KUALA LUMPUR: Al-Salām Real Estate Investment Trust (Reit) posted a 10.3 per cent year-on-year increase in revenue to RM43.5 million for the first half ended June 30, 2025, driven by stronger contributions from its retail assets, particularly Komtar JBCC.
Net property income (NPI) rose 11.4 per cent to RM29.5 million from RM26.5 million in the same period, the trust’s manager JLG Reit Managers Sdn Bhd said in a statement today.
For the second quarter (2Q25), Al-Salām Reit recorded revenue of RM22.1 million and NPI of RM14.6 million.
It declared a distribution per unit of 0.47 sen for the quarter, bringing total payout for the first half to 0.98 sen, an increase of 108.5 per cent compared with 0.47 sen in the same period last year.
The manager said the improved performance was anchored by the retail segment, led by Komtar JBCC’s transformation through asset enhancement initiatives.
Tenant mix improvement and space reconfiguration boosted rental yields and attracted stronger leasing demand.
In 2Q25, the retail segment delivered revenue of RM13 million, a 24 per cent increase from RM10.5 million a year earlier, while NPI surged 37.5 per cent to RM7.2 million from RM5.2 million.
The food and beverage segment, comprising 41 KFC and Pizza Hut outlets, generated stable revenue of RM4.4 million during the quarter with full occupancy maintained.
Al-Salām Reit also completed the disposal of a KFC drive-thru outlet in Jalan Kuchai Lama for RM14.7 million, in line with its portfolio optimisation strategy.
The industrial segment contributed RM2.9 million in revenue, providing a stable earnings base, while the office segment showed early signs of recovery.
Menara Komtar posted RM1.77 million in revenue and NPI of RM0.55 million, compared with RM1.82 million and RM0.61 million respectively in 2Q24, supported by improved leasing interest and new tenant sign-ups.
Al-Salām Reit chief executive officer Zulhilmy Kamaruddin said the quarterly results reflect a balanced and disciplined portfolio strategy.
He added that Komtar JBCC’s transformation highlights the success of its asset enhancement initiatives in unlocking growth, while F&B and industrial assets continue to provide steady and resilient cashflows.
“The improving momentum at Menara Komtar demonstrates the effectiveness of our leasing strategies in supporting recovery.
“With growth from retail, resilience from F&B and industrial, and recovery in our office segment, we are confident that our diversified portfolio and ongoing optimisation will continue to deliver sustainable value for our unitholders,” he said.
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