NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2022 23. Segment reporting (cont’d) The Group’s segmental information is as follows (cont’d): Malaysia Australia Total RM RM RM 31 December 2021 Rental 104,245,507 9,826,994 114,072,501 Property expenses (5,840,129) (10,499) (5,850,628) Net property income 98,405,378 9,816,495 108,221,873 Investment income 623,104 - 623,104 Realised gain on foreign exchange 11,182 - 11,182 Other income 532,303 28 532,331 Fair value adjustment on investment properties 5,536,199 - 5,536,199 Total income 105,108,166 9,816,523 114,924,689 Expenditure (11,951,060) (2,187,306) (14,138,366) Operating profit 93,157,106 7,629,217 100,786,323 Financing costs (28,004,770) - (28,004,770) Profit before tax 65,152,336 7,629,217 72,781,553 Tax 768,296 - 768,296 Profit after tax 65,920,632 7,629,217 73,549,849 Total assets 1,539,093,674 125,639,320 1,664,732,994 Total liabilities 719,379,547 351,539 719,731,086 24. Capital management The Group and the Fund manage their capital to ensure that entities in the Group and the Fund will be able to continue as going concerns while maximising the return to unitholders through the optimisation of the debt and equity balance. The capital structure of the Group and of the Fund consists of net debt (borrowings as detailed in Note 17) offset by cash and cash equivalents and unitholders’ fund of the Group and of the Fund (comprising unitholders’ capital and undistributed income). Gearing ratios are calculated based on the proportion of total borrowings to the total asset value in accordance with Securities Commission Malaysia (“SC”) Guidelines. The SC Guidelines require that the total borrowings of a fund (including borrowings through issuance of debt securities) should not exceed 50% of the total asset value of the Fund at the time the borrowings are incurred. Notwithstanding, the Fund’s total borrowings may exceed this limit with the sanction of the unitholders by way of an ordinary resolution. The Manager’s risk management committee reviews the capital structure of the Group and of the Fund on a regular basis to ensure that the SC Guidelines are complied with. AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2022 190
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