Years of Anniversary

144 Pages·2017·2.79 MB·English

Years of Anniversary
ANNUAL REPORT 2017
Bangunan AmBank Group
Menara AmBank
The Summit Subang USJ
FINANCIAL HIGHLIGHTS OUR PEOPLE
2 FY2007 - FY2017 Key Milestones 29 Board of Directors
4 FY2017 Highlights 32 Senior Management Team
5 Five - Year Financial Highlights
ASSET PROFILE
36
CORPORATE PROFILE
CORPORATE SOCIAL RESPONSIBILITY
8 About The Trust 55
9 About The Manager
INVESTOR RELATIONS AND
10 Mission and Core Values 58
COMMUNICATIONS
11 Fund Information
BUSINESS REVIEW MARKET REPORT
60
12 Chairman’s Statement
16 Management Discussion and Analysis
CORPORATE GOVERNANCE ANALYSIS OF UNITHOLDERS
131
73 Statement of Corporate Governance
CORPORATE DIRECTORY
80 Statement on Risk Management and Internal Control 133
84 Audit Committee Report
FIFTH ANNUAL GENERAL MEETING
87 Directors’ Responsibility Statement
88 Manager’s Report 134 Notice of Meeting
Proxy Form
FINANCIAL STATEMENTS
Request Form
92 Statement of Financial Position
93 Statement of Comprehensive Income
95 Statement of Changes in Net Asset Value
96 Statement of Cash Flows
97 Notes to the Financial Statements
124 Supplementary Information Required By
Bursa Malaysia Securities Berhad
125 Statement by the Directors of the Manager
125 Statutory Declaration
126 Trustee’s Report
127 Independent Auditors’ Report
22 AAmmFFIIRRSSTT RREEAALL EESSTTAATTEE IINNVVEESSTTMMEENNTT TTRRUUSSTT || AANNNNUUAALL RREEPPOORRTT 22001177
FY2007- FY2017
KEY MILESTONES
DECEMBER
2006
Listed on Main Market
of Bursa Malaysia Securities Berhad.
MARCH
2008
Acquisition of
The Summit Subang USJ
for a cash consideration of RM260.0 million.
NOVEMBER

2011
Acquisition of
Prima 9
for a cash consideration of
RM72.0 million.
JUNE NOVEMBER
2007
Acquisition of 2011
Wisma AmFIRST
Acquisition of
formerly known as Kelana Brem Prima 10
Towers for a cash consideration
for a cash consideration of
of RM86.0 million.
RM61.0 million.
MARCH
2011
Acquisition of
Additional Retail Space
At The Summit Retail Mall
of 37,372 sq ft for a cash consideration of RM6.8
million, boosting ownership of The Summit Mall from
66.1% to 70.5%.
AAmmFFIIRRSSTT RREEAALL EESSTTAATTEE IINNVVEESSTTMMEENNTT TTRRUUSSTT || AANNNNUUAALL RREEPPOORRTT 22001177 33
FY2007- FY2017
KEY MILESTONES
(CONTD.)
AUGUST
2012
Completed the
Rights Issue,
DECEMBER

raised RM215.0 million.
2016
Completed the
Major Refurbishment
at
JANUARY
The Summit Subang USJ.
2016
Acquisition of
Mydin HyperMall
Bukit Mertajam for a cash
consideration of RM250.0 million
with a lease-back arrangement
with Mydin Mohamed Holdings
Berhad for a period of thirty (30)
years.
NOVEMBER

2012
MARCH
Acquisition of 2016
Jaya 99 Disposal of
for a cash consideration of AmBank Group
RM86.0 million. Leadership Centre
for a disposal price of RM36.0 million,
generated net gain on disposal of
RM12.2 million translated into additional
DPU of 1.78 sen.
4 AmFIRST REAL ESTATE INVESTMENT TRUST | ANNUAL REPORT 2017
FY2017
HIGHLIGHTS
Investment RM1,662.8
million
Properties
[31.3.16 : RM1,627.8 milion]
Closing Unit 81.0
sen
Price
[31.3.16 : 75.0 sen]
46.15
%
Gearing
[31.3.16 : 46.15%]
NAV per Unit RM1.2421
(After proposed final
income distribution) [31.3.16 : RM1.2503]
Gross RM111.5 million
Revenue
[FY2016 : RM99.8 million]
Net Property RM72.8
million
Income
[FY2016 : RM61.1 million]
RM27.9
million
Realised Net
[FY2016 : RM38.3 million included
Profit
the one-off gain on disposal of
AGLC of RM12.2 million]
4.06
sen
DPU
[FY2016 : 5.10 sen included the one-off
gain on disposal of AGLC of 1.29 sen]
AmFIRST REAL ESTATE INVESTMENT TRUST | ANNUAL REPORT 2017 5
FIVE-YEAR
FINANCIAL HIGHLIGHTS
FY2017 FY2016 FY2015 FY2014 FY2013
RM’000 RM’000 RM’000 RM’000 RM’000
SUMMARY OF FINANCIAL POSITION
Investment Properties 1,662,800 1,627,800 1,332,200 1,301,900 1,277,226
Total Asset Value 1,679,565 1,728,132 1,370,131 1,314,092 1,297,589
Net Asset Value (“NAV”) 867,206 879,287 841,597 849,864 836,903
Borrowings 775,143 797,516 491,300 429,079 426,400
Gearing (%) 46.15 46.15 35.86 32.65 32.86
Units in Circulation (Units) (‘000) 686,402 686,402 686,402 686,402 686,402
NAV per Unit (RM)
- Before proposed final income distribution 1.2634 1.2810 1.2261 1.2381 1.2193
- After proposed final income distribution 1.2421 1.2503 1.2017 1.2011 1.1828
- Highest NAV during the year (ex-distribution) 1.2514 1.2810 1.2488 1.2381 1.3941
- Lowest NAV during the year (ex-distribution) 1.2228 1.2115 1.2161 1.1967 1.1755
SUMMARY OF COMPREHENSIVE INCOME
Gross Revenue 111,539 99,794 106,889 112,793 109,784
Net Property Income 72,802 61,092 66,619 76,475 74,168
Profit for the financial year :-
- Realised 27,889 38,358 37,944 50,267 46,920
- Unrealised (5,650) 30,015 396 12,801 4,877
22,239 68,373 38,340 63,068 51,797
Distribution per Unit (“DPU”) (sen)1
- Interim 1.93 2.03 3.09 3.65 3.16
- Final 2.13 3.07 2.44 3.70 3.65
4.06 5.10 5.53 7.35 6.81
Distribution Yield
(based on respective closing market price) (%) 5.01 6.80 5.91 7.54 6.31
Management Expense Ratio (“MER”) (%)2 1.04 0.99 0.96 0.88 1.00
Portfolio Turnover Ratio (“PTR”) (Times)3 - 0.14 - - 0.11
1 Distribution dates FY2017 FY2016 FY2015 FY2014 FY2013
Interim 13/12/16 11/12/15 23/12/14 05/12/13 12/12/12
Final 25/05/17 30/05/16 30/06/15 12/06/14 31/05/13
2 The calculation of MER is based on total fees incurred by AmFIRST REIT, including the Manager’s fees, Trustee’s fees, Auditors’
remuneration, Tax Agent’s fees and administrative expenses, to the average net asset value during the financial year.
3 The calculation of PTR is based on the average of total acquisition and total disposal of investment in AmFIRST REIT for the financial
year to the average net asset value during the financial year.
6 AmFIRST REAL ESTATE INVESTMENT TRUST | ANNUAL REPORT 2017
FIVE-YEAR
FINANCIAL HIGHLIGHTS
(CONTD.)
UNIT PRICE AND TRADING PERFORMANCE
Closing Price (RM)
Volume (Unit) (‘000)
1.20 -
- 4,000
1.10 -
- 3,500
1.00 - - 2,500
- 2,000
0.90 -
RM0.81
- 1,500
RM0.75
0.80 -
- 1,000
0.70 -
- 500
0.60 - - 0
| | | | | | | | | | | |
APR 2016 MAY 2016 JUN 2016 JUL 2016 AUG 2016 SEP 2016 OCT 2016 NOV 2016 DEC 2016 JAN 2017 FEB 2017 MAR 2017
Closing Price Volume
FY2017 FY2016 FY2015 FY2014 FY2013
UNIT PRICE PERFORMANCE (RM)
- As at 31 March 0.81 0.75 0.94 0.98 1.08
- Highest Traded Price during the year 0.86 0.95 1.00 1.09 1.23
- Lowest Traded Price during the year 0.73 0.71 0.85 0.91 1.02
- Average Traded Price during the year 4 0.79 0.84 0.95 1.03 1.14
- Average Volume Traded per day (Units) (‘000) 193 289 272 384 435
TOTAL RETURN (%) 5
Change in Unit Price 7.69 (21.96) (4.19) (10.22) 2.34
Income Distribution 5.21 6.05 5.79 7.15 6.38
Total Return 12.90 (15.91) 1.60 (3.07) 8.72
Average Annual Return (%)6
One year 12.90
Three years (0.47)
Five years 0.85
Since listing date (21 December 2006) 6.02
4 Average Traded Price during the year is calculated based on average of opening price and closing price for the financial
year.
5 Total Return is based on the actual gross income distribution and net change in unit price at the opening and closing of the
financial year, over the average unit price of the opening and closing of the respective financial year. However, for FY2013,
the opening unit price as at 1 April 2012 was restated from RM1.19 to cum rights at RM1.06 to reflect the effects of Rights Issue
that was completed in August 2012.
6 Average Annual Return is computed based on Total Return per unit for the period averaged over number of years.
Past performance is not indicative of future performance. Unit prices and investment returns may fluctuate.
AmFIRST REAL ESTATE INVESTMENT TRUST | ANNUAL REPORT 2017 7
FIVE-YEAR
FINANCIAL HIGHLIGHTS
(CONTD.)
GROSS REVENUE AND NET PROPERTY INCOME REALISED NET PROFIT
(RM’000) (RM’000)
109,784 112,793 106,889 111,539 46,920 50,267
99,794
37,944 38,358
74,168 76,475 72,802
66,619 27,889
61,092
FY2013 FY2014 FY2015 FY2016 FY2017 FY2013 FY2014 FY2015 FY2016 FY2017
Gross Revenue Net Property Income
NAV PER UNIT (after proposed income distribution)
DISTRIBUTION PER UNIT
AND CLOSING UNIT PRICE
(SEN)
(RM)
7.35
6.81
1.2503 1.2421
1.18281.08 1.20110.98 1.2017 5.53 5.10
0.94
0.81
0.75 4.06
FY2013 FY2014 FY2015 FY2016 FY2017 FY2013 FY2014 FY2015 FY2016 FY2017
NAV Per Unit Unit Price
TOTAL ASSET VALUE AND NAV GEARING
(RM’000) (%)
46.15 46.15
1,728,132 1,679,565
35.86
1,297,589 1,314,092 1,370,131 32.86 32.65
879,287
849,864 867,206
841,597
836,903
FY2013 FY2014 FY2015 FY2016 FY2017 FY2013 FY2014 FY2015 FY2016 FY2017
Total Asset Value NAV
8 AmFIRST REAL ESTATE INVESTMENT TRUST | ANNUAL REPORT 2017
ABOUT
THE TRUST
AmFIRST Real Estate Investment Trust (“AmFIRST REIT” or the “Trust”) is a real estate investment trust established in Malaysia and
constituted by a Trust Deed dated 28 September 2006 (“Original Deed”) (as amended by the First Supplemented, Revised and
Restated Trust Deed dated 15 December 2006 (“First Deed”) and the Second Restated Deed dated 13 September 2013 (“Second
Deed or the “Deed”)) entered into between Am ARA REIT Managers Sdn Bhd (“Am ARA” or the “Manager”) and Maybank Trustees
Berhad, as the Trustee of AmFIRST REIT (the “Trustee”). The Second Deed has superseded the Original Deed and the First Deed.
AmFIRST REIT was listed on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Securities”) on 21 December 2006.
AmFIRST REIT is one of the largest Malaysian-based commercial real estate investment trusts and owns a diverse portfolio of nine (9)
properties located in Klang Valley (including Cyberjaya), Melaka and Penang, with a total Net Lettable Area (“NLA”) of 2.9 million
sq ft (excluding The Summit Hotel) as at 31 March 2017.
Unitholders
Distributions in the forms of income
distribution and other distributions Investment in AmFIRST REIT
Manager’s Fees Trustee’s Fee
AmFIRST
The Manager The Trustee
REIT
Management Services Trustee’s Services
Rental Income Ownership of Assets (Vested in Trustee)
Property
Property Management Fees
Real Estate
Manager
Assets
(External) Property
Management Services