LETTER TO STAKEHOLDERS On behalf of the Board of Directors, it is my pleasure to present Al-`Aqar Healthcare REIT (“Al-`Aqar”, the “Fund” or the “Group”) Annual Report for the financial year ended 31 December 2022 (“FY2022”). The year 2022 is a recovery year as Malaysia transitioned to “Endemic Phase” of Covid-19 and healthcare industry recorded a strong rebound in financial earnings. In 2022, Al-`Aqar reached a significant milestone by successfully completing the acquisition of three assets and the Group’s investment properties value stood at a record high of RM1.7 billion as at 31 December 2022. As we enter 2023, the Manager is prepared to implement the comprehensive 5-Year Plan (2023-2027) which will propel Al-`Aqar to the next stage of growth. As the Chairman of the Group, it is my pleasure to present the Annual Report 2022 with our distribution per unit (“DPU”) hitting a historic 10-year high of 8.10 sen. This remarkable achievement contributed mainly by cost savings from the refinancing exercise in FY2021 and no rental support given during the financial year. REVIEWING 2022: A RECOVERY YEAR The global GDP is projected to slow from 6.0% in 2021 to 3.2% in 2022, as the world is experiencing a broad-based slowdown on the back of the high inflation, tightening financial conditions in most regions and Russia’s invasion of Ukraine. For Malaysia, we transitioned to “Endemic Phase” of Covid-19 in April 2022, with all restrictions on business activities removed and life return to normalcy. The Malaysian economy expanded by 8.7% in 2022 given the favourable growth momentum in the domestic economy and steady expansion in the external sector, as well as continued improvement of the labour market conditions. The private hospitals saw a strong rebound in patient visits in 2022, particularly those seeking elective treatments. This has led to strong operating metrics for the KPJ Group, such as increased patient volume and higher bed occupancy rate. KPJ Group’s financial earnings rebounded in 2022 and are on track to return to pre-COVID-19 level. Hence, unlike in 2021, Al-`Aqar did not provide any rental support to the KPJ Group in 2022. Dear Valued Stakeholders, AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2022 6
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