portfolio hartanah KPJ Seremban Specialist Hospital Hospital Pakar KPJ Seremban Lot , Jalan Toman 1, Kemayan Square Seremban, Negeri Sembilan Darul Khusus Taiping Medical Centre Pusat Perubatan Taiping No. 39, 41, 43, 45, 47 & 49 Jalan Medan Taiping 2, Medan Taiping Taiping, Perak Darul Redzuan KPJ International College Kolej Antarabangsa KPJ PT 17010, Persiaran Seriemas, Kota Seriemas Nilai, Negeri Sembilan Darul Khusus ANNUAL REPORT AL- AQAR KPJ REIT

56 property portfolio portfolio hartanah Bukit Mertajam Specialist Hospital Hospital Pakar Bukit Mertajam No. 565, Jalan Sungai Rambai Bukit Mertajam Pulau Pinang Selesa Tower Menara Selesa Hotel Selesa & Metropolis Tower (Selesa Tower) Jalan Dato Abdullah Tahir / Jalan Tebrau Johor Bahru, Johor Darul Takzim AL- AQAR KPJ REIT laporan tahunan

57 The structure of Al- Aqar KPJ REIT Struktur Al- Aqar KPJ REIT SYARIAH COMMITTEE JAWATANKUASA SYARIAH UNITHOLDERS PARA PEMEGANG UNIT Advisor on Syariah related matters Penasihat hal-ehwal Syariah Distributions Pengagihan Holding of Units Pemegangan Unit-unit Management Services Perkhidmatan Pengurusan Acts on behalf of Unitholders Bertindak bagi pihak para pemegang unit MANAGER PENGURUS DAMANSARA REIT MANAGERS SDN BERHAD Management Fees Yuran Pengurusan AL- AQAR KPJ REIT Trustee s Fees Yuran Pemegang Amanah TRUSTEE PEMEGANG AMANAH AMANAHRAYA TRUSTEES Net Property Income Pendapatan Hartanah Bersih Ownership of Properties Pemilikan Hartanah Maintenance & Management Services Perkhidmatan Penyelenggaraan & Pengurusan REIT PROPERTIES HARTANAH REIT Maintenance & Management Fees Yuran Penyelenggaraan & Pengurusan MAINTENANCE MANAGER PENGURUS PENYELENGGARAAN HEALTHCARE TECHNICAL SERVICES SDN BHD ANNUAL REPORT AL- AQAR KPJ REIT

58 the structure al- aqar kpj reit struktur al- aqar kpj reit INTRODUCTION Al- Aqar KPJ REIT is a Malaysian-based unit trust established on 28 June 2006, with the investment objective of owning and investing in Syariah-compliant real estate and Syariah compliant real estate-related assets used, or predominantly used, for commercial purposes, whether directly or indirectly through the ownership of single purpose companies, which are Syariah-compliant, who wholly own real estate. Al- Aqar KPJ REIT was initially formed to own and invest in these Syariah acceptable properties which comprise of KPJ Ampang Puteri Specialist Hospital Building, KPJ Damansara Specialist Hospital Building, KPJ Johor Specialist Hospital Building, KPJ Ipoh Specialist Hospital Building, Puteri Specialist Hospital Building and KPJ Selangor Specialist Hospital Building. INTRODUCTION TO ISLAMIC REIT An Islamic REIT is an investment vehicle that invests primarily in income-producing Syariah-compliant real estate and/or single purpose companies which are Syariah-compliant whose principal assets comprise Syariah-compliant real estates, and uses the income from the properties and/or companies to provide returns to its unitholders. A portion of the REIT funds can also be invested in other Syariah-compliant asset classes, such as cash or Syariah acceptable deposits. In purchasing a unit in an Islamic REIT, you share the benefits and risks of owning the Syariah-compliant real estate assets held by the Islamic REIT. Islamic REIT is an attractive asset class for investors seeking strong dividend yields as REIT tends to distribute most of its income to unitholders in dividends. The Islamic REIT also provides a new investment opportunity for those who wish to invest in real estate through Syariah-compliant capital market instruments. OBJECTIVE OF AN ISLAMIC REIT The key objective of a REIT is to provide unitholders with stable distributions per unit with the potential for sustainable long-term growth of such distributions. The objective is sought to be achieved by optimising the performance and enhancing the overall quality of a large and geographically diversified portfolio of Syariah-compliant real estate assets through various permissible investment and business strategies. PENGENALAN Al- Aqar KPJ REIT adalah satu dana amanah berpangkalan di Malaysia yang ditubuhkan pada 28 Jun 2006, dengan matlamat pelaburan untuk memiliki dan melabur dalam hartanah yang mematuhi Syariah, dan aset-aset berkaitan hartanah yang mematuhi Syariah atau sebahagian besarnya digunakan, untuk tujuan perdagangan, sama ada secara langsung atau tidak langsung menerusi pemilikan syarikat bertujuan khusus yang mematuhi Syariah, yang memiliki hartanah sepenuhnya. Al- Aqar KPJ REIT pada asalnya ditubuhkan untuk memiliki dan melabur dalam hartanah yang diterima Syariah yang terdiri dari Bangunan Hospital Pakar KPJ Ampang Puteri, Bangunan Hospital Pakar KPJ Damansara, Bangunan Hospital Pakar KPJ Johor, Bangunan Hospital Pakar KPJ Ipoh, Bangunan Hospital Pakar Puteri dan Bangunan Hospital Pakar KPJ Selangor. PENGENALAN KEPADA REIT ISLAM REIT Islam adalah satu instrumen pelaburan yang terutamanya melabur dalam hartanah yang mematuhi Syariah yang menghasilkan pendapatan dan/atau syarikat bertujuan khusus yang mematuhi Syariah dimana aset utamanya terdiri dari hartanah yang mematuhi Syariah, dan menggunakan pendapatan dari harta dan/atau syarikat untuk memberi pulangan kepada pemegang-pemegang unit. Sebahagian dari dana REIT boleh juga dilaburkan dalam aset kelas lain yang mematuhi Syariah seperti tunai atau cengkeram yang diterima Syariah. Dalam pembelian unit REIT Islam, anda berkongsi manfaat dan risiko memiliki aset hartanah yang mematuhi Syariah yang dipegang oleh REIT Islam. REIT Islam adalah kelas aset menarik untuk pelabur-pelabur mencari hasil dividen yang kukuh memandangkan REIT Islam cenderung untuk mengagih sebahagian besar dari pendapatannya kepada pemegang unit dalam bentuk dividen. REIT Islam juga menyediakan peluang pelaburan baru bagi mereka yang berhasrat untuk melabur dalam hartanah melalui instrumen pasaran modal yang mematuhi Syariah. MATLAMAT REIT ISLAM Matlamat utama REIT adalah untuk menyediakan pemegang unit dengan pengagihan setiap unit yang stabil dengan potensi pertumbuhan berterusan jangka panjang. Matlamat adalah dihasrat dapat dicapai dengan mengoptimakan prestasi dan mempertingkatkan kualiti keseluruhan portfolio aset hartanah yang meluas dan pelbagai kedudukan georafikal yang mematuhi Syariah dan melalui berbagai strategi pelaburan dan perniagaan yang dibenarkan. AL- AQAR KPJ REIT laporan tahunan

59 in the news Liputan berita Al- Aqar KPJ REIT rancang teroka Asia Barat BERITA HARIAN, 13 FEBRUARI 2009 AL- AQAR KPJ REIT, dana amanah hartanah (Reit) berlandaskan Syariah senaraian awam pertama di dunia dan Reit penjagaan kesihatan pertama di Asia Pasifik, merancang menerokai pasaran Asia Barat menerusi pembiayaan bersindiket Ijarah Muntahiah Bitamlik bernilai RM250 juta yang diperolehnya.... Time to invest in Malaysian REITs? THE EDGE MALAYSIA, 21 SEPT 2009 Room for more listed REITs in Malaysia STARPROPERTY, 17 AUGUST 2009 MALAYSIA PROPERTY, 17 AUGUST 2009 REIT transaction account for only 11% of local market capitalisation... REIT Al- Aqar KPJ Mahu Tembusi Timur Tengah BERNAMA, 13 FEBRUARI 2009 Al- Aqar KPJ REIT Middle East Mart BERNAMA, 13 FEBRUARY 2009 KPJ Healthcare Bhd's Al- Aqar KPJ REIT, the world's first listed Islamic real estate investment trust (REIT), aims to penetrate the Middle East market via the syndicated Ijarah facility of up to RM250 million it has secured.... GST disaster for property DISPATCH (ASIA EDITION), 1 SEPT 2009 Growth of Asian REITs set to rise THE STAR, 11 MAY 2009 Some of the local REITs that had performed exceptionally well in the past seven months (October 2008 to April 2009) in terms of percentage change in market capitalisation of individual REITs include Al- Aqar KPJ (22.32%) REITs performance in trying times STARBIZ, 21 JANUARY 2009 BORNEO POST, 4 MARCH AmInvest, KFH arrange RM 250m Ijarah Facility qatarmorningpost.com, 13 FEB 2009 AmInvestment Bank Berhad and Kuwait Finance House (Malaysia) Berhad Lead Arrange a Syndicated Ijarah Facility of up to RM250 million for Al- Aqar KPJ REIT - World s First Listed Islamic REIT and the First Healthcare REIT in the Asia-Pacific 13 FEB 2009 SITI Sa'diah Sheikh Bakir (tengah), Azlan Hashim (dua dari kiri) dan Salman Younis (tiga dari kanan) menyaksikan pertukaran dokumen antara T C Kok (kiri sekali) dan Ahmad Rodzi Pawanteh (dua dari kanan), selepas memeterai perjanjian penyediaan Ijarah bersindiket bernilai RM250 juta di Kuala Lumpur. Al- Aqar dapat biayaan RM250j UTUSAN MALAYSIA, 14 FEBRUARI 2009 KUALA LUMPUR 13 Feb. - AmInvestment Bank Bhd. (AmInvestment) dan Kuwait Finance House (KFH) akan menguruskan kemudahan Ijarah bersindiket sehingga RM250 juta kepada Al-Aqar KPJ REIT (Al-Aqar). Kemudahan Ijarah bersindiket itu adalah untuk membantu syarikat pelaburan amanah hartanah (REIT) Islam pertama, Al-Aqar yang disenaraikan di Bursa Malaysia mengambil alih sembilan aset hartanah di Malaysia. I-REITs Stay Resilient ISLAMIC FINANCE ASIA, APRIL/MAY 2009 REITs are perceived as a buoyant form of investment in Malaysia during these challenging times, spurring others to consider the Islamic route REIT Managers Association gets endorsement MALAYSIA PROPERTY, 2 DECEMBER Al- Aqar REIT eyes more Mideast investors PROPERTY NEWS, FEBRUARY 2009 AL- AQAR KPJ Real Estate Investment Trust (REIT) expects to attract more investors from the Middle East as its latest financing facility complies with the Gulf Cooperation Council and Malaysian standards ANNUAL REPORT AL- AQAR KPJ REIT

60 HIGHLIGHTS OF 2009 The First in Malaysia Islamic Financial System KUALA LUMPUR 13 FEBRUARY 2009 Signing Ceremony of the Syndicated Ijarah Facility of up to RM250 million between Al- Aqar Capital Sdn Bhd, 100% subsidiary of Al- Aqar KPJ REIT and AmInvestment Bank and Kuwait Finance House as Joint Lead Arranger, 13 February 2009 at Bangunan Ambank Group, Kuala Lumpur.... Meeting with Unitholders JOHOR BAHRU 25 FEBRUARY 2009 Extraordinary General Meeting, 25 February 2009 at PERSADA Johor International Convention Centre, Johor Bahru.... An Update with Media PENANG 23 NOVEMBER 2009 Media session at Launching of KPJ Penang Specialist Hospital Building, 23 November 2009 at KPJ Penang Specialist Hospital, Bukit Mertajam, Penang.... Get Together Meeting with Analysts, Institutional unitholders, investors and media through individual session and Press Conference. RAM s New Real Estate Benchmark Deal Award KUALA LUMPUR 26 JUNE 2009 Al- Aqar Capital Sdn Bhd awarded the RAM League Awards 2009, RAM Award of Distinction 2008, Blueprint Awards, New Real Estate Benchmark Deal Category, 26 June 2009 at Mandarin Oriental Hotel, Kuala Lumpur Recognition for Al- Aqar KPJ REIT KUALA LUMPUR 12 FEBRUARY 2009 Al- Aqar Capital Sdn Bhd awarded the inaugural Deal of the Year Awards in the Real Estate Deal of the Year Category by the Islamic Finance News (IFN), 12 February 2009 at Mandarin Oriental Hotel, Kuala Lumpur. One Voice, One Mission KUALA LUMPUR 4 DECEMBER 2009 Al- Aqar KPJ REIT became a member to Malaysian REIT Managers Association (M-REITMA), dated 4 December Triple-A Rating from RAM KUALA LUMPUR 8 JANUARY 2010 Up to RM300 million in nominal value of Ijarah Commercial Paper (ICP) and/or Islamic Medium Term Notes (IMTN) under the Sukuk Ijarah Programme maintained to received a favourable ratings of AAA, AA2 and AAA (bg), through letter dated 8 January New Look for Ampang Puteri & KPJ Selangor KLANG VALLEY 2009 New Look of Ampang Puteri Specialist Hospital Building and KPJ Selangor Specialist Hospital Building through re-painting exercise. AL- AQAR KPJ REIT laporan tahunan

61 sorotan tahun 2009 Pertama di Sistem Kewangan Islam M sia KUALA LUMPUR 13 FEBRUARI 2009 Majlis Tandatangan Kemudahan Ijarah Bersendikit sehingga RM250 juta diantara Al- Aqar Capital Sdn Bhd, anak syarikat milik penuh Al- Aqar KPJ REIT, AmInvestment Bank dan Kuwait Finance House sebagai Pengurus Utama Bersama, 13 Februari 2009 di Bangunan Kumpulan Ambank, Kuala Lumpur.... Bertemu Pemegang Unit JOHOR BAHRU 25 FEBRUARI 2009 Mesyuarat EGM berlangsung 25 Februari 2009 di PERSADA Pusat Konvensyen Antarabangsa Johor, J Bahru.... Sidang Media PENANG 23 NOVEMBER 2009 Sesi media diadakan dimajlis pelancaran bangunan KPJ Penang Specialist Hospital, 23 November 2009 di Bukit Mertajam, Pulau Pinang.... Pertemuan Bersama Pertemuan bersama para Penganalisa, Pemegang Unit Institusional, Pelabur dan Media diadakan melalui sesi individu dan sidang akhbar. Anugerah RAM: New Real Estate Benchmark Deal KUALA LUMPUR 26 JUN 2009 Al- Aqar Capital Sdn Bhd dianugerah RAM Award of Distinction 2008, Blueprint Awards, New Real Estate Benchmark Deal, pada 26 Jun 2009 di Hotel Mandarin Oriental, Kuala Lumpur. Pengiktirafan untuk Al- Aqar KPJ REIT KUALA LUMPUR 12 FEBRUARI 2009 Al- Aqar Capital Sdn Bhd dianugerah Deal of the Year yang pertama dalam kategori Real Estate Deal of the Year oleh Islamic Finance News (IFN), 12 Februari 2009 di Hotel Mandarin Oriental, Kuala Lumpur. Satu Suara, Satu Misi KUALA LUMPUR 4 DISEMBER 2009 Al- Aqar KPJ REIT telah mendaftar diri sebagai ahli Persatuan Pengurus REIT Malaysia (M-REITMA), pada 4 Disember Nilaian Triple-A dari RAM KUALA LUMPUR 8 JANUARI 2010 Kemudahan pembiayaan sehingga RM300 juta nilai nominal Ijarah Commercial Paper (ICP) dan/atau Islamic Medium Term Notes (IMTN) dibawah Program Sukuk Ijarah terus menerima nilaian menggalakkan AAA, AA2 dan AAA (bg), menerusi surat bertarikh 8 Januari Wajah Baru Ampang Puteri & KPJ Selangor LEMBAH KELANG 2009 Bangunan Hospital Pakar Ampang Puteri dan Hospital Pakar KPJ Selangor kini berwajah baru setelah kerja-kerja mengecat semula selesai ANNUAL REPORT AL- AQAR KPJ REIT

62 financial statements Statement by Manager Declaration by the Officer Trustee s Report Independent Report of Auditors Syariah Committee Report Income Statements Balance Sheets Statement of Changes in Net Asset Value Cash Flow Statements Notes to the Financial Statements AL- AQAR KPJ REIT ANNUAL REPORT

63 note ANNUAL REPORT AL- AQAR KPJ REIT

64 STATEMENT BY MANAGER TO THE UNITHOLDERS OF AL- AQAR KPJ REIT We, TAN SRI DATO MUHAMMAD ALI BIN HASHIM and DATIN PADUKA SITI SA DIAH SHEIKH BAKIR, being two of the Directors of DAMANSARA REIT MANAGERS SDN BERHAD ( the Manager ), state that, in the opinion of the Manager, the financial statements of AL- AQAR KPJ REIT (the Fund ) and its subsidiary company (the Group ) as set out on pages 68 to 83 are drawn up in accordance with the provisions of the Trust Deed dated June 27, 2006, Supplemental Trust Deed dated May 27, 2009 and the Financial Reporting Standards in Malaysia modified by the Securities Commission s Guidelines on Real Estate Investment Trust so as to give a true and fair view of the financial position of the Group and of the Fund as of December 31, 2009 and of the results, changes in net asset value and cash flows of the Group and of the Fund for the year then ended. Signed on behalf of the Board in accordance with a resolution of the Directors of the Manager, TAN SRI DATO MUHAMMAD ALI BIN HASHIM Director DATIN PADUKA SITI SA DIAH SHEIKH BAKIR Director Kuala Lumpur February 19, 2010 AL- AQAR KPJ REIT ANNUAL REPORT

65 DECLARATION BY THE OFFICER PRIMARILY RESPONSIBLE FOR THE FINANCIAL MANAGEMENT OF AL- AQAR KPJ REIT I, YUSAINI BIN SIDEK, the Executive Director of DAMANSARA REIT MANAGERS SDN BERHAD ( the Manager ) primarily responsible for the financial management of AL- AQAR KPJ REIT (the Fund ) and its subsidiary company (the Group ), do solemnly and sincerely declare that the financial statements as set out on pages 68 to 83 are, in my opinion, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, YUSAINI BIN SIDEK Subscribed and solemnly declared by the abovenamed YUSAINI BIN SIDEK at KUALA LUMPUR this 19th day of February, 2010 Before me, COMMISSIONER FOR OATHS ANNUAL REPORT AL- AQAR KPJ REIT

66 trustee s report for the financial year ended december 31, 2009 To the Unit Holders of AL- AQAR KPJ REIT We, AmanahRaya Trustees Berhad, have acted as Trustee of AL- AQAR KPJ REIT for the financial year ended December 31, In our opinion, DAMANSARA REIT MANAGERS SDN BERHAD, the Manager, has managed AL- AQAR KPJ REIT in accordance with the limitations imposed on the investment powers of the management company and the Trustee under the Deed, other provisions of the Deed, the applicable Guidelines on Real Estate Investment Trust, the Capital Markets and Services Act 2007 and other applicable laws during the financial year then ended. We are of the opinion that: a) the procedures and processes employed by the Manager to value and/or price the units of AL- AQAR KPJ REIT are adequate and that such valuation/pricing is carried out in accordance with the Deed and other regulatory requirement; b) creation of units are carried out in accordance with the Deed and other regulatory requirement; and c) the distribution of returns made by AL- AQAR KPJ REIT as declared by the Manager is in accordance with the investment objective of AL- AQAR KPJ REIT. Your faithfully AMANAHRAYA TRUSTEES BERHAD HABSAH BINTI BAKAR Chief Executive Officer Kuala Lumpur, Malaysia February 19, 2010 AL- AQAR KPJ REIT ANNUAL REPORT

67 independent auditors report TO THE UNITHOLDERS OF AL- AQAR KPJ REIT We have audited the financial statements of AL- AQAR KPJ REIT (the Fund ) and its subsidiary company (the Group ), which comprise the balance sheets of the Group and of the Fund as of December 31, 2009 and the income statements, statements of changes in net assets value and cash flow statements of the Group and of the Fund for the year then ended, and a summary of significant accounting policies and other explanatory notes as set out in pages 68 to 83. Directors Responsibility for the Financial Statements The directors of DAMANSARA REIT MANAGERS SDN BERHAD ( the Manager ) are responsible for the preparation and fair presentation of these financial statements in accordance with the provisions of the Trust Deed dated June 27, 2006, Supplemental Trust Deed dated May 27, 2009 and the Financial Reporting Standards in Malaysia modified by the Securities Commission s Guidelines on Real Estate Investment Trust. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditors Responsibility Our responsibility is to form an independent opinion based on our audit on these financial statements and to report to you, as a body, in accordance with the applicable Securities Commission s Guidelines on Real Estate Investment Trust and for no other purpose. We do not assume responsibility towards any other person for the contents of this report. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Manager, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence that we have obtained is sufficient and appropriate to provide a basis for our opinion. Opinion In our opinion, the financial statements are properly drawn up in accordance with the provisions of the Trust Deed dated June 27, 2006, Supplemental Trust Deed dated May 27, 2009 and the Financial Reporting Standards in Malaysia modified by the Securities Commission s Guidelines on Real Estate Investment Trust so as to give a true and fair view of the financial position of the Group and of the Fund as of December 31, 2009 and their financial performance and cash flows for the year then ended. DELOITTE KASSIMCHAN AF 0080 Chartered Accountants CHEONG THOONG FARN Partner /01/11 (J) Chartered Accountant February 19, 2010 Kuala Lumpur ANNUAL REPORT AL- AQAR KPJ REIT

68 syariah committee report TO THE UNITHOLDERS OF AL- AQAR KPJ REIT for financial YEAR ENDED december 31, 2009 We, the Syariah Committee Member for AL- AQAR KPJ REIT are responsible to ensure that the procedure and the workflow process which carried out by the Manager of AL- AQAR KPJ REIT that is DAMANSARA REIT MANAGERS SDN BERHAD are in compliant with the principles of Syariah which has been defined in the Trust Deed. In our opinion, DAMANSARA REIT MANAGERS SDN BERHAD has complied in managing and administering AL- AQAR KPJ REIT for the financial year ended December 31, 2009 with: 1. The Syariah Principles 2. Securities Commission Guideline Terms 3. Practice Note issued by the Securities Commission AL- AQAR KPJ REIT also has accepted the criteria that has been imposed by the Board of Syariah Adviser, Securities Commission in choosing the Syariah compliance securities. May Allah bless us in all of our undertakings. For the Member of Syariah Committee DATO HAJI NOOH BIN GADOT Chairman - Syariah Committee AL- AQAR KPJ REIT February 19, 2010 AL- AQAR KPJ REIT ANNUAL REPORT

69 income statements for the financial year ended december 31, 2009 The Group The Fund Note RM RM RM RM Gross revenue 5 60,579,965 47,778,660 60,579,965 47,778,660 Property expenses 6 (3,483,728) (2,617,061) (3,483,728) (2,617,061) Net rental income 57,096,237 45,161,599 57,096,237 45,161,599 Investment revenue 7 596, , , ,821 Other income - 26,500-26,500 Gain on fair value adjustment of investment properties 11 16,959,360 11,937,493 16,959,360 11,937,493 Total income 74,652,096 57,845,302 74,305,777 57,376,413 Expenditure: Finance costs: Long-term Islamic financing 16,835,754 11,469,055 4,901, ,285 Amount owing to subsidiary company ,110,338 10,847,437 Amortisation of direct issue costs on long-term Islamic financing 606, , , ,948 Professional fees in respect of acquisition of investment properties 853, , , ,025 Manager s fees 846, , , ,584 Maintenance of property 338, ,560 - Stamp duties 305, , , ,990 Valuation fee 200, , , ,000 Trustee s fees 150, , , ,517 Printing expenses 98, ,786 98, ,626 Auditors fee: Audit fee 35,000 35,000 25,000 25,000 Miscallenous expenses 2,922-2,116 - Secretarial fee 44,322-44,322 - Tax agent s fee 33,266 6,300 26,499 6,300 Registrar s fee 27,196 17,341 27,196 17,341 Administration expenses 22,833 26,712 22,833 26,712 Syariah adviser s fee 3,600 3,000 3,600 3,000 Service tax Annual financing fee: Overprovision in prior years - (53,440) - (53,440) Total expenditure (20,404,185) (13,991,561) (20,386,595) (13,981,325) Income before tax 54,247,911 43,853,741 53,919,182 43,395,088 Tax expense 8 (551,127) Net income for the year 53,696,784 43,853,741 53,919,182 43,395,088 Net income for the year is made up as follows: Realised 36,737,424 31,916,248 36,959,822 31,457,595 Unrealised 16,959,360 11,937,493 16,959,360 11,937,493 53,696,784 43,853,741 53,919,182 43,395,088 Earnings per unit (sen): 9 Gross Net Net income distribution 10 39,658,557 34,726,401 39,658,557 34,726,401 Income distribution per unit (sen): 10 Gross Net ANNUAL REPORT AL- AQAR KPJ REIT

70 balance sheets as of december 31, 2009 The Group The Fund Note RM RM RM RM ASSETS Non-Current Assets Investment properties ,500, ,450, ,500, ,450,000 Investment in subsidiary company ,500, ,450, ,500, ,450,002 Current Assets Trade receivables 13 1,054,783-1,054,783 - Prepaid expenses 1,247,486 1,151,688 1,247,486 1,070,418 Fixed deposits with licensed banks 32,962,878 22,736,793 16,103,544 5,635,777 Cash and bank balances 14,546,799 16,435,604 14,545,299 16,434,104 49,811,946 40,324,085 32,951,112 23,140,299 TOTAL ASSETS 1,011,311, ,774, ,451, ,590,301 LIABILITIES Current Liabilities Other payables and accrued expenses 14 14,324,525 10,193,797 9,880,740 5,750,012 Income distribution payable 15 19,699,945 17,579,561 19,699,945 17,579,561 Tax liabilities 420, ,445,447 27,773,358 29,580,685 23,329,573 Non-Current Liabilities Amount owing to subsidiary company ,690, ,992,981 Long-term Islamic financing ,411, ,279, ,956, ,411, ,279, ,646, ,992,981 TOTAL LIABILITIES 470,856, ,052, ,227, ,322,554 NET ASSETS VALUE 540,455, ,721, ,224, ,267,747 UNlTHOLDERS FUNDS Unitholders capital ,509, ,814, ,509, ,814,139 Undistributed income 37,945,388 23,907,161 37,714,233 23,453,608 TOTAL UNITHOLDERS FUNDS 540,455, ,721, ,224, ,267,747 NUMBER OF UNITS IN CIRCULATION ,367, ,721, ,367, ,721,000 NET ASSETS VALUE PER UNlT (EX-DISTRIBUTION) The accompanying notes form an integral part of the financial statements. AL- AQAR KPJ REIT ANNUAL REPORT

71 statement of changes in net asset value for the financial year ended december 31, 2009 Unitholders Undistributed Capital Income Total The Group RM RM RM Balance as of January 1, ,930,117 14,779, ,709,938 Operations for the year: Net income for the year - 43,853,741 43,853,741 Unitholders transactions: Issues of units 84,284,950-84,284,950 Units issue expenses (400,928) - (400,928) Distribution to Unitholders (Note 10) - (34,726,401) (34,726,401) Increase in net assets resulting from Unitholders transactions 83,884,022 (34,726,401) 49,157,621 Balance as of December 31, ,814,139 23,907, ,721,300 Balance as of January 1, ,814,139 23,907, ,721,300 Operations for the year: Net income for the year - 53,696,784 53,696,784 Unitholders transactions: Issues of units 85,163,700-85,163,700 Unit issue expenses (468,020) - (468,020) Distribution to Unitholders (Note 10) - (39,658,557) (39,658,557) Increase in net assets resulting from Unitholders transactions 84,695,680 (39,658,557) 45,037,123 Balance as of December 31, ,509,819 37,945, ,455,207 The Fund Balance as of January 1, ,930,117 14,784, ,715,038 Operations for the year: Net income for the year - 43,395,088 43,395,088 Unitholders transactions: Issues of units 84,284,950-84,284,950 Unit issue expenses (400,928) - (400,928) Distribution to Unitholders (Note 10) - (34,726,401) (34,726,401) Increase in net assets resulting from Unitholders transactions 83,884,022 (34,726,401) 49,157,621 Balance as of December 31, ,814,139 23,453, ,267,747 Balance as of January 1, ,814,139 23,453, ,267,747 Operations for the year: Net income for the year - 53,919,182 53,919,182 Unitholders transactions: Issues of units 85,163,700-85,163,700 Unit issue expenses (468,020) - (468,020) Distribution to Unitholders (Note 10) - (39,658,557) (39,658,557) Increase in net assets resulting from Unitholders transactions 84,695,680 (39,658,557) 45,037,123 Balance as of December 31, ,509,819 37,714, ,224,052 The accompanying notes form an integral part of the financial statements ANNUAL REPORT AL- AQAR KPJ REIT

72 cash flow statements for the financial year ended december 31, 2009 The Group The Fund Note RM RM RM RM CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES Income before tax 54,247,911 43,853,741 53,919,182 43,395,088 Adjustments for: Finance costs 16,835,754 11,469,055 17,011,602 11,627,722 Amortisation of direct issue costs on long-term Islamic financing 606, , , ,948 Investment revenue (596,499) (719,710) (250,180) (250,821) Gain on fair value adjustment of investment properties (16,959,360) (11,937,493) (16,959,360) (11,937,493) Operating Profit Before Working Capital Changes 54,134,472 43,404,209 54,152,062 43,414,444 (Increase)/Decrease in: Trade receivables (1,054,783) - (1,054,783) - Prepaid expenses (95,798) (666,892) (177,068) (585,622) Amount owing by subsidiary company ,250 Increase in: Other payables and accrued expenses 4,130,728 9,912,751 4,130,728 5,472,314 Cash Generated from Operations 57,114,619 52,650,068 57,050,939 48,304,386 Tax paid (130,150) Net Cash From Operating Activities 56,984,469 52,650,068 57,050,939 48,304,386 CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES Income received on investment 596, , , ,821 Additions to investment properties - Note (195,926,940) (86,227,557) (195,926,940) (86,227,557) Net Cash Used In Investing Activities (195,330,441) (85,507,847) (195,676,760) (85,976,736) CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES Finance cost paid (16,835,754) (11,469,055) (17,011,602) (11,627,722) Unit issue expenses paid (468,020) (400,928) (468,020) (400,928) Dividends paid (37,538,173) (29,660,840) (37,538,173) (29,660,840) Repayment of long-term Islamic financing - (134,000,000) - (134,000,000) Increase in advances from subsidiary company , ,992,981 Proceeds from long-term Islamic fmancing [net of direct issue costs of RM2,954,180 (2008 : RM879,241)] 201,525, ,120, ,525,199 - Net Cash From Financing Activities 146,683,252 58,589, ,204,783 46,303,491 NET INCREASE IN CASH AND CASH EQUIVALENTS 8,337,280 25,732,157 8,578,962 8,631,141 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 39,172,397 13,440,240 22,069,881 13,438,740 CASH AND CASH EQUIVALENTS AT END OF YEAR 16 47,509,677 39,172,397 30,648,843 22,069,881 Note : Additions to investment properties during the year amounted to RM281,090,640 ( 2008 : RM170,512,507), of which RM195,926,940 (2008 : RM86,227,557) was paid for in cash and the balance by way of the issuance of new units. The accompanying notes form an integral part of the financial statements. AL- AQAR KPJ REIT ANNUAL REPORT

73 notes to the financial statements 1. GENERAL INFORMATION Al- Aqar KPJ REIT (the Fund ) is a Malaysian domiciled Islamic real estate investment trust constituted pursuant to a Trust Deed dated June 27, 2006 (the Deed ) between Damansara REIT Managers Sdn Berhad (the Manager ) and Amanah Raya Berhad (the Trustee ). Pursuant to the Deed, Al- Aqar KPJ REIT (the Fund ) entered into a Supplemental Trust Deed dated 27 May, 2009 with Amanah Raya Berhad and AmanahRaya Trustees Berhad for the retirement of Amanah Raya Berhad from acting as a trustee and for the appointment of AmanahRaya Trustees Berhad as the new trustee for Al- Aqar KPJ REIT (the Fund ). The Fund is regulated by the Capital Markets and Services Act 2007, the Securities Commission s Guidelines on Real Estate Investment Trusts, Guidelines on Islamic Real Estate Invesment Trusts and the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Rules of the Depository and taxation laws and rulings of Malaysia. The Fund will continue its operations until such time as determined by the Trustee and the Manager as provided under the provisions of the Deed and the Supplemental Trust Deed. The Fund was listed on the Main Board of Bursa Malaysia Securities Berhad on August 10, 2006 and commenced its business operations on August 17, The principal activity of Al- Aqar KPJ REIT is to invest in syariah compliant properties with the primary objective of providing Unitholders with stable distribution and potential for sustainable long term growth of such distribution and capital appreciation. The Fund has entered into several service agreements in relation to the management of the Fund and its property operations. The fees structure of these services is as follows: (a) (b) (c) Maintenance and Management Fee The Maintenance Manager, Healthcare Technical Services Sdn Bhd, is entitled to an annual maintenance and management fee of up to 0.08% of the gross value of the investment properties in respect of the management of the investment properties owned by the Fund in accordance with the Deed. The fee is calculated on a monthly accrual basis. Manager s Fee Pursuant to the Deed, the Manager is entitled to receive a fee of up to 0.15% per annum of the Net Assets Value of the Fund, calculated based on the monthly accrual basis and payable monthly in arrears. Effective May 1, 2009 and pursuant to the Supplemental Trust Deed dated May 27, 2009 the Manager is entitled to 0.1% per annum of the Gross Assets Value of the Fund that is below RM1,000,000,000 and 0.125% of the Gross Assets Value of the Fund that exceed RM1,000,000,000, calculated based on the monthly accrual basis and payable monthly in arrears. The Manager s fees for the current financial year is RM846,029 (2008 : RM647,584). Trustee s Fee Pursuant to the Deed, the Trustee is entitled to receive a fee of up to 0.03% per annum of the Net Assets Value of the Fund, calculated based on the monthly accrual basis and payable monthly in arrears. The Trustee s fees for the financial year ended December 31, 2009 of RM150,349 (2008 : RM129,517) is determined based on 0.03% (2008 : 0.03%) of the monthly net assets value. The registered office of the Manager is located at 13th Floor, Menara Johor Corporation, KOTARAYA Johor Bahru. The financial statements of the Group and of the Fund were authorised by the Board of Directors of the Manager for issuance on February 19, BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS The financial statements of Al- Aqar KPJ REIT have been prepared in accordance with the provisions of the Trust Deed dated June 27, 2006, Supplemental Trust Deed dated May 27, 2009 and the Financial Reporting Standards (FRS) in Malaysia modified by the Securities Commission s Guidelines on Real Estate Investment Trust. Accounting Standards and Interpretation Issued but Not Yet Effective At the date of authorisation for issue of these financial statements, the FRSs, IC Interpretations and amendments to FRSs and IC Interpretations which were in issue but not yet effective are as listed below. FRS 1 First-time Adoption of Financial Reporting Standards (Amendments relating to cost of an investment in a subsidiary, jointly controlled entity or associate)** FRS 1 First-time Adoption of Financial Reporting Standards (Revised in 2010)*** FRS 2 Share-based Payment (Amendments relating to vesting conditions and cancellations)** FRS 2 Share-based Payment (Amendments relating to scope of FRS 2 and revised FRS 3)*** ANNUAL REPORT AL- AQAR KPJ REIT

74 notes to the Financial statements 2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS cont d FRS 3 Business Combinations (Revised in 2010)*** FRS 4 Insurance Contracts** FRS 5 Non-current Assets Held for Sale and Discontinued Operations (Amendments relating to plan to sell the controlling interest in a subsidiary)*** FRS 7 Financial Instruments: Disclosures** FRS 7 Financial Instruments: Disclosures (Amendments relating to reclassification of financial assets and reclassification of financial assets effective date and transition)** FRS 8 Operating Segments* FRS 101 Presentation of Financial Statements (Revised in 2009)** FRS 123 Borrowing Costs (Revised)** FRS 127 Consolidated and Separate Financial Statements (Amendments relating to cost of an investment in a subsidiary, jointly controlled entity or associate)** FRS 127 Consolidated and Separate Financial Statements (Revised in 2010)*** FRS 132 Financial Instruments: Presentation (Amendments relating to Puttable Financial Instruments and Obligations Arising on Liquidation)** FRS 138 Intangible Assets (Amendments relating to additional consequential amendments arising from FRS 3)*** FRS 139 Financial Instruments: Recognition and Measurements** FRS 139 Financial Instruments: Recognition and Measurements (Amendments relating to eligible hedged items, reclassification of financial assets, reclassification of financial assets effective date and transition, embedded derivatives and revised FRS 3 and Revised FRS 127)** Improvements to FRSs (2009)** IC Interpretation 9 Reassessment of Embedded Derivatives ** IC Interpretation 9 Reassessment of Embedded Derivatives (Amendments relating to embedded derivatives)** IC Interpretation 9 Reassessment of Embedded Derivatives (Amendments relating to scope of IC Interpretation 9 and revised FRS 3)*** IC Interpretation 10 Interim Financial Reporting and Impairment** IC Interpretation 11 FRS 2 Group and treasury Share Transactions** IC Interpretation 12 Service Concession Arrangements*** IC Interpretation 13 Customer Loyalty Programmes** IC Interpretation 14 FRS 119 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and Their Interaction** IC Interpretation 15 Agreements for the Construction of Real Estate*** IC Interpretation 16 Hedges of a Net Investment in a Foreign Operation*** IC Interpretation 17 Distributions of Non-cash Assets to Owners*** * Effective for annual periods beginning on or after July 1, 2009 ** Effective for annual periods beginning on or after January 1, 2010 *** Effective for annual periods beginning on or after July 1, 2010 Consequential amendments were also made to various FRSs as a result of these new/revised FRSs. FRSs 1, 2 and 4 and IC Interpretation 9, 12, 13, 14, and 15 are not expected to be relevant to the operations of the Group and the Fund. The directors of the Manager anticipate that the abovementioned standards and Interpretations will be adopted in the annual financial statements of the Group and the Fund when they become effective and that the adoption of these standards and Interpretations will have no material impact on the financial statements of the Group and of the Fund in the period of initial application except for the following: FRS 7 - Financial Instruments: Disclosures FRS 7 and the consequential amendment to FRS 101 Presentation of Financial Statements require disclosure of information about the significance of financial instruments for the Group's and the Fund's financial position and performance, the nature and extent of risks arising from financial instruments, and the objectives, policies and processes for managing capital. FRS Financial Instruments: This new standard establishes principles for recognising and measuring financial asset and financial liabilities. The Group and the Fund will aplly this standard from the financial year ending December 31, By virtue of the exemption in paragraph 103AB of FRS 139 and paragraph 44AB of FRS 7, the impact of applying FRS 139 and FRS 7 on the financial statements of the Group and of the Fund upon first adoption of these standard as required by paragraph 30(b) of FRS 108, Accounting Policies, Changes in Accounting Estimates and Errors is not disclosed. AL- AQAR KPJ REIT ANNUAL REPORT

75 notes to the Financial statements 3. SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The financial statements of the Group and of the Fund have been prepared under the historical cost convention modified to include the fair value adjustments for investment properties. Basis of Consolidation The consolidated financial statements incorporate the financial statements of the Fund and its entity controlled by the Fund as mentioned in Note 12 made up to December 31, Control is achieved where the Fund has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. All subsidiary companies are consolidated using the acquisition method of accounting. On acquisition, the assets, liabilities and contingent liabilities recognised of the relevant subsidiary companies are measured at their fair values at the date of acquisition. The results of the subsidiary companies acquired or disposed of during the year are included in the consolidated income statements from the date of their acquisitions or up to the effective date of their disposals. Where necessary, adjustments are made to financial statements of subsidiaries to bring their accounting policies in line with those used by the Group and the Fund. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. Revenue Recognition Revenue is recognised when it is probable that the economic benefits associated with the transaction will flow to the Group and to the Fund and the amount of the revenue can be measured reliably. Revenue from rental of investment properties are recognised on an accrual basis. Investment revenue, which comprise income earned from Islamic fixed deposits placement, are recognised on an accrual basis. Income Tax Income tax for the year comprises current and deferred tax. Current tax is the expected amount of income taxes payable in respect of the taxable profit for the year and is measured using the tax rates that have been enacted at the balance sheet date. Deferred tax is provided for, using the liability method, on temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts in the financial statements. In principle, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised. Deferred tax is not recognised if the temporary difference arises from goodwill or from the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit. Deferred tax is measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is recognised in the income statements, except when it arises from a transaction which is recognised directly in equity, in which case the deferred tax is also recognised directly in equity, or when it arises from a business combination that is an acquisition, in which case the deferred tax is included in the resulting goodwill. In accordance with Section 61A(1) of the Malaysian Income Tax Act 1967, the total income of the Fund will be exempted from income tax provided that at least 90% of the total taxable income of the Fund is distributed to unitholders within two months from the end of the financial year. Investment Properties Investment properties, which are properties held to earn rental and/or for capital appreciation, are stated at their fair values at the balance sheet date. Gains or losses arising from changes in the fair value of investment properties are included in income statements for the year in which they arise. Investment properties are derecognised on disposal or when the investment properties are permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of an investment property are recognised in the income statements in the year of retirement or disposal. Investment properties are stated at fair value, which reflects market condition at the balance sheet date. Fair value represents the amount at which the assets could be exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arm s length transaction ANNUAL REPORT AL- AQAR KPJ REIT

76 notes to the Financial statements 3. SIGNIFICANT ACCOUNTING POLICIES cont d Provisions Provisions are made when the Group or the Fund have a present legal or constructive obligation as a result of past events, when it is probable that an outflow of resources will be required to settle the obligation, and when a reliable estimate of the amount can be made. Provisions are measured at the Manager s best estimate of the expenditure required to settle the obligation at the balance sheet date, and are discounted to present value where the effect is material. At each balance sheet date, the provisions are reviewed by the Manager and adjusted to reflect the current best estimate. The provisions are reversed if it is no longer probable that the Group or the Fund will be required to settle the obligation. Cash and Cash Equivalents Cash and cash equivalents comprise cash and bank balances and other short-term, highly liquid investments with maturities of three months or less from the date of acquisition and are readily convertible to cash with insignificant risk of changes in value. 4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (i) Critical judgement in applying the Group s and the Fund s accounting policies. In the process of applying the Group s and the Fund s accounting policies, which are described in Note 3 above, management is of the opinion that there are no instances of application of judgement which are expected to have a significant effect on the amounts recognised in the financial statements and consolidated financial statements. (ii) Key sources of estimation uncertainty Management believes that there are no key assumptions made concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have a signifcant risk of causing a material adjustment to the carrying amounts of assets and liabilities of the Group and of the Fund within the next financial year. 5. REVENUE The Group and The Fund Rental income from: RM RM Damansara Specialist Hospital 8,260,000 8,142,000 Johor Specialist Hospital 5,786,040 5,703,000 Ipoh Specialist Hospital 5,301,960 5,226,000 Puteri Specialist Hospital 2,997,480 2,953,920 Ampang Puteri Specialist Hospital 9,897,000 9,755,040 KPJ Selangor Specialist 4,717,992 4,650,000 Kedah Medical Centre 3,749,784 3,078,470 Perdana Specialist Hospital 3,258,016 2,674,730 Kuantan Specialist Hospital 1,590,588 1,305,830 Sentosa Medical Centre 1,997,840 1,640,170 KPJ Kajang Specialist Hospital 3,227,280 2,649,500 Taiping Medical Centre 450,560 - Damai Specialist Hospital 564,625 - Bukit Mertajam Specialist Hospital 232,877 - Tawakal Hospital 1,787,458 - Selesa Tower 4,202,942 - KPJ International College 844,800 - Seremban Specialist Hospital 827,458 - KPJ Penang Specialist Hospital 885,265-60,579,965 47,778,660 AL- AQAR KPJ REIT ANNUAL REPORT

77 notes to the Financial statements 6. PROPERTY EXPENSES The Group and The Fund RM RM Assessment 1,699,604 1,355,946 Takaful coverage 781, ,070 Maintenance Fee 685, ,791 Quit Rent 316, ,254 3,483,728 2,617, INVESTMENT REVENUE The Group The Fund RM RM RM RM Income from Syariah based deposits 596, , , , TAX EXPENSE The Group The Fund RM RM RM RM Estimated tax payable 551, A numerical reconciliation of income tax expense at the applicable statutory income tax rate to income tax expense at the effective income tax rate is as follows: The Group The Fund RM RM RM RM Income before tax 54,247,911 43,853,741 53,919,182 43,395,088 Tax at statutory tax rate of 20% /25% (26% in 2008) 13,545,542 11,401,973 13,479,796 11,282,723 Tax effects of: Non deductible expenses 813, , , ,378 Income not subject to tax - (117,222) - - Income exempted from tax (13,938,253) (11,590,129) (13,938,253) (11,588,101) Underprovision in prior years 130, , In accordance with the Deed, the Fund is required to distribute at least 95% of its net income. The Manager also expects to distribute the net income within two months from the end of each financial year and accordingly, no estimated current tax payable or deferred tax is required to be provided in the financial statements. In prior years, no provision for tax payable has been made by the subsidiary company as the said subsidiary company is a specialpurpose company established solely for the purpose of complying with Syariah requirements in the issuance of Islamic securities. Islamic securities are defined as securities which adopt the principles of mudharabah, Musyarakah, Ijarah or Istina and under the Malaysia Income Tax (Exemption) (No. 14) Order 2007, the statutory income of the subsidiary company was exempted from tax. The said order was, however, revoked on April 24, 2008 and replaced by a new Section 601 of the Malaysia Income Tax Act which had similar exemption for a special purchase vehicle established to issue Islamic Securities. The revocation and new amendment is demeed to have come into operation from the year of assessment However, the new Section 601 appears to applies to special purchase vehicle established by another company. As the holding entity of the subsidiary company is not a company, the said subsidiary company has not excluded its statutory income derived from the issuance of Islamic Securities from tax ANNUAL REPORT AL- AQAR KPJ REIT

78 notes to the Financial statements 9. EARNINGS PER UNIT The gross and net earnings per unit were calculated based on the net income for the year of the Group and the Fund divided by the weighted average number of units in circulation as of December 31, The Group The Fund RM RM RM RM Earnings attributable to Unitholders 53,696,784 43,853,741 53,919,182 43,395,088 Weighted average number of units 483,577, ,206, ,577, ,206,945 Gross earnings per unit (sen) Net earnings per unit (sen) DISTRIBUTIONS For the financial year ended December 31, 2009, the Manager, with the approval of the Trustee, has declared the following distributions: The Group and The Fund RM RM First interim distribution sen per unit (2008 : 4.00) 6,430,815 17,148,840 Second interim distribution sen per unit (2008 : Nil) 13,529,796 - Final distribution 3.80 sen per unit (2008 : 4.10 sen) 19,697,946 17,577,561 39,658,557 34,726,401 The total distributions for the financial year ended December 31, 2009, which amounts to RM39,658,557 (2008: RM34,726,401), represent approximately 107% (2008: 109%) of the realised net income of the Fund for the year. Distribution to Unitholders is derived from the following sources: The Group and The Fund RM RM Net rental income 57,096,237 45,161,599 Investment revenue 250, ,821 Other income - 26,500 Gain on fair value adjustments of investment properties 2,698,735 3,268,806 60,045,152 48,707,726 Less: Expenses (20,386,595) (13,981,325) 39,658,557 34,726,401 Gross distribution per unit (sen) Net distribution per unit (sen) AL- AQAR KPJ REIT ANNUAL REPORT

79 notes to the Financial statements 11. INVESTMENT PROPERTIES The Group and The Fund Remaining Tenure of Term of Term of 2008 Acquisition Fair Value 2009 Description of Property Land Lease Lease Location Date of Valuation* Fair Value Cost in 2009 adjustments Fair Value RM RM RM RM Ampang Puteri Specialist Hospital Building Leasehold Ampang December 31, ,000,000 N/A - 129,000,000 Damansara Specialist Hospital Building Freehold N/A N/A Damansara December 31, ,000,000 N/A - 110,000,000 Johor Specialist Hospital Building Leasehold Johor Bahru December 31, ,800,000 N/A - 76,800,000 Ipoh Specialist Hospital Building Leasehold lpoh December 31, ,000,000 N/A - 69,000,000 Puteri Specialist Hospital Building Leasehold Johor Bahru December 31, ,000,000 N/A - 39,000,000 KPJ Selangor Specialist Hospital Building Leasehold Shah Alam December 31, ,000,000 N/A - 62,000,000 Kedah Medical Centre Building Freehold N/A N/A Alor Setar December 31, ,850,000 N/A 2,050,000 48,900,000 Perdana Specialist Hospital Building Leasehold Kota Bharu December 31, ,400,000 N/A - 42,400,000 Kuantan Specialist Hospital Building Freehold N/A N/A Kuantan December 31, ,100,000 N/A - 20,100,000 Sentosa Medical Centre Freehold N/A N/A Kuala Lumpur December 31, ,000, ,000,000 KPJ Kajang Specialist Hospital Building Freehold N/A N/A Kajang December 31, ,300, ,000 42,500,000 Taiping Medical Centre Leasehold Taiping December 31, ,817, ,300 9,300,000 Damai Specialist Hospital Leasehold Kota Kinabalu December 31, ,300, ,950 14,100,000 Bukit Mertajam Specialist Hospital Freehold Bukit Mertajam December 31, ,166,750 2,533,250 16,700,000 Tawakal Hospital Leasehold Kuala Lumpur December 31, ,000,300 (300) 37,000,000 Selesa Tower Freehold - - Johor Bahru December 31, ,175,000 4,325,000 91,500,000 KPJ International College Freehold - - Seremban December 31, ,541, ,750 16,700,000 Seremban Specialist Hospital Leasehold Seremban December 31, ,225,290 3,774,710 54,000,000 KPJ Penang Specialist Hospital Freehold - - Bukit Mertajam December 31, ,864,300 2,635,700 56,500,000 Total 663,450, ,090,640 16,959, ,500,000 The investment properties are used to secure credit facilities granted by financial institution to Al- Aqar KPJ REIT as mentioned in Note 16. * The properties were valued at the respective dates by C H Williams Talhar & Wong Sdn Bhd, an independent firm of professional valuers using the profit methods of valuation ANNUAL REPORT AL- AQAR KPJ REIT

80 notes to the Financial statements 12. INVESTMENT IN SUBSIDIARY COMPANY The Fund RM RM Unquoted shares, at cost 2 2 The details of subsidiary company are as follows: Effective Equity Interest Country of Direct Subsidiary Company Incorporation % % Principal Activity Al- Aqar Capital Sdn Bhd Malaysia Special-purpose company for the purpose of raising Islamic financing for Al- Aqar KPJ REIT Amount owing to subsidiary company represents unsecured advances received from the proceeds raised from Islamic financing by the subsidiary company. The finance costs and repayment terms of the unsecured advances mirror the finance costs and repayments terms of the Islamic financing raised by the subsidiary company as disclosed in Note TRADE RECEIVABLES The Group and The Fund RM RM Trade receivables 1,054,783 - Trade receivables comprise rental receivable from lessee. The credit period granted by the Group and the Fund on rental receivable from lessee ranges from 30 days to 60 days. 14. OTHER PAYABLES AND ACCRUED EXPENSES The Group The Fund RM RM RM RM Amount owing to the Trustee 13,000 11,410 13,000 11,410 Amount owing to the Manager 81,000 57,047 81,000 57,047 Other payables 1,256,275 1,235,993 1,254,427 1,234,145 Accrued expenses 7,088,020 4,797,677 2,646, ,740 Deposits received 5,886,230 4,091,670 5,886,230 4,091,670 14,324,525 10,193,797 9,880,740 5,750, INCOME DISTRIBUTION PAYABLE The Group and The Fund RM RM Balance at beginning of year 17,579,561 12,514,000 Distribution for the year 39,658,557 34,726,401 Payment made during the year (37,538,173) (29,660,840) Balance at end of year 19,699,945 17,579,561 AL- AQAR KPJ REIT ANNUAL REPORT

81 notes to the Financial statements 16. LONG-TERM ISLAMIC FINANCING The Group The Fund RM RM RM RM Sukuk Ijarah 235,000, ,000, Less: Direct issue costs 720, , Accumulated amortisation (175,848) (158,668) - - (544,725) (720,573) ,455, ,279, Ijarah Muntahiah Bitamlik 204,479, ,479,379 - Less: Direct issue costs 2,954,180-2,954,180 - Accumulated amortisation (430,818) - (430,818) - (2,523,362) - (2,523,362) - 201,956, ,956,017 - Total Long-Term Islamic Facilities 436,411, ,279, ,956,017 - Sukuk Ijarah On February 6, 2008, the subsidiary company issued RM235,000,000 in nominal value Islamic Commercial Papers (ICP) under a Sukuk Ijarah Programme facility. The said facility, which is secured against the investment properties totalling RM663,450,000 (2008 : RM663,450,000) as mentioned in Note 11, comprises the following tranches: Amount Profit Rate Tranche RM % Class A Islamic Medium Term Notes 155,000, Class B Islamic Medium Term Notes 25,000, Class C Islamic Medium Term Notes 55,000, Total 235,000,000 The facility is repayable in 14 equal semi-annual instalments of RM5,512,750 (cost of financing only) and final installment of RM240,512,750 (principal and last semi-annual cost of financing) commencing August The direct issue costs arising from the facility were offset against the proceeds from the facility and are accreted over the year of the facilities of 60 months. Ijarah Muntahiah Bitamlik On February 19, 2009, Al- Aqar KPJ REIT obtained a syndicated Ijarah Muntahiah Bitamlik financing facility of up to RM250,000,000, of which RM125,000,000 is at fixed profit rate and RM125,000,000 at floating profit rate. The facility drawndown as of December 31, 2009 comprises the following tranches: Amount Portion Profit Rate Tranche RM % 1 102,000,000 Fixed ,154,822 Fixed ,033 Fixed ,261,145 Fixed ,861,572 Floating ,617,807 Floating 4.45 Total 204,479,379 The said facility is secured against investment properties totalling RM295,800,000 (2008 : RM Nil) as mentioned in Note 11 and is for a tenure of up to 52 months from the date of the first disbursement with an option to extend for another 12 months ANNUAL REPORT AL- AQAR KPJ REIT

82 notes to the Financial statements 17. UNITHOLDERS' CAPITAL No. of units RM No. of units RM The Group and the Fund Balance at beginning of year 428,721, ,814, ,000, ,930,117 Issue of new units 89,646,000 85,163,700 88,721,000 84,284,950 Share issue expenses - (468,020) - (400,928) Balance at end of year 518,367, ,509, ,721, ,814,139 Details of Units held by related parties and their market value as of December 31, 2009 are as follows: No. of units Market Value No. of units Market Value The Manager s directors and shareholders: RM RM Datin Paduka Siti Sa diah Sheikh Bakir - Direct 99,035 97,549 28,862 27,130 - Indirect 2,500 2,463 1,350 1,269 Tan Sri Dato Muhammad Ali Hj Hashim - Direct 49,239 48,500 5,677 5,336 - Indirect 3,600 3, Kamaruzzaman bin Abu Kassim - Direct 10,000 9,850 10,000 9,400 Dr Mohd Hafetz bin Ahmad - Direct 2,400 2, Related Parties: Puteri Specialist Hospital Sdn Bhd 22,191,739 21,858,863 29,280,900 27,524,046 Selangor Medical Centre Sdn Bhd 35,000,000 34,475,000 35,000,000 32,900,000 Selesa Tower 27,421,000 27,009, Seremban Specialist Hospital Sdn Bhd 23,731,000 23,375, Medical Associates Sdn Bhd 19,055,000 18,769,175 28,055,000 26,371,700 Johor Corporation 18,199,870 17,926,872 7,073,872 6,649,440 Damansara Specialist Hospital Sdn Bhd 15,233,000 15,004,505 24,170,000 22,719,800 Kedah Medical Centre Sdn Bhd 15,000,000 14,755,000 15,000,000 14,100,000 Pusat Pakar Tawakal Sdn Bhd 13,631,000 13,426, Johor Specialist Hospital Sdn Bhd 12,203,000 12,019,955 18,040,000 16,957,600 Medical Center (Johore) Sdn Bhd 12,000,000 11,820,000 18,000,000 16,920,000 Pusat Pakar Darul Naim Sdn Bhd 11,789,000 11,612,165 16,789,000 15,781,660 Kuantan Specialist Hospital Sdn Bhd 10,705,000 10,544,425 13,705,000 12,882,700 Kajang Specialist Hospital Sdn Bhd 9,574,000 9,430,390 11,074,000 10,409,560 Kota Kinabalu Specialist Hospital Sdn Bhd 9,100,000 8,963, Bukit Mertajam Specialist Hospital 8,608,000 8,478, Sentosa Medical Centre Sdn Bhd 15,653,000 15,418,205 17,153,000 16,123,820 Taiping Medical Centre Sdn Bhd 3,334,000 3,283, AL- AQAR KPJ REIT ANNUAL REPORT

83 notes to the Financial statements 18. CASH AND CASH EQUIVALENTS Cash and cash equivalents included in the cash flow statements comprise the following balance sheet items: The Group The Fund RM RM RM RM Fixed deposits with licensed banks 32,962,878 22,736,793 16,103,544 5,635,777 Cash and bank balances 14,546,799 16,435,604 14,545,299 16,434,104 47,509,677 39,172,397 30,648,843 22,069, MANAGEMENT EXPENSE RATIO ("MER") The Fund RM RM % % MER The calculation of MER is based on the total fees of the Fund incurred for the year, including the Manager s fees, Trustee s fees, audit fee, tax agent s fee and administrative expenses, to the average net assets value during the year calculated on a weekly basis. Since the average net asset value is calculated on a weekly basis, comparison of the MER of the Fund with other real estate investment trust which use a different basis of calculation may not be an accurate comparison. 20. PORTFOLIO TURNOVER RATIO ("PTR") The Fund PTR (times) The calculation of PTR is based on the average of total acquisition and total disposals on investments in the Fund for the year, to the average net asset value during the year calculated on a weekly basis. 21. SIGNIFICANT RELATED PARTY TRANSACTIONS The Fund derives all its rental income as disclosed in Note 5 from related parties. Significant related party transaction other than those disclosed in Note 5 is as follows: The Group The Fund RM RM RM RM Maintenance fee paid/payable to Maintenance Manager 685, , , , ANNUAL REPORT AL- AQAR KPJ REIT

84 notes to the Financial statements notes to the Financial statements 22. FINANCIAL INSTRUMENTS Financial Risk Management Objectives and Policies The operations of the Group and the Fund are subject to a variety of financial risks, including credit risk and liquidity risk. The Group and the Fund have taken measures to minimise their exposure to risks and/or costs associated with its financing, investing and operating activities and operates within clearly defined guidelines as set out in the Securities Commission's Guideline on Real Estate Investment Trusts. (i) Credit risk The financial instruments which potentially subject the Group and the Fund to credit risk are rental receivables. However, as of the balance sheet date, the Group and the Fund do not have any significant exposure to credit risk. The Group and the Fund places its deposits with licensed banks and credit worthy financial institutions. (ii) Liquidity risk The Group and the Fund practice prudent liquidity risk management to minimise the mismatch of financial assets and liabilities and to maintain sufficient funds for contingent funding requirement of working capital. Financial Assets The Group's principal financial assets are trade receivables, cash and bank balances, and fixed deposits with licensed banks. The Fund's principal financial assets also include amount owing by subsidiary company. The accounting policies applicable to major financial assets are as disclosed in Note 3. Financial Liabilities Debts or equity instruments are classified as liability or equity in accordance with the substance of the contractual arrangement entered into. Significant financial liabilities of the Group include other payables and long-term Islamic financing, which are stated at their nominal values less issuing expenses as appropriate. Fair Values The carrying amounts of financial assets and financial liabilities reported in the balance sheet approximate their fair values because of the immediate or short maturity period of these instruments except for the following: Note Carrying Amount Fair Value Carrying Amount Fair Value RM RM RM RM The Group Financial Liability Long-term Islamic financing ,411, ,048, ,279, ,879,411 The Fund Financial Liability Long-term Islamic financing ,956, ,487, The fair value of long-term Islamic financing is estimated using discounted cash flow analysis based on current equivalent profit rate of 4.45% (2008: 4.69%) per annum for similar type of facility. AL- AQAR KPJ REIT ANNUAL REPORT

85 note ANNUAL REPORT AL- AQAR KPJ REIT

86 penyata kewangan Laporan Pengurus Akuan Berkanun Laporan Pemegang Amanah Laporan Juruaudit Bebas Laporan Ahli Jawatankuasa Syariah Penyata Pendapatan Lembaran Imbangan Penyata Perubahan Nilai Aset Bersih Penyata Aliran Tunai Nota-nota Penyata Kewangan AL- AQAR KPJ REIT laporan tahunan

87 nota laporan tahunan AL- AQAR KPJ REIT

88 Kami, TAN SRI DATO' MUHAMMAD ALI BIN HASHIM dan DATIN PADUKA SITI SA'DIAH SHEIKH BAKIR, sebagai dua daripada Pengarah DAMANSARA REIT MANAGERS SENDIRIAN BERHAD ("Pengurus"), dengan ini menyatakan bahawa, pada pendapat Para Pengurus, penyata kewangan AL-'AQAR KPJ REIT ("Dana Amanah") dan anak-anak syarikat ("Kumpulan") yang dibentangkan pada halaman 92 hingga 107 telah disediakan bertepatan dengan peruntukan Perjanjian Ikatan Amanah bertarikh 27 Jun 2006 dan Perjanjian Ikatan Amanah Tambahan bertarikh 27 Mei 2009 dan Piawaian Pelaporan Kewangan di Malaysia yang diubahsuai oleh Garis Panduan Suruhanjaya Sekuriti untuk Amanah Pelaburan Hartanah Islam untuk memberi gambaran yang benar dan saksama berkenaan hal ehwal kewangan Kumpulan dan Dana Amanah pada 31 Disember 2009, dan hasilnya, perubahan dalam nilai aset bersih dan aliran tunai Kumpulan dan Dana Amanah untuk tempoh kewangan berakhir 31 Disember Ditandatangan bagi pihak Lembaga Pengarah bertetapan dengan resolusi Pengarah bagi pihak Pengurus, TAN SRI DATO MUHAMMAD ALI BIN HASHIM Pengarah DATIN PADUKA SITI SA DIAH SHEIKH BAKIR Pengarah Kuala Lumpur 19 Februari AL- AQAR KPJ REIT laporan tahunan

89 akuan berkanun oleh pegawai bertanggungjawab Saya, YUSAINI BIN SIDEK, Ketua Pegawai Eksekutif DAMANSARA REIT MANAGERS SENDIRIAN BERHAD ("Pengurus") yang memegang tanggungjawab utama di atas keadaan kewangan AL-'AQAR KPJ REIT ("Dana Amanah") dan juga subsidiari syarikat ("Kumpulan"), dengan sesungguhnya dan sebenarnya mengakui bahawa penyata kewangan yang dibentangkan pada halaman 90 hingga 107 sepanjang pengetahuan saya, adalah benar dan saya membuat pengakuan ini berdasarkan kepercayaan dan keyakinan saya bahawa perkara-perkara yang dinyatakan adalah benar, dan bertepatan dengan peruntukan yang ditetapkan dalam Akta Akuan Berkanun YUSAINI BIN SIDEK Sebenarnya dan sesungguhnya diakui oleh penama di atas YUSAINI BIN SIDEK di KUALA LUMPUR pada 19hb Februari Dihadapan saya, PESURUHJAYA SUMPAH laporan tahunan AL- AQAR KPJ REIT