Al-`Aqar Healthcare REIT Annual Report 2020

AL-`AQAR HEALTHCARE REIT Annual Report 2020 42 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: 2019 2020 Total borrowings (RM’mil) 683.4 683.6 Total assets value (RM’mil) 1,674.4 1,648.0 Total borrowings to total asset value ratio (%) 40.82 41.48 CAPITAL REVIEW when the borders reopen. On top of the recovery, the tenant would also see incremental earnings from the hospitals that are at a gestation period. The COVID-19 is an unprecedented pandemic all across the world. However, the upside of this pandemic outbreak had increased public healthcare awareness and further promotes the need for primary and elderly care. Strong primary health care holds the continuity of health care for these groups and others. This is aligned with the direction of the fund which is looking into expanding into primary and elderly care properties. Furthermore, Al-`Aqar’s expansion plan will not only covers the local market, but also for an international market through direct engagement with the asset owner or third-party arrangement for the recovery of the business performance. On the Australia aged care market, the Royal Commission has reviewed the overall aged care industry practices and has recommended improvements to the services. The Royal Commission has delivered its final report on 26 February 2021 to the Governor- General and will be available to the public once the report is tabled in the Parliament. In the meantime, Al-`Aqar is in the midst of undertaking a comprehensive corporate restructuring including a divestment strategy to cater for the increased uncertainty faced by the Australian aged care industry. As at 31 December 2020, Al-`Aqar’s outstanding borrowings was RM683.60 million, an increase of 0.03%. Fixed Rate VS Floating Rate Ratio Debt Maturity Profile (RM’mil) 84.04% Fixed Rate 15.96% Floating Rate 0 100 300 500 200 400 600 Sukuk Ijarah: RM574.5 mil Commodity Murabahah-I: RM79.5 mil Commodity Murabahah-II: RM29.6 mil Management Discussion and Analysis