Al-`Aqar Healthcare REIT Annual Report 2019

PERFORMANCE BENCHMARK PERFORMANCE BENCHMARK FY2018 FY2019 COMMENTARY i. Management expense ratio (%) 0.24 0.25 Management expenses ratio of 0.25% increased by 4% due to acquisition of KPJ Batu Pahat Specialist Hospital in FY2019. ii. Total return (%) (2.51) 6.63 Total return for the financial year was 6.63% due to higher closing price change of 0.8% (FY2019: RM1.32 and FY2018: RM1.31) iii. Average annual total return (5 years) (%) 5.44 4.90 The 5-year average annual total return decreased due to negative return achieved in FY2017 and FY2018. iv. Average annual total return (3 years) (%) 5.44 0.19 The 3-year average annual total return decreased due to negative return achieved in FY2017 and FY2018. v. Distribution yield (%) 5.88 5.87 Distribution yield has decreased despite a 0.6% increase in DPU due to higher closing unit price of RM1.32 for FY2019 (FY2018: RM1.31) vi. NAV per Unit 1.2878 1.3024 NAV per unit recorded an increase of 1.1% arising from the profit recorded for the year 2019 (RM68.1 million) and payment of final income distribution FY2018 (RM15.2 million) and interim income distributions FY2019 (RM42.2 million) Notes:- i. The ratio of expenses incurred in operating Al-`Aqar of RM2.4 million (FY2018: RM2.2 million) to the weighted average NAV of Al-`Aqar of RM944.6 million (FY2018: RM912.4 million). ii. Total return represents the change in unit price during the year plus distribution yield for the year. iii. Average annual total return is the sum of the return rates of Al-`Aqar over a given numbers of years divided by that number of years. iv. Average annual total return is the sum of the return rates of Al-`Aqar over a given numbers of years divided by that number of years. v. Based on DPU of 7.75 sen (FY2018: DPU of 7.70 sen) divided by its closing price as at 31 December 2019 of RM1.32 (31 December 2018: RM1.31). vi. Net asset value of Al-`Aqar is determined by deducting the value of all Al-`Aqar’s liabilities from the total asset value, divided by total issued units. 03 STRATEGIC PERFORMANCE 40