17 BUSINESS OVERVIEW Integrated Annual Report 2025 The REIT introduction of these new extension buildings presents a strategic addition to its key portfolio assets, increasing the number of licensed beds in KPJ Ampang Puteri Specialist Hospital and KPJ Penang Specialist Hospital from 197 to 297, and 193 to 256, respectively. With the completion of these acquisitions, the number of licensed beds in the REIT’s portfolio stands at 3,175. The new buildings will improve the capacity and operational efficiencies of the existing hospitals in Al-`Aqar’s portfolio, KPJ Ampang Puteri Specialist Hospital and KPJ Penang Specialist Hospital, respectively, further safeguarding earnings visibility for the expanded core hospital segment. The acquisitions and leasebacks contributed a total of RM3.5 million in revenue and RM3.4 million in NPI for FY2025. The KPJ Ampang Puteri Specialist’s new extension building is also awaiting Green Building Index (“GBI”) certification, making it a strategic fit in the REIT’s efforts to promote sustainability and advocate for tenant efforts in sustainability. In 2025, Al-`Aqar also renewed lease agreements for five (5) investment properties, ranging from one (1) year to fifteen (15) years with rental escalations. The renewal tenure is in accordance with the REIT’s portfolio management strategy to reduce exposure to non-core assets and strengthen the core hospital segment. Despite macroeconomic headwinds, Al-`Aqar’s earnings resilience and visibility are supported by long-term lease agreements with KPJ for the core hospital segment, providing Unitholders with stable returns. Through these implementations, the REIT maintains an occupancy rate of 100% as at 31 December 2025. BUSINESS REVIEW OPERATIONAL OVERVIEW In 2025, Al-`Aqar successfully completed a landmark acquisition and leaseback of two new buildings from KPJ in October 2025, growing its portfolio value by 13.6% from RM1.7 billion to RM1.9 billion, further solidifying the REIT’s strong tenant relationship with KPJ. This is a key milestone and a significant expansion of the portfolio as it marks the first time since 2011 that the REIT acquired more than RM200 million worth of assets in a year. KPJ Ampang Puteri Specialist Hospital KPJ Penang Specialist Hospital
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