Name of REIT

Al-Salām Real Estate Investment Trust

REIT type

Income stability and growth

Deed

Deed dated 26 March 2015 and registered with the SC on 30 March 2015

Authorised Investments

Real Estate, SPVs, Real Estate-Related Assets, Non-Real Estate-Related Assets, cash, Shariah-compliant deposits, Islamic money market instruments and any other investments not specified above but specified as a permissible investment in the Guidelines or as otherwise permitted by the SC

Authorised Investments Limits

The investments of Al-Salām REIT are subject to the following investment limits imposed by the REIT Guidelines:-

(i)            at least 50.0% of Al-Salām REIT’s Total Asset Value must be invested in Real Estate Assets at all times; and

(ii)           not more than 25.0% of Al-Salām REIT’s Total Asset Value may be invested in Non-Real Estate-Related Assets and/or cash, Shariah-compliant deposits and Islamic money market instruments,

provided that instruments in both Real Estate-Related Assets and Non-Real Estate-Related Assets are limited as follows:-

(i)            the value of Al-Salām REIT’s investments in securities issued by any single issuer must not exceed 5.0% of Al-Salām REIT’s Total Asset Value;

(ii)           the value of Al-Salām REIT’s investment in securities issued by any group of companies must not exceed 10.0% of Al-Salām REIT’s Total Asset Value; and

(iii)          Al-Salām REIT’s investment in any class of securities must not exceed 10.0% of the securities issued by any single issuer; or

such other limits and investments as may be permitted by the SC or the REIT Guidelines

Distribution Policy

The Manager intends to distribute at least 90% of Al-Salām REIT’s Distributable Income on a full-year basis in the first year of establishment of Al-Salām REIT. For the subsequent years, the Manager intends to distribute at least 90% of Al-Salām REIT’s Distributable Income on a half-yearly basis (or such other intervals as the Manager may determine at its absolute discretion)

Financing Limitations and Gearing Policy

Up to 50.0% of the Total Asset Value of Al-Salām REIT at the time the financing is incurred

Performance Benchmark

The following performance indicators can be considered in reviewing the performance of Al-Salām REIT:

(i)    Distribution Yield

(ii)   NAV

(iii)  Total Return

(iv)  MER

The performance indicators will be used to benchmark Al-Salām REIT against its peers as well as against its own historical performance, where applicable

Valuation Policy

Independent professional valuation will be obtained at least once every three (3) years in accordance with the REIT Guidelines or such other shorter interval as the Manager deems necessary and these valuations will be conducted on the bases and methods which are in accordance with the Asset Valuation Guidelines

Redemption Policy

Unitholders have no right to request the Manager to repurchase their Units while the Units are listed

Minimum Initial Investment

Minimum of 100 Units

Minimum Additional Investment

Minimum of 100 Units

Investor Profile

Al-Salām REIT may appeal to investors with Long Term investment objectives who seek regular income distribution and Long Term capital appreciation, and who understands the risks related to the real estate industry and REITs

Board lot

100 Units per board lot

Quotation

Main Market

Governing Law

The Deed is governed by Malaysian law

Sponsor

REIT Manager

Damansara REIT Managers

REIT Trustee