Growing Value
ANNUAL REPORT 2011
GROWING VALUE
Like a skilled farmer carefully picking healthy seeds that he will plant, nurture and cultivate to deliver
the best possible harvest, AmanahRaya-REIT Managers Sdn Bhd (ARRM) too continues to expertly
select and manage the many properties within its asset portfolio, skilfully growing their value while
delivering high returns to unitholders.
Whether they are the assets in our hospitality, higher education, office building, industrial or retail
clusters, we continue to sow the seeds of success by purposefully enhancing the value of these existing
assets. In doing so, we are leveraging on our core values which call for us to be Responsible and
Effective, to maintain Integrity and to be Trustworthy. As ARRM sets its sights on growing the value of
the AmanahRaya Real Estate Investment Trust (‘AmanahRaya REIT’) portfolio to RM1.5 billion over the
next three years, we will inject high-yielding new assets into our asset portfolio and grow their value.
Contents
02
07
08
34
35
36
38
46
50
Corporate Directory
About AmanahRaya REIT
Property Portfolio
Corporate Structure
Organisational Chart
Board of Directors
Profile of The Board of Directors
Message from the Chairman
AmanahRaya REIT Investment
Committee Members
52
55
56
57
58
77
128
131
Statement of Corporate Governance
Corporate Calender
Profile of The Chief Operating Officer
The Management Team
Manager’s Report
Statutory Financial Statements
Unitholders’ Statistics
Additional Disclosure
Office Building
Block A & B, South City Plaza
Wisma AmanahRaya
Wisma Amanah Raya Berhad
Wisma UEP
Dana 13, Dana 1 Commercial Centre
Hospitality
Holiday Villa, Alor Setar
Holiday Villa, Langkawi
Higher Education
Building
SEGI College, Subang Jaya
SEGI University College, Kota Damansara
Industrial
Permanis Factory
Kontena Nasional Distribution Centre 11
AIC Factory
Silver Bird Factory
Gurun Automotive Warehouse
Retail
Selayang Mall
Corporate Directory
COMPANY SECRETARIES OF THE MANAGER
MANAGER
AmanahRaya- REIT Managers Sdn Bhd
(Incorporated in Malaysia)
(856167-A)
Leong Shiak Wan (f)
See Siew Cheng (f)
Jerry Jesudian a/l Joseph Alexander
Norhaslinda binti Samin
MANAGER’S REGISTERED OFFICE
Level 11, Wisma AmanahRaya
No.2, Jalan Ampang
50508 Kuala Lumpur
Tel : 03 2055 7388
Fax : 03 2078 8187
INDEPENDENT INVESTMENT COMMITTEE
Mahadzir bin Azizan (Appointed as Chairman on 01/01/2012)
Datuk Yahya bin Ya’acob (Resigned as Chairman on 01/01/2012)
Tuan Syed Elias bin Abd. Rahman Alhabshi
Vasantha Kumar Tharmalingam (Appointed on 11/02/2011)
Datuk Johar bin Che Mat (Appointed on 01/01/2012)
Tengku Dato’ Seri Hasmuddin bin Tengku Othman (Resigned on 01/01/2012
PRINCIPAL PLACE OF BUSINESS
Level 8, Wisma TAS
No.21, Jalan Melaka
50100 Kuala Lumpur
AUDIT COMMITTEE
Tel : 03 2078 0898
Fax : 03 2026 6322
Datin Aminah binti Pit Abd Raman (Chairperson)
Datuk Syed Hussian bin Syed Junid
Che Pee bin Samsudin (Appointed on 23/08/2011)
Alina binti Hashim (Resigned on 23/08/2011)
BOARD OF DIRECTORS OF THE MANAGER
MANAGEMENT TEAM
Independent Non-Executive Directors
Adenan bin Md Yusof
(Chief Operating Officer / Principal Officer)
Tan Sri Dato’ Ahmad Fuzi bin Abdul Razak (Chairman)
Dato’ Abdul Mutalib bin Mohamed Razak
Datuk Syed Hussian bin Syed Junid
Azmanira binti Ariff
(Head, Legal and Compliance)
Non-Independent Non-Executive Directors
Yusri bin Abdul Manaf
(Head, Property Management)
Dato’ Ahmad Rodzi bin Pawanteh
Datin Aminah binti Pit Abd Raman
Shahrol Anuwar bin Sarman
Datuk Johar bin Che Mat (Appointed on 23/08/2011)
Che Pee bin Samsudin (Appointed on 23/08/2011)
Sharizad binti Juma’at (Resigned on 23/08/2011)
Alina binti Hashim (Resigned on 23/08/2011)
Abas bin Abd Jalil (Resigned on 23/08/2011)
2
Ama nahR a y a R EIT
Noorbaizura binti Hermeyney
(Head, Real Estate Investment)
Zaffarin bin Haji Zanal
(Group Chief Risk Officer)
Kusuma Dewi binti Abdul Aziz
(Accountant)
2)
PROPERTY MANAGERS
PRINCIPAL FINANCIER OF THE FUND
Malik & Kamaruzaman Property Management
Sdn Bhd (721939-X)
3rd Floor, Wisma Yakin
Jalan Melayu
50100 Kuala Lumpur
Affin Bank Berhad (25046-T)
17th Floor, Menara Affin
80, Jalan Raja Chulan
50200 Kuala Lumpur
I.M. Global Property Consultants
No. 47-2, Tingkat 2
Wisma IMG, Jalan 3/76D
Desa Pandan,
55100 Kuala Lumpur
AUDITOR
(001639648-V)
BDO (AF 0206)
12th Floor, Menara Uni.Asia
1008, Jalan Sultan Ismail
50250 Kuala Lumpur
REGISTRAR AND TRANSFER OFFICE
BURSA MALAYSIA STOCK CODE
Symphony Share Registrars Sdn Bhd
Level 6, Symphony House
Block D13, Pusat Dagangan Dana 1
Jalan PJU 1A/46
47301 Petaling Jaya
Selangor
(378993-D)
ARREIT 5127
(Listed on the Main Board on 26 February 2007)
Tel : 03 7841 8000
Fax : 03 7841 8008
TRUSTEE
CIMB Trustee Berhad (167913M)
Level 5, Bangunan CIMB
Jalan Semantan, Damansara Heights
50490 Kuala Lumpur
Tel : 03 2084 8888
Fax : 03 2092 2717
Annual report 2011
3
Hospitality
Retail
Industrial
Higher
Education
Office
Building
4
Ama nahR a y a R EIT
Diversified
Growth
With the well-diversified hospitality, higher education, office building,
industrial and retail sector properties within our AmanahRaya REIT portfolio,
we are the most diversified REIT in the market. It is this diversity that makes
us more resilient as our risks are spread out over several sectors in the event
of the downfall of one sector. Through ensuring long term leasing
arrangements, pre-determined rental increments and other measures to
safeguard ourselves, we are effectively securing cash flows and mitigating
our risk.
Annual report 2011
5
Property Profile
•
•
•
•
•
•
•
Holiday Villa, Alor Setar • Holiday Villa, Langkawi • SEGi College, Subang Jaya
SEGi University College, Kota Damansara • Block A & B South City Plaza, Seri Kembangan
Wisma AmanahRaya, Jalan Ampang • Wisma Amanah Raya Berhad, Jalan Semantan
Wisma UEP, Subang Jaya • Dana13, Dana 1 Commercial Centre, Petaling Jaya
Permanis Factory, Bangi • Kontena Nasional Distribution Centre 11, Port Klang
AIC Factory, Shah Alam • Silver Bird Factory, Shah Alam • Gurun Automotive Warehouse, Gurun
Selayang Mall, Selayang
6
Ama nahR a y a R EIT
About AmanahRaya REIT
AmanahRaya Real Estate Investment
Trust (“AmanahRaya REIT”) was
established on 10 October 2006
pursuant to the Deed between the
Manager, AmanahRaya-REIT Managers
Sdn Bhd and CIMB Trustee Berhad
(“Trustee”). It was listed on the Main
Board of Bursa Malaysia on 26 February
2007 as a real estate investment fund.
As at 31 December 2011, the portfolio of
AmanahRaya REIT consists of 15
properties with a total book value of
RM1.04 billion. The portfolio is well
diversified comprising properties from
hospitality, higher education, office
building, industrial and retail sectors.
The investment objective of AmanahRaya
REIT is to provide strong and sustainable
return to the unitholders from real estate
investment. The main focus of its real
estate investment is the growth potential
in terms of rental yield and capital values
of the properties over a long term period.
Performance of AmanahRaya REIT is
assessed based on the following standards:
(a)
(b)
(c)
(d)
Management expense ratio (“MER”)
Total returns
Distribution yield
Net asset value
ABOUT AMANAHRAYA-REIT
MANAGERS SDN BHD
AmanahRaya-REIT Managers Sdn Bhd
(“ARRM”), a wholly owned subsidiary
of Amanah Raya Berhad is the manager
of AmanahRaya REIT. ARRM was formed
on 8 May 2009 and took over the
management of AmanahRaya REIT on
7 September 2009 upon the registration
of the Second Supplemental Deed of
AmanahRaya REIT with the Securities
Commission from the former Manager
i.e. AmanahRaya-JMF Asset Management
Sdn Bhd (presently known as AmanahRaya
Investment Management Sdn Bhd). As
at 31 December 2011, the authorised
share capital of ARRM is RM5 million and
the paid-up share capital is RM1.5 million.
ARRM is principally responsible for the
management of AmanahRaya REIT’s
investment strategies to meet its
investment objectives. Its primary activity
is to manage and administer AmanahRaya
REIT on behalf of the unitholders in
accordance with the Trust Deed dated
10 October 2006 and guidelines issued
by the Securities Commission and Bursa
Malaysia. ARRM’s main role is to ensure
good and sustainable return to
AmanahRaya REIT unitholders.
Annual report 2011
7
Property Portfolio
AMANAHRAYA REAL ESTATE INVESTMENT TRUST INVESTMENT PORTFOLIO
FUND’S INVESTMENTS (as at 31 December 2011)
Real Estate(s)
Hospitality
Higher Education
Building
Office Building
Industrial
Retail
Location
Type of
Building
Cost of
Acquisition
Appreciation
in Value
(RM‘000)
(RM‘000)
Unexpired
Lease /
Tenancy
Period
(approximate)
Investment
in Real
Estate
Value*
(RM‘000) (a)
Value over
Total Asset
Value (%)
(a/b)
Holiday Villa
Alor Setar
Alor Setar,
Kedah
Hotel
31,000
4,000
100%
4.50 yrs
35,000
3.36%
Holiday Villa
Langkawi
Langkawi,
Kedah
Resort Hotel
55,000
3,800
100%
4.50 yrs
58,800
5.65%
SEGi College,
Subang Jaya
Subang Jaya,
Selangor
Higher Education 52,500
Building
2,600
100%
9.50 yrs
55,100
5.30%
SEGi University Petaling Jaya,
College,
Selangor
Kota Damansara
Higher Education 145,000
Building
9,000
100%
6.00 yrs
154,000
14.80%
Block A & B,
SouthCity Plaza
Seri Kembangan, Office Building
Selangor
18,300
1,800
100%
4.30 yrs
20,100
1.93%
Wisma
AmanahRaya
Jalan Ampang,
Kuala Lumpur
Office Building
68,000
6,700
100%
0.70 yrs
74,700
7.18%
Wisma Amanah
Raya Berhad
Damansara
Heights
Kuala Lumpur
Office Building
53,000
10,900
100%
3.00 yrs
63,900
6.14%
Wisma UEP
Subang Jaya,
Selangor
Office Building
35,500
3,500
30%
3.00 yrs
39,000
3.75%
Dana13, Dana 1 Ara Damansara, Office Building
Commercial
Petaling Jaya,
Centre
Selangor
99,120
9,800
100%
8.30 yrs
108,800
10.46%
950
100%
9.50 yrs
28,500
2.74%
Permanis Factory Bandar Baru
Industrial Factory 27,550 *
Bangi, Selangor
Kontena
Nasional
Distribution
Centre 11
Port Klang,
Selangor
Industrial
Warehouse
28,500
2,160
100%
7.50 yrs
30,660
2.95%
AIC Factory
Shah Alam,
Selangor
Industrial Factory 19,200
2,050
100%
4.30 yrs
21,250
2.04%
Silver Bird
Factory
Shah Alam,
Selangor
Industrial
Complex
92,000
6,000
100%
4.20 yrs
98,000
9.42%
Gurun
Automotive
Warehouse
Gurun, Kedah
Industrial
Warehouse
23,970
980
100%
6.00 yrs
24,950
2.40%
Selayang Mall
Selayang,
Selangor
Retail Mall
128,165
4,000
100%
5.00 yrs
132,000
12.69%
944,760
92,281
3,432
1,040,473
90.80%
8.87%
0.33%
100.00%
Real Estate-Related Assets
Cash and security deposits
Others (Trade and Other Receivables)
Total Asset Value (RM’000) (b)
*
8
Occupancy
Inclusive of upgrading works undertaken on the property
Ama nahR a y a R EIT
Key Investment Highlights
of AmanahRaya REIT Property Portfolio
Diversified Portfolio of Properties
Security Deposits
Corporate Governance
AmanahRaya Real Estate Investment
Trust (“AmanahRaya REIT”) is known for
its diversified portfolio with properties
from various different sectors. Currently,
AmanahRaya REIT has 15 properties
from hospitality, higher education, office
building, industrial and retail sectors.
This diversification offers flexibility to its
investment strategies and provides
market strength in facing economic
turbulence and market uncertainty.
AmanahRaya REIT’s rental and lease
obligations are backed by security
deposits averaging more than one (1)
year in the form of cash and bank
guarantee. This higher-than-industryaverage level of security mitigates the
tenant-default risk.
All investment decisions of AmanahRaya
REIT are reviewed and deliberated by
the Investment Committee which
consists of independent members with
the right mix of desired investment
skills, experience and expertise.
Long Term Lease Arrangements
All AmanahRaya REIT properties, except
Wisma UEP, are leased for a minimum of
six (6) years to a maximum of fifteen (15)
years. The long lease-maturity profile of
its portfolio underpins the stable rental
income of AmanahRaya REIT. Rental
rates for the entire lease period are predetermined and will gradually increase at
every rent review period.
Distribution Policy
“Triple Net” Lease
Most of AmanahRaya REIT’s assets
have “triple net” lease arrangements
whereby the lessee/tenant is fully
responsible for regular maintenance
during the lease tenure.
Reputable Lessees/ Tenants
Majority of the lessee/tenant of
AmanahRaya REIT are public listed
companies with good reputation and
strong financial standing.
With the approval of the Trustee on or
before the distribution date for each
distribution period, distribution of at least
90% (or such other percentage as
determined by the Manager of
AmanahRaya REIT in its absolute
discretion) of the distributable income of
AmanahRaya REIT will be made,
provided always that the distributable
amount shall be subject to the availability
of funds and in compliance with
applicable laws and requirements. Each
distribution shall be paid every quarter
and the Manager of AmanahRaya REIT
may amend the distribution policy at any
time by giving notice to the unitholders.
Annual report 2011
9
Financial Highlights of AmanahRaya REIT
Snapshot of AmanahRaya REIT as at 31 December 2011
Total Assest Value
Gearing Ratio
RM1.04 billion
34.91%
Highest Price (2011)
Sectors
Hospitality, Higher Education,
Office Building, Industrial
and Retail Sectors
RM0.97 per unit
(17 February & 5 May 2011)
Lowest Price (2011)
Total no of Properties
15 properties
RM0.85 per unit
(26 September 2011)
Price as at 31 December 2011
Total Units Issued
RM0.91 per unit
573,219,858
DPU for 2011
Market Capitalization
7.2213 sen per unit
RM521,630,071
Total Number of Unitholders
Average 3 month Trading Volume (units) (Oct-Dec 2011)
2,809
183,739
Substantial Unitholders
Net Asset Value ("NAV") per unit
RM1.0496
10
Ama nahR a y a R EIT
Kumpulan Wang Bersama (58.32%)
Perbadanan Kemajuan Negeri Selangor (5.65%)
Property Portfolio
Well Structured Lease Profile
3+4+3
Dana 13, Subang
3+3+2+2
Blok A & B, South City Plaza
3+3+3+1
Wisma UEP, Subang Jaya*
0
Wisma AmanahRaya, Jalan Ampang
3+3
Wisma Amanah Raya Berhad, Jalan Semantan
Reviewed annually
Selayang Mall
3+3+3+1
Remaining Lease
*
Lease Completed
Tenancy of Sime UEP Development Sdn Berhad as the master
lessee of Wisma UEP has expired on 31/8/2011
Annual report 2011
11
2022
Holiday Villa, Alor Setar
2021
3+4+3
2020
Holiday Villa, Langkawi
2019
3+3+3+3+3
2018
Segi College, USJ
2017
2+2+2+2+2
2016
Segi University College, Kota Damansara
2015
5+5+5
2014
Permanis Factory, Bangi
2013
3+4+3
2012
Silverbird Factory, Bangi
2011
3+3+3
2010
Kontena Nasional, Port Klang
2009
3+4+3
2008
Gurun Warehouse, Kedah
2007
3+4+3
2006
AIC Factory, Shah Alam
2005
Rent Review Frequency
Property Portfolio
3.0 Asset Value Based on
Property Sector
12
4.0 Usage of Lettable Area by
Lessee’s Business Sector
5.0 Gross Income Based
on Property Sector
22%
Industrial
23%
Manufacturing
22%
Industrial
10%
Hotel
16%
Logistic
9%
Hotels
22%
Education
12%
Hospitality
22%
Education
32%
Office
14%
Education
33%
Office
14%
Retail
19%
Services
14%
Retail
13%
Retail
3%
Property
Ama nahR a y a R EIT
6.0 AmanahRaya REIT: Top Ten Tenants
12,000,000.00
10,000,000.00
8,000,000.00
6,000,000.00
2011
2010
2009
4,000,000.00
2,000,000.00
Kontena
Nasional
2,151,000.00
639,325.00
–
2,126,000.00
2,169,999.96
Holiday Villa
Alor Setar
2,169,999.96
3,236,000.00
3,284,400.00
SEGi USJ
3,284,400.00
3,762,000.00
4,032,208.62
3,561,069.68
3,435,000.00
Holiday Villa
Langkawi
3,849,999.96
Wisma
AmanahRaya
Berhad
3,849,999.96
Wisma
AmanahRaya
6,609,319.20
6,609,319.20
5,908,000.00
4,534,830.51
–
Block D13*
6,970,896.48
6,942,000.00
Silverbird
Factory
7,296,000.00
Selayang
Mall*
7,296,000.00
10,440,000.00
11,016,000.00
11,016,000.00
SEGi University
College, Kota
Damansara
9,312,000.00
6,057,806.45
–
0
7.0 Distribution Per Unit (sen)
8
7.6
7.2
6.8
7.22
7.33
7.32
7.29
7.16
7.14
6.4
Forecast
Actual
6
2009
2010
2011
Annual report 2011
13
Property Portfolio
AmanahRaya REIT Volume and Share Price Analysis for 2011
10.00%
1.13
8.00%
1.10
6.00%
1.07
4.00%
1.04
0.00%
Share Price (RM)
0.98
-2.00%
0.95
-4.00%
0.92
0.89
-6.00%
0.86
-8.00%
0.83
-10.00%
0.80
-12.00%
0.77
-14.00%
0.74
-16.00%
0.71
-18.00%
0.68
-20.00%
0.65
Relative Performance
2.00%
1.01
-22.00%
1 Jan
1 Feb
1 Mar
1 Apr
1 May
1 Jun
1 Jul
1 Aug
1 Sep
1 Oct
1 Nov
1 Dec
NAV as at 31 December 2011 (RM1.05)
Correlative Performance
Relative
Price
AmanahRaya REIT Share Price Performance vs KLCI as at 31 December 2011
0.98
1,600,000
0.96
1,400,000
0.94
1,200,000
1,000,000
0.9
0.88
800,000
0.86
600,000
0.84
400,000
0.82
200,000
0.8
0
0.78
1 Jan
1 Feb
1 Mar
1 Apr
1 May
1 Jun
1 Jul
1 Aug
1 Sep
1 Oct
1 Nov
1 Dec
Volume
Share Price (RM)
14
Ama nahR a y a R EIT
Volume
Share Price RM
0.92
8.0 AmanahRaya REIT Yearly Movement of Unitholders
2500
2000
1500
1000
Corporate
Foreigners
2104
1804
1186
49
51
35
705
579
0
283
500
Individuals
2009
2010
2011
AmanahRaya REIT Quarterly Movement of Unitholders
2500
2000
1500
1000
500
0
2010
2011
Q1
2010
2011
Q2
2010
2011
Q3
2010
2011
Q4
Corporate
Foreigners
Individuals
Annual report 2011
15
Overview of 15 Properties Under
AmanahRaya REIT
16
Ama nahR a y a R EIT
Holiday Villa Alor Setar
Address
Lot 162 & 163, Jalan Tunku Ibrahim,
05000 Alor Setar, Kedah Darul Aman
Location
The property is located within the Central
Business District of Alor Setar wherein
several government & commercial buildings
are located nearby amongst others are Majlis
Bandaraya Alor Setar building, Bangunan
KWSP, Bangunan Bank Simpanan Nasional,
Menara Sentosa and University Tun Abdul
Razak building.
Alor Setar is the capital city of Kedah and
one of the region’s oldest cities. It is a
distribution center for manufacturing and
agricultural products such as paddy, and the
royal seat of the Kedah state since the
establishment of this city.
Title details
Held under Master Title H.S.(D) 21046, PT
3193, Town of Alor Setar, District of Kota
Setar, State of Kedah Darul Aman
Property type
Hotel
Description
A commercial property comprising a 4-star
hotel with 156-rooms in Alor Setar located
within a 21-storey commercial complex with
sub-basement level known as City Plaza
Cost of acquisition
RM31,000,000.00
Age of property
Approximately 16 years
Valuer
DTZ Nawawi Tie Leung
Tenure of Master Title
Leasehold for 99-years
Net Book Value
RM35,000,000.00
Unexpired lease period (14/12/2107)
Approximately 96 years
Master Lessee
Alor Setar Holiday Villa Sdn Bhd
Lease period
10 years commencing from June 2006
Occupancy rates
100%
Gross Floor Area
150,000 sq.ft
Net rental (per month)
RM180,833.33
Net lettable area
Not applicable
Next Rent Review
June 2012
Existing use
Used as a hotel under the brand name of
Hotel Holiday Villa
Property Manager
Malik & Kamaruzaman Property
Management Sdn Bhd
Valuation as at November 2011
RM35,000,000.00
Date of acquisition
26th February 2007
Annual report 2011
17
Holiday Villa Langkawi
Address
Description
Cost of acquisition
Lot 1698, Pantai Tengah, Mukim Kedawang,
07000 Langkawi, Kedah Darul Aman
A purpose-built 4-star resort hotel with 238rooms located in Pantai Tengah, Langkawi
RM55,000,000.00
Location
Age of property
The property is located along one of the most
popular beach stretch which the locality is
known as Pantai Tengah. Along the same
stretch are other good hotel resorts which
include Langkawi Beach Resort, Aseania
Seaview Resort, Sunset Beach Resort,
Moonlight Bay Resort, Tanjung Mali Beach
Resort and Pelangi Beach Resort, to name a
few. Langkawi International Airport is located 6
km to north of the property.
Approximately 20 years
Langkawi Island is one of premier tourist
destination in Malaysia due to its status being
a duty free zone apart from the wonderful
beaches and historical sites it offers to
tourist. Due to the heavy tourist arrivals and
international events held, Langkawi Airport has
been upgraded to an international airport.
Gross Floor Area
Valuation as at November 2011
RM58,800,000.00
Valuer
Tenure
DTZ Nawawi Tie Leung
Freehold
Net Book Value
Unexpired lease period
RM58,800,000.00
Not Applicable
Master Lessee
Lease period
Langkawi Holiday Villa Sdn Bhd
10 years commencing from July 2006
Occupancy Rate
100%
176,590 sq.ft.
Net rental (per month)
Net lettable area
RM320,833.33
Not Applicable
Next Rent Review
Existing use
July 2012
Used as a resort hotel under the brand name of
Hotel Holiday Villa
Property Manager
Lot No. 2504, Mukim of Kedawang, P.T. 107
& P.T. 108, both in town of Padang Mat Sirat,
District of Langkawi, Kedah Darul Aman
Parking spaces
Malik & Kamaruzaman Property
Management Sdn Bhd
Property type
Date of acquisition
Resort Hotel
26th February 2007
Title details
18
Ama nahR a y a R EIT
55 parking bays
SEGi College Subang Jaya
Address
Description
Date of acquisition
SEGi College, Persiaran Kewajipan USJ 1,
47600 Subang Jaya, Selangor Darul Ehsan.
A 12-storey purpose-built office building with
3 basement car park levels which is used as a
Higher Learning Institution premises
26th February 2007
Location
Cost of acquisition
RM52,500,000.00
It is located within one of the Commercial
Business District of Subang Jaya under zone
USJ 1, Subang Jaya. Subang Jaya is an
integrated mixed development comprises
of residential, commercial and industrial
developments which is mainly developed by
Sime UEP. It is located about 15 kilometres to
south-west of Kuala Lumpur city centre.
Age of property
Landmark development located next to the
property is the Summit City which is an
integrated development comprises of retail
complex, office block and a 4-star hotel. In a
larger neighbourhood, there are several
prominent commercial buildings which include
Subang Parade, Sunway Pyramid, Sunway
Medical Centre and Sheraton Hotel.
Lease period
Title details
Existing use
Geran 43527, Lot No. 13, Pekan Subang Jaya,
District of Petaling, State of Selangor
Used as a higher learning institution and training
centre under the brandname of SEGi College
Next Rent Review
Property type
Parking spaces
Property Manager
Higher education building
206 parking bays and 400 motorcycle
parking bays
Malik & Kamaruzaman Property
Management Sdn Bhd
Approximately 5 years
Valuation as at December 2011
RM55,100,000.00
Tenure
Freehold
Valuer
Raine & Horne
Unexpired lease period
Not Applicable
Net Book Value
RM55,100,000.00
15 years commencing from May 2006
Master Lessee
SEG International Bhd
Gross Floor Area
280,575 sq. ft.
Occupancy Rate
100%
Net lettable area
131, 387 sq. ft.
Net rental (per month)
RM273,700.00
May 2012
Annual report 2011
19
SEGi University College Kota Damansara
Address
Description
Date of acquisition
SEGi University College (Malaysia Main
Campus), No. 9, Jalan Teknologi, Taman Sains
Selangor, Kota Damansara PJU 5, 47810
Petaling Jaya, Selangor
An institutional complex comprising 7-storey
administrative block and 5-storey academic
block
28th December 2007
Cost of acquisition
RM145,000,000.00
Age of property
Location
Approximately 5 years
SEGi University College is located within a new
development known as Taman Sains Selangor
1, an emerging high-technology industry estate
in Kota Damansara. Kota Damansara is an
integrated self-contained township developed
by Selangor State Development Corporation
(PKNS) located approximately 25 kilometres
to the west of Kuala Lumpur city centre.
RM154,000,000.00
Tenure
Leasehold for 99 years
Valuer
Raine & Horne
Unexpired lease period
Approximately 91 years
Net Book Value
RM154,000,000.00
Lease period
10 years commencing from January 2008
Notable commercial buildings within the
neighbourhood are Tropicana Medical Centre,
Sri KDU Kota Damansara and Kelab Golf
Seri Selangor.
Valuation as at November 2011
Master Lessee
SEG International Bhd
Gross Floor Area
577,031 sq.ft.
Occupancy Rate
100%
Net lettable area
Title details
337,710 sq.ft
Developer’s Lot No. 9, Mukim Sungai Buloh,
District of Petaling, State of Selangor Darul
Ehsan
Existing use
Net rental (per month)
RM918,000.00
Used as a college campus under the
brandname of SEGi University College
Next Rent Review
Parking spaces
Property Manager
344 car parking bays and 1,031 motorcycle
parking bays
IM Global Property Consultants
January 2012
Property type
Higher education building
20
Ama nahR a y a R EIT
Block A & B South City Plaza Seri Kembangan
Address
Description
Date of acquisition
Block A & B, South City Plaza, Persiaran
Serdang Perdana, Taman Sedang Perdana,
Section 1, 43300 Seri Kembangan, Selangor
Two (2) blocks (Block A and Block B) of 5 ½storey purpose-built office buildings within a
development known as South City Plaza
26th February 2007
Location
Age of property
The property is located within a commercial
development known as South City Plaza which
comprises of retail complex, office block and
hotel cum service apartments. It is located
within the locality known as Seri Kembangan
which comprises of mixed development made
up of mainly residential supported by several
sections of commercial developments. Seri
Kembangan is located about 15 kilometres to
the south of Kuala Lumpur city centre.
Approximately 6 years
Prominent development within the neighbourhood
is the Mines Resort City which comprises of
Mines Beach resort & Spa, Mines Waterfront
Business Park, Palace of the Golden Horses,
Mines International Exhibition City Centre, The
Mines Resort and Golf Country Club and Mines
Shopping Fair.
Gross Floor Area
Cost of acquisition
RM18,300,000.00
Valuation as at November 2011
RM20,100,000.00
Tenure of Master Title
Leasehold for 99 years
Valuer
Raine & Horne
Unexpired lease period
82 years
Net Book Value
RM20,100,000.00
Lease period
10 years commencing from June 2006
Master Lessee
SEG International Bhd
Title details
P.T. No. 520 held under Title No. H.S.(D)
226742, Pekan Serdang , District of Petaling,
State of Selangor
72,505 sq. ft.
100%
Net lettable area
66,605 sq.ft.
Office building
Net rental (per month)
RM111,000.00
Existing use
Block A is used as a higher learning centre of
SEGi College and Block B is currently used as
an office for nature environment products –
Diamond Energy Water
Parking spaces
Property type
Occupancy Rate
Next Rent Review
August 2012
Property Manager
Malik & Kamaruzaman Property
Management Sdn Bhd
The property does not have any car park but
shares the usage of 1,766 parking bays with
the developer and owner of the individual units
within the South City development
Annual report 2011
21
Wisma AmanahRaya Jalan Ampang
Address
Description
Cost of acquisition
Wisma AmanahRaya, No. 2, Jalan Ampang,
50450 Kuala Lumpur
A 15-storey purpose built office building with
2 basement levels
RM68,000,000.00
Location
Age of property
The property is located within the Central
Business District of Kuala Lumpur which most
of the financial institutions are located which
include Standard Chartered Bank, Bank
Muamalat, HSBC Bank, OCBC Bank, CIMB
Bank and AIA Insurance.
Approximately 45 years
Valuation as at November 2011
RM74,700,000.00
Valuer
Tenure
CH Williams Talhar & Wong
Leasehold for 99 years
Net Book Value
Unexpired lease period
RM74,700,000.00
54 years
Close proximity to the property is the Light
Railway Transit (LRT) station which connect
the locality to other major areas such as Kuala
Lumpur City Centre (KLCC) and Kuala Lumpur
Central Station (centre of all public transport
for Klang Valley). Within the immediate vicinity
of the property are also several heritage
buildings which include Bangunan Sultan
Abdul Samad, High Court building, Dataran
Merdeka and the Royal Selangor Club.
Title details
Pajakan Negeri (WP) 25414, Lot No. 21, and
Pajakan Negeri (WP) 25415, Lot No. 22,
Section 32, Town and District of Kuala
Lumpur, Wilayah Persekutuan Kuala Lumpur
Master Lessee
Lease period
Occupancy Rate
Gross Floor Area
Net rental (per month)
Net lettable area
RM550,776.60
166,902 sq.ft.
Next Rent Review
Existing use
August 2012
Used as Amanah Raya Berhad office
headquarters
Property Manager
Parking spaces
Malik & Kamaruzaman Property
Management Sdn Bhd
66 parking bays
Date of acquisition
Office building
26th February 2007
Ama nahR a y a R EIT
100%
235,000 sq.ft.
Property type
22
Amanah Raya Berhad
6 years commencing from August 2006
Wisma Amanah Raya Berhad Jalan Semantan
Address
Wisma Amanah Raya Berhad, No. 15, Jalan Sri
Semantan 1, Damansara Heights, 50490
Kuala Lumpur
Location
Wisma Amanah Raya Berhad is located within
the commercial area of the exclusive residential
area of Damansara Heights. Damansara Heights
is located approximately 4 kilometres to the
south-west of Kuala Lumpur city centre.
Some of the prominent commercial buildings
within the same commercial area are premises
of Institution of Bank of Malaysia, CIMB Bank,
Shell Malaysia, KPMG and Manulife.
Unexpired lease period
Master Lessee
61 years
CIMB Investment Bank Berhad
Lease period
Occupancy Rate
9 years commencing from November 2005
100%
Gross Floor Area
Net rental (per month)
170,000 sq.ft.
RM336,017.40
Net lettable area
Next Rent Review
125,227 sq.ft.
November 2012
Existing use
Property Manager
Used as offices for CIMB Group of Companies
Malik & Kamaruzaman Property
Management Sdn Bhd
Parking spaces
Title details
261 parking bays
Title Nos. H.S.(D) 83465 and P.N. 46441, Lot
Nos P.T. 6 & 36622, Mukim and District of
Kuala Lumpur
Date of acquisition
Property type
Cost of acquisition
Office building
RM53,000,000.00
Description
Valuation as at November 2011
A 5-storey purpose-built office building with 6
lower ground levels inclusive 4-level car park
RM63,900,000.00
26th February 2007
Valuer
Age of property
CH Williams Talhar & Wong
Approximately 12 years
Net Book Value
Tenure
RM63,900,000.00
Leasehold for 99 years
Annual report 2011
23
Wisma UEP Subang Jaya
Address
Property type
Date of acquisition
Wisma UEP, Jalan USJ10/1A, Pusat Perniagaan
USJ 10, 47620 Subang Jaya, Selangor
Darul Ehsan
Office building
26th February 2007
Description
Cost of acquisition
A 11-storey purpose-built office building
with 3 level of basement car park
RM35,500,000.00
Location
Wisma UEP is located within the one of
Commercial Business District of Subang Jaya
under section USJ 10 of Subang Jaya.
Subang Jaya is an integrated mixed
development comprises of residential,
commercial and industrial developments
which is mainly developed by Sime UEP. It is
located about 15 kilometres to south-west of
Kuala Lumpur city centre.
Valuation as at November 2011
Age of property
RM39,000,000.00
Approximately 14 years
Valuer
Tenure
CH Williams Talhar & Wong
Freehold
Net Book Value
Unexpired lease period
RM39,000,000.00
Not Applicable
Occupancy Rate
Nearby to the property is the local council’s
office which is Majlis Perbandaran Subang
Jaya. In a larger neighbourhood, there are
several prominent commercial buildings which
include Summit City, Subang Parade, Sunway
Pyramid, Sunway Medical Centre and Grand
Dorsett Subang Hotel.
Gross Floor Area
Property Manager
Net lettable area
90,541 sq.ft.
Parking spaces
178 parking bays
Title details
Title Nos. H.S.(D) 52531, P.T. 11303, Mukim
of Damansara, District of Petaling, Selangor
24
Ama nahR a y a R EIT
100% until 31 August 2011
198,499 sq. ft.
Malik & Kamaruzaman Property
Management Sdn Bhd
Dana13, Dana 1 Commercial Centre Petaling Jaya
Address
Description
Cost of acquisition
Dana13, Dana 1 Commercial Centre, Jalan
PJU 1A/46, Off Jalan Lapangan Terbang
Subang, 47301 Petaling Jaya, Selangor Darul
Ehsan
A 13-storey stratified office building which
forms part of Dana 1 Commercial Centre.
RM99,120,000.00
Valuation as at November 2011
Age of property
RM108,800,000.00
Approximately 2 years
Location
Valuer
The property is situated within Dana 1
Commercial Centre, a newly completed
commercial development by Puncakdana Sdn
Bhd. Dana 1 comprises 152 units of two to five
storey shopoffices and a 13 storey stratified
office building with basement car park level as
well as a serviced apartment block. The
property is located about 35 kilometres due
south-west of Kuala Lumpur city centre.
Tenure
Generally, the neighbourhood of the property
comprises a mixture of residential and commercial
developments which includes commercial
shopoffices, offices buildings, condominiums,
apartments, flats, and clubhouse as well a
golf course.
Gross Floor Area
Leasehold interest for a term of 99 years
expiring on 4th September 2097
Raine & Horne
Net Book Value
RM108,800,000.00
Unexpired lease period
86 years
Master Lessee
Symphony House Berhad
Lease period
10 years commencing from September 2009
Occupancy Rate
100%
333,438.60 sq.ft
Net rental (per month)
RM591,470.00
Net lettable area
268,850 sq.ft
Next Rent Review
September 2012
Existing use
Title details
Office Block
Developed on the Parent Lot 59214, Mukim of
Damansara, District of Petaling, Selangor Darul
Ehsan, held under Master Title No PN 8024
Parking spaces
Property Manager
IM Global Property Consultants
The property has been allocated with 300 bays
within Dana 1 Commercial Centre
Property type
Office building
Date of acquisition
7th May 2010
Annual report 2011
25
Permanis Factory Bangi
Address
Age of property
Cost of acquisition
Lots 5 & 7, Jalan P/5 and P/7, Kawasan
Perusahaan Seksyen 13, Bandar Baru Bangi,
Selangor Darul Ehsan.
Approximately 23 years
RM23,550,000.00
Tenure
Valuation as at December 2011
Leasehold for 99 years
RM28,500,000.00
Unexpired lease period (9/2/2089)
Valuer
78 years
Knight Frank
Lease period
Net Book Value
15 years commencing from June 2006
RM28,500,000.00
Gross Built Up Area
Master Lessee
262,607 sq.ft.
C.I. Holdings Berhad
Net lettable area
Occupancy Rate
Not applicable
100%
Existing use
Net rental (per month)
Used as a manufacturing factory producing
soft drinks / fruit juices.
RM162,750.67
Location
The property is located within Bangi Industrial
Area under Section 13 of Bandar Baru Bangi,
a mixed development comprises of residential,
commercial and industrial developments. Bandar
Baru Bangi is located about 25 kilometres to
the south-east of Kuala Lumpur city centre.
Notable premises within the same section
of the property are premises of Carrier
International Sdn Bhd, Denso (Malaysia) Sdn
Bhd and Y.S.P Industries (Malaysia) Sdn Bhd,
to name a few. It is about 3 kilometres to the
south of Bandar Baru Bangi town centre which
is located in Section 9.
Title details
H.S.(M) 13244A & H.S.(M) 13245A,
P.T.20104 & P.T.20105 within Section 13,
Bandar Baru Bangi, Mukim of Kajang, District
of Hulu Langat, State of Selangor
Property Manager
Parking spaces
Car park and motorcycle parking sheds are
available within the compound of the property
Date of acquisition
Property type
Industrial factory
26
Ama nahR a y a R EIT
26th February 2007
Malik & Kamaruzaman Property
Management Sdn Bhd
Kontena Nasional Distribution Centre 11 Port Klang
Address
Age of property
Valuation as at November 2011
KNDC11, Lot No. 11614, North Klang
Industrial Area, 42000 Port Klang, Selangor
Approximately 33 years
RM30,660,000.00
Tenure
Valuer
Lot No. PT 799 – Leasehold for 60 years
Lot No. PT 21596 – Leasehold for 99 years
Hakimi & Associates Sdn Bhd
Location
Kontena Nasional Distribution Centre 11 is
located within an industrial area known as
North Klang Straits Industrial Area, Port Klang.
The area is located approximately about 15
kilometres from Klang town centre.
Net Book Value
Unexpired lease period
RM30,660,000.00
Lot No. PT 799 – approximately 56 years
Lot No. PT 21596 – approximately 78 years
Master Lessee
Kontena Nasional Berhad
Some of the prominent premises within the
same area are Ayamas, Nichiden Seimitsu (M)
Sdn Bhd, Scott & English Electronics Sdn
Bhd, Behn Meyer & Co. (M) Sdn Bhd and
Johann Frieght.
Lease period
Title details
Existing use
Lot No. PT 799 held under Title No. H.S.D
128214 and Lot No. PT 21596 held under
Title No. H.S(M) 19795, District of Klang,
State of Selangor
Used as a bonded warehouse
Property type
Industrial Warehouse
Date of acquisition
28th December 2007
Description
Cost of acquisition
Warehouse Complex comprising 13 units of
single-storey warehouses and 2 units of
guard house
RM28,500,000.00
9 years commencing from June 2010
Occupancy Rate
100%
Gross Built Up Area
247,840 sq.ft.
Net rental (per month)
RM179,250.00
Next Rent Review
June 2013
Parking spaces
Available within the compound of the property
Property Manager
IM Global Property Consultants
Annual report 2011
27
AIC Factory Shah Alam
Address
Description
Date of acquisition
Wisma AIC, Lot 1&3, Persiaran Kemajuan,
Seksyen 16, 40200 Shah Alam, Selangor
Darul Ehsan
An industrial complex comprising a 3-storey
office block annexed with a double storey
factory and a single storey factory with canteen
and a guard house
28th December 2007
Age of property
Valuation as at November 2011
Approximately 19 years
RM21,250,000.00
Tenure
Valuer
Leasehold for 99 years
Hakimi & Associates Sdn Bhd
Unexpired lease period
Net Book Value
83 years
RM21,250,000.00
Lease period
Master Lessee
10 years commencing from September 2006
AIC Corporation Berhad
Gross Built Up Area
Occupancy Rate
130,252 sq.ft.
100%
Existing use
Net rental (per month)
A factory manufacturing electronic products
mainly flat screen TV
RM118,750.00
Cost of acquisition
RM19,200,000.00
Location
Wisma AIC is located within an industrial zone
of Section 16 of Shah Alam. Shah Alam is a
mixed development mainly developed by
PKNS, a state-government owned developer.
Shah Alam the capital city of Selangor State is
located about 30 kilometres to the sout-west
of Kuala Lumpur city centre.
Some of the prominent industrial premises
within the same section are Matsushita
Electronic Devices, Lafarge Malayan Cement,
Enersave, HL Industries and CCM Fertilisers.
Title details
Lot No. PT 611 held under HSD No. 97328
and Lot No PT 612 held under HSD No.
97329, both situated in Town of Shah Alam,
District of Petaling, State of Selangor
Next Rent Review
Parking spaces
Property type
Industrial factory
September 2013
Available within the compound of the property
Property Manager
IM Global Property Consultants
28
Ama nahR a y a R EIT
Silver Bird Factory Shah Alam
Address
Age of property
Valuation as at November 2011
Silver Bird Complex, Lot 72, Persiaran Jubli
Perak, Seksyen 21, 40000 Shah Alam,
Selangor Darul Ehsan
Approximately 6 years
RM98,0000,000.00
Tenure
Valuer
Freehold
Raine & Horne
Unexpired lease period
Net Book Value
Not Applicable
RM98,000,000.00
Lease period
Master Lessee
10 years commencing from October 2006
Silver Bird Group Berhad
Gross Built Up Area
Occupancy Rate
274,238 sq.ft.
100%
Existing use
Net rental (per month)
Bread and confectionary manufacturing under
the brand name of High 5
RM608,000.00
Location
SilverBird Complex is located within the
industrial zone of section 21 of Shah Alam.
The immediate surrounding is designated for
industrial developments which comprises
prominent industrial premises of Nippon
Electrics Glass (M) Sdn Bhd, Panasonic, JVC
Malaysia, DHL and TNT Logistics (M) Sdn Bhd.
Section 21 is located about 4 kilometres from
Shah Alam city centre and about 30 kilometres
to the south-west of Kuala Lumpur city centre.
Title details
Lot No. 62048, held under Title No. GRN
285748, Pekan Baru Hicom, District of
Petaling, State of Selangor
Next Rent Review
Parking spaces
Property Manager
Date of acquisition
Property type
October 2013
Available within the compound of the property
IM Global Property Consultants
28th December 2007
Industrial Complex
Cost of acquisition
Description
RM92,000,000.00
A factory complex comprising a 2-storey office
block annexed to a single storey factory
together with single storey canteen, archives,
gallery, security houses and others
Annual report 2011
29
Gurun Automotive Warehouse Gurun
Address
Age of property
Valuation as at November 2011
NAZA Warehouse, Lot 61B, Kawasan
Perindustrian Gurun, 08800 Gurun, Kedah
Darul Aman
Approximately 4 years
RM24,950,000.00
Tenure
Valuer
Leasehold for 99 years
Hakimi & Associates Sdn Bhd
NAZA Warehouse is located within Gurun
Industrial Estate which is a new heavy
industrial estate accommodating the premises
of Petronas Urea Fertilizer Plant, NAZA
Automotive Manufacturing and Assembly
Plant, Sapura Automotive Industries Sdn Bhd,
KIA Auto Accessories Sdn Bhd and ACE
Polymers (M) Sdn Bhd.
Unexpired lease period
Net Book Value
93 years
RM24,950,000.00
Lease period
Master Lessee
10 years commencing from December 2007
Teras Globalmas Sdn Bhd
Gross Built Up Area
Occupancy Rate
214,450 sq. ft.
100%
Title details
Existing use
Net rental (per month)
Lot No. PT 633 held under Title No. H.S.D
115340 Bandar Gurun, District of Kuala
Muda, State of Kedah Darul Aman
Used as a warehouse to store NAZA automotive
parts
RM169,787.50
Location
Next Rent Review
Parking spaces
Property type
Property Manager
Industrial Warehouse
Date of acquisition
Description
28th December 2007
An Industrial complex, comprising a single-storey
warehouse and single storey office building
Cost of acquisition
RM23,970,000.00
30
Ama nahR a y a R EIT
December 2014
Available within the compound of the property
IM Global Property Consultants
Selayang Mall Selayang
Address
Description
Cost of acquisition
Lot 384451, Jalan SU 9, Taman Selayang
Utama, 68100 Batu Caves, Selangor Darul Ehsan
4 storey retail space, 6 storey car park & a roof
level car park
RM128,165,000.00
Location
Age of property
The property is located within Taman Selayang
Utama, a medium-sized housing scheme
situated off the south side of the SelayangKepong Expressway at about 17 kilometres due
north-west of Kuala Lumpur City Centre.
Approximately 15 years
Valuation as at November 2011
RM132,000,000.00
Valuer
Tenure
Knight Frank
Leasehold for 99 years
Net Book Value
Unexpired lease period
RM132,000,000.00
Generally, the neighbourhood comprises a mixture
of residential and commercial developments.
Retail complexes within a 5 kilometres radius
of the property include the Selayang Capital
Shopping Complex, Desa Shopping Complex
and Metro Prima Shopping Complex. Prominent
landmarks in the neighborhood include Selayang
General Hospital, Forest Reserve Institute of
Malaysia (FRIM), Selayang Municipal Council
(MPS) and Gombak District Land Office
68 years
Title details
Existing use
January 2012
Lot 38451 held under Title No. PM 11660,
Town of Selayang, District of Gombak, Selangor
Darul Ehsan
Used as a shopping complex under the brand
name of Selayang Mall
Property Manager
Master Lessee
Lease period
Seal Incorporated Berhad
10 years commencing from December 2006
Occupancy Rate
Gross Floor Area
100%
861,530 sq.ft
Net rental (per month)
Net lettable area
RM776,000.00
380,032 sq.ft
Next Rent Review
IM Global Property Consultants
Parking spaces
Property type
900 parking bays.
Shopping Complex
Date of acquisition
7th May 2010
Annual report 2011
31
STRONG AND SUSTAINABLE GROWTH
STRONG FUNDAMENTALS
32
Ama nahR a y a R EIT
Sustainable
Growth
As we set our sights on growing our portfolio to RM1.5 billion over the next
three years, we will continue to introduce all the proper elements to ensure
stellar growth. We will leverage on strong fundamentals and core values
that call for us to be highly Responsible and Effective, to maintain absolute
Integrity and to be absolutely Trustworthy. We will also inject astute financial
management, expert insights and strong market experience to further
cultivate growth. Only then can we expect our portfolio and reputation to
achieve strong and sustainable growth.
Annual report 2011
33
Corporate Structure
Unitholders as at 31 December 2011
Kumpulan Wang Bersama
Foreign Institutions
Local Institutions
Retail
58.32%
2.29%
31.66%
7.73%
REIT Manager
Trustee
CIMB TRUSTEE
Property Manager
•
Malik & Kamaruzaman
Property Management
•
I.M. Global Property
Consultant
34
Ama nahR a y a R EIT
Property Assets and
Other Investments
Organisational Chart
BOARD OF DIRECTORS
Investment Committee
Audit Committee
Chief Operating Officer
Real Estate Investment
Property Management
Legal & Compliance
Annual report 2011
35
Board of
Directors
36
Ama nahR a y a R EIT
From left to right:
Tan Sri Dato’ Ahmad Fuzi Abdul Razak
Datin Aminah Pit Abd Raman
Dato’ Abdul Mutalib Mohamed Razak
Datuk Johar Che Mat
Datuk Syed Hussian Syed Junid
Encik Shahrol Anuwar Sarman
Dato’ Ahmad Rodzi Pawanteh
Tuan Haji Che Pee Samsudin
Annual report 2011
37
Profile of the Board of Directors
Tan Sri Ahmad Fuzi is currently,
Secretary-General of the World Islamic
Economic Forum Foundation (WIEF);
Chairman, Seremban Engineering Berhad;
Chairman, Worldvest Energy Sdn Bhd;
Chairman Theatre Management Associates
Sdn Bhd, Chairman, The Guide To
Malaysia Series; Chairman Optima Capital
Sdn Bhd; Non-Executive Chairman, Sofgen
(Malaysia); Non-Executive Chairman,
Xadacorp Sdn Bhd; Deputy Chairman,
Group Chairman; Ace Holdings Sdn Bhd,
Asian-Development & Investment Bank
(Labuan); Independent Non-Executive
Director, Puncak Niaga Holdings Berhad;
Non-Executive Director, Management
Development Institute of Singapore and
Member, Board of Trustees, F3 Strategies
Berhad; Non-Executive Director; Maybank
Islamic Berhad.
Tan Sri Dato’ Ahmad Fuzi
bin Abdul Razak
(Independent, Non-Executive)
Tan Sri Dato’ Ahmad Fuzi bin Haji Abdul
Razak, a Malaysian, aged 62, was
appointed to the Board of AmanahRayaREIT Managers Sdn Bhd on 8 May 2009.
Tan Sri Ahmad Fuzi was previously the
Secretary General of the Ministry of
Foreign Affairs Malaysia. He joined the
Malaysian Diplomatic and Administrative
Service in 1972, and served in various
capacities at the Ministry of Foreign
Affairs, mainly in the Political Division,
and at the Malaysian Missions abroad
in Moscow, the Hague, Canberra,
Washington and Dhaka. He also served
as the Director General, Institute of
Diplomacy and Foreign Relations.
38
Ama nahR a y a R EIT
Tan Sri Ahmad Fuzi is currently also
a Distinguished Fellow, Institute of
Strategic and International Studies
(ISIS); Distinguished Fellow, Institute of
Diplomacy and Foreign Relations; Deputy
Chairman, Malaysian Member Committee
of the Council for Security Cooperation
in the Asia Pacific (CSCAP Malaysia);
Member, Board of Trustees, MERCY,
Malaysia; Member, Institute of Advanced
Islamic Studies (IAIS); Member, Advisory
Board, Asia Pacific Entrepreneurship
Award (APEA); President, Association of
Former Malaysian Ambassadors (AFMA)
and Advisor, High School Bukit Mertajam
Alumni Malaysia.
He holds a Bachelor of Arts Degree
(Honours) from the University of Malaya
(1972) and a Certificate in Diplomacy
(Foreign Service Course) from the
University of Oxford (1974).
In recognition of his service to the nation,
he was awarded the AMN (1979), the
JSM (1999), the DSPN (1999), the
DMPN (2002) and the PSM (2003).
Dato’ Ahmad Rodzi
bin Pawanteh
Datuk Syed Hussian
bin Syed Junid
Member
(Non-Independent, Non-Executive)
Member
(Independent, Non-Executive)
Dato’ Ahmad Rodzi Pawanteh, a
Malaysian, aged 56, is the Group
Managing Director and Chief Executive
Officer of Amanah Raya Berhad since
July 2004.
Datuk Syed Hussian bin Syed Junid, a
Malaysian, aged 50, was appointed to the
Board of AmanahRaya-REIT Managers
Sdn Bhd on 8 May 2009. He is also a
Member of the Audit Committee.
He has earlier pursued a professional
banking career with the Bank of America
NT&SA and Amanah-Chase Merchant
Bank Berhad, gaining wide exposure in
international banking and project finance.
Subsequently, he held Directorship
positions in companies related to the
power transmission, food and beverage
and pharmaceutical industries.
Datuk Syed Hussian started his career
with The American Malaysian Insurance
Sdn Bhd as a Trainee Executive in 1982
in which he was later promoted as the
Regional Manager covering Penang,
Perlis, Kedah and Perak in 1989. He is
currently a Senior Director of Business
Operations & Sales Support Asia,
Western Digital Sdn Bhd.
He obtained an MBA in General
Management from Southern Cross
University, Australia and an MBA in
Banking & Finance from the University
of Hull, UK. Earlier, he earned a Bachelor
of Economics (Hons) - Accounting from
University of Malaya and a Bachelor of
Laws (Hons) from the University of
Wolverhampton, UK. He also holds a
Professional Diploma in Marketing, a
Member of the Chartered Institute of
Marketing, UK and is a Registered
Financial Planner of the Malaysian
Financial Planning Council.
Datuk Syed Hussian is also a Director
and Chairman of the Audit Committee of
Efficient E-Solutions Bhd and a Director
of AWC Bhd, both of which are public
listed companies. At Media Prima
Berhad, Datuk Syed Hussian sits on the
Boards of 8tv, Channel 9 and
Primeworks Studios Sdn Bhd.
From left to right
Dato’ Ahmad Rodzi bin Pawanteh
Datuk Syed Hussian bin Syed Junid
Datuk Syed Hussian has extensive
experience in insurance industry and
entrepreneurship. He holds a Diploma in
Insurance from The Association for
Overseas Scholarship Tokyo in 1988 and
a Certificate in Insurance from MARA
Institute of Technology in 1982.
Annual report 2011
39
Profile of the Board of Directors
From left to right
Dato’ Abdul Mutalib bin Mohamed Razak
Datin Aminah binti Pit Abd Raman
Dato’ Abdul Mutalib
bin Mohamed Razak
Datin Aminah binti Pit
Abd Raman
Member
(Independent, Non-Executive)
Member
(Non-Independent, Non-Executive)
Dato’ Abdul Mutalib bin Mohamed Razak,
a Malaysian, aged 68, was appointed to
the Board of AmanahRaya-REIT Managers
Sdn Bhd on 8 May 2009.
Datin Aminah binti Pit Abd Raman, a
Malaysian, aged 63, was appointed to
the Board of AmanahRaya-REIT Managers
Sdn Bhd on 8 May 2009 and is the
Chairperson of the Audit Committee.
Dato’ Abdul Mutalib was the Secretary /
Legal Advisor to the Urban Development
Authority (UDA) from 1972 to 1975. He
then went into private practice under the
name Messrs Mutalib, Sundra & Low,
later renamed Mutalib, Wan & Co, of
which he is currently the Principal Partner.
In 1984, Dato’ Mutalib was appointed
as the Trustee Director of Yayasan
Pembangunan Ekonomi Islam Malaysia
(YPEIM), a post he held until 1988. He
was also the Secretary of Yayasan
Bumiputra Pulau Pinang Berhad from
1980 to 1990 and Deputy Chairman of
Setron (M) Berhad from 1987 to 1990.
Dato’ Mutalib was the Chairman of
Media Prima Berhad from 2003 to
2009. Whilst in Media Prima Group, he
was also the Chairman of its subsidiaries
namely Metropolitan TV Sdn Bhd (8TV),
Natseven TV Sdn Bhd (ntv7), Ch-9
Media Sdn Bhd (TV9), Max - Airplay Sdn
Bhd (Fly.FM) and Synchrosound Studio
Sdn Bhd (Hot.FM).
Dato’ Abdul Mutalib retired as Board
Member of MARDEC Berhad and The
New Straits Times Press (M) Berhad and
as President of Tribunal for Consumer
Claims Malaysia last year.
Presently he sits as Director/Chairman of
KL Airport Services Sdn Bhd (KLAS)(a
subsidiary of DRB-Hicom Berhad) and
TH Properties Sdn. Bhd. (a subsidiary of
Tabung Haji).
Dato’ Abdul Mutalib obtained his Bachelor
of Arts (Honours) degree in Political
Science from the University of Singapore
in 1967 and was called to the Bar at The
Honourable Society of Lincoln’s Inn,
London in 1971.
40
Ama nahR a y a R EIT
Datin Aminah began her career as
Administrative and Diplomatic Officer in
1972. In the government sector, she
served as Director of the Planning and
Development Division for the Ministry of
Domestic Trade and Consumer Affairs in
1991, where she was directly involved in
corporate planning at the ministerial
level. She also served as the Deputy
Director of Administration at the University
Hospital Kuala Lumpur in 1986.
Previously she served the Ministry of
Finance, Ministry of Trade and Industry
and Economic Planning Unit, Prime
Minister’s Department.
After serving the government for 23 years,
Datin Aminah embarked on a career in
private sector where she was attached to
Hong Leong Bank Berhad from 1995 to
March 2002 as the General Manager for
Economics and Islamic Banking Division.
Datin Aminah was a Director of Amanah
Raya Berhad and currently serves as
a Director of AmanahRaya Trustees
Berhad and AmanahRaya Investment
Bank (Labuan) Ltd. She is also currently
a Member of the Operation Review Panel
of the Suruhanjaya Pencegahan Rasuah
Malaysia (SPRM) and the Malaysian
Institute of Integrity.
Datin Aminah graduated with a Bachelor
of Economics (Honours) from Monash
University, Australia in 1971, and a PostGraduate Diploma in Business Studies
from the London School of Economics
and Political Science in 1985.
Datuk Johar bin Che Mat
Member
(Non-Independent, Non-Executive)
Datuk Johar bin Che Mat, a Malaysian
aged 59 was appointed to the Board of
AmanahRaya-REIT Managers Sdn Bhd
on 23 August 2011. He is also currently
a Director of Amanah Raya Berhad since
August 2010, the Chairman of Audit
Review Committee and Board Risk
Management Committee and a member
of Nomination and Remuneration
Committee and Investment Committee
of Amanah Raya Berhad.
Datuk Johar was previously the Chief
Operating Officer of Maybank Group.
He was responsible for strategic and
operational activities in Banking
Operations, Information Technology,
Business
Process
Improvement,
Service Level Management, Property &
Security, Custody Services and Mayban
Trustees Berhad.
He briefly served Federal Government
after graduating from University of
Malaya in 1975 with a Bachelor of
Economics before joining Maybank.
Since then, he has served in various
capacities in banking operations and
strategic innovation, including as the
Head of Retail Financial Services and
managing the Retail Banking portfolio
which encompasses frontend activities at
branches. His portfolio covers Transactional
Banking (Operations), Retail Finance,
Retail Marketing, Sales Management
Private Banking, Retail Programme
Management, Share Trading, e-Channels,
Maybank Group Call Centre and Mayban
Unit Trust Berhad.
Prior to that, Datuk Johar was the Head
of Enterprise Banking (Corporate/
Commercial) where he was in charge of
Corporate, Commercial and Bumiputra
unit. At present, he is a Board member
of Bank Pertanian and Proton Group.
Shahrol Anuwar
bin Sarman
Member
(Non-Independent, Non-Executive
Shahrol Anuwar bin Sarman, a Malaysian,
aged 39, was appointed to the Board of
AmanahRaya-REIT Managers Sdn Bhd
on 18 May 2010.
Shahrol Anuwar joined the Malaysian
Diplomatic and Administrative Service in
1996. His first assignment with the
Government of Malaysia was as the
Assistant Secretary of the Loans
Management and Finance Policy Division
at the Ministry of Finance, Malaysia from
1996 to 2002. From 2002 to 2003,
Shahrol Anuwar furthered his studies in
Wales, United Kingdom. Upon returning
from his studies, he was assigned as the
Assistant Director, Head of Finance and
Accounts Unit of the Human Resource
Management & Administration at the
Anti-Corruption Agency Malaysia from
2003 to 2004.
From left to right
Datuk Johar bin Che Mat
Shahrol Anuwar bin Sarman
Shahrol Anuwar was later appointed as
Principal Assistant Secretary at the Timber
Industry Division of the Ministry of
Plantation Industries and Commodities,
Malaysia where he served from 2004 to
2006. Prior to his current position,
Shahrol Anuwar served as Principal
Assistant Secretary of Administration
and Finance Division at the Chief
Minister’s Department, Melaka from
2006 to 2007.
Shahrol Anuwar is currently the Special
Officer to the Secretary General of Treasury
at the Ministry of Finance, Malaysia.
Shahrol Anuwar holds an MBA from the
Cardiff University, Wales, United Kingdom,
a Bachelor of Business Administration in
Finance and a Diploma in Banking, both
from the MARA University of Technology.
He also holds a Diploma in Public
Administration from the National Institute
of Public Administration Malaysia.
Annual report 2011
41
Profile of the Board of Directors
Tuan Haji Che Pee
bin Samsudin
Member
(Non-Independent, Non-Executive)
Haji Che Pee bin Samsudin, a Malaysian
aged 53 was appointed to the Board of
AmanahRaya-REIT Managers Sdn Bhd
on 23 August 2011. He is also a
Director of Amanah Raya Berhad since
March 2011.
Tuan Haji Che Pee bin Samsudin
Che Pee holds a Bachelor Honours
Degree in Accounting and is a Chartered
Accountant (CA) of the Malaysian
Institute of Accountants (MIA). He began
his career as an Accountant in the
government sector since 1982. His
extensive experience includes serving
at various government divisions including
Ministry of Finance, Langkawi Developement
Authority (LADA), Malaysian Institute of
Islamic Understanding (IKIM), Economic
Planning Unit in Prime Minister’s
Department and Perbendaharaan State
of Kedah as the State Treasurer for
nine years.
Che Pee is presently the Director of
Central Operation and Agency Service
Division
in
Accountant
General
Department of Malaysia, Putrajaya.
42
Ama nahR a y a R EIT
Family Relationship with any Director and/or Substantial Unitholder
None of the Directors of the Manager has any family relationship with any other Directors or Substantial Unitholders.
Conflict of Interest
No conflict of interest has arisen between the Directors and AmanahRaya REIT during the financial year under review.
Convictions for Offences
None of the Directors have been convicted for offences within the past 10 years.
Attendance at Board of Director’s Meetings
The Board currently comprises of eight (8) Directors, of which three (3) are independent non-executive and five (5) are
non-independent non-executive.
During the financial year, the Board met five (5) times. The number of meetings attended by each Director is as follows:
Directors
Number of Board meetings held
during Directors’ tenure in office
Number of meetings
attended by Directors
Tan Sri Dato’ Ahmad Fuzi bin Abdul Razak
5
5
Dato’ Abdul Mutalib bin Mohamed Razak
5
5
Datuk Syed Hussian bin Syed Junid
5
5
Datin Aminah binti Pit Abd Raman
5
4
Dato’ Ahmad Rodzi bin Pawanteh
5
3
Encik Shahrol Anuwar bin Sarman
5
5
Puan Sharizad binti Juma’at
(resigned with effect from 23 August 2011)
3
3
Puan Alina binti Hashim
(resigned with effect from 23 August 2011)
3
3
Encik Abas bin Abdul Jalil
(resigned with effect from 23 August 2011)
3
3
Datuk Johar bin Che Mat
(appointed on 23 August 2011)
2
1
Tuan Haji Che Pee bin Samsudin
(appointed on 23 August 2011)
2
1
Annual report 2011
43
A BOUNTIFUL HARVEST
44
Ama nahR a y a R EIT
Purposeful
Growth
Our commitment to enhancing the AmanahRaya REIT portfolio is akin to
the commitment of an expert gardener tending to his garden. From
implementing strong corporate governance measures and undertaking
activities to enhance unitholders’ value, our people have purposefully set
about to deliver strong returns in a credible manner. As we skilfully cultivate
our asset portfolio and grow it beyond the existing 15 properties we have
today, our stakeholders can look forward to the promise of an outstanding
and bountiful harvest.
Annual report 2011
45
Message from the
Chairman
Dear Unitholders,
On behalf of the Board of Directors of
AmanahRaya-REIT
Managers
Sdn.
Bhd.
(“ARRM”), the Manager of AmanahRaya Real
Estate Investment Trust (“AmanahRaya REIT”),
it is a great pleasure for me to present the
Annual Report and audited financial statement
of AmanahRaya REIT for the financial period
ended 31 December 2011.
46
Ama nahR a y a R EIT
TAN SRI DATO’ AHMAD FUZI
BIN ABDUL RAZAK
Chairman
Annual report 2011
47
Message from the Chairman
OPERATIONS REVIEW
In 2011, despite the turbulence in the
global economy which in many ways
affected the Malaysian economy,
AmanahRaya REIT was resilient towards
the adverse market conditions and has
continued to perform well. All properties
except for Wisma UEP recorded a 100%
occupancy rate. Following the exit of
Sime UEP Properties Berhad as the
master lessee of Wisma UEP in July
2011, the building occupancy rate
dropped to only 30%. However, the
Management managed to secure a
prospective buyer and a sale and
purchase agreement is expected to be
signed within the Second Quarter of
2012. Rental collection has been
outstanding with no default recorded.
OVERVIEW
The year under review was a very challenging
year for the Malaysian economy. In 2010,
the Malaysian economy grew by 7.2%.
However, Malaysia recorded a downward
economic growth of 4.9% in the first
quarter and 4.0% in the second quarter
of 2011. The slower growth was due
to the unfavourable conditions and
uncertainties in the global economy.
With inflation rate rising, unemployment
rate at the highest level in the US and
Europe and debt crisis affecting several
European countries exacerbated by
natural disasters in Japan, the global
economy is currently facing turbulence.
To cushion the impact of the unfavourable
external economic situation, the Government
had announced the implementation of
several high impact projects under the
ETP to strengthen domestic demand. On
average the Malaysian economy is
anticipated to grow albeit at a slower
rate of between 5.0 to 6.0% in 2011.
48
Ama nahR a y a R EIT
In 2011 the property market was in a
consolidation mode. The office sector
recorded a downward pressure in terms
of occupancy and rental rate due to an
oversupply situation especially in the
Klang Valley. The occupancy rate of
office buildings in the Klang Valley in
2011 was averaging around 85-90%
compared to 90-95% recorded last year.
The retail sector continued to remain
strong due to the increase in tourist
arrivals and consumer spending. Other
sectors remain stable.
With regards to REIT, and on a positive
note, the Government has in the 2012
budget, extended the concessionary tax
rate of 10% on dividends of individuals
and non-corporate institutional investors
in Malaysian REITs by another five years
until 31 Dec 2016. This augurs well
with our effort to promote REITs to
domestic and foreign investors.
The year under review also saw
AmanahRaya REIT embarking on several
asset enhancement exercises in respect
of the properties under its portfolio.
Selayang Mall, Silver Bird Factory,
Permanis Factory and KDNC 11 have
been identified to undergo some form of
refurbishment and expansion. In fact,
the work has started on all four
properties and completion is anticipated
by the third quarter of 2012. The
acquisition of PKNS properties was
mutually aborted by both parties due to
unforeseen circumstances and may be
revisited in the future when conditions
are more favourable.
FINANCIAL PERFORMANCE
During the year under review,
AmanahRaya
REIT
managed
to
distribute distribution per unit (DPU) of
7.22 sen as compared to 7.32 sen
recorded in the previous year. Total asset
value has increased by 4% to RM 1.04
billion surpassing the RM 1.0 billion
mark following the revaluation exercise
The challenge for ARRM is to find the right
opportunities. ARRM will continue with its
effort to grow AmanahRaya REIT in terms
of its value and market capitalization. The
Manager is hoping to increase the asset
size of AmanahRaya REIT by another
RM200 million in 2012 to about RM1.2
billion. The increase is important so as to
improve returns to the unitholders.
CHANGE IN THE BOARDROOM
on all properties under AmanahRaya
REIT portfolio in 2011. Revenue
increased by 9.6% from RM59.5 million
to RM 65.3 million and net income
increased by 10% from RM57.7 million
to RM63.3 million. Gearing level
reduced from 36.4% in 2010 to 34.9%
in 2011.
OUTLOOK
2012 is expected to be more challenging
than 2011 in view of the weakening global
economy and uncertainties ahead. The fear
of the “double dip” recession in the US
and Europe is also increasing. Investors are
more cautious. Here, the investors are
hoping that the Government is able to
implement projects under the ETP program
to soften the impact of the slowdown in the
global economy. In terms of the property
market, it is expected to consolidate
further. Office and retail sectors are
expected to record slower growth. However,
in any downturn situation, there will always
be opportunities.
In September 2011, there was a change
in the Boardroom of ARRM. Two new
directors were appointed and at the
same time three directors resigned. The
two new directors are Y. Bhg. Dato’ Johar
bin Che Mat and Tuan Haji Che Pee bin
Samsudin. Y. Bhg. Dato Johar is a
familiar figure in the banking industry
where he was formerly holding the
position of Chief Operating Officer at
Maybank Group and currently sits on
the Board of Bank Pertanian Malaysia
Berhad and Proton Group. Tuan Haji Che
Pee has vast experience in accounting
and finance. He is presently the Director
of Bahagian Perkhidmatan Operasi
Pusat dan Agensi in Jabatan Akauntan
Negara Malaysia, Putrajaya. Both Datuk
Johar and Tuan Haji Che Pee also sit on
the Board of Amanah Raya Berhad. The
three directors who resigned from ARRM
Board were Puan Sharizad Jumaat, Puan
Alina Hashim and En. Abas Jalil.
APPRECIATION
As Chairman, I wish to take this opportunity
to express my gratitude to the Board
Members, Investment Committee Members
and especially the Management for their
commitment in ensuring strong returns
to the unitholders despite the volatility
in the economy.
I also wish to record my appreciation to
the unitholders and business partners of
AmanahRaya REIT for their continued
support and confidence throughout the
year and to Puan Sharizad, Puan Alina
and En. Abas for their contribution to
AmanahRaya REIT as Board members.
Moving forward, AmanahRaya REIT will
continue in its endeavour towards
providing strong and sustainable returns
to unitholders by focusing on enhancing
its assets and acquiring quality assets
with strong growth potential.
AmanahRaya REIT Investment Committee Members
Mahadzir bin Azizan
Mahadzir bin Azizan, a Malaysian, aged
62, was appointed as an Independent
Investment Committee Member on 27
December 2006.
He has held key positions both in private
and public sector. After graduation he
joined the Judicial and Legal Service of
the Malaysian Government as a Deputy
Public Prosecutor and Federal Counsel
and subsequently ventured into the
private sector and served Malaysian
International Shipping Corporation
(MISC) as Assistant Company Secretary
& Legal Adviser and later as Director of
Corporate Affairs, Island & Peninsular
Berhad, the property arm of Permodalan
Nasional Berhad (PNB) for 23 years.
Datuk Yahya bin Ya’acob
Chairman
Datuk Yahya bin Ya’acob, a Malaysian,
aged 67, was appointed as an Independent
Investment Committee Member on 27
December 2006.
He has served in various positions in
government departments and ministries,
including as the Secretary General of the
Ministry of Information and the Secretary
General of the Ministry of Works. He is a
director of various companies, including
listed companies such as IJM Corporation
Berhad, LBI Capital Berhad, Damansara
Realty Berhad and Emas Kiara
Industries Berhad.
Datuk Yahya holds a Bachelor of Arts
(Hons) and a Diploma in Public
Administration both from the University
of Malaya. He also holds a Master’s
degree in Business Management from the
Asian Institute of Management, Philippines.
50
Ama nahR a y a R EIT
Tengku Dato’ Seri Hasmuddin
Tengku Othman
Tengku Dato’ Seri Hasmuddin Tengku
Othman, a Malaysian, aged 49,
was appointed as an Independent
Investment Committee Member on
27 December 2006.
He is a director of a number of companies
including Bank Muamalat Malaysia
Berhad, Aliran Ihsan Resources Berhad,
Institut Jantung Negara Sdn. Bhd., HSK
Corporate Advisory & Consultancy,
Rangkaian Hotel Seri Malaysia Sdn. Bhd.
and Amanah Ikhtiar Malaysia.
He is also a member of Task Force on
Islamic Finance Committee for Labuan
IBFC and Member of Jawatankuasa
Pemantauan dan Pengawasan Syarikat
Jaminan Pembiayaan Perniagaan Berhad.
Tengku Dato’ Seri Hasmuddin Tengku
Othman holds a Bachelor of Laws (Hons)
from University of Malaya and is currently
a principal Partner in Messrs Hisham,
Sobri & Kadir. Having practiced law for
over 25 years, he gained extensive
background and experience in various
aspects of Islamic banking and finance,
corporate banking and project financing,
corporate matters, corporate Muamalat
Islamic banking and litigation as well as
matters relating to Syariah.
Mahadzir currently serves on the Boards
of the following companies; ECM Libra
Financial Group Berhad, ECM Libra
Investment Bank Berhad, Libra Invest
Berhad and Syarikat Takaful Malaysia
Berhad. Mahadzir is a Barrister-at-Law
from the Honourable Society of Lincoln’s
Inn, London.
S. Elias bin Abd Rahman Alhabshi
S. Elias bin Abd. Rahman Alhabshi, a
Malaysian, aged 68, was appointed as
an Independent Investment Committee
Member on 30 July 2008.
A seasoned banker, S. Elias has vast
experience in banking industry and has
served both local and international
banking institutions including Bank
Bumiputra Malaysia Berhad, ASEAN
Finance Corporation, Merrill Lynch & Co.
and Hong Leong Group.
Currently he is the Director of BIMB
Holdings Berhad and a member of
the Investment Panel for Lembaga
Tabung Haji.
S. Elias holds a Master of Management
(with distinction) from Asian Institute of
Management, the Philippines.
Vasantha Kumar Tharmalingam
Conflict of Interest
Vasantha Kumar Tharmalingam, a
Malaysian aged 63, was appointed as an
Independent Investment Committee
Member on 11 February 2011.
Kumar graduated from the College of
Estate Management, London School of
Economics with a B.Sc in Real Estate
from University of London. He is a
Fellow of the Royal Institution of
Chartered Surveyors, Fellow of the
Institution of Surveyors Malaysia (ISM)
and registered as a Real Estate Valuer
and Property Consultant with the Board
of Valuers in Malaysia.
He established the First Malaysian
Property Trust (FMPT), a joint venture
between the Bank of Commerce and
Austwide,
Australia
in
1987.
Subsequently he left in 1990 to
establish the MBF Unit Trust. From
1992 to 1998 he was Executive Director
of Taiping Consolidated Berhad (TCB)
and was part of the team building the
J.W. Marriott Hotel and Starhill
Shopping Centre in Kuala Lumpur and
originated Sentul Raya for the company,
a joint venture with KTM Berhad to
develop 270 acres of an inner city brown
field project. In 1998 he left TCB and
became Chairman of Hall Chadwick Asia
Sdn. Bhd. which specializes in the
origination of property assets for Pension
Funds, Private Equity Funds and Real
Estate Investment Trusts (REITs).
Kumar is currently the Chief Executive
Officer of Malaysia Property Incorporated
(MPI) which is a Government of Malaysia
initiative under the Economic Planning
Unit (EPU) tasked to promote Malaysia
as property investment destination and
to induce Foreign Direct Investment
(FDI) specifically into Malaysian real
estate. He is also the Chairman of the
Investment Committee for Aseana
Properties Limited, a London AIMs listed
Malaysian conglomerate which has
property investment, construction and
development in Vietnam and Malaysia.
Kumar is an independent Director on the
Board of Sime Darby Property Berhad.
No conflict of interest has arisen
between the Investment Committee
Members and AmanahRaya REIT during
the financial year under review.
Convictions for Offences
None of the Investment Committee
Members have been convicted for
offences within the past 10 years.
Attendance at Investment Committee
Meetings
The Investment Committee currently
comprises of five (5) Members of which
all are independent and non-executive.
During the financial year, the Investment Committee met four (4) times. The number
of meetings attended by each current Member is as follows:
Investment Committee
Members
Number of Investment
Committee meetings
held during the
Members’ tenure
in office
Number of meetings
attended by Members
Encik Mahadzir bin Azizan
(appointed as Chairman with
effect from 1 January 2012)
4
4
Datuk Yahya bin Ya’acob
(resigned as Chairman with
effect from 1 January 2012)
4
4
Tuan Syed Elias bin
Abd. Rahman Alhabshi
4
4
Mr. Vasantha Kumar
Tharmalingam
(appointed with effect
from 11 February 2011)
3
3
Datuk Johar bin Che Mat
(appointed with effect
from 1 January 2012)
–
–
Tengku Dato’ Seri
Hasmuddin bin Tengku Othman
(resigned with effect
from 31 December 2011)
4
3
Annual report 2011
51
Statement of Corporate Governance
AmanahRaya Real Estate Investment Trust (“AmanahRaya REIT”) was established on
10 October 2006 pursuant to a trust deed (“Deed”) entered into between AmanahRayaJMF Asset Management Sdn Bhd (“ARJMF” or “former Manager”) and CIMB Trustee
Berhad (the “Trustee”). AmanahRaya REIT had been listed on the Main Board of Bursa
Malaysia (“Bursa Malaysia”) since 26 February 2007.
•
On 7 September 2009, AmanahRaya-REIT Managers Sdn Bhd (“ARRM” or
“Manager”), a wholly owned subsidiary of Amanah Raya Berhad took over the
management of AmanahRaya REIT from the former Manager.
Board Balance
ARRM as the Manager of AmanahRaya REIT has established operational policies
and guidelines to ensure that effective corporate governance is adopted throughout
the organisation.
ARRM holds an obligation to act honestly, with due care and diligence, and in the
best interest of the unitholders of AmanahRaya REIT. This obligation blends in with
the Manager’s responsibility in managing the assets and liabilities of AmanahRaya
REIT for the benefit of and towards enhancing returns to the unitholders.
In ensuring the implementation and operation of good corporate governance, ARRM is
guided by the measures recommended by the Securities Commission’s Guidelines on Real
Estate Investment Trust (“REIT Guidelines”), the Malaysian Code on Corporate Governance
(Revised 2007) and the Main Market Listing Requirements of Bursa Malaysia.
THE MANAGER OF
AMANAHRAYA REIT
AmanahRaya REIT is externally managed
by the Manager. The Manager has
appointed experienced and well qualified
personnel to handle its day to day
operations. All Directors and employees
of the Manager are remunerated by the
Manager and not by the Fund.
The Manager will be responsible for
the following:
•
•
•
52
development of business plans as
well as strategic and investment
policies for AmanahRaya REIT;
provide recommendations on the
acquisition, divestment or enhancement
of assets for AmanahRaya REIT to
the Trustee;
monitor compliance to all legislation,
rules and guidelines issued by the
Securities Commission and Bursa
Malaysia as well as AmanahRaya
REIT's Deed;
Ama nahR a y a R EIT
•
ensure appropriate record keeping;
•
formulate proper risk management
policies; and
•
supervising the Property Manager.
reviewing and approving key
matters such as financial results,
investments and divestments,
acquisitions and disposals and
major capital expenditure.
The Board currently has eight (8)
members, all of which are Non-Executive
Directors. Three (3) of the Directors are
independent Directors. This is to ensure
compliance with the requirement for
at least one-third of the Board to
be independent.
The Chairman leads the Board and is
responsible for the vision and strategic
direction of the Manager.
The Chief Operating Officer is responsible
for implementing the policies and
decisions of the Board, overseeing the
day-to-day operations, setting the plan
and direction, benchmark and targets for
the Manager, tracking compliance and
progress of the operation, initiating
innovative business ideas to create
competitive edge and development of
asset enhancement strategies with the
aim of enhancing unitholders’ return.
Board Meetings
DIRECTORS OF THE MANAGER
The Board
Board meetings are scheduled at least
once every quarter, and five (5) Board
meetings were held throughout 2011.
The Board of Directors of the Manager (the
“Board”) is responsible for the effective
stewardship and control of the Manager.
Access to and Supply of Information
and Advice
This responsibility of the Board, at the
minimum, includes:
•
the formulation of corporate policies
and strategies;
•
overseeing and evaluating the
conduct of the Manager’s activities;
•
identifying principal risks and
ensuring the implementation of
appropriate systems to manage
these risks; and
All Board members are supplied with
information on a timely manner. Board
reports are circulated prior to Board
meetings and the reports provide
among others, financial and corporate
information, significant operational,
financial and corporate issues,
performance of AmanahRaya REIT and
management’s proposals.
All directors have access to the advice
and services of the Audit Committee, Legal
& Compliance Department, Internal
Auditor, Company Secretary as well as to
independent professional advice.
Appointment to the Board
•
All new nominations are assessed and
approved by the entire Board in line with
its policy of ensuring nominees are persons
of sufficient calibre and experience.
Committees under the Board
•
The Board has established the following
committees to assist it in discharging its
duties. The committees are:
•
•
To obtain external legal or other
independent professional advice,
opinion and/or reports and to
secure the attendance of external
parties with relevant experience
and expertise whenever necessary;
The Audit Committee meetings are
scheduled at least once every quarter.
To review, together with the
external auditors, the audit plan,
scope of the audit and areas of
audit for the Company;
INVESTMENT COMMITTEE
•
To discuss and highlight any
problem arising from the audit
and/or any other matters raised by
the external auditors;
•
To review the external auditors’
management letters and reports and
Company’s management response;
The Audit Committee; and
The Investment Committee
Four (4) Audit Committee meetings were
held in 2011.
The Investment Committee ("IC") for
AmanahRaya REIT was formed on
4 August 2006. It operates under the
delegated authority from the Board and
is represented by members from various
fields
including
legal,
banking
and property.
Directors’ Training
For the financial year 2011, the
Directors attended various talks and
lecture series organised by regulators
and professional bodies to broaden their
knowledge and to keep abreast with the
development of the industry and
corporate governance.
Both the newly appointed directors have
attended the Mandatory Accreditation
Programme organised by Bursatra
Sdn Bhd.
•
To review the audit report prepared
by the external auditors;
•
To make appropriate recommendations
to the Board on matters concerning
resignations, dismissals and
replacements of external auditors;
•
To review and report the adequacy
of the scope, functions and resources
of the internal audit function
and authorize it to carry out the
audit works;
AUDIT COMMITTEE
The Audit Committee (“AC”) was formed
on 9 June 2009. It operates under the
delegated authority from the Board and inline with the Malaysian Code on Corporate
Governance (Revised 2007), consists of
three (3) Non-Executive Directors.
To review all internal and external
reports on Company’s operations
and portfolio under management
and ensure compliance with all
relevant laws and regulations;
•
To initiate investigation of any
activity within its terms of reference
and to seek any information it
requires from the management
and/or any employee;
•
To review, deliberate and decide on
any investments to be made by
AmanahRaya
REIT
as
recommended by the management;
•
To review, assess and decide on any
asset acquisition, disposal and
fund raising exercise to be
undertaken by AmanahRaya REIT
before being presented to the
Board for final approval;
•
To review and deliberate on the
following reports:
•
•
To review all the financial results and
financial statements of the Company
and all portfolios under management;
•
To review and highlight any relatedparty transactions within the Company
and all portfolios under management;
•
To ensure the Company’s policy,
strategy and operations are in
compliance with all relevant laws
and regulations; and
•
To perform any other operational
functions as may be agreed by
the Board.
Duties and responsibilities of the AC include:
•
Duties and responsibilities of the IC include:
•
Property Market and Outlook
Report
AmanahRaya REIT’s Performance
Report
Ensure that AmanahRaya REIT is
managed in accordance with:•
•
•
•
•
its investment objectives;
its Trust Deed;
its Prospectus;
the Securities Commission’s
Guidelines on Real Estate
Investment Trust and other
securities laws; and
the internal investment restrictions
and policies.
Annual report 2011
53
Statement of Corporate Governance
•
•
To recommend to the Board the
appropriate strategies to achieve
the objectives of AmanahRaya
REIT in accordance with the
investment policies;
To ensure the strategies selected are
properly and efficiently implemented
by the management or its fund
management delegate (if any);
•
To actively monitor, measure and
evaluate the performance of the
management company or its fund
management delegate (if any); and
•
To carry out other duties as may be
determined from time to time by
the Board
The Investment Committee meetings are
scheduled at least once every quarter.
Four (4) Investment Committee meetings
were held in 2011.
ACCOUNTABILITY AND AUDIT
Relationship with Auditors
An external auditor, independent of the
Management and Trustee has been
appointed. The appointment has been
nominated by the Manager, and approved
by the Trustee. The remuneration of the
Auditor is approved by the Trustee.
The Manager has a designated legal and
compliance officer working towards
ensuring compliance with all legislation,
rules and guidelines issued by the
SC and Bursa Malaysia as well as
AmanahRaya REIT's Deed.
RELATED PARTY TRANSACTIONS AND
CONFLICTS OF INTEREST
The Manager has established procedures
that will ensure related party transactions
and conflicts of interests are undertaken
in full compliance to the Securities
Commission’s REIT Guidelines,
AmanahRaya REIT’s Deed and the
Listing Requirement of Bursa Malaysia.
Among the policies adopted by the
Manager to deal with potential conflicts
of interest issues include:
•
transactions on arm’s length basis
and on normal commercial terms
which are not more favourable than
those extended to third parties/
public and are not to the detriment
of the minority unitholders;
•
AmanahRaya REIT's cash or other
liquid assets should be placed in
a current or deposit account of
institutions licensed or approved to
accept deposits; and
Internal Control
The Board has the overall responsibility
of maintaining a system of internal
control that covers financial and
operational
controls
and
risk
management. The system provides
reasonable but not absolute assurance
against material misstatement of
management and financial information
or against financial losses and fraud.
54
Ama nahR a y a R EIT
the Manager may not act as
principal in the sale and purchase
of real estate, securities and any
other assets to and from
AmanahRaya REIT.
RISK ASSESSMENT AND MANAGEMENT
OF BUSINESS RISK
Legal and Compliance Department
Financial Reporting
The Board is responsible for ensuring the
proper maintenance of accounting
records for AmanahRaya REIT and that
appropriate accounting policies had
been consistently applied.
•
The Manager operates within overall
guidelines and specific parameters set
by the Board. Risks are managed with
support from the Group Risk Management
Department of AmanahRaya, working
within the overall strategy outlined by
the Board.
COMMUNICATION WITH UNITHOLDERS
The Board acknowledges the importance
of
regular
communication
with
unitholders and investors via annual
reports, circulars, and quarterly financial
reports. Various announcements were
also made during the period, through
which unitholders and investors are able
to obtain an overview of AmanahRaya
REIT’s performance and operation.
Additionally, the Chief Operating Officer
regularly meets up with analysts,
institutional unitholders and investors.
Corporate Calender
30 July
2011
AmanahRaya REIT participated in the REIT
Roadshow programme organized by the Malaysian
REIT Managers Association (MRMA) held at
Kimanis Ballroom, Hyatt Regency Kinabalu, Sabah.
The event, entitled “An Alternative Investment Tool
For Your Wealth Creation - REITs” was an effort to
promote awareness on REITs to retail investors.
30 July 2011
10 August
2011
During the month of Ramadhan, ARRM lent a
helping hand to 32 orphans and unfortunate
children at Pusat Jagaan Baitus Sakinah Wal
Mahabbah, Kota Warisan, Sepang. The objective of
this event is to aid these children to celebrate the
coming Eid.
10 August 2011
22 December
22 December 2011
2011
University Technology of MARA, UiTM held a
professional talk programme and ARRM was invited
to deliver the talk to the students and faculty
members of the Department of Estate
Management. The event was held at UiTM Perak
campus. The talk served as a practical method
especially to the students in providing them better
exposure on what REIT is about and employment
opportunities in the Malaysian REIT industry.
Annual report 2011
55
Profile of The Chief Operating Officer
to Senior Manager to head the property
division. He was responsible in
overseeing all property investment under
the Group. With vast experience in
project management, at Amanah Capital,
he managed to complete two major
projects i.e. the Menara UMNO Pulau
Pinang and the Kirana/Ascott Kuala
Lumpur, a high-end condominium
project. Adenan gained valuable
knowledge and experience in developing
high end properties following the
completion of Kirana and Ascott projects.
He later joined a consultancy firm,
Mediconsult Sdn. Bhd. where he was
responsible in completing a teaching
hospital in Semarang, Indonesia.
Adenan
bin Md Yusof
Adenan bin Md Yusof
Chief Operating Officer /
Principal Officer
Adenan Md Yusof, a Malaysian, aged 47,
was appointed as Chief Operating Officer
of AmanahRaya-REIT Managers Sdn
Bhd (“ARRM”) on 18 May 2010.
Upon graduation, Adenan worked for two
of the largest architectural practice in
the US i.e. Harry Weese and Associates
and Lohan Associates where he gained
tremendous design experience on
various building types from residential to
5 star hotel and office building and
exposure to project management.
After almost 3 years of working in
Chicago, Adenan returned to Malaysia
and joined Perunding Alam Bina, a
medium size architectural practice in
Kuala Lumpur as Architect. Thereafter,
in 1993, Adenan had the opportunity to
join KLCC Berhad (“KLCCB”) and
worked on the prestigious Petronas Twin
Tower project. At KLCCB, he gained
valuable knowledge and experience in
managing big projects.
Adenan later joined Amanah Capital
Partners Berhad (“Amanah Capital”) in
January 1995, and thereafter promoted
56
Ama nahR a y a R EIT
Early 2003 Adenan joined KUB
Malaysia Berhad as General Manager
and thereafter was seconded to KUB
Realty Sdn. Bhd, the property arm of
KUB. Adenan left KUB and joined
Terengganu Incorporated, a State
investment arm in January 2008 to head
its property investment division. As the
Group General Manager, he was
responsible in drafting a strategic plan
for property investment.
Prior to joining ARRM, he was the Assistant
General Manager at the Group Managing
Directors’ Office where he assisted the
Group Managing Director in all matters
related to property activities and
investment undertaken by the Group. He
was also responsible for the restructuring
and streamlining of the property related
companies within the Group.
Adenan holds a Bachelor of Architecture
from the Illinois Institute of Technology,
Chicago, Illinois, USA.
Family Relationship with any Director
and/or Substantial Unitholder
The Chief Operating Officer of the
Manager does not have any family
relationship with any Directors or
Substantial Unitholders.
Conflict of Interest
No conflict of interest has arisen
between the Chief Operating Officer and
AmanahRaya REIT during the financial
year under review.
Convictions for Offences
The Chief Operating Officer has not
been convicted for offences within the
past 10 years.
The Management Team
From left to right:
Yusri bin Abdul Manaf
(Head, Property Management)
Kusuma Dewi binti Abdul Aziz
(Accountant)
Azmanira binti Ariff
(Head, Legal and Compliance)
Noorbaizura binti Hermeyney
(Head, Real Estate Investment)
Zaffarin bin Haji Zanal
(Group Chief Risk Officer)
Annual report 2011
57
Manager’s Report
consideration will be given to
the lease tenure, economic
environment, tenant profile and
market demand. The analysis will
focus on ensuring that the acquisition
will contribute towards accretive
rental yield and capital value to
ensure stable and sustainable
return to the unitholders.
The Board of Directors of AmanahRaya-REIT Managers Sdn Bhd
(“ARRM”), the Manager of AmanahRaya Real Estate Investment
Trust (“AmanahRaya REIT”) is pleased to present the Annual
Report and the Audited Financial Statements of AmanahRaya
REIT for the financial year ended 31 December 2011.
ARRM
INVESTMENT STRATEGIES AND POLICIES
The principal activity of ARRM is to act
as the Manager of AmanahRaya REIT in
accordance with the Trust Deed (“Deed”)
dated 10 October 2006 and guidelines
imposed by Securities Commission and
Bursa Malaysia. ARRM’s main objective
is to ensure stable and sustainable
return to unitholders of AmanahRaya
REIT from real estate investments.
The Manager will continue to diversify its
property portfolio and invest in
properties with potential growth in terms
of rental and capital values in
accordance with the Trust Deed, the
Securities Commission’s Guidelines on
Real Estate Investment Trusts and other
applicable guidelines imposed by the
Securities Commission.
AMANAH RAYA REIT
AmanahRaya REIT was established on
10 October 2006 pursuant to the Deed
between the Manager and CIMB Trustee
Berhad (“Trustee”). AmanahRaya REIT
is classified as a real estate investment
fund and was listed on the Bursa
Malaysia on 26 February 2007.
The Manager’s criteria for investment are
as follows:
a.
58
Ama nahR a y a R EIT
b.
d.
Price and Rental Yield
The main criteria of investment is
the rental yield in relation to the
value. In general, the Manager will
be looking at yields of more than
6% depending on the quality and
location of the property. Strong
Diversity in Portfolio
The strength of AmanahRaya REIT’s
is the diversity of its portfolio. The
Manager believes that diversification
is important to cushion the impact
of any adverse condition in a
particular sector or locality.
Location
The location is evaluated based on
its proximity to establish CBD/
industrial zones or populated areas
with good accessibility to and from
major roads, highways and public
transportation.
Building Condition
The property should be in good
tenantable condition and will be
evaluated based on among others,
the age of the building, interior
and exterior condition, defects
(particularly hidden defects),
building equipments and systems
and structural conditions and
compliance with building by laws
and local authorities. Engineering
due diligence exercise, which
include examining the condition of
the mechanical and electrical
equipment as well as the structural
condition will be conducted by the
Manager’s appointed engineers
prior to completing the acquisition.
The Manager adopts a stringent process
in assessing properties prior to
presenting it to the Investment
Committee for endorsement. The
process includes site visit, financial
analysis, technical due-diligence, risk
assessment and market study.
AMANAH RAYA REIT
INVESTMENT OBJECTIVE
The investment objective of AmanahRaya
REIT is to provide good and sustainable
return to the unitholders from real
estate investment. The prime focus of
AmanahRaya REIT is the growth potential
in terms of rental yield and capital
values of the properties over a long term
period. As per the Deed, AmanahRaya
REIT portfolio consists of properties of
diversified sectors.
c.
e.
Tenant/Lessee profile
Tenant profiling plays a significant
role in ensuring that the prospective
tenants/lessee is capable of paying
rentals during the tenancy or lease
period. The due diligence exercise
on tenant is material especially on
single
tenancy
arrangement.
Currently,
the
tenants
of
AmanahRaya REIT are mostly
public listed companies.
AMANAHRAYA REIT FINANCIAL PERFORMANCE
For the Financial Year of 2011, despite the volatility in the economy, AmanahRaya REIT has achieved its objective following the
proactive and hands on approach of the Manager in managing the portfolio.
The financial highlights for the year 2011 are as follows:
•
•
•
•
Net income available for distribution increased to RM41,393,876 during the financial year as compared to RM39,331,076 in
the year 2010.
Increase in total assets to RM1.04 billion from RM998 million in 2010 due to revaluation exercise during the financial year.
Gearing reduced to 34.91% during the financial year from 36.36% in 2010.
Distribution per unit (“DPU”) is 7.2213 sen in 2011, from 7.3209 sen in 2010.
The operational highlights for the year 2011 are as follows:
•
•
•
•
•
Revaluation exercise on all properties under AmanahRaya REIT portfolio was carried out in November 2011.
Asset enhancement exercise was conducted on 4 properties under the portfolio as listed below:
Selayang Mall – total replacement of lifts estimated at RM0.9m
Silver Bird Factory – expansion work estimated at RM12.0m
KDNC 11 – total refurbishment of cold room estimated at RM3.0m
Expansion of Permanis Factory estimated at RM12.0m
The acquisition of 3 properties from Perbadanan Kemajuan Negeri Selangor (“PKNS”) for a total purchase consideration of
RM270 million was mutually terminated on 1 December 2011.
Novation of the lease in Permanis Factory from CI Holdings Berhad to Permanis Sdn Bhd with corporate guarantee from Asahi
Group Holdings Ltd of Japan.
Extension in the lease tenure of Permanis Factory and Silver Bird Factory from 2016 to 2021.
FINANCIAL REVIEW
Review of Performance
Total Net Asset Value (RM)
Units in Circulation (units)
Net Asset Value Per unit (RM)
Highest Net Asset Value Per Unit (RM)
Lowest Net Asset Value Per Unit (RM)
Market Value per unit (RM) as at 31 December
Highest Traded Price for the Twelve Months Period (RM)
Lowest Traded Price for the Twelve
Months Period (RM)
2011
601,636,025
573,219,858
1.0496
1.0496
0.9746
0.91
0.97
2010
568,165,061
573,219,858
0.9912
1.0690
0.9705
0.94
0.95
2009
440,103,776
431,553,191
1.0198
1.0650
1.0198
0.86
0.90
2008
440,104,122
431,553,191
1.0198
1.0198
0.9345
0.73
0.99
0.85
0.83
0.68
0.72
Annual report 2011
59
Manager’s Report
(continued)
Results of AmanahRaya-REIT’s Performance
2011
Total Gross Rental Income
Total Property Expenses
Net Rental Income
Interest and Other Income
Total Non-Property Expenses
Earnings Before Taxation
Net appreciation on Fair Value of Investment
Properties
Earnings Before Taxation
Taxation*
Earnings After Taxation
Earnings Per Unit (EPU) after Taxation (sen)
(Realised + Unrealised)
EPU Yield (%) (Based on Closing Market Price)
Distribution Per Unit (DPU) (sen)
Distribution Yield (%)
MER (%)
Annual Total Return (%)**
*
**
2010
65,305,820
(1,981,268)
63,324,552
834,684
(21,629,917)
42,529,319
59,509,971
(1,785,571)
57,724,400
2,607,949
(18,931,550)
41,400,799
31,143,000
74,714,992
NIL
73,672,319
12.8524
–
41,400,799
NIL
41,400,799
7.8962
14.12
7.2213
7.94
0.70
12.11
8.40
7.3209
7.79
0.59
20.59
2009
2008
46,519,068 45,560,808
(1,716,710) (1,448,058)
44,802,358 44,112,750
455,510
721,095
(14,380,556) (14,579,537)
30,877,312 30,254,308
–
30,877,312
NIL
30,877,312
7.1550
8.32
7.1550
8.32
0.38
(10.67)
36,812,000
67,066,308
NIL
67,066,308
15.5407
21.29
7.0105
9.60
0.46
7.54
The Trust distributed at least 90% of the realised and distributable income and thus, its total income for the year is exempted from tax pursuant
to Section 61A(1) of Income Tax Act, 1967 under the Finance Act, 2006.
Based on movement in weighted average unit price & actual gross income distribution.
Note:
The net asset value per unit of the Fund is largely determined by market factors. Therefore past performance is not necessarily indicative of future
performance and that unit price and investment returns may fluctuate
FUND’S PERFORMANCE
The manager is pleased to register another good result in 2011. The rental income of the Trust has increased by RM5.8 million or
9.7% to RM65,305,820. Net income for Distribution and Distribution Per Unit were registered at RM41,393,876 or 7.2213 sen
per unit.
As at 31 December 2011, the Trust recorded an increase of 6.5% in total income from RM62,117,920 to RM66,140,504. The
2011 total income comprised of rental income of RM65,305,820 and interest and other income of RM834,684.
Total expenses of AmanahRaya REIT increased by 14% from RM20,717,121 to RM23,611,185. However, of the total expenses,
only 8.4% was attributed to property expenses as most of the properties under the portfolio were on a triple-net basis except for Wisma
Amanah Raya Berhad and Wisma UEP. The major portion of the total expenses was on finance cost at RM16,951,592.
INCOME DISTRIBUTION
During the financial year ended 31 December 2011, the Trust has paid the first interim income distribution of RM10,386,727 on
19 July 2011 representing 1.8120 sen per unit for the first quarter of 2011, second interim income distribution of RM10,358,639
on 7 October 2011 representing 1.8071 sen per unit for the second quarter of 2011 and third interim income distribution of
RM9,859,366 on 19 January 2012 representing 1.7200 sen per unit for the third quarter of 2011.
60
Ama nahR a y a R EIT
The fourth and final income distribution of RM10,789,144 has been declared at 1.8822 sen per unit payable on 21 March 2012
for the fourth quarter ended 31 December 2011.
Income distribution per unit (sen)
First interim income distribution
Second interim income distribution
Third interim income distribution
Proposed Fourth and final income distribution
2011
2010
2009
2008
1.8120
1.8071
1.7200
1.8822
1.8597
1.9997
1.7874
1.6741
3.4190
–
–
3.7360
3.5758
–
–
3.4347
7.2213
7.3209
7.1550
7.0105
The total income distribution for the financial year ended 31 December 2011 totalling RM41,393,876 of which RM833,684 was
interest income and tax-exempted. It represents 7.2213 sen per unit or 7.94% dividend yield based on closing price of RM0.91 on
31 December 2011.
NET ASSET VALUE
Analysis of net asset value since the date of inception for the financial year ended 31 December 2011 of the Trust is as follows:-
Net asset value (“NAV”) per unit (RM):
before income distribution
after income distribution
2011
2010
2009
2008
2007
1.1197
1.0475
1.0712
1.0026
1.0884
1.0168
1.0701
1.0000
1.0299
1.0052
UNITS IN ISSUE
As at 31 December 2011, the total number of units issued is 573,219,858.
GEARING
As at 31 December 2011, AmanahRaya REIT’s total debt was RM363,260,671, a medium term debt with maturity in 2015.
Gearing ratio (%)
2011
34.91
2010
36.36
2009
33.82
2008
33.62
2011
12.11
–
2010
20.59
0.43
2009
(10.67)
–
2008
7.54
–
RELATED PERFORMANCE INDICATORS AND BENCHMARK
Total return (%)*
Asset Portfolio Turnover (times)**
*
Total return is calculated based on the actual gross income distribution and the net change in the weighted average market price
for the financial year, over the weighted average market price of the REIT for the respective year.
**
Asset Portfolio Turnover is based on the average of total acquisitions and total disposals of investment in AmanahRaya REIT
for the financial year ended 31 December 2011 to the average net asset value for the financial year calculated on a daily basis.
Annual report 2011
61
Manager’s Report
(continued)
BENCHMARK RELEVANT TO AMANAHRAYA REIT
Management Expense Ratio (“MER”)*
*
2011
0.70
2010
0.59
2009
0.38
2008
0.46
The calculation of MER is based on the total expenses incurred by AmanahRaya REIT, including Manager’s fee, Trustee’s fee,
audit fees, tax agent’s fee and administrative expenses, to the average net asset value of the Trust for the financial year
calculated on a daily basis.
CORPORATE PROPOSAL AND DEVELOPMENT
Acquisition in 2011
There is no property acquisition recorded in 2011.
The Manager made an announcement on the acquisition of PKNS properties in which it was mutually terminated in view of the plan
to carry out asset enhancements exercise on the properties by PKNS that would affect the market values. A Deed of Mutual
Termination was signed between CIMB Trustee as the Trustee for AmanahRaya REIT and PKNS on 1 December 2011.
Operation Review
Most of AmanahRaya REIT tenancies are structured based on master lessee/triple net arrangement whereby the master lessees
would bear all cost of maintenance, authority charges and insurances except for capital expenditures such as replacement of major
equipments and enhancement or expansion work. The strategy is mainly geared towards preserving and enhancing the value of the
properties as well as achieving sustainable growth in rental income.
In the year 2011,
a.
Maintenance and Upkeep of Properties
In 2011 total maintenance expenses was at RM1.4 million or 2.2% of total rental received. These expenses is inclusive of
refurbishment work costing RM1 million.
b.
Enhancing Property Values
In the year 2011, four properties underwent asset enhancement exercise:
Selayang Mall – total replacement of 6 units of lift estimated at RM1.0 million
Silver Bird Factory – expansion work estimated at RM12.0 million
Permanis Factory – expansion and enhancement work estimated at RM12.0 million
KDNC11 – total refurbishment of cold rooms estimated at RM3.5million
c.
Improving the Financial Performance of the Properties
During the financial year, rentals of 2 properties were revised upwards:-
62
No.
Property
1
2
Wisma Amanah Raya Berhad, Jalan Semantan
Permanis Factory, Bangi
Ama nahR a y a R EIT
Previous
Monthly Rental
Current
Monthly Rental
307,641
157,250
321,004
162,751
% Increase
Date
of Review
4.34 November 2011
3.50
June 2011
Capital Management
The Manager has been adopting prudent capital management strategy in managing AmanahRaya REIT portfolio.
In addition to the above, the Manager has complied with the provisions of the Deed and all applicable rules and guidelines prescribed
by the Securities Commission relating to the financing of AmanahRaya REIT. As at 31 December 2011, AmanahRaya REIT has
reduced the debt level to 34.91% of the total asset from 36.36% in 2010.
MANAGER’S REMUNERATION
Pursuant to the Deed dated 10 October 2006, the Manager is entitled to receive from AmanahRaya REIT a base fee of up to a maximum
of 1.0% per annum of the net asset value of AmanahRaya REIT calculated on daily basis. During the financial year, the Manager
received a total fee amounting to RM3,379,488 calculated at 0.60% of net asset value of AmanahRaya REIT, and payable monthly.
SIGNIFICANT EVENTS OCCURED DURING THE YEAR
For the year under review, the following events took place:
1.
Asset enhancement exercise was conducted on 4 properties under AmanahRaya REIT portfolio as listed below:
(a) Selayang Mall – total replacement of lifts estimated at RM0.9m
(b) Silver Bird Factory – expansion work estimated at RM12.0m
(c) KDNC 11 – total refurbishment of cold room estimated at RM 3.0m
(d) Expansion of Permanis Factory estimated at RM 12.0m
2.
On 1 December 2011, the Manager has announced on behalf of AmanahRaya REIT, the mutual termination of the proposed
acquisition of 3 properties from Perbadanan Kemajuan Negeri Selangor (“PKNS”) for a total purchase consideration of RM270
million. The proposed acquisition was mutually aborted by both parties due to unforeseen circumstances and may be revisited
in the future when conditions are more favourable.
3.
Following the execution of a Share Sale Agreement between CI Holdings Berhad and Asahi Group Holdings Ltd of Japan, the
lease on Permanis Factory was novated from CI Holdings Berhad to Permanis Sdn Bhd with corporate guarantee from Asahi
Group Holdings Ltd. This novation is however subject to several conditions precedent.
4.
Throughout the year 2011, the manager has managed to secure the extension in the lease tenure of Permanis Factory and
SilverBird Factory from 2016 to 2021.
5.
On 30 December 2011, the Manager has on behalf of AmanahRaya REIT announced, the completion of the revaluation exercise
on all properties under AmanahRaya REIT portfolio. The revaluation was conducted in accordance with the requirements of
Securities Commission’s Guidelines on Real Estate Investment Trusts which requires revaluation of all the real estates in the
fund’s investment portfolio to be carried out once every three (3) years. Although the three-year period has not lapsed for KDNC
11, AIC Factory, SilverBird Factory, Gurun Automotive Warehouse and SEGI College, Kota Damansara, the revaluation exercise
was still carried out on these properties to enable the next revaluation exercise to be varied out simultaneously for all properties
under AmanahRaya REIT portfolio.
6.
The Manager had participated in road shows to promote REIT investment in general to the public throughout Malaysia.
Subsequent to the road shows, the number of public holding units of AmanahRaya REIT has increased tremendously.
7.
As at 31 December 2011, the number of unit holders increased by 18% representing a total of 2,809 unitholders in 2011
compared to total of 2,383 unitholders in 2010.
Annual report 2011
63
Manager’s Report
(continued)
MOVING FORWARD
Asset Enhancement
Moving forward, asset enhancement exercise on 4 properties i.e. Selayang Mall, Silver Bird Factory, Permanis Factory and KDNC11
has commenced and is currently ongoing.
The asset enhancement exercise for Selayang Mall and KDNC 11 was estimated at totalling RM4.25 million.
Silver Bird Factory will be expanded to cater for the business expansion of Silver Bird Group Berhad. The expansion cost was
estimated at RM12 million and would be funded through bank borrowings.
The enhancement exercise on Permanis Factory is being carried out by the lessee and negotiation on the funding of the same is
currently ongoing.
Acquisition
With regard to acquisition, the Manager will continue with its plan to increase AmanahRaya REIT total asset value to RM1.5 billion
from the current RM1.04 billion in the next 3 years.
Financial Performance
Bearing unforeseen circumstances such as adverse market condition, we expect AmanahRaya REIT to perform well. DPU is expected
to be in the region of 7.0 to 7.5 sen should investment environment remain the same as in 2011.
SOFT COMMISSION
During the financial year under review, the Manager did not receive any soft commission from its broker or any parties by virtue of
transactions conducted by the Trust.
RESERVES AND PROVISIONS
There were no material transfers to and from reserves or provisions during the financial year ended 31 December 2011 other than
those disclosed in the Statement of Changes in Net Asset Value.
INFORMATION ON THE FINANCIAL STATEMENTS
In arriving at the financial statements of AmanahRaya REIT, the Manager took reasonable steps:
a.
to ascertain that action had been taken in relation to the writing off of bad debts and the making of allowance for doubtful debts,
and satisfied themselves that there are no known bad debts and that no allowance for doubtful debts is required.
b.
to ascertain that any current assets other than debts, which were unlikely to be realised in the ordinary course of business,
including their value as shown in the accounting records of the Company, have been written down to an amount which they
might be expected so to realise.
As at the date of this report, the Manager is not aware of any circumstances:
a.
that would require the writing off of bad debts, or the allowance for doubtful debts in the financial statements of the Company; or
b.
which would render the values attributed to current assets in the financial statements of AmanahRaya REIT misleading; or
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Ama nahR a y a R EIT
c.
which have arisen and render adherence to the existing method of valuation of assets or liabilities of AmanahRaya REIT
misleading or inappropriate.
d.
not otherwise dealt with in this report or the financial statements, that would render any amount stated in the financial
statements of AmanahRaya REIT as misleading.
At the date of this report, there does not exist:
a.
any charge on the assets of AmanahRaya REIT which has arisen since the end of the financial year which secures the liability
of any other person, except as disclosed in Note 5 to the financial statements; or
b.
any contingent liability of AmanahRaya REIT which has arisen since the end of the financial year.
No contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve (12) months
after the end of the financial year of which, in the opinion of the Manager, will affect the ability of AmanahRaya REIT to meet its
obligations as and when they fall due.
OTHER STATUTORY INFORMATION
The Manager states that:
As at the date of this report, the Manager is not aware of any circumstances not otherwise dealt with in this report or the financial
statements of AmanahRaya REIT which would render any misleading amount stated in the financial statements.
The Manager opines:
a.
that the results of the operations of AmanahRaya REIT during the financial year under review were not substantially affected
by any item, transaction or event of material and unusual in nature; and
b.
that there were no transactions or events of material and unusual in nature that are likely to affect substantially the results of
the operations of AmanahRaya REIT arisen during the interval between the end of the financial year under review and the date
of this report.
AUDITORS
The auditors, Messrs BDO, have indicated their willingness to accept re-appointment.
This concludes the Manager’s Report.
For and on behalf of AmanahRaya-REIT Managers Sdn Bhd signed in accordance with a resolution of the Directors.
Tan Sri Dato’ Ahmad Fuzi bin Abdul Razak
Kuala Lumpur
15 February 2012
Annual report 2011
65
Property Market Overview
1.
Overview of Malaysian Economy in 2011
The Malaysian economic recovery continued its momentum from last year to the latter half of 2011 where the economy grew
at 5.8% in Q3. The first and second quarters of 2011 saw a growth of 4.6% and 4% respectively.
Chart 1: Key Economic Indicators, 2000 – 3Q 2011
Key Economic Indicators for the Year of 2000 - Q3,2011
Growth %
10.0%
GDP
CPI
5.0%
BLR
Unemployment
0.0%
‘00
‘01
‘02
‘03
‘04
‘05
‘06
‘07
‘08
‘09
‘10
‘11
Producer Price Index
-5.0%
-10.0%
Source: Bank Negara Reports
The overall performance of Malaysian economy in 2010 showed an encouraging growth of 7.2% compared to -1.7% in 2009
year-on-year. The current strong performance is contributed by the sustainable expansion in domestic demand, increase in
private sector spending and the recovery in external demand. Bank Negara Malaysia has increased the Base Lending Rate
(BLR) from 6.3% in 2010 to the latest revised rate in 1H 2011 at 6.6% which is effective since 11 May 2011.
Net inflows of Foreign Direct Investment (FDI) leapt to RM21.3 billion in the first half of 2011 (1H 2011) compared to RM12.1
billion recorded in the same period for the year 2010 registering an impressive 76% increment from the previous year. The
recent announcement made by global management consulting firm, AT Kearney, highlighted that Malaysia’s ranking as an
attractive foreign direct investment (FDI) destination had jumped from 21st in 2010 to 10th in 2011 (AT Kearney’s FDI
Confidence Index). The FDI Confidence Index is a regular measure of senior executive sentiment at the world’s largest
companies. Higher FDIs would assist to cushion any possible impact from the possible challenges in 2012.
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Chart 2: Foreign Direct Investment Inflows
Foreign Direct Investment Inflows (FDI)
RM/Billion
35.0
30.0
25.0
20.0
15.0
10.0
5.0
Net FDI (RM/Billion)
0
‘02
‘03
‘04
‘05
‘06
‘07
‘08
‘09
‘10
‘11
Source: Bank Negara Report, Department of Statistics
With further liberalization of the financial market by Bank Negara Malaysia, several offshore fund houses and foreign banks have
indicated their interests in establishing their presence in the country. This will boost the demand for office space, especially
in Kuala Lumpur commercial centers, which is expected to stimulate further interests by secondary services establishments.
The interest in Malaysia will be augmented by the multitude transformation programs to create, amongst others, a better
business environment on the international stage.
In September 2010, the Malaysian government launched the Economic Transformation Program (ETP) with the prime objective of
turning Malaysia into a high income economy by year 2020. In realizing the objective, several National Key Economic Areas (NKEAs)
were established which amongst others include Greater Kuala Lumpur, Wholesale and Retail, Tourism, Healthcare and Education.
The NKEAs will inadvertently have high impact on the property sector and this will be done through the various Entry Point
Projects or EPP. For instance, the proposed Sungai Buloh – Kajang Mass Rapid Transit (MRT) under Greater Kuala Lumpur’s
NKEA will fuel growth outside Kuala Lumpur City Centre especially in Sungai Buloh, Kajang and Kota Damansara. The Healthcare
NKEA emphasise on improving medical tourism focuses on providing quality care and high-value healthcare experience for
outpatient treatments. Incentives are provided to allow local healthcare establishments to compete with similar healthcare
services and providers offered by neighbouring countries such as Singapore and Indonesia. Duty-free shopping destination is
among the key projects under tourism NKEA. In addition, the government has announced its intention to style Kuala Lumpur
City Centre - Bukit Bintang area as a premier shopping precinct in Malaysia by establishing a well-linked integrated pedestrian
walkway to connect several shopping malls and hotels situated therein. This will assist in the re-branding of Malaysian shopping
experience and to address the increasing concern over issues on public transportation in Malaysia. The proposed pedestrian
walkway will link several major shopping centres such as KL Pavilion, Farenheit88, Lot 10 and Sungei Wang Plaza.
The implementation of these EPPs is supported and substantiated through the 2012 Budget. About RM6 billion was allocated
for the rollout of the ETP. The sum, involving Government expenditure, accounts for 5.5% of the public sector’s 8% share or
RM109 billion of the total RM2.4 trillion investment to be realized over the next 10 years. To date, 82% of these initiatives
have either started operations or commenced, with the remaining 18% in various stages of work-in-progress. More business
owners are coming forward to express their commitment in investments that centered mainly in the oil, gas & energy sector,
followed by tourism, education, E&E, communication content and infrastructure, healthcare services, agriculture and Greater
KL NKEAs. This puts the NKEAs well on track to achieve their 2020 investment and incremental GNI and job targets.
Annual report 2011
67
Property Market Overview
2.
Retail Sector
‘Malaysia Retail Report Q4 2011’ by Business Monitor International forecasted total retail sales to grow from RM182.44 billion
(US$51.79 billion) in 2011 to RM279.83 billion (US$79.44 billion) by 2015. Low unemployment rate, rising disposable
incomes and strong tourism industry are key factors behind the forecasted growth. With the population expected to increase to
30 million by 2015, GDP per capita is predicted to rise by 44.7%, from US$9,686 in 2011 to US$14,019 in 2015.
As at 3Q 2011, the total Net Lettable Area (NLA) of retail space in Malaysia stood at 117.1 million sq.ft, with 22.8 million
sq.ft or 19.5% located in Kuala Lumpur and 27.9 million sq.ft or 23.8% located in Selangor. In 2011, a total of 4.4 million
sq.ft of new retail space had been injected into the market. Some of these new stocks are Suria KLCC (Lot C), Kenanga
Wholesale City, Southgate in Sungai Besi, Viva Home in Jalan Loke Yew, 1 Shamelin Mall in Cheras and KL Festival City Mall
in Taman Danau Kota, to name a few. Meanwhile, new supplies of shopping malls in Selangor are SS2 Mall in Petaling Jaya,
Space U8 Shah Alam, Subang Avenue, CITTA Strip Mall in Ara Damansara and The Mines Phase 2 in Seri Kembangan.
Despite the expectation of retail market in Klang Valley to hit oversupply, occupancy rate remains high. For instance, upon
opening, Suria KLCC (Lot C) recorded 85% occupancy, Kenanga Wholesale City at 80%, Southgate City at 85%, Viva Home
at 92% and KL Festival City Mall at 80%. In Selangor, we noted that some of these malls achieved encouraging occupancy
rates, e.g. Jaya One (98%) and Tropicana City Mall (99%).
On average, occupancy rate of shopping malls in Klang Valley in 3Q 2011 was rather stable, averaging at 86.9% in Kuala
Lumpur and 85.6% in Selangor. In Selayang, Selangor, the occupancy rate in Selayang slightly declined from 89.6% (1H
2010) to 89.2% (1H 2011). Other malls within 10km radius from Selayang Mall recorded high occupancy rate of between
80.0% (Selayang Capitol) and 100.0% (Giant Batu Caves).
Between 2012 to 2015, the market is expected to witness the additional supply of 12 new complexes to be opened in Kuala
Lumpur and Selangor, which will contribute more than 7.5 million sq.ft of retail space, i.e. Nu Sentral Shopping Mall, Sunway
Velocity, Damansara City Mall, The Strand Mall, IOI City Mall Putrajaya, Empire City Mall Damansara Perdana and several others.
Rental rates remained relatively stable in 2011. Monthly rental rate in Seri Kembangan and Selayang ranged from RM3.00
psfpm to RM14.00 psfpm and RM1.50 psfpm to RM12.00 psfpm respectively.
In terms of capital value, there were several transactions in 2011 in the Klang Valley as shown in Table 1 below with prices
ranging from RM998 psf (The Gardens Mall, Mid Valley) and RM1,136 psf (Capsquare Retail Centre).
Table 1: Transactions of Selected Retail Centres within Klang Valley in 2011
Property
NLA (sq ft)
Vendor
Purchaser
Consideration
RM (psf)
The Gardens Mall, Mid Valley
821,887
IGB Corp Bhd
Kriss Assets
RM820 mil
998.00
Capsquare Retail Centre
128,541
Bandaraya Development Bhd
Ambang Sehati
Sdn Bhd
RM146 mil
1,136.00
Source: Rahim & Co Research
Net yield for retail centers in the Klang Valley is estimated to range from 5.0% to 9.0% in 2012.
Looking ahead, the retail market is expected to remain favourable, backed by improving economy and positive consumers’
sentiment. However, competition is expected to intensify due to possible oversupply of retail centres. This cautious sentiment
is supported by The Malaysian Retailer Chains Association (MRCA). In December 2011, MRCA had urged developers to carry
out extensive research before opening additional shopping malls as retailers have had difficulties in differentiating product
offerings due to the excessive supply of shopping malls with the same positioning.
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3.
Hotel Sector
In recent years, international tourism has grown significantly stimulated by initiatives and promotional efforts by the Government
as well as private hoteliers. Malaysia is ranked as the 9th most visited country in the world in 2009 and 2010. By 2020, based
on the target set by the government for the NKEA-Tourism, Malaysia is expected to receive 36 million tourist arrivals and
RM168 billion tourist receipts.
Chart 3: Tourist Arrival and Receipts, 1998 – 2015
Tourist Arrival and Receipts to Malaysia, 1998-2015
Million
RM/Billion
30.0
60.0
25.0
50.0
20.0
40.0
15.0
30.0
10.0
20.0
5.0
10.0
Tourist Arrival (Million)
Tourist Receipts (RM Billion)
0
‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11*‘12*‘13*‘14*‘15*
Source: Tourism Malaysia
At the end of 2010, majority of the tourists visiting Malaysia were from Singapore and Indonesia. This can be seen from the
registered number of tourist arrivals which stood at 13,042,004 and 2,506,509 respectively. Increased accessibility via air
travel due to the emergence and strengthening of low-cost airlines and no frills travel packages are key contributants to the
growth of this sector. Currently, Singapore's Silk Air, Malaysia Airlines and Air Asia collectively operate more than 30 flights
per week between Singapore and Langkawi. This facility provides more opportunity to increase tourist arrivals in Kedah.
Between 1H 2010 and 1H 2011, supply of hotel rooms in Malaysia increased only by 1.3% from 168,980 rooms to 171,130
rooms. During the same period, supply of hotel rooms in Kedah increased by 0.9% from 9,578 rooms to 9,664 rooms.
The trend of occupancy rate in Malaysia as well as Kedah has fluctuated for the past five years with the highest occupancy rate
in the country recorded at 70.1% in Q3 2007 and in Kedah at 72.7% in Q1 2007. As of Q3 2011, the overall occupancy rate
for Malaysia and Kedah was at 56.7% and 48.3% respectively (Chart 4). In Alor Setar, occupancy rates of selected hotels range
from 50% to 56% and in Langkawi, the rates range from 50% to 78% (Table 2).
Annual report 2011
69
Property Market Overview
Chart 4: Overall Occupancy Rate of Hotels in Malaysia & Kedah
%
75.0
70.0
65.0
60.0
Malaysia
55.0
Kedah
50.0
45.0
40.0
35.0
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3
Quater
Quater
Quater
Quater
Quater
Quater
Quater
‘05
‘06
‘07
‘08
‘09
‘10
‘11
Source: Leisure Property Stock Report
Table 2: Occupancy Rates of Selected Hotels in Alor Setar and Langkawi as at Q3 2011
Hotel
The Regency Hotel
Hotel Grand Crystal
Sentosa Regency Hotel
Andaman Langkawi Resort
The Datai Langkawi Resort
The Westin Langkawi Resort & Spa
Meritus Pelangi Beach Resort & Spa
Four Season Resort
Tanjung Rhu Resort
Location
Alor Setar
Alor Setar
Alor Setar
Langkawi
Langkawi
Langkawi
Langkawi
Langkawi
Langkawi
Occupancy Rate as at Q3 2011 (%)
53%
50%
56%
55%
50%
78%
71%
72%
77%
Source: Rahim & Co Research, MIHR
Based on our findings, the average room rate for 5-star hotels in Langkawi ranges from RM1,400 per night to about RM 9,600
per night. According to the Malaysian Association Hotel as at 1H 2011, the overall average room rate in Langkawi was at
RM685, an increase of 25.7% compared to the previous year at RM545. The rate is higher compared to other nearby tourist
destinations, such as Batu Ferringhi (RM338) and Georgetown (RM197). Meanwhile, in Alor Setar, room rate for 3-star hotel
hovers between RM200 to RM690 per night.
The percentage of foreign tourists visiting Kedah decreased from 1,941,678 tourists in 2009 to 1,168,044 tourists in 2010;
registering a 39.8% drop. We believe this is a typical consequence of the recent global financial crisis. Nonetheless, various
promotions and campaigns were carried out in order to attract foreign tourists, especially from China, India and Middle East
to visit Kedah, particularly Langkawi. The recently launched Langkawi Tourism Blueprint 2011-2015 aims to make the resort
island among the world’s top 10 island and eco-tourism destination by 2015. It provides a tourism portfolio comprising 14
initiatives designed to cover the three themes of product, infrastructure and enabler.
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4.
Office Sector
As of Q3 2011, the total supply of office space in purposed-built office (PBO) buildings in the Klang Valley was 100.7 million
sq.ft, of which about 74.8 million sq.ft were located in Kuala Lumpur and the remaining 25.9 million sq.ft were in Selangor.
Compared to the preceding years, the total supply in Kuala Lumpur and Selangor increased by 2.5% and 3.5% respectively.
The year 2011 saw the completion of seven new office buildings supplying a total of 2.34 million sq.ft of office space, namely
Capital Square Office Tower 2, Menara Bank Islam, Menara Worldwide, Hampshire Place, One Mont Kiara, Glomac Tower and
Dijaya Plaza. All these newly completed buildings have managed to secure tenants since completion with occupancy rates of
98% for Dijaya Plaza, 50% for Menara Bank Islam, 30% for Hampshire Place & Glomac Tower, 35% for One Mont Kiara and
30% for Capital Square Office Tower 2 while Menara Worldwide is still waiting for the approval of its Certificate of Fitness for
Occupation (CFO).
Due to the increase in supply, the overall average occupancy rate of PBOs in Kuala Lumpur has declined slightly from 81.2%
in 2010 to 79.6% in Q3 2011. As shown in Table 3 below, occupancy rates of selected PBOs within AmanahRaya REIT locality
range from 80.0% to almost 100.0%, indicating high demand for office space within these areas.
Stiff competition for tenants is noted due to wider choices available in the market. Landlords have came up with attractive
tenancy terms to entice tenants. Rental rate is under pressure due to the increasing supply. Through repositioning of rental
prices, despite the increase in space, we noted a slight decline in average rental rate. Rentals were rationalised in order to
maintain high occupancy rates. The average rental rate in Kuala Lumpur for Golden Triangle and Central Business District area
arrives at RM5.91 psf per month in Q3 2011, compared to RM6.05 psf per month in 2010. Similalrly, Petaling Jaya recorded
a lower average rental rate at RM3.47psf compared to RM3.74psf in 2010. Within the vicinity of AmanahRaya REIT property
area, Table 3 shows the rental rate as at 2011, ranging from minimum of RM3.40 psf to maximum of RM10.50 psf per month.
Table 3: Occupancy and Rental Rates of Selected PBOs within AmanahRaya REIT Locality as at Q3 2011
Name of Building
Location
Menara Citibank
Menara Maxis
Wisma Selangor Dredging
Sunway Tower
Menara Safuan
Bangunan Am Finance
Kenanga International
Menara IMC
Plaza OSK
Menara Great Eastern
Vista Tower
The ICON
G Tower
Subang Hi-Tech
Wisma Consplant 1
Wisma Consplant 2
Wisma UEP
Menara Summit
First Subang (new building)
Menara Manulife
Menara Millenium
Menara HP
Bangunan Malaysia RE
Wisma E&C
Wisma Chase Perdana
Plaza Damansara A
Wisma UOA Damansara I
Wisma UOA Damansara II
Mines Waterfront Biz Park
Mines 2 (new building)
Jalan Ampang
Jalan Ampang
Jalan Ampang
Jalan Ampang
Jalan Ampang
Jalan Ampang
Jalan Ampang
Jalan Ampang
Jalan Ampang
Jalan Ampang
Jalan Tun Razak
Jalan Tun Razak
Jalan Tun Razak
Subang Jaya
Subang Jaya
Subang Jaya
Subang Jaya
Subang Jaya
Subang Jaya
Damansara Height
Damansara Height
Damansara Height
Damansara Height
Damansara Height
Damansara Height
Damansara Height
Damansara Height
Damansara Height
Seri Kembangan
Seri Kembangan
Occupancy Rate (%)
Asking Rental Rate (RM psf)
95%
93%
98%
90%
90%
95%
84%
96%
95%
90%
90%
90%
93%
90%
90%
90%
80%
80%
50%
100%
98%
93%
100%
80%
84%
90%
100%
100%
90%
50%
8.50
10.50
6.00
6.50
6.00
6.00
6.80
8.50
5.50
5.00
7.50 – 9.50
7.50
8.00
3.80
4.00
4.00
3.50 – 4.00
3.50
3.50 – 4.50
4.50
5.00
5.00
3.80 – 4.50
4.40
3.40 – 3.70
3.50
5.00
5.00
3.50 – 3.70
4.50
Source: Rahim & Co Research
Annual report 2011
71
Property Market Overview
In terms of average capital value, based on several transactions recorded in 2011, there is an improvement of 6.0% from
market average of RM755 psf to RM780 psf. Table 4 shows some of the notable transactions recorded as at Q3 2011.
Table 4: Selected Transactions of PBOs as at Q3 2011
Office Building
Tenure
Dua Sentral
Menara Multi-Purpose
Wisma Goldhill, KL
The Horizon (Phase 1)
Freehold
Freehold
Freehold
Freehold
NLA (sq.ft)
430,000
541,424
270,000
46,100
Consideration
RM232.2
RM375
RM174.5
RM36
mil
mil
mil
mil
RM/psf
540
693
646
780
Source: Rahim & Co. Research
In the next five years, an estimated 33.7 million sq.ft of new office space will be completed, of which about 14.4% (4.8
million sq.ft) will be located in the suburbs such as Damansara City 2 in Damansara City Centre, Kiara 163 in Mont Kiara, Office
Tower@The Paradigm in Kelana Jaya and Point 92 Office Tower, 8trium, The Altium and Glomac Damansara in Damansara.
The emergence of new supply in suburban areas in the last couple of years is a response to the growing trends, in line with the
strong demand for suburban space.
Demand for quality office space outside the city center is expected to be strong in the next few years due to the growing trend
of decentralization from the city center to suburbs primarily driven by higher rents and traffic congestion issues in the city centre
and fuelled by the vast improvement in suburban accessibility through major highways. We anticipate that the rental rates in
Kuala Lumpur will be slightly depressed with an upcoming of about 7 million sq.ft of office space into the existing market by
year 2015.
5.
Industrial Sector
As one of the largest contributors to the Malaysian economy, the manufacturing sector continued to play a major role in the
country’s economic development. Basic economic activities, in macroeconomic terms, provided by this sector, translates to
multiplier effects including increasing demand for real estate especially residential and commercial – despite the activity within
the industrial sector itself being relatively small. In 1H 2011, industrial property transactions accounted only 2.4% of the total
transaction volume, representing 8.4% of the total transaction values. Compared to 1H 2010, the volume of transactions
increased by 12.6% in 1H 2011 from 4,648 transactions to 5,232 transactions. During the same period, value of transactions
increased by 23.1% from RM4.40 billion to RM5.42 billion. Such positive trend was also noted in the increase of manufacturing
sales value between 1H 2010 and 1H 2011 by 12.9%, which showed a general recovery of the manufacturing sector after a
slowdown in 2008.
As at Q3 2011, the total supply of industrial properties in Malaysia was 93,729 units, of which Selangor and Kedah contributed
about 36.7% and 3.4% of the total supply respectively. In addition, there were 2,792 units of incoming supply and 1,685 units
of planned supply in Selangor, whereas in Kedah, there were 58 units of incoming supply and 3,635 units of planned supply.
Table 5: Supply of Industrial Properties (units) as at Q3 2011
Location
Selangor
Kedah
Malaysia
Source: Property Market Report
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Existing Stock Incoming Supply Planned Supply
34,458
3,190
93,729
2,792
58
7,825
1,685
3,635
23,131
Rental rates of selected industrial properties where AmanahRaya REIT properties are located remained stable due to long term
tenancy contracts of a period between five to ten years. Meanwhile, a few industrial properties noted some rental increment
between 2010 and 2011. Factory unit in Bandar Baru Bangi registered the highest rental growth between 2010 to 2011
whereby it increased by 11.8% from RM1.52psf to RM1.70psf. In general, asking rental for other industrial properties within
AmanahRaya REIT’s locality ranged between RM0.67psf (in Telok Gong, Klang) to RM2.30psf (in Bukit Jelutong, Shah Alam).
Industrial areas within the AmanahRaya REIT locality include Shah Alam, Bukit Jelutong, Hicom Glenmarie, Bandar Baru
Bangi, Kota Damansara and Klang.
Table 6: Rental Rates of Industrial Properties within AmanahRaya REIT Locality, 2011
Property
Address
Type of
Industrial
Shah
Alam
Bukit Kemuning
Section 15
Bukit Jelutong
Temasya Industrial Park
Section 27
Hicom Glenmarie
Warehouse
Warehouse
Warehouse
Factory
Terraced
Detached
Bangi
Bandar Baru Bangi
Bandar Baru Bangi
Factory
Factory
55,000 - 60,000
5,000 - 12,000
Klang
Telok Gong
Telok Gong
Warehouse
Factory
52,000 - 68,000
56,000 - 65,000
Area
B/Up (sq.ft)
20,000
13,500
30,000
10,000
4,000
30,000
-
40,000
18,000
50,000
20,000
6,000
43,000
Asking Rental
(RM/sq.ft),
4Q 2010
Asking Rental
(RM/sq.ft),
4Q 2011
%
Change
1.30
1.11
1.90
1.80
1.20
1.40
1.30
1.11
1.90
1.90
1.00
1.40
1.40
1.40
2.30
2.20
1.40
1.80
Stable
Stable
Stable
9.5%
7.7%
3.4%
1.51 - 1.52
1.21 - 1.36
1.50 – 1.70
1.21 – 1.40
11.8%
2.9%
0.73 - 1.00
0.67 - 0.80
0.80 – 1.00
0.67 – 0.80
Stable
Stable
-
1.40
1.40
2.10
2.00
1.30
1.50
–
–
–
–
–
–
Source: Rahim & Co. Research
Single-storey detached factories subsector dominated the industrial transaction market. Transaction of 1-storey detached factory
in Seksyen 3, Kota Damansara marks the highest value at RM522psf while other similar industrial sectors averaged at RM204psf.
Some industrial parks with active transaction markets are located at Kota Damansara, Shah Alam, Klang and Kajang.
A 2-storey detached factory in Shah Alam registered the highest selling price rate of all industrial types in the AmanahRaya
REIT’s locality arriving at RM1,204 psf. A vacant industrial land in Pulau Indah Industrial Park was transacted at RM22 psf.
Selected transactions and rental rates for properties within the abovementioned areas is tabulated in the following page.
As more industrial projects related to ETP takes off, the industrial market is likely to sustain the present momentum and have
better opportunities in the future.
Annual report 2011
73
Property Market Overview
Table 7: Transactions of Industrial Properties within AmanahRaya REIT Locality, 2011
Damansara
Shah Alam
Klang
Bandar Baru
Bangi
Description
Mukim
Location
Transaction
Date
Vendor
Vacant Lot
Petaling
Kota
Damansara
Aug-11
Tamadun
Biz-Markas
Cemerlang Sdn Bhd Sdn Bhd
RM12.2 mil
(RM70psf)
3-storey
Detached
Light Factory
Petaling
Taman Sains
Selangor 1,
Kota
Damansara
Aug-11
Luxor YRM
Sdn Bhd
Cyber Business
Solution Sdn Bhd
RM18 mil
(RM462psf)
1-storey
Pekan Baru
Detached Factory Sg Buloh
Seksyen 3,
Kota Damansara
Mar-11
Henikwon
Corp. Sdn Bhd
Secret Recipe
Manufacturing
Sdn Bhd
RM28 mil
(RM522psf)
1½-storey
semi-d Factory
Pekan Baru
Sg Buloh
Seksyen 3,
Kota Damansara
Jan-11
AT Transmissions
Sdn Bhd
JAR Hardware
Sdn Bhd
RM6 mil
(RM1,058psf)
1½-s
semi-d Factory
Bandar
Shah Alam
Seksyen 16,
Shah Alam
Feb-11
FMC Manufacturing
Sdn Bhd
XTRO Tech
Sdn Bhd
2-s Detached
Factory
Bandar
Shah Alam
Seksyen 16,
Shah Alam
May-11
Hokuriku (M)
Sdn Bhd
Greenway Link
Sdn Bhd
1-s Detached
Factory
Bandar
Shah Alam
Seksyen 16,
Shah Alam
May-11
Inagro Sdn Bhd
Lighting Editions
Sdn Bhd
RM7.5mil
(RM148psf)
1-s Detached
Factory
Bandar
Shah Alam
Seksyen 16,
Shah Alam
Jul-11
Boustead Weld
Court Sdn Bhd
Intermarco
Dev’t Sdn Bhd
RM5.5 mil
(RM369psf)
1-s Detached
Factory
Pekan Hicom
Sekyen 26,
Shah Alam
Jun-11
Polymatech (M)
Sdn Bhd
Sunchirin
Industries (M) Bhd
Vacant
Industrial land
Kapar
Seri Alam
Industrial Park
Jun-11
NPO Land Sdn Bhd
Toyo Ink Group Bhd
Vacant
Industrial land
Klang
Pulau Indah
Industrial Park
Jun-11
Central Spectrum
(M) Sdn Bhd
Scientex Bhd
1-s Detached
Factory
Klang
Kawasan
Perindustrian
Bdr Sultan
Sulaiman
Jan-11
AXIS REIT
Freight Management
(M) Sdn Bhd
RM14.5 mil
(RM97psf)
1-s Detached
Factory
Klang
Perindustrian
Sg Jati
Mar-11
Leadken Industry
Sdn Bhd
Top Slings
Trading Sdn Bhd
RM15 mil
(RM169psf)
1-s Detached
Factory
Kajang
Seksyen 14,
Bandar Baru
Bangi
Apr-11
Hitachi Consumer
Products (M) Bangi
Sdn Bhd
Talent Team Sdn Bhd
RM20 mil
(RM105psf)
1½-s semi-d
Factory
Bandar Baru
Bangi
Seksyen 10,
Bandar Baru
Bangi
Mar-11
Chia Ah Tee
Jusgreat Sdn Bhd
RM3.2 mil
(RM322psf)
1½-s semi-d
Factory
Bandar Baru
Bangi
Seksyen 10,
Bandar Baru
Bangi
May-11
Ehsan Plant &
Property Sdn Bhd
Ampang Press
Sdn Bhd
RM1.65 mil
(RM353psf)
Source: JPPH
74
Ama nahR a y a R EIT
Purchaser
Consideration
(RM - Mill)
RM2.4 mil
(RM383psf)
RM17 mil
(RM1,204psf)
RM14.3 mil
(RM340.55psf)
RM8.97 mil
(RM38psf)
RM12.02 mil
(RM22psf)
Education Sector
The education industry continues it’s growth momentum – with the consistent educational promotion expositions organized by
both public and private sectors. The number of enrolments overall (for both new entries and existing enrolments) for the country
grew by 6.5% in 2010. There were a total of 1.43 million students within this collective category in 2009 which increased to
1.52 million in 2010. It is estimated that more than 1.6 million students are currently enrolled in various programs throughout
the country.
Looking at the trend of enrolments of foreign students in private and public Higher Education Institutions (HEIs), the numbers
suggest that Malaysia continues to be a popular destination for tertiary education. This directly translates to increased demand for
educational spaces which is popularly executed via conversion of office and commercial spaces into educational and training facilities.
Chart 5: Total Enrolment of International Students in Public and Private Higher Education Institutions in Malaysia
Total Enrolment of International Students in Public and Private Higher Education Institutions Year 2005-2010
100,000
90,000
86,923
80,750
80,000
No. of students
6.
69,164
70,000
60,000
50,000
47,928
40,525
40,000
44,390
30,000
20,000
10,000
0
‘05
‘06
‘07
‘08
‘09
‘10
Source: Ministry of Higher Education
In 2010, there were 86,923 foreign students in various Higher Education Institutions around the country. The 44% jump in foreign
students enrolment between 2007 and 2008 was not repeated in 2010; nevertheless, growth was still recorded by 7.6% in recent
years – which is still commendable. The surge in the past was probably due to the more open-door treatment to educational system
in the country compared to other cities around the world, coupled with a more favourable currency exchange rate.
Table 8: Total Number of Students Enrolled in Selected Programmes
Total Students in Public & Private Higher Education Institutions in Selected Programs
PhD
Masters
Degree
Others
Total
% Change
Entries
2010
2009
5,663
4,942
24,557
23,922
137,616
132,040
222,699
220,432
390,535
381,336
2.41%
Enrolment
2010
2009
21,522
16,947
63,714
58,252
494,989
470,772
553,909 1,134,134
504,755 1,050,726
7.94%
Graduates
2010
2009
1,268
750
12,832
9,941
93,007
106,291
132,196
133,854
239,303
250,836
-4.60%
Source: Ministry of Higher Education
Annual report 2011
75
Property Market Overview
With the continuing rise in the overall number of total enrolments at HEIs, it is believed that the number of enrolments shall
continue to improve in the ensuing year. Whether the increase is a result of longer program timeframe or the productive outcome
of other factors, higher number of enrolments is a favourable sign in terms of space requirement for educational institutions.
Table 9: Distribution of Foreign Students’ Origin in IPTS, End 2010
Ranking
IPTS
1
2
3
4
5
6
7
8
9
10
China
Iran
Indonesia
Nigeria
Yemen
Libyan Arab Jamahiriya
Botswana
Sudan
Saudi Arabia
Bangladesh
Others
TOTAL
Enrolment
2009
Percentage
Ranking
7,078
6,930
6,099
5,398
3,382
2,831
1,938
1,867
1,675
1,521
19,575
12.1%
11.9%
10.5%
9.3%
5.8%
4.9%
3.3%
3.2%
2.9%
2.6%
33.6%
1
2
3
4
5
6
7
8
9
10
58,294
100.00%
IPTS
China
Iran
Indonesia
Nigeria
Yemen
Sudan
Botswana
Saudi Arabia
Bangladesh
Korea
Others
TOTAL
Enrolment
2010
Percentage
8,046
7,009
6,119
5,080
4,057
2,241
1,909
1,584
1,503
1,426
23,731
12.8%
11.2%
9.8%
8.1%
6.5%
3.6%
3.0%
2.5%
2.4%
2.3%
37.8%
62,705
100.00%
Source: Ministry of Higher Education
As per the previous years, most of the foreign students enrolled in HEIs come from China and Iran. Collectively, they accounted
for almost a quarter of the total foreign students and one may want to continue focusing on new enrolments of foreign students
from these countries. It is interesting to note that Korea entered the Top 10 List of Foreign Students Origin in 2010.
7.
Outlook for 2012
Malaysia’s growth in 2012 will be driven mostly by domestic sector as the domestic demand is expected to remain strong due
to supportive government policies such as the 10th Malaysia Plan, Economic Transformation Program (ETP) and the 2012
budget. Currently, the domestic demand has increased by 9.0% (estimated) from 5.6% in the previous quarter contributed by
the expansion in private sector spending and higher public sector expenditure. Overall, private investment will continue to fuel
Malaysia’s growth in 2012 where it has reached about RM75 billion during the first three quarters in 2011.
As proven over the years, real estate in prime and established areas should command a rather consistent demand – be it for
its capital values as well as rental values. The residential market will continue to see renewed interest in established suburban
locations such as in state capitals and major economic cities. The condominium market, especially in the high-end tier, may
continue to consolidate but to a smaller extent as the market had gone through a correction phase in 2008/2009.
The office market segment will see the arrival of a new class of Grade-A buildings in Klang Valley. With more than 7.6 million
square feet of office space entering the market in 2012, expected rental rates will be under pressure especially in the ultraprime buildings category. There is a huge opportunity for older buildings to be repositioned just behind these ultra-prime
buildings and priced strategically as value-for-space in the coming couple of years. It is expected that refurbishment exercises
will be active in the next 24 months to capitalize on this opportunity. By 2015, average rental rates of prime office buildings
in Kuala Lumpur is expected to record around RM7.00 psf compared to current rates averaging at RM6.00 psf.
Similarly, a total of more than 7.5 million sq.ft of retail space is expected to enter the market by year 2015. As competition
gets stiffer, occupancy and rental rate of newer shopping mall will be soften. We reckon competition will be stiffer as
buyers/shoppers have more option to choose from and eventually dilute the profit margin of retailers. A branded and popular
anchor tenant will significantly attract high patronage volume coupled with a good tenant mix that encourages the interchange
of customers and retail activities. Suburban malls will be more popular if they can offer better variety of goods and services,
synergized with a rebranding exercise.
Branding has become increasingly significant in the hospitality segment as people do buy brands. It will become even more
important for individual hotel units to develop methods to ensure they can be recognized to establish market penetration.
Standing out among the competitors or within an individual community should be a continuing priority for all hotel operators
and owners.
76
Ama nahR a y a R EIT
Statutory
Financial
Statements
78
Statement By Directors Of The Manager
79
Statutory Declaration
80
Report Of The Trustee To The Unitholders
81
Independent Auditors’ Report To The Unitholders
83
Statement Of Financial Position
84
Statement Of Comprehensive Income
86
Statement Of Changes In Net Asset Value
87
Statement Of Cash Flows
88
Notes To The Financial Statements
127
Supplementary Information on Realised
and Unrealised Profits or Losses
Statement by Directors of the Manager
In the opinion of the Directors of AmanahRaya REIT Managers Sdn. Bhd. (“the Manager”), the financial statements set out on pages
83 to 127 have been drawn up in accordance with the provisions of Novation Agreement dated 27 August 2009 in respect of the
Trust Deed dated 10 October 2006 (as varied by Supplemental Trust Deed dated 4 January 2007) and the Second Supplemental
Trust Deed dated 27 August 2009, the Securities Commission’s Guidelines on Real Estate Investment Trusts, applicable securities
laws and applicable approved Financial Reporting Standards in Malaysia so as to give a true and fair view of the financial position
of AmanahRaya Real Estate Investment Trust (“AmanahRaya REIT” or “Trust”) as at 31 December 2011 and of the financial
performance and cash flows of the Trust for the financial year then ended.
Signed on behalf of the Manager,
AmanahRaya-REIT Managers Sdn. Bhd.,
In accordance with a resolution of the Directors of the Manager
Tan Sri Dato’ Ahmad Fuzi bin Abdul Razak
Director
Kuala Lumpur
15 February 2012
78
AmanahRaya REIT
Statutory Declaration
I, ADENAN BIN MD YUSOF, being the officer of the Manager, AmanahRaya-REIT Managers Sdn. Bhd., primarily responsible for the
financial management of AmanahRaya Real Estate Investment Trust, do solemnly and sincerely declare that the financial statements
set out on pages 83 to 127 are, to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously
believing the same to be true and by virtue of the provisions of the Statutory Declarations Act 1960.
Subscribed and solemnly declared by the
abovenamed at Kuala Lumpur in the Federal Territory
on 15 February 2012
Adenan bin Md Yusof
Before me,
Commissioner for Oaths
Annual report 2011
79
Report of the Trustee to the Unitholders of
AmanahRaya Real Estate Investment Trust
We, CIMB Trustee Berhad, have acted as Trustee of AmanahRaya Real Estate Investment Trust (“AmanahRaya REIT” or “Trust”) for
the financial year ended 31 December 2011. In our opinion and to the best of our knowledge:
(a)
AmanahRaya-REIT Managers Sdn. Bhd. (“the Manager”) has managed AmanahRaya REIT in accordance with the limitations
imposed on the investment powers of the Manager and the Trustee under the Novation Agreement dated 27 August 2009 in
respect of the Trust Deed dated 10 October 2006 (as varied by the Supplemental Trust Deed dated 4 January 2007) and the
Second Supplemental Trust Deed dated 27 August 2009, the Securities Commission’s Guidelines on Real Estate Investment
Trusts, the Capital Markets and Services Act 2007 and other applicable laws during the financial year then ended;
(b) The procedures and processes employed by the Manager to value the units of AmanahRaya REIT are adequate and that such
valuation is carried out in accordance with the Trust Deed and any other regulatory requirements; and
(c)
The creation of units is carried out in accordance with the Trust Deed and any other regulatory requirements.
We also confirm that the income distributions declared and paid during the financial year ended 31 December 2011 are in line with
and are reflective of the objectives of the AmanahRaya REIT. Four distributions have been declared for the financial year ended
31 December 2011 as follow:
1)
First interim income distribution of 1.8120 sen per unit paid on 19 July 2011;
2)
Second interim income distribution of 1.8071 sen per unit paid on 7 October 2011;
3)
Third interim income distribution of 1.7200 sen per unit paid on 19 January 2012;
4)
Proposed fourth and final income distribution of 1.8822 sen per unit payable on 21 March 2012.
For and on behalf of the Trustee,
CIMB TRUSTEE BERHAD (Company No. 167913 M)
KHOO LENG KEE
Chief Operating Officer
Kuala Lumpur, Malaysia
80
AmanahRaya REIT
Independent Auditors’ Report To The Unitholders
Of AmanahRaya Real Estate Investment Trust
(Established In Malaysia)
Report on the Financial Statements
We have audited the financial statements of AmanahRaya Real Estate Investment Trust (“AmanahRaya REIT” or “Trust”), which
comprise the statement of financial position as at 31 December 2011 of AmanahRaya REIT, and the statement of comprehensive
income, statement of changes in net asset value and statement of cash flows of AmanahRaya REIT for the financial year then ended,
and a summary of significant accounting policies and other explanatory information, as set out on pages 83 to 127.
Directors of AmanahRaya-REIT Managers Sdn. Bhd.’s Responsibility for the Financial Statements
The Directors of AmanahRaya-REIT Managers Sdn. Bhd. (“the Manager”) of AmanahRaya REIT are responsible for the preparation
of financial statements that give a true and fair view in accordance with the provisions of the Novation Agreement dated 27 August
2009 in respect of the Trust Deed dated 10 October 2006 (as varied by the Supplemental Trust Deed dated 4 January 2007) and
the Second Supplemental Trust Deed dated 27 August 2009, the Securities Commission’s Guidelines on Real Estate Investment
Trusts, applicable securities laws and applicable approved Financial Reporting Standards in Malaysia, and for such internal control
as the Directors of the Manager determine are necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an independent opinion on these financial statements based on our audit. We conducted our audit in
accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on our judgement, including the assessment of risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to AmanahRaya
REIT’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of AmanahRaya REIT’s internal control. An
audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by the Directors of the Manager, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Annual report 2011
81
Independent Auditors’ Report To The Unitholders Of
AmanahRaya Real Estate Investment Trust
(Established In Malaysia)
Opinion
In our opinion, the financial statements have been properly drawn up in accordance with the provisions of the Novation Agreement
dated 27 August 2009 in respect of the Trust Deed dated 10 October 2006 (as varied by the Supplemental Trust Deed dated 4
January 2007) and the Second Supplemental Trust Deed dated 27 August 2009, the Securities Commission’s Guidelines on Real
Estate Investment Trusts, applicable securities laws and applicable approved Financial Reporting Standards in Malaysia so as to give
a true and fair view of the financial position of the AmanahRaya REIT as at 31 December 2011 and of its financial performance,
the changes in net asset value and the cash flows of AmanahRaya REIT for the financial year then ended.
Other Reporting Responsibilities
The supplementary information set out in Note 33 to the financial statements is disclosed to meet the requirement of Bursa Malaysia
Securities Berhad and is not part of the financial statements. The Directors are responsible for the preparation of the supplementary
information in accordance with Guidance on Special Matter No.1, Determination of Realised and Unrealised Profits or Losses in the
Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, as issued by the Malaysian Institute of
Accountants (“MIA Guidance”) and the directive of Bursa Malaysia Securities Berhad. In our opinion, the supplementary information
is prepared, in all material respects, in accordance with the MIA Guidance and the directive of Bursa Malaysia Securities Berhad.
Other Matters
This report is made solely to the unitholders of AmanahRaya REIT, as a body, in accordance with the Securities Commission’s
Guidelines on Real Estate Investment Trusts and for no other purpose. We do not assume responsibility to any other person for the
content of this report.
BDO
AF : 0206
Chartered Accountants
Kuala Lumpur
15 February 2012
82
AmanahRaya REIT
Rejeesh A/L Balasubramaniam
2895/08/12 (J)
Chartered Accountant
Statement of Financial Position
As at 31 December 2011
Note
2011
RM
2010
RM
5
944,760,000
913,617,000
6
7
8
3,432,445
62,544,331
29,732,200
3,614
3,091,644
60,668,261
20,476,774
339,439
95,712,590
84,576,118
1,040,472,590
998,193,118
363,260,671
57,282,246
362,965,282
56,891,786
420,542,917
419,857,068
8,433,920
9,859,728
10,170,989
–
18,293,648
10,170,989
TOTAL LIABILITIES
438,836,565
430,028,057
NET ASSET VALUE (“NAV”)
601,636,025
568,165,061
519,685,915
81,950,110
519,685,915
48,479,146
TOTAL UNITHOLDERS’ FUND
601,636,025
568,165,061
NUMBER OF UNITS IN CIRCULATION (UNITS)
573,219,858
573,219,858
1.1197
1.0475
1.0712
1.0026
ASSETS
Non-current assets
Investment properties
Current assets
Trade and other receivables
Security deposits in trust accounts and financial institution
Deposits placed with licensed financial institutions
Cash and bank balances
TOTAL ASSETS
LIABILITIES
Non-current liabilities
Borrowings
Trade and other payables
9
10
Current liabilities
Trade and other payables
Provision for income distribution
10
11
FINANCED BY:
UNITHOLDERS’ FUNDS
Unitholders’ capital
Distributable income
NAV PER UNIT (RM)
– before income distribution
– after income distribution
12
The accompanying notes form an integral part of the financial statements.
Annual report 2011
83
Statement of Comprehensive Income
For the financial year ended 31 December 2011
Note
Gross revenue
Property operating expenses
13
14
2011
RM
2010
RM
65,305,820
(1,981,268)
59,509,971
(1,785,571)
Net rental income
63,324,552
57,724,400
Interest income
Other income
Changes in fair value of investment properties
833,684
1,000
31,143,000
580,889
2,027,060
–
95,302,236
60,332,349
(3,379,488)
(281,624)
(85,000)
(7,000)
(243,760)
(320,118)
(361,335)
(16,951,592)
(2,496,731)
(240,463)
(75,000)
(7,200)
(294,751)
(15,737)
(675,428)
(15,126,240)
(21,629,917)
(18,931,550)
73,672,319
–
41,400,799
–
Net income/Total comprehensive income for the financial year
73,672,319
41,400,799
Net income for the financial year is made up as follows:
Realised
Unrealised
42,529,319
31,143,000
41,400,799
–
73,672,319
41,400,799
13.4419
12.8524
8.3723
7.8962
5
Total income
Trust expenses
Manager’s fee
Trustee’s fee
Auditors’ remuneration
Tax agent’s fee
Administrative expenses
Valuation fees
Corporate exercise expenses
Finance costs
15
16
21
17
Total trust expenses
Income before taxation
Income tax expense
Earnings per unit (sen)
– before manager’s fee
– after manager’s fee
84
AmanahRaya REIT
18
19
2011
RM
2010
RM
10,386,727
8,025,588
10,358,639
11,462,667
9,859,366
10,245,715
10,789,144
9,597,106
41,393,876
39,331,076
1.8120
1.8071
1.7200
1.8822
1.8597
1.9997
1.7874
1.6741
7.2213
7.3209
Note
Net income distribution*
– First interim income distribution of 1.8120 sen per unit paid on 19 July 2011
(2010: 1.8597 sen per unit paid on 27 May 2010)
– Second interim income distribution of 1.8071 sen per unit paid on 7 October 2011
(2010: 1.9997 sen per unit paid on 26 August 2010)
– Third interim income distribution of 1.7200 sen per unit paid on 19 January 2012
(2010: 1.7874 sen per unit paid on 21 December 2010)
– Proposed final income distribution of 1.8822 sen per unit payable on 21 March 2012
(2010: 1.6741 sen per unit paid on 6 April 2011)
Income distribution per unit (sen)*
– First interim income distribution
– Second interim income distribution
– Third interim income distribution
– Proposed final income distribution
20
20
* Withholding tax will be deducted for distributions made for the following categories of unitholders:
Withholding tax rate
2011
2010
Resident corporate
Resident non-corporate
Non-resident individual
Non-resident corporate
Non-resident institutional
Nil^
10%
10%
25%
10%
Nil^
10%
10%
25%
10%
Annual report 2011
85
^ No withholding tax; tax at prevailing tax rate
The accompanying notes form an integral part of the financial statements.
Statement of Changes in Net Asset Value
For The Financial Year Ended 31 December 2011
Distributable income
Unitholders’
capital
RM
Realised
RM
Unrealised
RM
Total unitholders’
fund
RM
519,685,915
11,667,146
36,812,000
568,165,061
Total comprehensive income for the financial year
–
42,529,319
31,143,000
73,672,319
Increase in net assets resulting from operations
–
42,529,319
31,143,000
73,672,319
–
(30,604,732)
(9,596,623)
–
–
(30,604,732)
(9,596,623)
–
(40,201,355)
–
(40,201,355)
Note
At 1 January 2011 (restated)
Operations for the financial year
ended 31 December 2011
Unitholders’ transactions
Distributions to unitholders:
– 2011 interim
– 2010 final
11
Increase in net assets resulting
from unitholders’ transactions
At 31 December 2011
519,685,915
13,995,110
67,955,000
601,636,025
403,291,776
16,123,132
36,812,000
456,226,908
Total comprehensive income for the financial year
–
41,400,799
–
41,400,799
Increase in net assets resulting from operations
–
41,400,799
–
41,400,799
119,000,000
–
–
119,000,000
(29,733,970)
(16,122,815)
–
–
–
–
(29,733,970)
(16,122,815)
(2,605,861)
At 1 January 2010 (restated)
32(a)
Operations for the financial year
ended 31 December 2010
Unitholders’ transactions
Proceeds from issuance of units
Distributions to unitholders:
– 2010 interim
– 2009 final
Unit issuance expenses
12
11
32(a)
12
–
–
(2,605,861)
Increase in net assets resulting
from unitholders’ transactions
116,394,139
(45,856,785)
–
70,537,354
At 31 December 2010 (restated)
519,685,915
11,667,146
36,812,000
568,165,061
The accompanying notes form an integral part of the financial statements.
86
AmanahRaya REIT
Statement of Cash Flows
For The Financial Year Ended 31 December 2011
2011
RM
2010
RM
73,672,319
41,400,799
16,951,592
(833,684)
(31,143,000)
15,126,240
(580,889)
–
58,647,227
55,946,150
(340,801)
(1,876,070)
(1,346,609)
(1,583,512)
(24,623,586)
28,288,783
55,083,747
58,027,835
Note
CASH FLOWS FROM OPERATING ACTIVITIES
Income before taxation
Adjustments for:
Finance costs
Interest income
Changes in fair value of investment properties
17
Operating income before working capital changes
Increase in trade and other receivables
Increase in security deposits in trust accounts and financial institution
(Decrease)/Increase in trade and other payables
Net cash from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
Purchase of investment properties
5
Net cash generated from/(used in) investing activities
833,684
–
580,889
(227,285,000)
833,684
(226,704,111)
CASH FLOWS FROM FINANCING ACTIVITIES
Distributions paid to unitholders
– In respect of current financial year
– In respect of previous financial year
Repayments of term loans
Proceeds from term loans
Proceeds from issuance of units
Unit issuances expenses
Interest paid
Net cash (used in)/generated from financing activities
Net cash increase/(decrease) in cash and cash equivalents
11
12
12
17
(20,745,366) (29,733,970)
(9,596,261) (16,122,815)
– (168,000,000)
–
277,753,056
–
119,000,000
–
(2,605,861)
(16,656,203) (14,914,014)
(46,997,830)
165,376,396
8,919,601
(3,299,880)
Cash and cash equivalents at beginning of financial year
20,816,213
24,116,093
Cash and cash equivalents at end of financial year
29,735,814
20,816,213
3,614
29,732,200
339,439
20,476,774
29,735,814
20,816,213
CASH AND CASH EQUIVALENTS
Cash and cash equivalents included in the statement of cash flows comprise
the following in the statement of financial position amounts:
Cash and bank balances
Deposits placed with licensed financial institutions
The accompanying notes form an integral part of the financial statements.
Annual report 2011
87
Notes to the Financial Statements
31 December 2011
1.
GENERAL INFORMATION
AmanahRaya Real Estate Investment Trust (“AmanahRaya REIT” or “Trust”) is a Malaysia-domiciled real estate investment trust
constituted pursuant to the Novation Agreement dated 27 August 2009 with respect to the Trust Deed dated 10 October 2006
(varied by the Supplemental Trust Deed dated 4 January 2007) and the Second Supplemental Trust Deed dated 27 August
2009 (collectively referred to “the Deed”) between AmanahRaya-REIT Managers Sdn. Bhd. (“the Manager”) and CIMB Trustee
Berhad (“the Trustee”). The Deed is regulated by the Securities Commission’s Guidelines on Real Estate Investment Trusts, the
Listing Requirements of Bursa Malaysia Securities Berhad, the Rules of the Depository and taxation laws and rulings.
AmanahRaya REIT will continue its operations until such time as determined by the Trustee and the Manager as provided
under the provision of Clause 26 of the Trust Deed dated 10 October 2006. AmanahRaya REIT is listed on the Main Market
of Bursa Malaysia Securities Berhad.
The registered office of the Manager of AmanahRaya REIT is located at Level 11, Wisma AmanahRaya, No. 2, Jalan Ampang,
50508 Kuala Lumpur.
The principal place of business of the Manager of AmanahRaya REIT is located at Level 8, Wisma TAS, No. 21 Jalan Melaka,
50100 Kuala Lumpur.
AmanahRaya REIT is principally engaged in the investment of a diversified portfolio of properties with the objectives of achieving
an attractive level of return from rental income and for long term capital growth. There has been no significant change in the
nature of this activity during the financial year.
The financial statements are presented in Ringgit Malaysia (“RM”), which is the Trust’s functional currency.
The financial statements were authorised for issuance of information to the unitholders in accordance with a resolution by the
Board of Directors of the Manager, AmanahRaya-REIT Managers Sdn. Bhd., on 15 February 2012.
2.
BASIS OF PREPARATION
2.1 Statement of compliance
The financial statements of AmanahRaya REIT have been prepared in accordance with the provisions of the Novation
Agreement dated 27 August 2009 with respect to the Trust Deed dated 10 October 2006 (varied by the Supplemental
Trust Deed dated 4 January 2007) and the Second Supplemental Trust Deed dated 27 August 2009, the Securities
Commission’s Guidelines on Real Estate Investment Trusts, applicable securities laws and applicable approved Financial
Reporting Standards (“FRSs”) in Malaysia.
2.2 Basis of accounting
The financial statements of AmanahRaya REIT have been prepared under the historical cost convention except as otherwise
stated in the financial statements.
The preparation of financial statements requires the Directors of the Manager to make estimates and assumptions that
affect the reported amounts of assets, liabilities, revenue and expenses and disclosure of contingent assets and contingent
liabilities. In addition, the Directors of the Manager are also required to exercise their judgement in the process of applying
the accounting policies. The areas involving such judgements, estimates and assumptions are disclosed in Note 2.3 and
Note 2.4 to the financial statements. Although these estimates and assumptions are based on the Manager’s best
knowledge of current events and actions, actual results could differ from those estimates.
The estimates and underlying assumptions are assessed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and in any future periods affected.
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AmanahRaya REIT
2.
BASIS OF PREPARATION (continued)
2.3 Judgement made in applying the accounting policies
There are no judgements made by management in the process of applying the Trust’s accounting policies that have the
most significant effect on the amounts recognised in the financial statements apart from those involving estimates, which
are dealt with below.
2.4 Key sources of estimation uncertainty
The following are key assumptions concerning the future and other key sources of estimation uncertainty at the end of the
reporting periods, that have significant risks of causing material adjustments to the carrying amounts of assets and
liabilities within the next financial year.
(i)
Fair values of investment properties
The fair values of investment properties are determined by independent firms of professional valuers. Significant
judgements are involved in determining the fair values by using the various methods of valuation as disclosed in
Note 5 to the financial statements.
(ii)
Fair values of borrowings
The fair values of borrowings are estimated by discounting future contractual cash flows at the current market interest
rates available to the Trust for similar financial instruments. It is assumed that the effective interest rates approximate
the current market interest rates available to the Trust based on its size and its business risk.
(iii) Deferred tax liabilities
No deferred tax liabilities arose from the fair value gains to the investment properties as it is the intention of the Trust
to hold the real estate properties as long term investment. In the event that the Trust decides to dispose of any real
estate properties, any gain on such disposal in which the holding period is within five (5) years from the date of
acquisition, it will be subject to real property gains tax at the rate of 5%.
(iv) Impairment of receivables
The Trust makes impairment of receivables based on an assessment of the recoverability of receivables. Impairment
is applied to receivables where events or changes in circumstances indicate that the carrying amounts may not be
recoverable. The management specifically analyses historical bad debts, customer creditworthiness, current economic
trends and changes in customer payment terms when making a judgement to evaluate the adequacy of the impairment
of receivables. Where expectations differ from the original estimates, the differences will impact the carrying amount
of receivables.
3.
ADOPTION OF NEW FRSs AND AMENDMENT TO FRSs
3.1 New FRSs and amendments to FRSs adopted during the current financial year
(a)
Amendments to FRS 132 are mandatory for annual periods beginning on or after 1 March 2010 in respect of the
classification of rights issues respectively.
These Amendments clarify that rights, options or warrants to acquire a fixed number of the Trust’s own equity
instruments for a fixed amount of any currency shall be classified as equity instruments rather than financial liabilities
if the Trust offers the rights, options or warrants pro rata to all of its own existing owners of the same class of its own
non-derivative equity instruments.
There is no impact upon adoption of these Amendments during the financial year.
Annual report 2011
89
Notes to the Financial Statements
31 December 2011
3.
ADOPTION OF NEW FRSs AND AMENDMENT TO FRSs (continued)
3.1 New FRSs and amendments to FRSs adopted during the current financial year (continued)
(b) IC Interpretation 12 Service Concession Arrangements is mandatory for annual periods beginning on or after 1 July 2010.
This Interpretation applies to operators for public-to-private service concession arrangements, whereby infrastructure
within the scope of this Interpretation shall not be recognised as property, plant and equipment of the operator. The
operator shall recognise and measure revenue in accordance with FRS 111 Construction Contracts and FRS 118 for
the services performed. The operator shall also account for revenue and costs relating to construction or upgrade
services in accordance with FRS 111.
Consideration received or receivable by the operator for the provision of construction or upgrade services shall be
recognised at its fair value. If the consideration consists of an unconditional contractual right to receive cash or
another financial asset from the grantor, it shall be classified as a financial asset. Conversely, if the consideration
consists of a right to charge users of the public service, it shall be classified as an intangible asset.
There is no impact upon adoption of this Interpretation during the financial year.
(c)
FRS 1 First-time Adoption of Financial Reporting Standards is mandatory for annual periods beginning on or after
1 July 2010.
This Standard supersedes the existing FRS 1 and shall be applied when the Trust adopts FRSs for the first time via
the explicit and unreserved statement of compliance with FRSs. An opening FRS statement of financial position
shall be prepared and presented at the date of transition to FRS, whereby:
(i)
(ii)
(iii)
(iv)
All assets and liabilities shall be recognised in accordance with FRSs;
Items of assets and liabilities shall not be recognised if FRSs do not permit such recognition;
Items recognised in accordance with previous GAAP shall be reclassified in accordance with FRSs; and
All recognised assets and liabilities shall be measured in accordance with FRSs.
All resulting adjustments shall therefore be recognised directly in retained earnings at the date of transition to FRSs.
There is no impact upon adoption of this Standard during the financial year.
(d) FRS 3 Business Combinations is mandatory for annual periods beginning on or after 1 July 2010. There is no impact
upon adoption of this Standard during the financial year.
(e)
FRS 127 Consolidated and Separate Financial Statements is mandatory for annual periods beginning on or after
1 July 2010. There is no impact upon adoption of this Standard during the financial year.
(f)
Amendments to FRSs are mandatory for annual periods beginning on or after 1 July 2010.
Amendments to FRS 2 Share-based Payments clarifies that transactions in which the Trust acquired goods as part
of the net assets acquired in a business combination or contribution of a business on the formation of a joint venture
are excluded from the scope of this Standard. There is no impact upon adoption of these Amendments during the
financial year.
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AmanahRaya REIT
3.
ADOPTION OF NEW FRSs AND AMENDMENT TO FRSs (continued)
3.1 New FRSs and amendments to FRSs adopted during the current financial year (continued)
(f)
Amendments to FRSs are mandatory for annual periods beginning on or after 1 July 2010.
Amendments to FRS 5 clarifies that non-current asset classified as held for distribution to owners acting in their
capacity as owners are within the scope of this Standard. The amendment also clarifies that in determining whether
a sale is highly probable, the probability of shareholders’ approval, if required in the jurisdiction, shall be considered.
In a sale plan involving loss of control of a subsidiary, all assets and liabilities of that subsidiary shall be classified
as held for sale, regardless of whether the Trust retains a non-controlling interest in its former subsidiary after the
sale. Discontinued operations information shall also be presented. Non-current asset classified as held for distribution
to owners shall be measured at the lower of its carrying amount and fair value less costs to distribute. There is no
impact upon adoption of these Amendments during the financial year.
Amendments to FRS 138 clarifies that the intention of separating an intangible asset is irrelevant in determining the
identifiability of the intangible asset. In a separate acquisition and acquisition as part of a business combination,
the price paid by the Trust reflects the expectations of the Trust of an inflow of economic benefits, even if there is
uncertainty about the timing or the amount of the inflow. Accordingly, the probability criterion is always considered
to be satisfied for separately acquired intangible assets. The useful life of a reacquired right recognised as an
intangible asset in a business combination shall be the remaining contractual period of the contract in which the right
was granted, and do not include renewal periods. In the case of a reacquired right in a business combination, if the
right is subsequently reissued to a third party, the related carrying amount shall be used in determining the gain or
loss on reissue. There is no impact upon adoption of these Amendments during the financial year.
Amendments to IC Interpretation 9 clarifies that embedded derivatives in contracts acquired in a business
combination, combination of entities or business under common controls, or the formation of a joint venture are
excluded from this Interpretation. There is no impact upon adoption of these Amendments during the financial year.
(g)
IC Interpretation 16 Hedges of a Net Investment in a Foreign Operation is mandatory for annual periods beginning
on or after 1 July 2010.
This Interpretation applies to hedges undertaken on foreign currency risk arising from net investments in foreign
operations and the Trust wishes to qualify for hedge accounting in accordance with FRS 139.
Hedge accounting is applicable only to the foreign exchange differences arising between the functional currency of
the foreign operation and the functional currency of any parent (immediate, intermediate or ultimate parent) of that
foreign operation. An exposure to foreign currency risk arising from a net investment in a foreign operation may
qualify for hedge accounting only once in the consolidated financial statements.
Hedging instruments designated in the hedge of a net investment in a foreign operation may be held by any companies
within a group, as long as the designation, documentation and effectiveness requirements of FRS 139 are met.
There is no impact upon adoption of this Interpretation during the financial year.
Annual report 2011
91
Notes to the Financial Statements
31 December 2011
3.
ADOPTION OF NEW FRSs AND AMENDMENT TO FRSs (continued)
3.1 New FRSs and amendments to FRSs adopted during the current financial year (continued)
(h) IC Interpretation 17 Distributions of Non-cash Assets to Owners is mandatory for annual periods beginning on or after
1 July 2010.
This Interpretation applies to non-reciprocal distributions of non-cash assets by the Trust to its owners in their capacity
as owners, as well as distributions that give owners a choice of receiving either non-cash assets or a cash alternative. This
Interpretation also applies to distributions in which all owners of the same class of equity instruments are treated equally.
The liability to pay a dividend shall be recognised when the dividend is appropriately authorised and is no longer at
the discretion of the Trust. The liability shall be measured at the fair value of the assets to be distributed. If the Trust
gives its owners a choice of receiving either a non-cash asset or a cash alternative, the dividend payable shall be
estimated by considering the fair value of both alternatives and the associated probability of the owners’ selection.
At the end of each reporting period, the carrying amount of the dividend payable shall be remeasured and any changes
shall be recognised in equity. At the settlement date, any difference between the carrying amounts of the assets
distributed and the carrying amount of the dividend payable shall be recognised in profit or loss.
There is no impact upon adoption of this Interpretation during the financial year.
(i)
Amendment to FRS 1 Limited Exemption from Comparative FRS 7 Disclosures for First-time Adopters is mandatory
for annual periods beginning on or after 1 January 2011.
This Amendment permits a first-time adopter of FRSs to apply the exemption of not restating comparatives for the
disclosures required in Amendments to FRS 7.
There is no impact upon adoption of this Amendment during the financial year.
(j)
Amendments to FRS 1 Additional Exemptions for First-time Adopters are mandatory for annual periods beginning
on or after 1 January 2011.
These Amendments permits a first-time adopter of FRSs to apply the exemption of not restating the carrying amounts
of oil and gas assets determined under previous GAAP.
There is no impact upon adoption of these Amendments during the financial year.
(k)
Amendments to FRS 7 Improving Disclosures about Financial Instruments are mandatory for annual periods
beginning on or after 1 January 2011.
These Amendments require enhanced disclosures of fair value of financial instruments based on the fair value
hierarchy, including the disclosure of significant transfers between Level 1 and Level 2 of the fair value hierarchy as
well as reconciliations for fair value measurements in Level 3 of the fair value hierarchy.
By virtue of the exemption provided under paragraph 44G of FRS 7, the impact of applying these Amendments on
the financial statements upon first adoption of FRS 7 as required by paragraph 30(b) of FRS 108 are not disclosed.
92
AmanahRaya REIT
3.
ADOPTION OF NEW FRSs AND AMENDMENT TO FRSs (continued)
3.1 New FRSs and amendments to FRSs adopted during the current financial year (continued)
(l)
Amendments to FRS 2 Group Cash-settled Share-based Payment Transactions are mandatory for annual periods
beginning on or after 1 January 2011.
These Amendments clarify the scope and the accounting for group cash-settled share-based payment transactions
in the separate financial statements of the entity receiving the goods or services when that entity has no obligation
to settle the share-based payment transaction.
There is no impact upon adoption of these Amendments during the financial year.
(m) IC Interpretation 4 Determining whether an Arrangement contains a Lease is mandatory for annual periods beginning
on or after 1 January 2011.
This Interpretation requires the determination of whether an arrangement is, or contains, a lease based on an
assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset and whether
the arrangement conveys a right to use the asset. This assessment shall be made at the inception of the arrangement
and subsequently reassessed if certain condition(s) in the Interpretation is met.
There is no impact upon adoption of this Interpretation during the financial year because there are no arrangements
dependent on the use of specific assets in the Trust.
(n) IC Interpretation 18 Transfers of Assets from Customers is mandatory for annual periods beginning on or after
1 January 2011.
This Interpretation applies to agreements in which an entity receives from a customer either an item of property, plant
and equipment that must be used to either connect the customer to a network or to provide the customer with ongoing
access to a supply of goods or services or cash for the acquisition or construction of property, plant and equipment.
The entity receiving the transferred item is required to assess whether the transferred item meets the definition of
an asset set out in the Framework. The credit entry would be accounted for as revenue in accordance with FRS 118.
There is no impact upon adoption of this Interpretation during the financial year because there are no such
arrangement in the Trust.
(o)
Improvements to FRSs (2010) are mandatory for annual periods beginning on or after 1 January 2011.
Amendments to FRS 1 clarifies that FRS 108 does not apply to changes in accounting policies made upon adoption
of FRSs until after the first FRS financial statements have been presented. If changes in accounting policies or
exemptions in this FRS are used, an explanation of such changes together with updated reconciliations shall be
made in each interim financial report. Entities whose operations are subject to rate regulation are permitted the use
of previously revalued amounts as deemed cost. There is no impact upon adoption of these amendments during the
financial year.
Amendments to FRS 7 clarifies that quantitative disclosures of risk concentrations are required if the disclosures
made in other parts of the financial statements are not readily apparent. The disclosure on maximum exposure to
credit risk is not required for financial instruments whose carrying amount best represents the maximum exposure
to credit risk. There is no impact upon adoption of these Amendments during the financial year.
Annual report 2011
93
Notes to the Financial Statements
31 December 2011
3.
ADOPTION OF NEW FRSs AND AMENDMENT TO FRSs (continued)
3.1 New FRSs and amendments to FRSs adopted during the current financial year (continued)
(o)
Improvements to FRSs (2010) are mandatory for annual periods beginning on or after 1 January 2011. (continued)
Amendments to FRS 3 clarifies that for each business combination, the acquirer shall measure at the acquisition date
non-controlling interests that consists of the present ownership interests and entitle holders to a proportionate share
of the entity’s net assets in the event of liquidation. Un-replaced and voluntarily replaced share-based payment
transactions shall be measured using the market-based measurement method in accordance with FRS 2 at the
acquisition date. There is no impact upon adoption of these Amendments during the financial year.
Amendments to FRS 101 clarify that a statement of changes in equity shall be presented as part of a complete set
of financial statements and analysis of other comprehensive income shall also be presented in the statement of
changes in equity. This has been reflected in the statement of changes in net asset value.
Amendments to FRS 121 The Effects of Changes in Foreign Exchange Rates clarify that the accounting treatment
for cumulative foreign exchange differences in other comprehensive income for the disposal or partial disposal of a
foreign operation shall be applied prospectively. There is no impact upon adoption of these Amendments during the
financial year.
Amendments to FRS 128 clarify that the accounting treatment for the cessation of significant influence over an associate
shall be applied prospectively. There is no impact upon adoption of these Amendments during the financial year.
Amendments to FRS 131 clarify that the accounting treatment for the cessation of joint control over an entity shall
be applied prospectively. There is no impact upon adoption of these Amendments during the financial year.
Amendments to FRS 132 clarify that contingent consideration from a business combination that occurred before the
effective date of the revised FRS 3 of 1 July 2010 shall be accounted for prospectively. There is no impact upon
adoption of these Amendments during the financial year.
Amendments to FRS 134 clarify that updated information on significant events and transactions since the end of
the last annual reporting period shall be included in the Trust’s interim financial report. There is no impact upon
adoption of these Amendments during the financial year.
Amendments to FRS 139 clarify that contingent consideration from a business combination that occurred before the
effective date of the revised FRS 3 of 1 July 2010 shall be accounted for prospectively. There is no impact upon
adoption of these Amendments during the financial year.
Amendments to IC Interpretation 13 clarify that the fair value of award credits takes into account, amongst others,
the amount of the discounts or incentives that would otherwise be offered to customers who have not earned award
credits from an initial sale. There is no impact upon adoption of these Amendments during the financial year.
3.2 New Malaysian Financial Reporting Standards (‘MFRS’) that have been issued, but not yet effective and not yet adopted, for
annual periods beginning on or after 1 January 2012.
On 19 November 2011, the Malaysian Accounting Standards Board (‘MASB’) announced the issuance of the new MFRS
framework that is applicable to entities other than private entities.
The Trust is expected to apply the MFRS framework for the financial year ending 31 December 2012.
94
AmanahRaya REIT
3.
ADOPTION OF NEW FRSs AND AMENDMENT TO FRSs (continued)
3.2 New Malaysian Financial Reporting Standards (‘MFRS’) that have been issued, but not yet effective and not yet adopted, for
annual periods beginning on or after 1 January 2012.
This would result in the Trust preparing an opening MFRS statement of financial position as at 1 January 2011 which
adjusts for differences between the classification and measurement bases in the existing FRS framework versus that in
the new MFRS framework. This would also result in a restatement of the annual and quarterly financial performance for
the financial year ending 31 December 2011 in accordance with MFRS which would form the MFRS comparatives for the
quarter ending 31 March 2012 and financial year ending 31 December 2012 respectively.
The MFRSs and IC Interpretations expected to be adopted are as follows:
Effective Date
MFRS 1
MFRS 2
MFRS 3
MFRS 4
MFRS 5
MFRS 6
MFRS 7
MFRS 8
MFRS 9
MFRS 10
MFRS 11
MFRs 12
MFRS 13
MFRS 101
Amendments to
MFRS 101
MFRS 102
MFRS 107
MFRS 108
MFRS 110
MFRS 111
MFRS 112
MFRS 116
MFRS 117
MFRS 118
MFRS 119
MFRS 119
MFRS 120
MFRS 121
MFRS 123
MFRS 124
MFRS 126
MFRS 127
MFRS 127
MFRS 128
MFRS 128
MFRS 129
MFRS 131
MFRS 132
First-time Adoption of Financial Reporting Standards
Share-based Payment
Business Combination
Insurance Contracts
Non-current Assets Held for Sale and Discontinued Operations
Exploration for and Evaluation of Mineral Resources
Financial Instruments: Disclosures
Operating Segments
Financial Instruments
Consolidated Financial Statements
Joint Arrangements
Disclosure of Interests in Other Entities
Fair Value Measurement
Presentation of Financial Statements
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2012
Presentation of Items of Other Comprehensive Income
Inventories
Statement of Cash Flows
Accounting Policies, Changes in Accounting Estimates and Errors
Events After the Reporting Period
Construction Contacts
Income Taxes
Property, Plant and Equipment
Leases
Revenue
Employee Benefits
Employee Benefits (revised)
Accounting for Government Grants and Disclosure of Government Assistance
The Effects of Changes in Foreign Exchange Rates
Borrowing Costs
Related Party Dislcosures
Accounting and Reporting by Retirement Benefit Plans
Consolidated and Separate Financial Statements
Separate Financial Statements
Investments in Associates
Investments in Associates and Joint Ventures
Financial Reporting in Hyperinflationary Economies
Interests in Joint Ventures
Financial Instruments: Presentation
1 July 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2013
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2013
1 January 2012
1 January 2013
1 January 2012
1 January 2012
1 January 2012
Annual report 2011
95
Notes to the Financial Statements
31 December 2011
3.
ADOPTION OF NEW FRSs AND AMENDMENT TO FRSs (continued)
3.2 New Malaysian Financial Reporting Standards (‘MFRS’) that have been issued, but not yet effective and not yet adopted, for
annual periods beginning on or after 1 January 2012. (continued)
Effective Date
MFRS 133
MFRS 134
MFRS 136
MFRS 137
MFRS 138
MFRS 139
MFRS 140
MFRS 141
Improvements to MFRSs
IC Interpretation 1
IC Interpretation 2
IC Interpretation 4
IC Interpretation 5
IC Interpretation 6
IC Interpretation 7
IC
IC
IC
IC
IC
Interpretation
Interpretation
Interpretation
Interpretation
Interpretation
9
10
12
13
14
IC
IC
IC
IC
IC
IC
IC
IC
IC
IC
IC
IC
IC
IC
IC
Interpretation
Interpretation
Interpretation
Interpretation
Interpretation
Interpretation
Interpretation
Interpretation
Interpretation
Interpretation
Interpretation
Interpretation
Interpretation
Interpretation
Interpretation
15
16
17
18
19
20
107
110
112
113
115
125
129
131
132
Earnings Per Share
Interim Financial Reporting
Impairment of Assets
Provisions, Contingent Liabilities and Contingent Assets
Intangible Assets
Financial Instruments: Recognition and Measurement
Investment Property
Agriculture
Changes in Existing Decommissioning, Restoration and Similar Liabilities
Members’ Shares in Co-operative Entities and Similar Instruments
Determining Whether an Arrangement Contains a Lease
Rights to Interests Arising from Decommissioning, Restoration
and Environmental Rehabilitation Funds
Liabilities Arising from Participating in a Specific
Market-Waste Electrical and Electronic Equipment
Applying the Restatement Approach under MFRS 129
Financial Reporting in Hyper inflationary Economies
Reassessment of Embedded Derivatives
Interim Financial Reporting and Impairment
Service Concession Arrangements
Customer Loyalty Programmes
MFRS 119 – The Limit on a Defined Benefit Asset,
Minimum Funding Requirements and their Interaction
Agreements for the Construction of Real Estate
Hedges of a Net Investment in a Foreign Operation
Distributions of Non-cash Assets to Owners
Transfers of Assets from Customers
Extinguishing Financial Liabilities with Equity Instruments
Stripping Costs in the Production Phase of a Surface Mine
Introduction of the Euro
Government Assistance – No Specific Relation to Operating Activities
Consolidation – Special Purpose Entities
Jointly Controlled Entities – Non-Monetary Contributions by Venturers
Operating Leases – Incentives
Income Taxes – Changes in the Tax Status of an Entity or its Shareholders
Evaluating the Substance of Transactions Involving the Legal Form of a Lease
Revenue – Barter Transactions Involving Advertising Services
Intangible Assets – Web Site Costs
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2013
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
1 January 2012
Technical Release 3 Guidance on Disclosures of Transition to IFRSs (‘TR 3’) provides voluntary disclosure requirements
on the potential impact of adoption of MFRSs. However, the Trust is in the process of preparing the opening statement of
financial statements.
96
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3.
ADOPTION OF NEW FRSs AND AMENDMENT TO FRSs (continued)
3.3 New MFRSs that have been issued, but only effective for annual periods beginning on or after 1 July 2012 and 1 January 2013
(a)
Amendments to MFRS 101 Presentation of Items of Other Comprehensive Income are mandatory for annual periods
beginning on or after 1 July 2012.
These Amendments requires the Trust to group items presented in other comprehensive income on the basis of
whether they are potentially reclassifiable to profit or loss subsequently (reclassification adjustments) or otherwise.
It does not change the option to present items of other comprehensive income either before tax or net of tax. However,
if the items are presented before tax, then the tax related to each of the two groups of other comprehensive income
items shall be shown separately.
The Trust is in the process of assessing the impact of implementing this Standard since the effects would only be
observable for the financial year ending 31 December 2013.
(b) MFRS 9 Financial Instruments is mandatory for annual periods beginning on or after 1 January 2013.
This Standard addresses the classification and measurement of financial assets and financial liabilities. All financial
assets shall be classified on the basis of the Trust’s business model for managing the financial assets and the
contractual cash flow characteristics of the financial asset. Financial assets are initially measured at fair value plus,
in the case of a financial asset not at fair value through profit or loss, particular transaction costs. Financial assets
are subsequently measured at amortised cost or fair value. Financial liabilities are subsequently measured at
amortised cost or fair value. However, changes due to own credit risk in relation to the fair value option for financial
liabilities shall be recognised in other comprehensive income.
The Trust is in the process of assessing the impact of implementing this Standard since the effects would only be
observable for the financial year ending 31 December 2013.
(c)
MFRS 10 Consolidated Financial Statements is mandatory for annual periods beginning on or after 1 January 2013.
This Standard defines the principle of control and establishes control as the basis for determining which entities are
consolidated in the consolidated financial statements. An investor controls an investee when it is exposed, or has
rights, to variable returns from its involvement with the investee and has the ability to affect those returns through
its power over the investee. The investor is required to reassess whether it controls an investee if facts and
circumstances indicate that there are changes to one or more of the three elements of control.
The Trust does not expect any impact on the financial statements arising from the adoption of this Standard.
(d) MFRS 11 Joint Arrangements is mandatory for annual periods beginning on or after 1 January 2013.
This Standard requires a party to a joint arrangement to determine the type of joint arrangement in which it is involved
by assessing its rights and obligations arising from the arrangement. A joint arrangement is an arrangement of which
two or more parties have joint control. Joint arrangements are classified into two types; joint operations and joint
ventures. A joint operation is a joint arrangement whereby joint operators have rights to the assets, and obligations
for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the joint venturers have
rights to the net assets of the arrangements. A joint operator recognises and measures the assets and liabilities in
relation to its interest in the arrangement in accordance with applicable relevant MFRS whereas a joint venture
recognises the investment using the equity method of accounting.
The Trust does not expect any impact on the financial statements arising from the adoption of this Standard.
Annual report 2011
97
Notes to the Financial Statements
31 December 2011
3.
ADOPTION OF NEW FRSs AND AMENDMENT TO FRSs (continued)
3.3 New MFRSs that have been issued, but only effective for annual periods beginning on or after 1 July 2012 and 1 January 2013
(continued)
(e)
MFRS 12 Disclosure of Interests in Other Entities is mandatory for annual periods beginning on or after 1 January 2013.
This Standard establishes disclosure objectives and requirements that enable users of financial statements to evaluate
the nature of, and risks associated with, the Trust’s interests in other entities, and the effects of those interests on
its financial position, financial performance and cash flows. If the minimum disclosures required in this Standard
are not sufficient to meet the disclosure objectives, the Trust is expected to disclose whatever additional information
that is necessary to meet that objective.
The Trust does not expect any impact on the financial statements arising from the adoption of this Standard.
(f)
MFRS 13 Fair Value Measurements is mandatory for annual periods beginning on or after 1 January 2013.
This Standard applies to FRS that requires or permits fair value measurements or disclosures about fair value
measurements. It explains how to measure fair value for financial reporting and does not require fair value
measurements in addition to those already required or permitted by other MFRS. Fair value is defined as the price
that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date (i.e. an exit price). The definition of fair value is a market-based measurement
and not an entity-specific measurement whereby assumptions made by market participants would be used when
pricing the asset or liability under current market conditions. Consequently, the Trust’s intention to hold an asset or
to settle or fulfil a liability is not relevant when measuring fair value.
The Trust is in the process of assessing the impact of implementing this Standard since the effects would only be
observable for the financial year ending 31 December 2013.
(g)
MFRS 127 Separate Financial Statements (revised) is mandatory for annual periods beginning on or after 1 January 2013.
This revised Standard contains accounting requirements for investments in subsidiaries, joint ventures and associates
when separate financial statements are prepared. An entity is required to account for those investments either at cost
or in accordance with MFRS 9 in the separate financial statements.
The Trust does not expect any impact on the financial statements arising from the adoption of this Standard.
(h) MFRS 128 Investments in Associates and Joint Ventures (revised) is mandatory for annual periods beginning on or
after 1 January 2013.
This revised Standard defines the equity method of accounting whereby the investment in an associate or joint
venture is initially measured at cost and adjusted thereafter for the post-acquisition change in the investor’s share
of net assets of the investee. The profit or loss of the investor includes its share of the profit or loss of the investee
and the other comprehensive income of the investor includes its share of other comprehensive income of the investee.
The Trust does not expect any impact on the financial statements arising from the adoption of this Standard.
98
AmanahRaya REIT
3.
ADOPTION OF NEW FRSs AND AMENDMENT TO FRSs (continued)
3.3 New MFRSs that have been issued, but only effective for annual periods beginning on or after 1 July 2012 and 1 January 2013
(continued)
(i)
MFRS 119 Employee Benefits (revised) is mandatory for annual periods beginning on or after 1 January 2013.
This revised Standard requires the Trust to recognise all changes in the defined benefit obligations and in the fair
value of related plan assets when those changes occur. The Trust is also required to split the changes in the net
defined benefit liability or asset into the following three components: service cost (presented in profit or loss), net
interest on the net defined benefit liability (presented in profit or loss) and remeasurement of the defined benefit
liability (presented in other income and not recycled through profit or loss).
The Trust is in the process of assessing the impact of implementing this Standard since the effects would only be
observable for the financial year ending 31 December 2013.
(j)
IC Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine is mandatory for annual periods
beginning on or after 1 January 2013.
This Interpretation clarifies that removed material that can be used to build up inventory is accounted for in
accordance with the principles of MFRS 102 Inventories. The other removed material, that provides access to deeper
levels of material that will be mined in future periods, is recognised as a non-current asset (referred to as a ‘stripping
activity asset’) if recognition criteria are met. This Interpretation requires stripping activity assets to be measured at
cost at initial recognition. Consequently, they are carried either at cost or revalued amount less depreciation or
amortisation and any impairment losses.
The Trust does not expect any impact on the financial statements arising from the adoption of this Interpretation.
4.
SIGNIFICANT ACCOUNTING POLICIES
4.1 Investment properties
Investment properties are properties, which are held to earn rental yields or for capital appreciation or for both and are
not occupied by the Trust. Investment properties are initially measured at cost, which includes transaction costs. After
initial recognition, investment properties are stated at fair value. The fair value of investment properties are the prices at
which the properties could be exchanged between knowledgeable, willing parties in an arm’s length transaction. The fair
value of investment properties reflect market conditions at the end of the reporting period, without any deduction for
transaction costs that may be incurred on sales or other disposal.
Fair value of investment properties are arrived at by reference to market evidence of transaction prices for similar properties.
It is performed by registered independent valuers with appropriate recognised professional qualification and has recent
experience in the location and category of the investment properties being valued.
A gain or loss arising from a change in the fair value of investment properties is recognised in profit or loss for the year in
which it arises.
Investment properties are derecognised when either they have been disposed off or when they are permanently withdrawn
from use and no future economic benefit is expected from their disposal. The gains or losses arising from the retirement
or disposal of investment properties is determined as the difference between the net disposal proceeds, if any, and the
carrying amount of the asset and is recognised in profit or loss in the year of the retirement or disposal.
Annual report 2011
99
Notes to the Financial Statements
31 December 2011
4.
SIGNIFICANT ACCOUNTING POLICIES (continued)
4.2 Leases
(a)
Finance leases and hire purchase
Assets acquired under finance leases and hire purchase, which transfer substantially all the risks and rewards of
ownership to the Trust are recognised initially at amounts equal to the fair value of the leased assets or, if lower, the
present value of minimum lease payments, each determined at the inception of the lease. The discount rate used
in calculating the present value of the minimum lease payments is the interest rate implicit in the leases, if this is
practicable to determine; if not, the Trust’s incremental borrowing rate is used. Any initial direct costs incurred by
the Trust are added to the amount recognised as an asset. The assets are capitalised as property, plant and equipment
and the corresponding obligations are treated as liabilities. The property, plant and equipment capitalised are
depreciated on the same basis as owned assets.
The minimum lease payments are apportioned between finance charges and a reduction of the outstanding liability.
The finance charges are recognised in profit or loss over the period of the lease term so as to produce a constant
periodic rate of interest on the remaining lease and hire purchase liabilities.
(b) Operating leases
A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to
ownership. Assets leased out under operating leases are presented on the statement of financial position according
to the nature of the assets.
Lease payments under operating leases are recognised as an expense on a straight-line basis over the lease term.
4.3 Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one enterprise and a financial liability or equity
instrument of another enterprise.
A financial asset is any asset that is cash, an equity instrument of another enterprise, a contractual right to receive cash
or another financial asset from another enterprise, or a contractual right to exchange financial assets or financial liabilities
with another enterprise under conditions that are potentially favourable to the Trust.
A financial liability is any liability that is a contractual obligation to deliver cash or another financial asset to another
enterprise, or a contractual obligation to exchange financial assets or financial liabilities with another enterprise under
conditions that are potentially unfavourable to the Trust.
100
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4.
SIGNIFICANT ACCOUNTING POLICIES (continued)
4.3 Financial instruments (continued)
Financial instruments are recognised on the statement of financial position when the Trust has become a party to the
contractual provisions of the instrument. At initial recognition, a financial instrument is recognised at fair value plus, in
the case of a financial instrument not at fair value through profit or loss, transaction costs that are directly attributable to
the acquisition or issuance of the financial instrument.
An embedded derivative is separated from the host contract and accounted for as a derivative if, and only if the economic
characteristics and risks of the embedded derivative is not closely related to the economic characteristics and risks of the
host contract, a separate instrument with the same terms as the embedded derivative meets the definition of a derivative,
and the hybrid instrument is not measured at fair value through profit or loss.
(a)
Financial assets
A financial asset is classified into the following four categories after initial recognition for the purpose of
subsequent measurement:
(i)
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss comprise financial assets that are held for trading (i.e. financial
assets acquired principally for the purpose of resale in the near term), derivatives (both, freestanding and
embedded) and financial assets that were specifically designated into this classification upon initial recognition.
Subsequent to initial recognition, financial asset classified as at fair value through profit or loss are measured
at fair value. Any gains or losses arising from changes in the fair value of financial asset classified as at fair value
through profit or loss are recognised in profit or loss. Net gains or losses on financial asset classified as at fair
value through profit or loss exclude foreign exchange gains and losses, interest and dividend income. Such
items are recognised separately in profit or loss as components of other income or other operating losses.
However, derivatives that are linked to and must be settled by delivery of unquoted equity instruments that do
not have a quoted market price in an active market are recognised at cost.
(ii) Held-to-maturity investments
Financial assets classified as held-to-maturity comprise non-derivative financial assets with fixed or determinable
payments and fixed maturity that the Trust has the positive intention and ability to hold to maturity.
Subsequent to initial recognition, financial assets classified as held-to-maturity are measured at amortised cost
using the effective interest method. Gains or losses on financial assets classified as held-to-maturity are recognised
in profit or loss when the financial assets are derecognised or impaired, and through the amortisation process.
(iii) Loans and receivables
Financial assets classified as loans and receivables comprise non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market.
Subsequent to initial recognition, financial assets classified as loans and receivables are measured at amortised
cost using the effective interest method. Gains or losses on financial assets classified as loan and receivables
are recognised in profit or loss when the financial assets are derecognised or impaired, and through the
amortisation process.
Annual report 2011
101
Notes to the Financial Statements
31 December 2011
4.
SIGNIFICANT ACCOUNTING POLICIES (continued)
4.3 Financial instruments (continued)
(a)
Financial assets (continued)
(iv) Available-for-sale financial assets
Financial assets classified as available-for-sale comprise non-derivative financial assets that are designated as
available for sale or are not classified as loans and receivables, held-to-maturity investments or financial assets
at fair value through profit or loss.
Subsequent to initial recognition, financial assets classified as available-for-sale are measured at fair value.
Any gains or losses arising from changes in the fair value of financial assets classified as available-for-sale are
recognised directly in other comprehensive income, except for impairment losses and foreign exchange gains
and losses, until the financial asset is derecognised, at which time the cumulative gains or losses previously
recognised in other comprehensive income are recognised in profit or loss. However, interest calculated using
the effective interest method is recognised in profit or loss whilst dividends on available-for-sale equity
instruments are recognised in profit or loss when the Trust’s right to receive payment is established.
Cash and cash equivalents include cash and bank balances, bank overdrafts, deposits and other short term,
highly liquid investments with original maturities of three (3) months or less, which are readily convertible to
cash and are subject to insignificant risk of changes in value.
A financial asset is derecognised when the contractual right to receive cash flows from the financial asset has
expired. On derecognition of a financial asset in its entirety, the difference between the carrying amount and
the sum of consideration received (including any new asset obtained less any new liability assumed) and any
cumulative gain or loss that had been recognised directly in other comprehensive income shall be recognised
in profit or loss.
A regular way purchase or sale is a purchase or sale of a financial asset under a contract whose terms require
delivery of the asset within the time frame established generally by regulation or marketplace convention.
A regular way purchase or sale of financial assets shall be recognised and derecognised, as applicable, using
trade date accounting.
(b)
Financial liabilities
Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual
arrangement. A financial liability is classified into the following two categories after initial recognition for the purpose
of subsequent measurement:
(i)
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss comprise financial liabilities that are held for trading,
derivatives (both, freestanding and embedded) and financial liabilities that were specifically designated into this
classification upon initial recognition.
Subsequent to initial recognition, financial liabilities classified as at fair value through profit or loss are measured
at fair value. Any gains or losses arising from changes in the fair value of financial liabilities classified as at fair
value through profit or loss are recognised in profit or loss. Net gains or losses on financial liabilities classified
as at fair value through profit or loss exclude foreign exchange gains and losses, interest and dividend income.
Such items are recognised separately in profit or loss as components of other income or other operating losses.
102
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4.
SIGNIFICANT ACCOUNTING POLICIES (continued)
4.3 Financial instruments (continued)
(b)
Financial liabilities (continued)
(ii) Other financial liabilities
Financial liabilities classified as other financial liabilities comprise non-derivative financial liabilities that are
neither held for trading nor initially designated as at fair value through profit or loss.
Subsequent to initial recognition, other financial liabilities are measured at amortised cost using the effective
interest method. Gains or losses on other financial liabilities are recognised in profit or loss when the financial
liabilities are derecognised and through the amortisation process.
A financial liability is derecognised when, and only when, it is extinguished, i.e. when the obligation specified
in the contract is discharged or cancelled or expired. An exchange between an existing borrower and lender of
debt instruments with substantially different terms are accounted for as an extinguishment of the original
financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the
terms of an existing financial liability is accounted for as an extinguishment of the original financial liability and
the recognition of a new financial liability.
The difference between the carrying amount of a financial liability extinguished or transferred to another party
and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in
profit or loss.
4.4 Impairment of financial assets
The Trust assesses whether there is any objective evidence that a financial asset is impaired at each reporting period.
Loans and receivables
The Trust collectively considers factors such as the probability of bankruptcy or significant financial difficulties of the
receivable, and default or significant delay in payments to determine whether there is objective evidence that an
impairment loss on loans and receivables has occurred. Other objective evidence of impairment include historical collection
rates determined on an individual basis and observable changes in national or local economic conditions that are directly
correlated with the historical default rates of receivables.
If any such objective evidence exists, the amount of impairment loss is measured as the difference between the financial
asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original
effective interest rate. The impairment loss is recognised in profit or loss.
The carrying amount of loans and receivables are reduced through the use of an allowance account.
If in a subsequent period, the amount of the impairment loss decreases and it objectively relates to an event occurring
after the impairment was recognised, the previously recognised impairment loss is reversed to the extent that the carrying
amount of the asset does not exceed its amortised cost at the reversal date. The amount of impairment reversed is
recognised in profit or loss.
Annual report 2011
103
Notes to the Financial Statements
31 December 2011
4.
SIGNIFICANT ACCOUNTING POLICIES (continued)
4.5 Income taxes
Income taxes include all taxes on taxable profit. Income taxes also include other taxes, such as withholding taxes and real
property gains taxes payable on disposal of properties.
Taxes in the income statement comprise current and deferred tax.
4.5.1
Current tax
Current tax is the amount of income taxes payable or receivable in respect of the taxable profit or loss for a period.
Current tax for the current and prior periods is measured at the amount expected to be recovered from or paid to
the taxation authorities. The tax rates and tax laws used to compute the amount are those that have been enacted
or substantively enacted by the reporting period.
4.5.2
Deferred tax
Deferred tax is recognised in full using the liability method on temporary differences arising between the carrying
amount of an asset or liability in the statement of financial position and its tax base.
Deferred tax is recognised for all temporary differences, unless the deferred tax arises from goodwill or the initial
recognition of an asset or liability in a transaction which is not a business combination and at the time of
transaction, affects neither accounting profit nor taxable profit.
A deferred tax asset is recognised only to the extent that it is probable that taxable profits will be available against
which the deductible temporary differences can be utilised. The carrying amount of a deferred tax asset is reviewed
at the end of each reporting period. If it is no longer probable that sufficient taxable profit will be available to
allow the benefit of part or all of that deferred tax asset to be utilised, the carrying amount of the deferred tax asset
will be reduced accordingly. When it becomes probable that sufficient taxable profit will be available, such
reductions will be reversed to the extent of the taxable profits.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when the deferred income taxes relate to the same tax authority on either:
(i)
the same taxable entity; or
(ii)
different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to
realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts
of deferred tax liabilities or assets are expected to be settled or recovered.
Deferred tax will be recognised as income or expense and included in the profit or loss for the year unless
the tax relates to items that are credited or charged, in the same or a different period, directly to equity, in
which case the deferred tax will be charged or credited directly to equity.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when
the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or
substantively enacted by the reporting period
104
AmanahRaya REIT
4.
SIGNIFICANT ACCOUNTING POLICIES (continued)
4.6 Provisions
Provisions are recognised when there is a present obligation, legal or constructive, as a result of a past event, when it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
Where the effect of the time value of money is material, the amount of a provision will be discounted to its present value
at a pre-tax rate that reflects current market assessment of the time value of money and the risks specific to the liability.
Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no
longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the
provision will be reversed.
Provisions are not recognised for future operating losses. If the Trust has a contract that is onerous, the present obligation
under the contract shall be recognised and measured as a provision.
4.7 Contingent liabilities and contingent assets
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Trust or a present obligation
that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A
contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot
be measured reliably. The Trust does not recognise a contingent liability but discloses its existence in the financial
statements.
A contingent asset is a possible asset that arises from past events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events beyond the control of the Trust. The Trust does not recognise
contingent assets but disclose its existence where inflows of economic benefits are probable, but not virtually certain.
4.8 Revenue recognition
Revenue is measured at fair value of the consideration received or receivable net of discounts and rebates.
Revenue is recognised to the extent that it is probable that the economic benefits associated with the transaction will flow
to the Trust, and the amount of revenue and the cost incurred or to be incurred in respect of the transaction can be reliably
measured and specific recognition criteria have been met for each of the Trust’s activity as follows:
(a)
Rental income
Rental income is accounted for on a straight line basis over the lease term of an ongoing lease. The aggregate cost
of incentives provided to the lessee is recognised as a reduction of rental income over the lease term on a straight
line basis.
(b)
Car park rental income
Car park rental income is derived from renting the investment properties’ car park spaces to car park operators and
is recognised on an accrual basis unless recoverability is in doubt, in which case, it is recognised on receipt basis.
(c)
Interest income
Interest income is recognised as it accrues, using the effective interest method.
Annual report 2011
105
Notes to the Financial Statements
31 December 2011
4.
SIGNIFICANT ACCOUNTING POLICIES (continued)
4.9 Expenses
(a)
Property operating expenses
Property operating expenses consist of property management fees, quit rent, assessment, and other outgoings in
relation to investment properties where such expenses are the responsibility of the Trust. Property management fees
are recognised on an accrual basis.
(b)
Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualified asset is
capitalised as part of the cost of the asset until when substantially all the activities necessary to prepare the asset
for its intended use or sale are complete, after which such expense is charged to profit or loss. A qualifying asset is
an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. Capitalisation of
borrowing cost is suspended during extended periods in which active development is interrupted.
The amount of borrowing costs eligible for capitalisation is the actual borrowing costs incurred on the borrowing
during the period less any investment income on the temporary investment of the borrowing.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
(c)
Establishment expenses and Unit issuances expenses
Establishment expenses represent expenses incurred in establishing and listing the Trust.
Transaction costs of an equity transaction are accounted for as a deduction from unitholders’ capital.
(d)
Manager’s and Trustee’s fees
The Manager’s and Trustee’s fees are recognised on an accrual basis.
5.
INVESTMENT PROPERTIES
2011
RM
2010
RM
At 1 January
Additions
Changes in fair value
913,617,000
–
31,143,000
686,332,000
227,285,000
–
At 31 December
944,760,000
913,617,000
944,760,000
913,617,000
Included in the above are:
Land and buildings
106
AmanahRaya REIT
Annual report 2011
107
Leasehold
Leasehold
AIC Factory (11)*
Gurun Automotive
Warehouse (12)
Leasehold
Wisma AmanahRaya
Berhad (9)*
Freehold
Leasehold
Wisma AmanahRaya (8)*
Wisma UEP (10)
Leasehold
Freehold
Silver Bird Factory (6)*
Dana 13 (7)*
Leasehold
Block A & B,
South City Plaza (5)
Freehold
SEGi College (3)
Leasehold
Freehold
Holiday Villa Langkawi (2)
SEGi University College (4)*
Freehold
Leasehold
Holiday Villa Alor Setar (1)
Tenure
INVESTMENT PROPERTIES (continued)
Description of property
5.
60 years
expiring 2065
99 years
expiring 2094
N/A
99 years
expiring 2072
99 years
expiring 2065
99 years
expiring 2097
N/A
99 years
expiring 2093
99 years
expiring 2106
N/A
N/A
N/A
99 years
expiring 2084
Term of
of land
Gurun,
Kedah
Shah Alam
Subang Jaya
Kuala Lumpur
Kuala Lumpur
Petaling Jaya
Shah Alam
Seri
Kembangan
Kota
Damansara
Subang
Jaya
Pulau
Langkawi
Alor Setar
Location
lease year
Industrial
warehouse
Industrial
factory
Office
Office
Office
Office
Industrial
complex
Office
(Block A)
College
(Block B)
College/
Campus
College
Hotel
Hotel
Existing
use
100
100
30
100
100
100
100
100
100
100
100
100
Occupancy
rates as at
31 December
2011
%
24,950,000
21,250,000
39,000,000
63,900,000
74,700,000
108,800,000
98,000,000
20,100,000
154,000,000
55,100,000
58,800,000
35,000,000
Fair value
as at
31 December
2011
RM
23,970,000
19,200,000
35,500,000
53,000,000
68,000,000
99,120,000
92,000,000
18,300,000
145,000,000
52,500,000
55,000,000
31,000,000
Cost
as at
31 December
2011
RM
4.15
3.53
6.48
10.62
12.42
18.08
16.29
3.34
25.60
9.16
9.77
5.82
% of fair
value to Net
Asset Value as
31 December
2011
108
AmanahRaya REIT
99 years
expiring 2093
Block A & B,
South City Plaza (5)
Silver Bird Factory (6)*
99 years
expiring 2106
SEGi University College (4)* Leasehold
Freehold
Leasehold
N/A
Freehold
SEGi College (3)
N/A
N/A
Freehold
Holiday Villa Langkawi (2)
N/A
99 years
expiring 2084
Freehold
Leasehold
Term of
of land
99 years
expiring 2079
99 years
expiring 2089
60 years
expiring 2067
99 years
expiring 2089
Term of
of land
Holiday Villa Alor Setar (1)
Tenure
Leasehold
Selayang Mall (15)*
Description of property
Leasehold
(Land B)
Leasehold
(Land A)
Permanis Factory (14)
Kontena Nasional
Distribution Centre 11 (13)
(formerly known as
Tamadam Bonded
Warehouse)
Tenure
INVESTMENT PROPERTIES (continued)
Description of property
5.
Shah
Alam
Seri
Kembangan
Kota
Damansara
Subang Jaya
Pulau
Langkawi
Alor Setar
Location
lease year
Selayang
Utama
Bdr Baru
Bangi
Port Klang
Location
lease year
Industrial
complex
Office
(Block A)
College
(Block B)
College/
Campus
College
Hotel
Hotel
Existing
use
Shopping
complex
Industrial
factory
Bonded
warehouse
Existing
use
52,500,000
55,000,000
100 95,000,000
100 19,500,000
92,000,000
18,300,000
100 152,000,000 145,000,000
100 54,000,000
100 58,310,000
31,000,000
Cost
as at
31 December
2010
RM
876,805,000
944,760,000
Fair value
as at
31 December
2010
RM
128,165,000
27,550,000
28,500,000
Cost
as at
31 December
2011
RM
132,000,000
28,500,000
30,660,000
Fair value
as at
31 December
2011
RM
100 34,000,000
Occupancy
rates as at
31 December
2010
%
100
100
100
Occupancy
rates as at
31 December
2011
%
16.72
3.43
26.75
9.50
10.26
5.98
% of fair
value to Net
Asset Value as
31 December
2010
21.94
4.74
5.10
% of fair
value to Net
Asset Value as
31 December
2011
Notes to the Financial Statements
31 December 2011
Annual report 2011
109
Leasehold
Gurun Automotive
Warehouse (12)
60 years
expiring 2065
99 years
expiring 2094
N/A
Leasehold
Selayang Mall (15)*
99 years
expiring 2079
99 years
expiring 2089
Selayang
Utama
Bdr Baru
Bangi
Port Klang
Gurun,
Kedah
Shah Alam
Subang Jaya
99 years Kuala Lumpur
expiring 2072
99 years Kuala Lumpur
expiring 2065
Shopping
complex
Industrial
factory
Bonded
warehouse
Industrial
warehouse
Industrial
factory
Office
Office
Office
Office
Existing
use
Fair value
as at
31 December
2010
RM
27,550,000
28,500,000
23,970,000
19,200,000
35,500,000
53,000,000
68,000,000
99,120,000
Cost
as at
31 December
2010
RM
913,617,000 876,805,000
100 128,165,000 128,165,000
100 28,222,000
100 29,500,000
100 24,800,000
100 20,000,000
100 38,000,000
100 60,000,000
100 73,000,000
100 99,120,000
Occupancy
rates as at
31 December
2010
%
22.56
4.97
5.19
4.36
3.52
6.69
10.56
12.85
17.45
% of fair
value to Net
Asset Value as
31 December
2010
* The properties were charged to financial institutions for banking facilities granted to AmanahRaya REIT (Note 9). The pledging of assets of
AmanahRaya REIT was conducted pursuant to the Trust Deed dated 10 October 2006 under Clause 11, sub-clause 11.2 and is not prejudicial to
the interest of the unitholders.
Leasehold
Permanis Factory (14)
Location
lease year
99 years Petaling Jaya
expiring 2097
Term of
of land
Kontena Nasional
Leasehold
Distribution Centre 11 (13)
(Land A)
60 years
(formerly known as Tamadam
expiring 2067
Bonded Warehouse)
(Land B)
99 years
expiring 2089
Leasehold
AIC Factory (11)*
Leasehold
Wisma AmanahRaya *
Berhad (9)
Freehold
Leasehold
Wisma AmanahRaya (8)*
Wisma UEP (10)
Leasehold
Tenure
Dana 13 (7)*
Description of property
Notes to the Financial Statements
31 December 2011
5.
INVESTMENT PROPERTIES (continued)
a.
The investment properties as at 31 December 2011 are stated at fair value based on valuations conducted by independent
firms of professional valuers in November 2011 and December 2011. The properties were valued by the following
appointed valuers adopting the suitable valuation approaches depending on the type of properties.
Item
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
6.
Description of property
Holiday Villa Alor Setar
Holiday Villa Langkawi
SEGi College
SEGi University College
Block A & B,
South City Plaza
Silver Bird Factory
Dana 13
Wisma AmanahRaya
Wisma AmanahRaya
Berhad
Wisma UEP
AIC Factory
Gurun Automotive
Warehouse
Kontena Nasional
Distribution Centre 11
(formerly known as
Tamadam Bonded
Warehouse)
Permanis Factory
Selayang Mall
Valuer
DTZ Nawawi Tie Leung Property Consultants Sdn. Bhd.
DTZ Nawawi Tie Leung Property Consultants Sdn. Bhd.
Raine & Horne International Zaki & Partners Sdn. Bhd.
Raine & Horne International Zaki & Partners Sdn. Bhd.
Raine & Horne International Zaki & Partners Sdn. Bhd.
Method of valuation
Profit and investment
Profit and investment
Investment and Comparison
Investment and Comparison
Investment and Comparison
Raine & Horne International Zaki & Partners Sdn. Bhd.
Raine & Horne International Zaki & Partners Sdn. Bhd.
C.H. Williams Talhar & Wong Sdn. Bhd.
C.H. Williams Talhar & Wong Sdn. Bhd.
Investment and Comparison
Investment and Comparison
Investment
C.H. Williams Talhar & Wong Sdn. Bhd.
Hakimi & Associates Sdn. Bhd.
Hakimi & Associates Sdn. Bhd.
Investment
Cost
Cost
Hakimi & Associates Sdn. Bhd.
Cost
Knight Frank Ooi & Zaharin Sdn. Bhd.
Knight Frank Ooi & Zaharin Sdn. Bhd.
Investment and Comparison
Investment and Comparison
b.
The title deeds of the properties of the Trust are registered under the name of the Trustee, except for Block A & B South
City Plaza, Holiday Villa Alor Setar, Land B of Kontena Nasional Distribution Centre, Gurun Warehouse, SEGi University
College and Dana 13,which are pending for the issuance of separate individual titles.
c.
All investment properties are leased/rented to third parties except for Wisma AmanahRaya, which is leased to the holding
company of the Manager.
d.
Investment properties are leased out with different tenure of leases ranging from 3 to 15 years. Twelve (12) (2010: Twelve
(12)) of the properties’ leases contain an initial non-cancellable period of 3 to 15 years. Subsequent renewals are
negotiated with the lessees. No contingent rents are charged.
TRADE AND OTHER RECEIVABLES
Trade receivables
Other receivables, deposits and prepayments
110
AmanahRaya REIT
2011
RM
2010
RM
1,898,438
1,534,007
1,177,075
1,914,569
3,432,445
3,091,644
6.
TRADE AND OTHER RECEIVABLES (continued)
(a)
The credit terms granted to trade receivables range from 7 days to 30 days (2010: 7 days to 30 days).
(b) Trade and other receivables are denominated in Ringgit Malaysia (“RM”).
(c)
The ageing analysis of trade receivables of the Trust are as follows:
Neither past due nor impaired
Past due, not impaired
31 to 60 days
61 to 90 days
91 to 120 days
More than 121 days
Past due and impaired
2011
RM
2010
RM
790,450
717,000
790,450
3,200
3,200
311,138
179,250
–
179,250
101,575
1,107,988
–
460,075
–
1,898,438
1,177,075
Receivables that are neither past due nor impaired
Trade receivables that are neither past due nor impaired are creditworthy debtors with good payment records with the Trust.
None of the trade receivables of the Trust that are neither past due nor impaired have been renegotiated during the financial year.
Receivables that are past due but not impaired
Based on past experience, the Manager believes that no impairment loss is necessary in respect of these balances. Trade
receivables that are past due but not impaired relates to debtors with good track record with the Trust.
7.
SECURITY DEPOSITS IN TRUST ACCOUNTS AND A FINANCIAL INSTITUTION
Security deposits placed with ITA-ARB
Security deposit placed with a licensed financial institution
2011
RM
2010
RM
61,461,971
1,082,360
59,619,891
1,048,370
62,544,331
60,668,261
Security deposits received from the lessees together with accrued interest are placed with Institutional Trust Account of Amanah
Raya Berhad (“ITA-ARB”) and a licensed financial institution. The interest rates of the security deposits ranged from 3.15%
to 4.25% (2010: 2.20% to 4.25%) per annum.
Pursuant to the lease agreements, lessees are entitled to the interest earned from security deposits placed in trust accounts
and a financial institution. The Trust has the right to deduct from the security deposits in the event of default or arrears in rental
payment within the stipulated period in the lease agreement from the due date of the rental payment or early termination by
the Lessees.
The security deposits are denominated in Ringgit Malaysia (“RM”).
Annual report 2011
111
Notes to the Financial Statements
31 December 2011
8.
DEPOSITS PLACED WITH LICENSED FINANCIAL INSTITUTIONS
The deposits are placed with licensed financial institutions at interest rates ranging from 2.75% to 3.51% (2010: 1.80% to
3.05%) per annum.
Information on financial risks of cash and cash equivalents are disclosed in Note 27 to the financial statements.
The deposits are denominated in Ringgit Malaysia (“RM”).
9.
BORROWINGS
2011
RM
2010
RM
85,000,000
110,857,372
167,403,299
85,000,000
110,745,584
167,219,698
363,260,671
362,965,282
Non-current liabilities:
Term loan I
Term loan II
Term loan III
(a)
Term loan I bears interest at 4.85% (2010: 4.50%) per annum and is repayable in one lump sum in May 2015.
(b) Term loan II bears interest at 4.55% (2010: 4.55%) per annum and is repayable in one lump sum in May 2015.
Included in term loan II are transaction costs incurred for the financing arrangement amounting to RM558,942. During
the financial year ended 31 December 2011, an amount of RM111,788 (2010: RM137,700) has been amortised to
profit or loss, as disclosed in Note 17 to the financial statements.
(c)
Term loan III bears interest at 4.45% (2010: 4.45%) per annum and is repayable in one lump sum in March 2015.
Included in the term loan III are transaction costs incurred for refinancing arrangement amounting to RM918,002. During
the financial year ended 31 December 2011, an amount of RM183,600 (2010: RM74,526) has been amortised to profit
or loss as disclosed in Note 17 to the financial statements.
The proceeds from the term loans are mainly used for the purpose of financing the acquisitions of the properties as disclosed
in Note 5 to the financial statements.
The term loans are secured by way of first legal charge on investment properties of the Trust amounting to RM652,650,000
(2010: RM627,285,000), as disclosed in Note 5 to the financial statements.
The term loan interests are payable in arrears on a monthly basis.
Information on financial risks of borrowings and its remaining maturity is disclosed in Note 27 to the financial statements.
The term loans are denominated in Ringgit Malaysia (“RM”).
112
AmanahRaya REIT
10. TRADE AND OTHER PAYABLES
Non-current liabilities
Tenants’ deposits
Current liabilities
Trade payables
Other payables and accrued expenses
Tenants’ deposits
(a)
2011
RM
2010
RM
57,282,246
56,891,786
371,401
7,782,194
280,325
358,127
9,381,088
431,774
8,433,920
10,170,989
65,716,166
67,062,775
Included in tenant deposits are refundable deposits of RM56,887,666 (2010: RM57,021,666) received from Lessees
for tenancy contracts with tenure of five (5) to six (6) years. These deposits are placed with Institutional Trust Account of
Amanah Raya Berhad (“ITA-ARB”) and financial institution as disclosed in Note 7 to the financial statements.
(b) Included in trade payables are amount due to the Manager and the Trustee amounting to RM309,877 (2010:
RM312,021) which are unsecured, interest-free and payable on demand in cash and cash equivalents. The normal credit
term granted by trade payables is 30 days (2010: 30 days).
(c)
Included in other payables and accrued expenses are interest of RM5,656,665 (2010: RM3,646,595) generated from
security deposits placed with ITA-ARB and financial institutions as disclosed in Note 7 to the financial statements.
(d) Since the inception of AmanahRaya REIT, the Manager has received rental deposits from tenants by way of bank guarantee
which are contracted to but not recognised for in the financial statements as follows:
Tenants
Property
SEG International
Berhad
SEGi College
SEGi University College
Block A & B, South City Plaza
Silver Bird Trust
Berhad
Silver Bird Factory
Kontena Nasional
Berhad
Kontena Nasional Distribution Centre 11
2,648,300
(formerly known as Tamadam Bonded Warehouse)
Equivalent to one (1) year rental
Symphony House
Berhad
Dana 13
Equivalent to one (1) year rental
Total
Amount RM
9,853,200
22,032,000
2,664,000
7,296,000
7,097,640
Remarks
Equivalent to three (3) years rental
Equivalent to two (2) years rental
Equivalent to two (2) years rental
Equivalent to one (1) years rental
51,591,140
The bank guarantees are unconditional, irrevocable and guaranteed to be paid to AmanahRaya REIT in the event of default
of the lease agreement by the Lessees.
(e)
Trade and other payables are denominated in Ringgit Malaysia (“RM”)
Annual report 2011
113
Notes to the Financial Statements
31 December 2011
11. PROVISION FOR INCOME DISTRIBUTION
2011
RM
In respect of current financial year :
– Provisions during the financial year
– Distributions paid
30,605,094
(20,745,366)
2010
RM
29,733,970
(29,733,970)
9,859,728
–
2011
Number
of units
2010
Number
of units
At beginning of the financial year
Increased during the financial year
573,219,858
–
431,553,191
141,666,667
At end of the financial year
573,219,858
573,219,858
At beginning of the financial year
Issuance and placement of new units for purchase of properties
– 141,666,667 units @ RM0.84 each
Unit issuance expenses
519,685,915
403,291,776
At end of the financial year
519,685,915
12. UNITHOLDERS’ CAPITAL
Authorised:
Issued and fully paid:
114
AmanahRaya REIT
–
–
119,000,000
(2,605,861)
519,685,915
12. UNITHOLDERS’ CAPITAL (continued)
(a)
As at 31 December 2011, the Manager and Directors of the Manager did not hold any units in AmanahRaya REIT. However,
parties related to the holding company of the Manager held units in AmanahRaya REIT as follows:
Number of
units held
2011
Percentage
of total units
%
Market
value
RM
334,280,908
2,400,000
2,032,600
58.32
0.42
0.35
302,524,222
2,172,000
1,839,503
338,713,508
59.09
306,535,725
Number of
units held
2010
Percentage
of total units
%
Market
value
RM
305,985,908
2,400,000
2,032,600
53.38
0.42
0.35
286,096,824
2,244,000
1,900,481
310,418,508
54.15
290,241,305
Direct unitholdings in AmanahRaya REIT of the
parties related to the holding company of the Manager
Kumpulan Wang Bersama
AmanahRaya Investment Bank Ltd.
AmanahRaya Capital Sdn. Bhd.
Direct unitholdings in AmanahRaya REIT of the
parties related to the holding company of the Manager
Kumpulan Wang Bersama
AmanahRaya Investment Bank Ltd.
AmanahRaya Capital Sdn. Bhd.
(b) The market value is determined by using the closing market price of the Trust as at 31 December 2011 of RM0.905
(2010: RM0.935) per unit.
(c)
In the previous financial year, AmanahRaya REIT completed the following transactions:
(i)
Placement of new units in AmanahRaya REIT (“Placement Units”) to raise proceeds of RM119,000,000 at issue
price of RM0.84 per unit to investors for the purposes of part financing the acquisitions by AmanahRaya REIT from
Kumpulan Wang Bersama of the following properties:
(1) a piece of leasehold land held under PM 11660, Lot 38451, Bandar Selayang, District of Gombak, Selangor
Darul Ehsan, on which is erected a six (6)-storey shopping complex with a basement level, known as “Selayang
Mall”, for a purchase consideration of RM128,000,000; and
(2) a thirteen (13)-storey stratified office building which forms part of the Dana 1 Commercial Centre, which is held
under the parent title Pajakan Negeri 8024, Lot 59214, Mukim Damansara, District of Petaling, Selangor Darul
Ehsan, known as “Dana 13”, for a purchase consideration of RM99,000,000.
Annual report 2011
115
Notes to the Financial Statements
31 December 2011
13. GROSS REVENUE
Rental income
Car park rental income
2011
RM
2010
RM
64,992,620
313,200
59,196,771
313,200
65,305,820
59,509,971
2011
RM
2010
RM
412,591
987,960
486,900
65,864
27,953
351,185
984,733
367,600
64,701
17,352
1,981,268
1,785,571
14. PROPERTY OPERATING EXPENSES
Assessment and quit rent
Service contracts and maintenance
Property management fees
Insurance
Other operating expenses
(a)
Included in service contracts and maintenance expenses during the financial year is the write back of overprovision made
in prior years of RM831,440.
(b) The Property Managers, Malik Kamaruzaman Property Management Sdn. Bhd. and IM Global Property Consultants, are
entitled to property management fees in respect of the management of the investment properties owned by AmanahRaya
REIT as provided in the Trust Deed. The fees are determined by a guaranteed scale based on the gross annual rental
income as provided in the provisions of the revised Valuers, Appraisers and Estate Agents Act, 1981 as required by the
Securities Commission’s Guidelines on Real Estate Investment Trusts. The property management fees are payable monthly
in arrears with permissible discounts.
15. MANAGER’S FEE
Pursuant to the Deed, the Manager is entitled to receive a fee of up to a maximum of 1.0% per annum of the Net Asset Value
of AmanahRaya REIT. The Manager’s fee is payable in arrears, calculated and accrued daily. However, the Manager has only
been charging at the rate of 0.6% (2010: 0.3% to 0.6%) per annum of the Net Asset Value.
16. TRUSTEE’S FEE
Pursuant to the Deed, the Trustee is entitled to receive a fee of up to a maximum of 0.1% per annum of the NAV of the Trust.
The Trustee’s fee is payable in arrears, calculated and accrued daily. However, the Trustee has only been charging at the rate
of 0.05% (2010: 0.05%) per annum of the Net Asset Value.
116
AmanahRaya REIT
17. FINANCE COSTS
Interest expense on term loans
Amortisation of transaction costs of borrowings
2011
RM
2010
RM
16,656,203
295,389
14,914,014
212,226
16,951,592
15,126,240
2011
RM
2010
RM
–
–
18. INCOME TAX EXPENSE
Current tax expense
The numerical reconciliation between the tax expense and the product of accounting profit multiplied by the applicable tax rates
of the Trust are as follows:
Income before taxation
Income tax using Malaysian tax rate at 25% (2010: 25%)
Non-deductible expenses
Effect of interest income not subject to tax
Effect of changes in fair value of investment properties ot subject to tax
Effect of income exempted from tax
2011
RM
2010
RM
73,672,319
41,400,799
18,418,080
133,965
(208,421)
(7,785,750)
(10,557,874)
10,350,200
361,232
(141,996)
(504,290)
(10,065,146)
–
–
Pursuant to Section 61A(1) of Income Tax Act, 1967 under the Finance Act, 2006, where in the basis period for a year of
assessment, 90% or more of the total income of the Trust is distributed to its unitholders, the total income of the Trust for that
year of assessment shall be exempted from tax.
As the Trust distribute at least 95% (2010: 95%) of the distributable income, its total income for the financial year is exempted
from tax.
19. EARNINGS PER UNIT
The earnings per unit before Manager’s fee of 13.4419 sen (2010: 8.3723 sen) is calculated by dividing the net income after
taxation but before deduction of manager’s fees for the financial year of RM77,051,807 (2010: RM43,897,530) by the
weighted average number of units in circulation during the financial year of 573,219,858 (2010: 524,315,748).
The earnings per unit after Manager’s fee of 12.8524 sen (2010: 7.8962 sen) is calculated based on the net income after
taxation of RM73,672,319 (2010: RM41,400,799) for the financial year and on the weighted average number of units in
circulation during the financial year of 573,219,858 (2010: 524,315,748).
Annual report 2011
117
Notes to the Financial Statements
31 December 2011
20. DISTRIBUTIONS TO UNITHOLDERS
Distributions to unitholders are from the following sources:
Gross rental income
Interest income
Other income
Less: Expenses
Total income available for distribution
Underpayment in prior years
Total income available for distribution
Less: Income distributed
Less: Proposed final income distribution
Balance undistributed income
Distribution per unit (sen)
*
2011
RM
2010
RM
65,305,820
833,684
1,000
59,509,971
580,889
2,027,060
66,140,504
(23,611,185)
62,117,920
(20,717,121)
42,529,319
483
41,400,799
317
42,529,802
(30,604,732)
(10,789,144)
41,401,116
(29,733,970)
(9,597,106)
1,135,926
2,070,040
7.2213
7.3209
As proposed in the previous financial year, the fourth and final distribution of RM9,597,106 would be paid for the financial
year ended 31 December 2010. However, an amount of RM9,596,261 was paid during the financial year as against the
proposed amount of RM9,597,106. Out of the shortfall of RM845, an amount RM483 has been distributed and paid to
the unitholders during the current financial year.
For the financial year ended 31 December 2009, the second and final distribution proposed was RM16,123,132. However,
an amount of RM16,122,815 was paid as against the proposed amount of RM16,123,132. The shortfall of RM317 was
distributed and paid to the unitholders during the financial year ended 31 December 2010.
21. CORPORATE EXERCISE EXPENSES
(a)
During the financial year, the Trust incurred costs attributable to the process of acquiring the three (3) properties
belonging to Perbadanan Kemajuan Negeri (“PKNS”). However, on 1 December 2011, the acquisition was mutually
terminated and the corporate exercise expenses as disclosed in Note 31(b) to the financial statements, amounting to
RM361,335 were expensed off to profit or loss.
(b) In the previous financial year, expenses incurred, which were not directly attributable to the issuance and placement of
new units amounting to RM675,428 were expensed off to profit or loss.
118
AmanahRaya REIT
22. PORTFOLIO TURNOVER RATIO (continued)
Portfolio Turnover Ratio (“PTR”)(times)
2011
2010
–
0.43
The calculation of PTR is based on the average of total acquisitions and total disposals of investment in AmanahRaya REIT for
the year to the average net asset value of the Trust for the financial year calculated on a daily basis.
Since the basis of calculating PTR may vary among real estate investment trusts, there is no sound basis for providing an
accurate comparison of PTR of AmanahRaya REIT against other real estate investment trusts.
There were no acquisitions or disposals of investment in AmanahRaya REIT during the financial year.
23. MANAGEMENT EXPENSE RATIO
Management expense ratio (“MER”)(%)
2011
2010
0.70
0.59
The calculation of the MER is based on the total expenses of AmanahRaya REIT incurred, including Manager’s fees, Trustee’s
fees, audit fees, tax agent’s fees and administrative expenses, to the average net asset value of the Trust for the financial year
calculated on a daily basis.
Since the basis of calculating MER may vary among real estate investment trusts, comparison of MER of AmanahRaya REIT
with other real estate investment trusts may not be an accurate comparison.
24. TRANSACTIONS WITH COMPANY RELATED TO THE MANAGER
(a)
Identities of related parties
Parties are considered to be related to the Manager if the Manager has the ability, directly or indirectly, to control the party
or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the
Manager and the party are subject to common control or common significant influence. Related parties may be individuals
or other entities.
(b) In addition to the transactions detailed elsewhere in the financial statements, the Manager and the Trust had the following
transactions with related parties during the financial year:
Rental received and receivable from holding company of the Manager
Security deposits from lessees placed with the holding company
of the Manager (Note 7)
2011
RM
2010
RM
6,609,319
6,609,319
61,461,971
59,619,891
The related party transactions described above were entered into in the normal course of business and are based on
negotiated and mutually agreed terms.
Annual report 2011
119
Notes to the Financial Statements
31 December 2011
25. TRANSACTIONS WITH BROKERS/DEALERS
There were no transactions made with brokers/dealers during the financial year.
26. FINANCIAL INSTRUMENTS
(a)
Capital management
The primary objective of the Manager is to ensure that the Trust would be able to continue as a going concern while
maximising the returns to unitholders through a balance of issuance of new AmanahRaya REIT units and loan financing.
The overall strategy of the Manager remains unchanged from financial year ended 31 December 2010.
The Manager manages the capital structure of the Trust and makes adjustments to it, in light of changes in economic
conditions. To maintain or adjust the capital structure, the Manager may adjust the income distribution to unitholders or
issue new units. No changes were made in the objectives, policies or processes during the financial years ended
31 December 2011 and 31 December 2010.
The Manager will also comply with the provisions of the Deed and all applicable rules and guidelines prescribed by the
Securities Comission relating to the financing of the Trust.
The Manager monitors capital using a gearing ratio, which is total borrowings divided by total assets of the Trust pursuant
to Securities Commission’s Guidelines on Real Estate Investment Trusts.
Total borrowings
Total assets
Gearing ratio
(b)
2011
RM
2010
RM
363,260,671
362,965,282
1,040,472,590
998,193,118
34.91%
36.36%
Financial instruments
(i)
Categories of financial instruments
Loans and
receivables
RM
2011
Financial assets
Trade and other receivables
Security deposits in Trust accounts and financial institutions
Cash and cash equivalents
3,432,445
62,544,331
29,735,814
95,712,590
120
AmanahRaya REIT
26. FINANCIAL INSTRUMENTS
(b)
Financial instruments (continued)
(i)
Categories of financial instruments (continued)
Other financial
liabilities
RM
Financial liabilities
Borrowings
Trade and other payables
363,260,671
65,716,166
428,976,837
Loans and
receivables
RM
2010
Financial assets
Trade and other receivables
Security deposits in Trust accounts and financial institutions
Cash and cash equivalents
3,091,644
60,668,261
20,816,213
84,576,118
Other financial
liabilities
RM
Financial liabilities
Borrowings
Trade and other payables
362,965,282
67,062,775
430,028,057
(c)
Determination of fair value
Methods and assumptions used to estimate fair value
The fair value of financial assets and financial liabilities are determined as follows:
(i)
Financial instruments that are not carried at fair value and whose carrying amounts are a reasonable approximation
of fair value
The carrying amounts of financial assets and liabilities, such as trade and other receivables, and trade and other
payables, are reasonable approximation of fair value, due to their short-term nature.
(ii) Borrowings and tenants’ deposits
The fair value of bank borrowings and tenants’ deposits is determined using estimated future cash flows discounted
at market related rate for similar instruments at the end of the reporting period.
Annual report 2011
121
Notes to the Financial Statements
31 December 2011
27. FINANCIAL RISKS MANAGEMENT OBJECTIVES AND POLICIES
The Trust’s financial risk management objective is to optimise value creation for unitholders whilst minimising the potential
adverse impact arising from fluctuations in interest rates and the unpredictability of the financial markets.
The Trust has written risk management policies and guidelines which sets out its overall business strategies and general risk
management philosophy. The Trust is exposed mainly to credit risk, interest rate risk and liquidity risk, which arises in the normal
course of the Trust’s business. Information on the Trust of the related exposures is detailed below:
i)
Credit risk
The Trust is exposed to credit risk mainly from receivables. The Trust extends credit to its tenants based upon established
credit evaluation and credit control and monitoring guidelines. The maximum exposure to credit risk is represented by the
carrying amount of financial assets.
As at the end of the reporting period, other than the amount owing by one (1) major tenant of the Trust constituting 35%
(2010: 38%) of the total receivables of the Trust, there were no significant concentrations of credit risk. The maximum
exposure to credit risk for the Trust is represented by the carrying amount of each class of financial assets in the statement
of financial position.
The Trust seeks to invest cash assets safely and profitably with placement of such assets with creditworthy licensed banks
and financial institutions. In respect of deposits placed in Trust accounts and financial institutions in Malaysia, the
Directors of the Manager believe that the possibility of non-performance by these financial institutions is remote on the
basis of their financial strength.
Exposure to credit risk
At the reporting date, the Trust’s maximum exposure to credit risk is represented by the carrying amount of each class of
financial assets recognised in the statement of financial position.
Information regarding credit enhancements for trade and other receivables is disclosed in Note 6 to the financial statements.
(ii) Liquidity and cash flow risk
The Manager monitors and maintains a level of cash and cash equivalents and bank facilities deemed adequate to finance
the Trust’s operations and to mitigate the effects of fluctuations in cash flows. In addition, the Manager also monitors and
observes the Securities Commission’s Guidelines on Real Estate Investment Trusts concerning limits on total borrowings.
Analysis of financial instruments by remaining contractual maturities
The table below summarises the maturity profile of the Trust’s liabilities at the end of the reporting period based on
contractual undiscounted repayment obligations.
122
AmanahRaya REIT
27. FINANCIAL RISKS MANAGEMENT OBJECTIVES AND POLICIES (continued)
(ii) Liquidity and cash flow risk (continued)
On demand
or within
one year
RM
One to
five years
RM
Over
five years
RM
Total
RM
Financial liabilities
Tenants’ deposits
Trade and other payables
Borrowings
280,325
8,153,595
–
57,282,246
–
419,903,839
–
–
57,562,571
8,153,595
419,903,839
Total undiscounted financial liabilities
8,433,920
477,186,085
–
485,620,005
On demand
or within
one year
RM
One to
five years
RM
Over
five years
RM
Total
RM
431,774
9,739,215
–
56,891,786
–
436,563,304
–
–
–
57,323,560
9,739,215
436,563,304
10,170,989
493,455,090
–
503,626,079
2011
2010
Financial liabilities
Tenants’ deposits
Trade and other payables
Borrowings
Total undiscounted financial liabilities
(iii) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Trust’s financial instruments will fluctuate because
of changes in market interest rates.
The Trust’s exposure to fluctuation in interest rates relates primarily to interest-earning financial assets and interestbearing financial liabilities. Interest rate risk is managed by the Manager on an ongoing basis with the primary objective
of limiting the extent to which net interest expense could be affected by adverse movements in interest rates. Interest rate
exposure which arises from borrowing is managed through the use of fixed rate debt with long term tenure.
Annual report 2011
123
Notes to the Financial Statements
31 December 2011
27. FINANCIAL RISKS MANAGEMENT OBJECTIVES AND POLICIES (continued)
(iii) Interest rate risk (continued)
Sensitivity analysis for interest rate risk
As at 31 December 2011, if interest rates at the date had been 10 basis points lower or higher with all other variables
held constant, post-tax profit for the financial year would have been RM339,126 (2010: RM286,319) higher or lower,
arising mainly as a result of lower or higher interest expense on variable borrowings and interest income from deposits.
The assumed movement in basis points for interest rate sensitivity analysis is based on the currently observable market
environment.
In respect of interest-bearing financial assets and financial liabilities, the following tables set out the carrying amounts,
the weighted average effective interest rates as at the end of the reporting period and the remaining maturities of the Trust’s
financial instruments that are exposed to interest rate risk:
Weighted
average
effective
interest rate
(per annum)
%
Within 1 year
RM
1-5 years
RM
Total
RM
4.57
–
363,260,671
363,260,671
3.32
29,732,200
–
29,732,200
4.49
–
362,965,282
362,965,282
2.80
20,476,774
–
20,476,774
At 31 December 2011
Fixed rate
Borrowings (Note 9)
Floating rate
Deposits placed with licensed
financial institutions (Note 8)
At 31 December 2010
Fixed rate
Borrowings (Note 9)
Floating rate
Deposits placed with licensed
financial institutions (Note 8)
124
AmanahRaya REIT
28. OPERATING LEASES
Leases whereby AmanahRaya REIT is the Lessor
The Trust leases out its investment properties with different tenure of leases (Note 5). The future minimum lease payments under
non-cancellable leases are as follows:
Not later than one year
Between two to five years
Later than five years
2011
RM
2010
RM
67,062,638
255,981,410
37,541,088
63,509,179
242,481,691
111,906,739
360,585,136
417,897,609
29. OPERATING SEGMENT
As the principal activity of AmanahRaya REIT is to invest in properties currently all located in Malaysia with the primary
objective to derive rental income, there are no risk and returns distinguishable between business and geographical segments.
No operating segment reporting is thus presented.
30. CAPITAL COMMITMENT
Capital expenditure in respect of the following has not been provided for in the financial statements:
Authorised but not contracted for:
– Acquisition of investment properties
2011
RM
2010
RM
–
270,000,000
As disclosed in Note 31 (b) to the financial statements, the acquisition was mutually terminated during the financial year.
31. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR
(a)
Asset enhancement exercises were conducted on four (4) properties under AmanahRaya REIT portfolio as listed below,
all of which are currently ongoing:
(i) Total replacement of lifts at Selayang Mall estimated at RM0.9 million.
(ii) Expansion work at Silverbird factory estimated at RM12.0 million.
(iii) Total refurbishment of cold room at Kontena Nasional Distribution Centre 11 estimated at RM3.0 million.
(iv) Expansion of Permanis Factory estimated at RM12.0 million.
(b) On 1 December 2011, the Manager has announced for AmanahRaya REIT on the mutual termination of the proposed
acquisition of three (3) properties from Perbadanan Kemajuan Negeri Selangor (“PKNS”) for a total purchase consideration
of RM270 million. The proposed acquisition was mutually aborted by both parties due to unforeseen circumstances.
Annual report 2011
125
Notes to the Financial Statements
31 December 2011
31. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (continued)
(c)
Following the execution of a Share Sale Agreement between CI Holdings Berhad and Asahi Trust Holdings Ltd of Japan,
the lease on Permanis Factory was novated from CI Holdings Berhad to Permanis Sdn Bhd with corporate guaranteeship
from Asahi Trust Holdings Ltd. This novation is however subject to several conditions precedent.
(d) Sime UEP Development Sdn. Bhd. ended their tenancy at Wisma UEP on 30 July 2011. At present, the occupancy rate
of Wisma UEP is at 30%. Proactive measures have been taken by the Manager to improve the occupancy rate.
(e)
On 30 December 2011, the Manager has announced for AmanahRaya REIT on the completion of the revaluation exercise
on all properties under AmanahRaya REIT portfolio. This valuation has increased the investment properties fair values by
3.4% from RM913,617,000 in 2010 to RM944,760,000 in 2011.
32. COMPARATIVE FIGURES
(a)
The following comparative figures have been restated pursuant to FRS 110 Events After the Reporting Period:
As previously
reported
RM
As restated
RM
9,597,106
–
38,882,040
48,479,146
Distributable income
as at 1 January 2010:
– Realised
– Unrealised
–
36,812,000
16,123,132
36,812,000
Unitholders’ transactions
Distributions to unitholders
– 2010 final
– 2009 final
(9,596,789)
–
–
(16,122,815)
Statement of financial position
Current liabilities
Provision for income distribution
Unitholders’ funds
Distributable income
Statement of changes in net asset value
126
AmanahRaya REIT
32. COMPARATIVE FIGURES (continued)
(b) The following comparative figures have been reclassified to conform with current year’s presentation:
As previously
reported
RM
As restated
RM
Non-current liabilities
Trade and other payables
–
56,891,786
Current liabilities
Trade and other payables
67,062,775
10,170,989
2011
RM
2010
RM
13,995,110
67,955,000
11,667,146
36,812,000
81,950,110
48,479,146
Statement of financial position
33.
SUPPLEMENTARY INFORMATION ON REALISED AND UNREALISED PROFITS OR LOSSES
The distributable income as at the end of the reporting period may be analysed as follows:
Total distributable income of the Trust
– Realised
– Unrealised
The unrealised income relates to the cumulative net change arising from the fair value adjustments to the investment properties.
The supplementary information on realised and unrealised profits or losses has been prepared in accordance with Guidance on
Special Matter No. 1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to
Bursa Malaysia Securities Berhad Listing Requirements, as issued by the Malaysian Institute of Accountants (‘MIA Guidance’)
and the directive of Bursa Malaysia Securities Berhad.
Annual report 2011
127
Unitholders’ Statistics
Analysis of Unitholdings
Distribution of Unitholders as at 31 December 2011
No. of
unitholders
%
No. of
unitholding
%
7
0.25
155
0.00
397
14.13
356,545
0.06
1,421
50.59
7,978,500
1.39
10,001 – 100,000
815
29.01
28,067,100
4.90
100,001 to less than 5% of issued holdings
167
5.95 170,176,650
29.69
2
0.07 366,640,908
63.96
2,809
100.00 573,219,858
100.00
Unit Class
Less than 100
100 – 1,000
1,001 – 10,000
5% and above the issued holdings
The units in circulation remained at 573,219,858 during the financial year.
Classification of Unitholders as at 31 December 2011
No. of Holders
Malaysian
Category of Unitholder
1)
2)
c.
3)
4)
Individual
Body Corporate
a. Banks/finance companies
b. Investments trust/
foundation/charities
Other types of companies
Government agencies/Institutions*
Nominees
128
AmanahRaya REIT
No. of securities hold
Foreign
Malaysian
Bumiputra
NonBumiputra
169
1,915
7
3
0
7
1
368
0
38
0
252
0
1
0
28
0
13,702,000
32,360,000
9,992,800
552
2,208
49
Foreign
Bumiputra
NonBumiputra
1,105,000
42,881,600
352,700
0 358,506,058
2,096,800
0
0
28,159,000
0
70,940,300
0
40,000
0
13,083,600
415,665,858 144,077,700
13,476,300
20
Analysis of Unitholdings (continued)
Thirty Largest Unitholders as at 31 December 2011
Unitholders
1.
Amanah Raya Berhad
–
Kumpulan Wang Bersama
No. of unit
Percentage
334,280,908
58.32
2.
Perbadanan Kemajuan Negeri Selangor
32,360,000
5.65
3.
Citigroup Nominees (Tempatan) Sdn Bhd
–
Allianz Life Insurance Malaysia Berhad (P)
25,794,800
4.50
Citigroup Nominees (Tempatan) Sdn Bhd
–
Exempt An for American International Assurance Berhad
21,514,200
3.75
5.
Kurnia Insurans (Malaysia) Berhad
12,000,000
2.09
6.
Amanah Raya Berhad
–
Amanah Raya Berhad - 1818
11,006,450
1.92
7.
Valuecap Sdn Bhd
10,916,100
1.90
8.
HSBC Nominees (Asing) Sdn Bhd
–
The Royal Bank of Scotland Public Limited Company (Fixed Income)
10,000,000
1.74
7,773,200
1.36
10. Cahya Mata Sarawak Berhad
5,000,000
0.87
11. Koperasi Permodalan Felda Malaysia Berhad
5,000,000
0.87
12. Citigroup Nominees (Tempatan) Sdn Bhd
–
MCIS Zurich Insurance Berhad (LIFE PAR FD)
4,022,000
0.70
13. Citigroup Nominees (Tempatan) Sdn Bhd
–
MCIS Zurich Insurance Berhad (ANN FD)
2,470,200
0.43
14. AmanahRaya Investment Bank Ltd
2,400,000
0.42
15. Citigroup Nominees (Tempatan) Sdn Bhd
–
MCIS Zurich Insurance Berhad (GEN FD)
2,400,000
0.42
16. Amanah Raya Berhad
–
Amanah Raya Capital Sdn Bhd
2,032,600
0.35
4.
9.
Kurnia Insurans (Malaysia) Berhad
Annual report 2011
129
Unitholders’ Statistics
Analysis of Unitholdings (continued)
Thirty Largest Unitholders as at 31 December 2011 (continued)
Unitholders
No. of unit
Percentage
17. HwangDBS Investment Bank Berhad IVT (JBD)
1,687,500
0.29
18. Mayban Nominees (Tempatan) Sdn Bhd
–
Mohd Iskandar Lau bin Abdullah
1,150,000
0.20
19. Dev Kumar Menon
1,127,000
0.20
20. Malaysian Rating Corporation Berhad
1,095,000
0.19
21. Citigroup Nominees (Asing) Sdn Bhd
–
CBHK PBGHK FOR SABLE INVESTMENT CORPORATION
1,063,800
0.19
22. Alliancegroup Nominees (Tempatan) Sdn Bhd
–
Pledged Securities Account for Pee Siew Boon (8057713)
1,030,500
0.18
23. SEG Equity Sdn. Bhd.
1,000,000
0.17
24. HSBC Nominees (Tempatan) Sdn Bhd
–
HSBC (Malaysia) Trustee Berhad for Amanah Saham Sarawak
1,000,000
0.17
25. State Insurance Brokers Sdn Bhd
1,000,000
0.17
26. Citigroup Nominees (Tempatan) Sdn Bhd
–
Chartis Malaysia Insurance Berhad
1,000,000
0.17
27. Citigroup Nominees (Tempatan) Sdn Bhd
–
MCIS Zurich Insurance Berhad (SHH FD)
992,800
0.17
28. Citigroup Nominees (Tempatan) Sdn Bhd
–
MCIS Zurich Insurance Berhad (GRP LIFE FD)
825,000
0.14
29. Labuan Reinsurance (L) Ltd
760,000
0.13
30. Alliancegroup Nominees (Tempatan) Sdn Bhd
–
Pledged Securities Account for Woo Beng Keong (8026873)
737,000
0.13
503,439,058
87.83
130
AmanahRaya REIT
Additional Disclosure
ADDITIONAL INFORMATION PURSUANT TO LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD
1.
UTILISATION OF PROCEEDS RAISED FROM CORPORATE PROPOSAL
There were no proceeds received during the current financial year.
2.
SHARE BUY-BACKS DURING THE FINANCIAL YEAR
The Fund did not carry out any share buy-backs exercise during the financial year ended 31 December 2011.
3.
OPTIONS, WARRANTS OR CONVERTIBLE SECURITIES EXERCISED
The Fund did not issue any warrants or convertible securities for the financial year ended 31 December 2011.
4.
AMERICAN DEPOSITORY RECEIPTS (ADR)/GLOBAL DEPOSITORY RECEIPT (GDR)
The Fund has not sponsored any ADR/GDR programme during the financial year ended 31 December 2011.
5.
SANCTION/PENALTIES
There were no sanctions and/or penalties imposed on the Fund and/or the Manager during the financial year ended 31 December 2011.
6.
NON-AUDIT FEES
There is no non-audit fee paid by the Fund to the auditors during the financial year ended 31 December 2011.
7.
PROFIT GUARANTEES
There were no profit guarantees given by the Manager during the financial year ended 31 December 2011.
8.
MATERIAL CONTRACTS
There were no material contracts which had been entered into by the fund involving the interest of Directors and major
Unitholders, either still subsisting at the end of the financial year ended 31 December 2011 or entered into since the end of
the previous financial period.
Annual report 2011
131
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www.amanahrayareit.com.my
AmanahRaya-REIT Managers Sdn Bhd (856167-A)
(The Manager of AmanahRaya Real Estate Investment Trust)
Level 8, Wisma TAS
No.21, Jalan Melaka
50100 Kuala Lumpur
Tel : 603 2078 0898
Fax : 603 2026 6322