Al-Aqar being the first Islamic Healthcare REIT in the world, is pleased to announce the expansion of new wings within our healthcare portfolio, i.e. KPJ Ampang Puteri Specialist Hospital (New Wing) and KPJ Penang Specialist Hospital (New Wing), where both injections are expansions of existing assets, demonstrating the growth and resilience of the healthcare industry. We are confident in the healthcare industry and that the injection of these assets will provide long-term, stable recurring income to Al-Aqar.

🏥 TAV & NLA Growth on Track
This expansion is aligned with our strategy to increase the Total Asset Value (TAV) of Al-‘Aqar Healthcare REIT, with a targeted milestone of more than RM 2.0 billion by end 2025. We are looking to grow Al-Aqar's TAV by ~23% to RM2.5 billion by 2028. With this injection and renewal of leases for existing healthcare assets in Al-Áqar's portfolio, Al-‘Aqar’s TAV will increase by 13.0% from RM1.8 billion to RM2.1 billion; while Net Lettable Area (NLA) will increase by 14.0% from 5.3 million sqft to 6.1 million sqft. This also demonstrates a committed asset pipeline by KPJ Healthcare for injection into Al-Aqar.

📈 Sustained Yield and Long-term Stability
As the newly injected assets are expansion wings of existing assets, namely KPJ Ampang Puteri Specialist Hospital New Building and KPJ Penang Specialist Hospital New Building, the terms of injection and rental are in line with the existing adjoining assets. These newly injected assets maintain a stable yield of 6.25% with a 15-year lease, ensuring long term, resilient earnings for Al-‘Aqar, aligning with our strategy to ensure a strong portfolio DPU and stable NPI.

💵 Minimal Impact to Gearing
The acquisition of both assets have been long due and expected for Al-Aqar. While the acquisition will cause an immediate effect of a slight increase in gearing, we are deploying proactive capital management to ensure gearing remains at a comfortable level in the medium term. We are committed to reduce Al-Aqar's gearing level to a comfortable level, in line with M-REIT average gearing levels by end 2025. We expect minimal impact to cashflows, ability to distribute DPU, and future acquisition opportunities. We are also actively reviewing our portfolio to ensure continuous management of our capital structure to the best interests of our Unitholders.

At JLG REIT Managers, we remain committed to building opportunities and creating value for a smarter and more sustainable future.

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