102 SECTION 06 AL-`AQAR HEALTHCARE REIT SUSTAINABILITY STATEMENT ECONOMIC PERFORMANCE The REIT recognises robust financial performance as a core aspect to ensure unitholders continue to receive returns while providing the REIT with the necessary capital to expand its properties and portfolios. By deploying robust cost controls and optimising resource allocation, it ensures that the REIT’s finances remain strong, securing the long-term financial stability and desirability of the real estate portfolio. Direct Economic Impacts As part of Al-`Aqar’s commitment to improve the economic value generated to its stakeholders, the REIT strives to continuously improve the economic performance. In addition to advancing the capital to expand the portfolio and properties, a robust economic performance allows the REIT to implement more sustainable initiatives that benefits the operations through measures such as investments in renewable energy while creating community events and generating value that benefit the investors, among other notable benefits. Group Economic Performance (RM’000) FY2024 FY2025 Economic value generated (revenue) 117,852 120,489 Property Expenses 16,309 15,590 Fund Expenses (Islamic financing, directors fees, audit fees and other related expenses.) 39,916 42,584 Taxes credit 200 - Profit for the year (profit after tax) 58,275 55,717 The REIT’s approach to maximising economic performance is centred around the optimised and efficient budget allocation of the properties. This ensures that all of the capital is allocated to investments and properties with the highest possible returns. The priorities also consider a balance between minimising risks and economic uncertainties, such as variability in market dynamics, while maximising portfolios with the highest potential for revenue generation. The REIT’s thorough examination and budget allocation allows it to create long-lasting economic value and financial stability for all the stakeholders and investors. Indirect Economic Impacts The REIT’s daily activities provide indirect economic benefits that benefits local communities, economies, and more external stakeholders. Among these benefits, the commitment to prioritising local suppliers ensures that money is circulated in developing areas, stimulating regional economic growth and the national economic wellbeing. The prioritisation of local talents also provides job vacancies that reduces national unemployment. In addition to the advancement of the local economy, the investments in commercial properties contribute to further job creation for other companies which further propagates local economies. Over time, commercial hubs become more developed, leading to further economic advancement of regions that supports residential development and regional activity, creating a positive feedback loop that improves the livelihoods of local communities.
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