Al-`Aqar Healthcare REIT Annual Report 2019

CAPITAL MANAGEMENT GEARING RATIOS Al-`Aqar’s gearing ratios are calculated based on the proportion of total borrowings to the total asset value in accordance with the SC Guidelines. The gearing ratios at the end of the reporting period are as follows:- 2018 2019 RM’000 RM’000 Total borrowings (RM’mil) 603.70 683.40 Total assets value (RM’mil) 1,580,468 1,674,352 Total borrowings to total asset value ratio (%) 38.19 40.82 As at 31 December 2019, Al-`Aqar’s outstanding borrowings was RM683.40 million an increase of 13.20% as a result of the floating rate borrowing obtain by Al-`Aqar from the new financial institution during the year. The additional borrowings were mainly utilised to fund the acquisition of KPJ Batu Pahat Specialist Hospital. The total gearing correspondingly increase to 40.82%, which was below the 50% of Total Asset Value limit permitted by the Listed REIT Guidelines. 16% 84% Fixed Rate Floating rate 4% 84% Sukuk Ijarah Murabahah Tawarruq 12% Commodity Murabahah Sukuk Ijarah (Due May 2021) Murabahah Tawarruq (Due May 2020) Commodity Murabahah (Due December 2024) 0 100 200 300 400 500 600 29.9 575.0 RM’mil 80.0 FIXED RATE VS FLOATING RATE RATIO SOURCE OF DEBTS DEBT MATURITY PROFILE (RM’mil) Al-`Aqar Healthcare REIT 03 STRATEGIC PERFORMANCE 45