AL-SALĀM REIT has posted a stellar half-year performance anchored by growth in its retail segment led by the transformation of its Johor Bahru-based asset KOMTAR JBCC.
This has enabled the Shariah-compliant fund focused on investing in diversified properties to achieve a revenue of RM43.45 mil or a 10.3% year-on-year (yoy) increase in its 1H FY2025 ended June 30, 2025 (1H FY2024: RM39.39 mil).
The topline translated into an equally strong net property income (NPI) improvement of 11.4% to RM29.5 mil in 1H 2025 (1H: FY2024: RM26.5 mil).
For the individual 2Q FY2025 quarter, Al-Salām REIT raked in a revenue of RM22.07 mil (2Q FY 2024: RM19.49 mil) and NPI of RM14.6 mil.
Enhanced tenant mix and space reconfigurations boosted rental yields and attracted stronger leasing interest, thus outlined the effectiveness of Al-Salām REIT’s asset enhancement initiatives (AEI), according to the group’s CEO Zulhilmy Kamaruddin.
“Our 2Q results reflect a balanced and disciplined portfolio strategy,” he commented. “KOMTAR JBCC’s transformation highlights the success of our asset enhancement initiatives in unlocking growth while our F&B (food & beverage) and industrial assets continue to provide steady, resilient cashflows.”
Added Zulhilmy: “The improving momentum at Menara KOMTAR demonstrates the effectiveness of our leasing strategies in supporting recovery.
“With growth from retail, resilience from F&B and industrial, and recovery in our office segment, we are confident that our diversified portfolio and on-going optimisation will continue to deliver sustainable value for our unitholders.”
Al-Salām REIT declared a distribution per unit (DPU) of 0.47 sen for its 2Q FY2025 to bring the total of its DPU to 0.98 sen for 1H 2025, a spike of 108.5% from 0.47 sen in 1H 2024.
All in all, its retail segment recorded strong yoy performance driven by the rejuvenation of KOMTAR JBCC. Higher rental and promotional income – supported by improved tenant demand and operational efficiency – have reinforced KOMTAR JBCC as a growth catalyst.
This led to the group’s revenue edged up 24% to RM13.0 mil (2Q FY2024: RM10.5 mil) while NPI rose 37.5% to RM7.2 mil (2Q FY2024: RM5.2 mil).
Elsewhere, the F&B segment comprising 41 KFC and Pizza Hut outlets posted stable revenue of RM4.4 mil in 2Q FY2025 with 100% occupancy maintained, underscoring its role as a dependable cashflow contributor.
During the quarter, Al-Salām REIT also completed the disposal of a KFC Drive-Thru in Jalan Kuchai Lama for a consideration of RM14.7 mil wh9och is consistent with its portfolio optimisation strategy.
At 4.34pm, Al-Salām REIT was up 2 sen or 4.82% to 43.5 sen with 154,400 shares traded, thus valuing the REIT fund at RM252 mil. – Aug 27, 2025
