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The Sun
27-05-2025
- Business
- The Sun
Al-Salām Reit reports 7.5% revenue growth in Q1 FY25, long-term outlook positive
KUALA LUMPUR: JLG Reit Managers Sdn Bhd, the manager of Al-Salām Real Estate Investment Trust (Al-Salām Reit), achieved a strong year-on-year growth in revenue of 7.5%, recording RM21.4 million in the first quarter (Q1) ended March 31, 2025 (FY25), compared to RM19.9 million in the same period last year. Net property income (NPI) stood at RM14.9 million in Q1 FY25 compared with RM13.7 million a year ago, representing an increase of 8.8%. Growth in revenue and NPI was primarily driven by the higher rentals from Komtar JBCC, reflecting Al-Salām Reit's strategic focus on optimising asset performance. Komtar JBCC recorded an occupancy rate of 64% for Q1 2025, marking a return to pre-Covid levels. Al-Salām Reit declared a distribution per unit (DPU) of 0.51 sen in Q1 FY25, translating into a payout of 90.2%. Al-Salām Reit's DPU of 0.51 sen in Q1 FY25 is 70% higher than the declared DPU of 0.30 sen in Q1 FY24. The retail mall segment for Al-Salām Reit contributed strongly to revenue growth, delivering a revenue of RM12.4 million in Q1 FY25, representing a year-on-year increase of 13.8%, from RM10.9 million in Q1 FY24. NPI from the retail segment also grew 21.7% year-on-year, from RM6.0 million in Q1 FY24 to RM7.3 million in Q1 FY25. The strong performance was primarily attributed to Komtar JBCC's improvements in rental income and promotional income, following the reconfiguration of the al-fresco dining zone on the ground floor with several F&B tenant openings. Other assets in the retail portfolio, such as @Mart Kempas and Mydin Hypermart Gong Badak continue to demonstrate resilience as community-focused hypermarkets, providing essential daily provisions. Under a triple net lease arrangement, Mydin Hypermart Gong Badak continues to deliver steady contributions to Al-Salām Reit's core income. The food and beverage (F&B) segment, consisting of 42 KFC and Pizza Hut outlets, contributed a stable revenue of RM4.4 million in Q1 FY25, in line with Q1 FY24 revenue of RM4.4 million, demonstrating stability in rental income despite headwinds. Due to the triple net lease arrangement for the F&B segment, revenue translated into full NPI at RM4.4 million. Occupancy for the F&B segment remains at 100%. The industrial segment consisting of strategic assets of QSR Brands also posted stable results, with a revenue of RM2.9 million in Q1 FY25 compared to RM2.8 million in Q1 FY24, representing a modest 3.6% year-on-year increase. Under arrangements for triple net leases, the industrial segment's revenue also translated to an NPI of RM2.9 million for Q1 2025. Occupancy for the F&B segment remains at 100%. The office segment of Al-Salām Reit, consisting of Menara Komtar, posted a revenue of RM1.7 million in Q1 FY25 compared to RM1.9 million in Q1 FY24. NPI stood at RM0.5 million in Q1 FY25 compared to RM0.7 million in Q1 FY24. There were some tenant movements throughout the year, which resulted in a slight decline in occupancy from 93% in Q1 FY24 to 85% in Q1 FY25. Despite a lower revenue and NPI in the office segment, this has minimal impact on the portfolio as the office segment represents 6% of Al-Salām Reit's total portfolio value. Tenant take-up at Menara Komtar is expected to improve by the end of 2025, supplemented by ongoing asset enhancement initiatives (AEIs) at Komtar JBCC, increasing Menara Komtar's appeal as a preferred office space within JBCC. Furthermore, the expected economic spillover from nearby developments is anticipated to positively impact Menara Komtar's performance. Al-Salām Reit CEO Zulhilmy Kamaruddin said the Q1 results showed overall improvement, especially in the retail segment, underpinned by Komtar JBCC's stronger performance. '2025 will see a strategic focus on reconfiguring Komtar JBCC's layout and tenant mix, reflecting our vision for Komtar JBCC's position primarily as a transit-oriented mall. 'We expect Komtar JBCC to benefit from strong traffic flows once the JB-Singapore RTS Link is completed. 'We are committed to revitalising Komtar JBCC through AEIs, which include reconfiguration of existing spaces to improve tenant take-up rate and occupancy. This has garnered strong interest from mini-anchors, which we expect to translate into sign-ups by the end of 2025,' he said in a statement. In 1Q FY25, Komtar JBCC saw the opening of an F&B zone on the second floor with several grab-and-go-type F&B and some fast food chains, in line with its transit-oriented proposition. Reconfiguration of a new lifestyle dining concept zone with al-fresco dining on the ground floor has also been completed, with new tenant openings in May 2025 by Dim Sum Place and The Ramen Stall, both familiar halal brands from Singapore. 'We are focused on our goal to improve the performance of Al-Salām Reit. It is an exciting year ahead for us, where we will see Komtar JBCC undergo sectional refurbishments with a curated tenant mix. 'We are also actively streamlining our portfolio theme to provide our investors and stakeholders with more clarity and focus moving forward, focusing on our JB-based assets, aligning with the flurry of economic activities arising from the JS-SEZ and JB-Singapore RTS Link. 'Moving forward, Al-Salām Reit remains focused on delivering sustainable, long-term returns to its unitholders. We are actively managing our capital to address our gearing levels and conducting active portfolio review and optimisation. 'This demonstrates our commitment to enhancing shareholder value. With ongoing efforts to drive rental growth and occupancy, we are well-positioned to capitalise on emerging opportunities in the retail and commercial sectors in Johor Bahru. Our strategy continues to prioritise value creation for unitholders, supported by a disciplined approach to growth and yield enhancement,' Zulhilmy said. Al-Salām Reit expect Komtar JBCC to benefit from strong traffic flows once the JB-Singapore RTS Link is completed.
New Straits Times
26-05-2025
- Business
- New Straits Times
Govt allocates RM360mil to boost rural entrepreneurs
ALOR STAR: The Rural and Regional Development Ministry has allocated RM360.36 million this year to implement 77 rural entrepreneurship programmes nationwide, targeting 27,300 beneficiaries. Deputy Rural and Regional Development Minister Datuk Rubiah Wang said the allocation would be channelled to 10 agencies under the ministry, including the Kedah Regional Development Authority (Keda). "Of the total, Keda is receiving RM4.4 million to run six components under its entrepreneurship development programme across Kedah. "These include incentives to enhance skilled entrepreneurs, padi field development, rural agriculture projects, and training in skills and organisational management. "Our aim is not just to produce new entrepreneurs, but also to support their growth through knowledge-sharing, market access and physical facilities such as business premises," she told a press conference at the Keda Entrepreneurs Gathering 2025 here today. Also present was Keda chairman Datuk Seri Jamil Khir. Rubiah said since its establishment in 1981, Keda had received RM2.3 billion for comprehensive development efforts across Kedah, covering infrastructure, the economy, human capital and agriculture. Among its achievements are the construction of 262km of rural roads, the development of 62 new housing settlements, and the provision of 492 business lots to support local entrepreneurs. "In terms of human capital, Keda has trained over 34,000 participants through 891 short-term courses. Keda College, established in 1989, has produced over 8,400 graduates, with an employability rate of 96.7 per cent. "Keda does not operate in isolation. We encourage collaboration between ministry agencies to fast-track development efforts. Our goal is not only to produce entrepreneurs, but to shape them into sustainable industry players ready to compete globally," she said. Rubiah also highlighted key challenges faced by rural entrepreneurs, including a lack of capital, proper business premises, market networks and technical know-how. These, she said, must be tackled holistically by the government and relevant agencies. She expressed hope that Keda's 44th anniversary celebration would spark a new wave of growth in the rural entrepreneurship ecosystem, creating more economic and employment opportunities for the people of Kedah. The event also marked the debut of the Keda Entrepreneur Awards 2025, in conjunction with the agency's anniversary, to honour outstanding entrepreneurs nurtured under its programmes.
Malay Mail
24-04-2025
- Entertainment
- Malay Mail
Finas to spotlight Malaysian cinema in Beijing with mini film fest this year
KUALA LUMPUR, April 24 — The National Film Development Corporation (Finas) is planning to host a mini film festival in Beijing, China this year, its chairman Datuk Hans Isaac said today. Hans said the festival is expected to feature between 10 and 15 Malaysian films. Finas, he said, is currently discussing the matter with its counterparts and other relevant stakeholders in China. Hans made the announcement at the premiere of Chinese film, Pirate Queen: Zheng Yi Sao, which claims to be the world's first artificial intelligence (AI)-generated film. 'Many AI creators in Malaysia and around the region have worked in this film. 'By 2030, AI is expected to increase South-east Asia's GDP by USD$1 trillion (RM4.4 trillion) and it is something that Malaysia should look at as the frontrunner of AI around the world,' he said. Citing the blockbuster success of Blood Brothers: Bara Naga, Hans congratulated veteran producer and director Datuk Yusof Haslam and his team and said that the film's remarkable box office run proved that the standards of Malaysian movies have increased. Directed by Syafiq Yusof and Abhilash Chandra, the action-packed film grossed RM9.2 million within just two days of screening nationwide.
