SUSTAINABILITY STATEMENT SUSTAINABLE TRUST FUND Financial Performance As Malaysia gradually navigates the COVID-19 endemic phase, the impact it has on us as a healthcare REIT is steadily abating. The main financial challenges the Fund’s tenants faced were the reorganisation of hospital operations and the rationing of the medical workforce. Still, there has been a steady increase in healthcare demand at the tenants’ facilities due to an even greater relaxation of restrictions, better economic conditions, and a public-private partnership with the government since the middle of 2021. Compared to the previous year, the Fund has seen marked improvements in financial performance. As such, it has not received any financial assistance from the government. Furthermore, as a result of this improvement, the Fund generated a total of RM104,587,721 in revenue compared to RM104,245,507 last year, and retained a total of RM66,707,130. The Fund intends to distribute 95% or more of this total income to the unitholders. In addition to this, the Fund became the silver sponsor for the 3rd Annual Malaysia’s REIT in FY2022. The Manager has also participated in the M-REITs and The Road Ahead event. This event gave the Fund an opportunity to engage with analysts, investment bankers, and potential investors, and acted as part of an investor relations activity for Al-`Aqar. Indirect Economic Impacts Indirect economic impacts are the consequences arising from the direct impact of financial transactions and cash flows that occur between an organisation and their stakeholders. This encompasses the investments made for an organisations’ infrastructure as well as the services supported by these investments. The REIT, acting as a player in the real estate industry with a key focus on the healthcare sector, has positively impacted the surrounding communities in locations where it operates. Procurement and Supply Chain Management Majority KPJ hospitals are under a single net lease agreement. Therefore, all supply chain decisions and property expenditures are to be borne by the tenant, and they will directly engage with contractors or service providers. During the interview process with any potential vendors, the presence of a representative from the Manager is required to ensure compliance with internal and regulatory policies. ENHANCING Skills in relation to healthcare services are enhanced among the professional community and in locations of operations CREATING JOBS Increasing the number of healthcare, technical, maintenance and pharmaceutical- related jobs in the supply chain DEVELOPING THE ECONOMY Stimulating economic development of the surrounding areas through the growth of restaurants, convenience stores and residential areas GRI - 201-4 | 203-1 AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2022 86
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