KUALA LUMPUR: JLG Reit Managers Sdn Bhd, the Manager of Al-Salām Real Estate Investment Trust (Al-Salām Reit), announced strong financial results for its third quarter (Q3) ended September 30, 2025 (FY25), supported by sustained retail momentum, disciplined cost management and improved funding strength through a landmark sukuk issuance.
For the year, Al-Salām Reit recorded a revenue of RM65.7 million, a 12% year-on-year increase from RM58.6 million last year.
Net property income (NPI) rose by 15% year-on-year from RM38.8 million to RM44.7 million, reflecting expanding rental reversions, solid tenant demand and enhanced operating efficiencies.
Property expenses increased by 6%, while finance costs eased following the lower overnight policy rate (OPR).
Al-Salām Reit declared a distribution per unit (DPU) of 0.52 sen for Q3 2025, bringing total year-to-date distributions to 1.50 sen, surpassing the full-year FY24 DPU.
This milestone reinforces the Al-Salām REIT’s improving earnings trajectory and resilience across economic cycles.
CEO Zulhilmy Kamaruddin said the company’s Q3 performance reflects solid and consistent progress across the portfolio.
“The growth in revenue and NPI, coupled with our year-to-date DPU already surpassing the full-year distribution delivered in FY24, demonstrates the strength of our operating fundamentals and disciplined execution.
“This milestone reinforces the resilience of our portfolio and our ability to navigate evolving market conditions while continuing to deliver value to unitholders.
“As we head into the final quarter, we are maintaining our focus on driving operational efficiency, enhancing asset performance and strengthening tenant partnerships to sustain momentum.
“Looking ahead to 2026, we are committed to pursuing disciplined growth opportunities, supported by a strengthened capital position and an active portfolio strategy that positions Al-Salām Reit for long-term value creation,” he said in a statement.
On November 24, 2025, Al-Salām Reit completed a RM455 million five-year Sukuk Wakalah, supported by an irrevocable and unconditional Shariah-compliant guarantee from Credit Guarantee & Investment Facility (CGIF).
The Sukuk achieved an oversubscription rate of approximately 5 times at sub-4% pricing, attracting strong demand from domestic and foreign institutional investors.
This achievement represents one of Al-Salām Reit’s most significant capital-market milestones, strengthening its funding flexibility and positioning the REIT for future portfolio expansion and growth initiatives.
“The overwhelming response to our Sukuk Wakalah issuance reflects investor confidence in the quality of our assets, the resilience of our cash flows and the clarity of our long-term strategy.
“With strengthened funding capacity, we are well-positioned to pursue strategic
opportunities that enhance portfolio value and drive future growth,” added Zulhilmy.
The retail segment continued to be the largest contributor to Al-Salām Reit’s earnings, led by the strong performance of KOMTAR JBCC, which recorded a 25% year-on-year increase in revenue to RM13.3 million in Q3 2025.
NPI rose to RM8.0 million, from RM5.3 million in Q3 2024.
KOMTAR JBCC continued to benefit from regional economic growth in Johor, driven by rising domestic consumption and tourism recovery, as well as cross-border spending from Singapore, which has been steadily strengthening in anticipation of the Johor Bahru–Singapore RTS Link, scheduled to commence operations in 2026.
As part of its ongoing value enhancement strategy, Al-Salām Reit continues to optimise tenancy mix and attract new brands with strong performance potential.
The food and beverage (F&B) segment, comprising long-term-leased KFC and Pizza Hut outlets, maintained steady rental income throughout the quarter.
Revenue stood at RM4.3 million, providing consistent and dependable cash flow due to its fixed-rent structure and resilient tenant profile.
The industrial segment delivered revenue of RM2.9 million, supported by master lease arrangements that offer predictable income and minimal vacancy risk.
The segment continues to anchor portfolio stability through long-term tenancy agreements with established tenants.
NPI remained at RM2.8 million, with occupancy at 100%.
The office segment, consisting of Menara KOMTAR, registered revenue of RM1.8 million and NPI of RM0.4 million, reflecting ongoing improvements in leasing activity as market conditions continue to stabilise.
