MAIN Market-listed Al-`Aqar Healthcare REIT, the world’s first Islamic healthcare REIT, has demonstrated steady year-on-year (yoy) growth in its core operating metrics as per its FY2025 ended Dec 31, 2025 financial performance.
The group’s revenue inched up 2.3% yoy to RM119.96 mil (FY2024: RM117.2 mil) while its net property income (NPI) rose 3.3% yoy to RM104.9 mil to reflect stable rental income across its healthcare asset portfolio and continued operational resilience.
The increase in revenue and NPI were primarily due to additional rental income contributed by the acquisition of two KPJ Healthcare Bhd properties, namely KPJ Ampang Puteri Specialist Hospital (new building) and KPJ Penang Specialist Hospital (new building) which were completed in October 2025.
However, Al-`Aqar’s net earnings dipped 4.4% yoy (FY2024: RM58.72 mil) mainly due to a fair value write-down of RM2.0 mil related to the disposal of KPJ Healthcare College @ Penang in December 2025 coupled with the absence of a RM1.0 mil gain on disposal of Damai Wellness Centre in June 2024.
Al-`Aqar Healthcare REIT declared a final income distribution of 1.86 sen for 4Q FY2025 which brings its total distribution per unit (DPU) for FY2025 to 7.06 sen, underscoring its consistent income-generating capability and commitment to delivering sustainable returns to unitholders.
“Our FY2025 results reflect the stability of our healthcare-focused portfolio, supported by disciplined asset management and long-term lease structures,” commented Zulhilmy Kamaruddin, CEO of JLG REIT Managers Sdn Bhd which manages Al-`Aqar.
“Al-`Aqar has also begun recognising rental income from the KPJ Ampang Puteri Specialist Hospital (New Building) and KPJ Penang Specialist Hospital (New Building) effective 4Q FY2025.
“This was reflected in a 13% increase in revenue from 3Q FY2025 to 4Q FY2025, signalling strengthening earnings momentum heading into the new financial year.”
Looking ahead, Zulhilmy expects the outlook for Malaysia’s healthcare sector to remain compelling with industry estimates projecting annual growth of around 8%, driven by demographic trends, rising healthcare demand and continued expansion in medical tourism.
“Against this backdrop, we’ll continue to pursue yield-accretive opportunities, optimise portfolio performance and expand our asset base to capture long-term sector growth,” he added.
Asit is, Al-`Aqar comprises 23 properties valued at RM1.64 bil, including 17 hospitals, three wellness centres and two colleges in Malaysia as well as an aged care and retirement village in Australia.
Al-`Aqar which plays a pivotal role in supporting existing healthcare infrastructure has an ambitious goal of achieving an asset value of RM2.5 bil by 2028.
At 12.25pm, Al-`Aqar was unchanged at RM1.28 with 20,600 shares traded, thus valuing the company at RM1.07 bil. – Feb 26, 2026
