DIVERSIFIED Shariah-compliant real estate investment trust Al-Salām REIT has posted a strong 1Q FY2026 ended March 31, 2026 as its net profit surged 87.8% year-on-year (yoy) to RM6.16 mil (1Q FY2025: RM3.28 mil) as its revenue firmed 5.8% yoy to RM22.62 mil (1Q FY2025: RM21.38 mil).
Net property income (NPI) during the period under review inched up 8.3% yoy to RM16.1 mil. The growth was largely attributable to stronger performance at KOMTAR JBCC, supported by improved rental rates alongside sustained tenant demand.
Al-Salām REIT declared its first interim income distribution of 0.96 sen per unit for 1Q FY2026 which is 88% higher than the first interim income distribution in the same quarter a year ago.
“Our 1Q FY2026 performance reflects the resilience of our portfolio and disciplined execution of our asset management strategy,” commented Zulhilmy Kamaruddin who is CEO of JLG REIT Managers Sdn Bhd, the Al-Salām REIT manager.
“The stronger performance was supported by higher contributions across retail, office and industrial segments.”
Added Zulhilmy: “Operating and maintenance expenses were well-managed while financing costs remained stable. These factors together with proactive asset management demonstrate the quality of our assets and ability to capitalise on uncertain market conditions.”
Retail – Key growth driver
Led by continued strong performance at KOMTAR JBCC, the retail segment remained the largest contributor to Al-Salām REIT’s earnings as the group optimises its tenancy mix.
This segment recorded a 10.6% yoy rise in revenue to RM13.8 mil in 1Q FY2026 with NPI chalked up 16.7% yoy to RM8.6 mil from RM7.3 mil a year ago.
The growth was primarily driven by improved rental rates at KOMTAR JBCC while @Mart Kempas and Mydin Hypermart Gong Badak continued to provide stable and steady contributions to the portfolio.
KOMTAR JBCC continued to benefit from Johor’s strengthening economic environment in 1QFY 2026, supported by resilient domestic consumption, tourism recovery and sustained cross-border spending from Singapore amid ongoing geopolitical uncertainties.
As part of its on-going value enhancement strategy, Al-Salām REIT continues to optimise tenancy mix, enhance leasing quality and attract new brands with strong performance potential.
Complementing the retail segment, the F&B segment generated total revenue of RM4.08 mil in 1Q FY2026 while NPI remained resilient at RM4.06 mil despite the impact of on-going portfolio rationalisation initiatives.
The segment continues to benefit from a stable underlying asset base with retained properties delivering steady performance and reinforcing the quality and resilience of the portfolio.
The industrial & others segment delivered stable revenue of RM3.0 mil and NPI of RM2.9 mil supported by master lease and long-term tenancy arrangements that underpin income visibility and minimise vacancy risk.
Elsewhere, the office segment posted revenue of RM1.8 mil and NPI of RM800,000 in 1Q FY2026, thus representing a 7.9% and 44% yoy improvement respectively, driven by higher occupancy of 92% (2025: 90%) and lower operating expenses
While external uncertainties and cost pressures may persist, Al-Salām REIT remains focused on strengthening portfolio resilience through prudent balance sheet management, liquidity preservation and disciplined capital allocation.
“The Fund will continue to prioritise strategic asset enhancements, tenant quality and operational efficiency while selectively pursuing value enhancing opportunities to strengthen long-term portfolio performance and deliver sustainable returns to unitholders,” projected Zulhilmy.
At the close of Friday’s (May 22) market trading, Al-Salām REIT was down 0.5 sen or 1.1% to 45 sen with 1,500 shares traded, thus valuing the REIT at RM261 mil. – May 23, 2026
