pROpERTy pORTfOlIO - malaysiastock.biz several heritage buildings which include Bangunan Sultan Abdul Samad, High Court building, Dataran Merdeka and the Royal Selangor Club

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HOLIDAY VILLA LANGKAWI

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Lot 1698, Pantai Tengah, Mukim Kedawang, 07000 Langkawi, Kedah Darul Aman.

The property is located along one of the most popular beach stretches in Langkawi where the locality is known as Pantai Tengah. Along the same stretch are other good hotel resorts which include Langkawi Beach Resort, Aseania Seaview Resort, Sunset Beach Resort, Moonlight Bay Resort, Tanjung Mali Beach Resort and Pelangi Beach Resort, to name a few. Langkawi International Airport is located 6 kilometers to north of the property.

Langkawi Island is one of the premier tourist destinations in Malaysia due to its status as a duty free zone apart from the wonderful beaches and historical sites it offers to tourist. Due to the heavy tourist arrivals and international events held, Langkawi Airport has been upgraded to an international airport.

Lot 2504, P.T. 107 & P.T. 108, held under G.M. 1200, H.S. (M) 667 and H.S. (M) 668 respectively, Town of Padang Mat Sirat, District of Langkawi, Kedah Darul Aman.

Resort Hotel

A purpose-built 4-star resort hotel with 238-rooms located along Pantai Tengah, Langkawi.

Approximately 16 years

Freehold

Not Applicable

10 years commencing from July 2006

183,190 sq.ft.

Used as a resort hotel under the brand name of Hotel Holiday Villa.

55 parking bays

26 February 2007

RM55,000,000.00

RM58,310,000.00

Hakimi & Associates Sdn. Bhd.

RM58,310,000.00

Langkawi Holiday Villa Sdn. Bhd.

100% (under master lease agreement)

RM307,083.33

July 2009

Malik & Kamaruzaman Property Management Sdn. Bhd.

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SEGi COLLEGE

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SEGi College, Persiaran Kewajipan USJ 1, 47600 Subang Jaya, Selangor Darul Ehsan.

Located within one of the Commercial Business Districts of Subang Jaya under zone USJ 1, Subang Jaya. Subang Jaya is an integrated mixed development area comprising of residential, commercial and industrial developments which is mainly developed by Sime UEP. It is located about 15 kilometres to south-west of Kuala Lumpur city centre.

Landmark development located next to the property is the Summit City which is an integrated development comprising of retail complex, office block and a 4-star hotel. In the neighbourhood, there are several prominent commercial buildings which include Subang Parade, Sunway Pyramid, Sunway Medical Centre and Sheraton Hotel.

Geran 43527, Lot No. 13, Pekan Subang Jaya, District of Petaling, Selangor Darul Ehsan.

Higher Education Building

A 12-storey purpose-built commercial building with 3 basement car park levels which is used as a Higher Learning Institution premises.


Freehold

Not Applicable

15 years commencing from May 2006

280,575 sq.ft.

131,387 sq.ft.

Used as a higher learning institution and training centre under the brandname of SEGi College.

206 parking bays

26 February 2007

RM52,500,000.00

RM54,000,000.00


RM54,000,000.00

SEG International Berhad

100%

RM261,625.00

May 2009


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SEGi College (Malaysia Main Campus), No. 9, Jalan Teknologi, Taman Sains Selangor, Kota Damansara PJU 5, 47810 Petaling Jaya, Selangor Darul Ehsan.

SEGi College is located within a new development known as Taman Sains Selangor 1, an emerging high-technology industry estate in Kota Damansara. Kota Damansara is an integrated self-contained township developed by the Selangor State Development Corporation located approximately 25 kilometres to the west of Kuala Lumpur city centre. Notable commercial buildings within the neighbourhood are Tropicana Medical Centre, Sri KDU Kota Damansara and Kelab Golf Seri Selangor.

Developer’s Lot No. 9, Mukim Sungai Buloh, District of Petaling, Selangor Darul Ehsan.

Higher Education Building

An institutional complex comprising 7-storey administrative block and 5-storey academic block.


Leasehold for 99 years


10 years commencing from December 2007

337,710 sq.ft.

211,194 sq.ft.

Used as a college campus under the brandname of SEGi College.

334 car parking bays and 808 motorcycle parking bays

28 December 2007

RM145,000,000.00

RM152,000,000.00

Rahim & Co Chartered Surveyors Sdn. Bhd.

RM152,000,000.00


100%

RM870,000.00

December 2009

I.M. Global Property Consultants

SEGi COLLEGE, KOTA DAMANSARA

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BLOCK A & B, SOUTH CITY PLAzA

Block A & B, South City Plaza, Persiaran Serdang Perdana, Taman Sedang Perdana, Section 1, 43300 Seri Kembangan, Selangor Darul Ehsan.

The property is located within a commercial development known as South City Plaza comprising retail complex, office block and hotel cum service apartments. It is located within the locality known as Seri Kembangan, a mixed development area made up of mainly residential development supported by several sections of commercial developments. Seri Kembangan is located about 15 kilometres to the south of Kuala Lumpur city centre.

Prominent development within the neighbourhood is the Mines Resort City which comprises of Mines BeachResort & Spa, Mines Waterfront Business Park, Palace of the Golden Horses, Mines International Exhibition City Centre, The Mines Resort and Golf Country Club and Mines Shopping Fair.

Developed on land held under Master Title Pajakan Negeri 7393, Lot 1, Pekan Serdang, District of Petaling, Selangor (previously known as H.S.(D) 91640, P.T. 32218), Mukim and District of Petaling, Selangor Darul Ehsan.

Office Building

Two (2) blocks (Block A and Block B) of 5 ½-storey purpose-built commercial buildings within a development known as South City Plaza.




10 years commencing from August 2006

72,505 sq.ft.

66,606 sq.ft.

Block A is used as a higher learning centre of SEGi College and Block B is used as an office for – Diamond Energy Water (a company producing natural environment product).

The property does not have any car park but shares the usage of 1,766 parking bays with the developer and owner of the individual units within the South City development

26 February 2007

RM18,300,000.00

RM19,500,000.00


RM19,500,000.00


100%

RM100,500.00

August 2012


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WISMA AMANAHRAYA

Wisma AmanahRaya, No. 2, Jalan Ampang, 50450 Kuala Lumpur.

The property is located within the Central Business District of Kuala Lumpur where most of the financial institutions are located including Standard Chartered Bank, Bank Muamalat, HSBC Bank, OCBC Bank, CIMB Bank, AIA Insurance and Maybank.

Close proximity to the property is the Light Railway Transit (LRT) station which connects the locality to other major areas such as Kuala Lumpur City Centre (KLCC) and Kuala Lumpur Central Station (centre of all public transport for Klang Valley). Within the immediate vicinity of the property are also several heritage buildings which include Bangunan Sultan Abdul Samad, High Court building, Dataran Merdeka and the Royal Selangor Club.

Pajakan Negeri (WP) 25414, Lot No. 21, and Pajakan Negeri (WP) 25415, Lot No. 22, Section 32, Town and District of Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur.

Office Building

A 15-storey purpose built office building with 2 basement levels.




6 years commencing from August 2006

235,000 sq.ft.

166,902 sq.ft.

Used as Amanah Raya Berhad’s office headquarters.

59 parking bays

26 February 2007

RM68,000,000.00

RM73,000,000.00


RM73,000,000.00

Amanah Raya Berhad

100%

RM450,635.40

November 2009



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Wisma Amanah Raya Berhad, No. 15, Jalan Sri Semantan 1, Damansara Heights, 50490 Kuala Lumpur.

Wisma Amanah Raya Berhad is located within the commercial zone of the exclusive residential area of Damansara Heights. Damansara Heights is located approximately 4 kilometres to the south-west of Kuala Lumpur city centre.

Some of the prominent commercial buildings within the same commercial area are premises of Institution of Banks of Malaysia, CIMB Berhad, Shell Malaysia, KPMG and Manulife.

Title Nos. H.S.(D) 83465 and 79671, P.T. No. 6 and 7 respectively, Mukim and District of Wilayah Persekutuan, Kuala Lumpur.

Office Building

A 5-storey purpose-built office building with 6 lower ground levels inclusive 4-level car park.




9 years commencing from November 2005

170,000 sq.ft.

125,227 sq.ft.

Used as office for CIMB Group of Companies.

261 parking bays

26 February 2007

RM53,000,000.00

RM60,000,000.00


RM60,000,000.00

CIMB Investment Bank Berhad

100%

RM302,781.98

November 2009


WISMA AMANAH RAYA BERHAD

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Wisma UEP, Jalan USJ10/1A, Pusat Perniagaan USJ 10, 47620 Subang Jaya, Selangor Darul Ehsan.

Wisma UEP is located within one of the Commercial Business Districts of Subang Jaya under section USJ 10 of Subang Jaya. Subang Jaya is an integrated mixed development comprising of residential, commercial and industrial developments mainly developed by Sime UEP. It is located about 15 kilometres to south-west of Kuala Lumpur city centre.

Nearby to the property is the local council’s office, Majlis Perbandaran Subang Jaya. In the neighbourhood, there are several prominent commercial buildings which include Summit City, Subang Parade, Sunway Pyramid, Sunway Medical Centre and Sheraton Hotel.

Title Nos. H.S.(D) 52531, P.T. 11303, Mukim of Damansara, District of Petaling, Selangor Darul Ehsan.

Office Building

A 11-storey purpose-built office building with 3 level of basement car park.


Freehold

Not Applicable

3 years commencing from September 2007

198,499 sq.ft.

90,541 sq.ft.

Most of the spaces used as Sime Darby Property Group’s offices and with other tenants such as HSBC Bank Berhad and Kenanga Investment Bank Berhad.

178 parking bays

26 February 2007

RM35,500,000.00

RM38,000,000.00


RM38,000,000.00

Sime UEP Properties Berhad

100%

RM175,000.00

Nil (Tenancy to expire in September 2010)


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WISMA UEP

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PERMANIS FACTORY

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Lots 5 & 7, Jalan P/6 and P/7, Kawasan Perusahaan Seksyen 13, Bandar Baru Bangi, Selangor Darul Ehsan.

The property is located within the Bangi Industrial Area in Section 13 of Bandar Baru Bangi, a mixed development area comprising of residential, commercial and industrial developments. Bandar Baru Bangi is located about 25 kilometres to the south-east of Kuala Lumpur city centre.

Notable premises within the same section of the town are the premises of Carrier International Sdn. Bhd., Denso (Malaysia) Sdn. Bhd. and Y.S.P Industries (Malaysia) Sdn. Bhd., to name a few. It is about 3 kilometres to the south of Bandar Baru Bangi town centre which is located in Section 9.

P.T.20104 & P.T.20105, held under H.S.(M) 13244A & H.S.(M) 13245A respectively, within Section 13, Bandar Baru Bangi, Mukim of Kajang, District of Hulu Langat, Selangor Darul Ehsan.

Industrial Factory

A single storey warehouse located within Kawasan Perusahaan Seksyen 13, Bandar Baru Bangi.



81 years

10 years commencing from June 2006

202,233 sq.ft.

Used as a manufacturing factory producing soft drinks / fruit juices such as 7-UP and Pepsi.

Car park and motorcycle parking sheds are available within the compound of the property

26 February 2007

RM23,550,000.00

RM28,222,000.00 (Valuation included upgrading works undertaken at the property)


RM28,222,000.00

C.I. Holdings Berhad

100%

RM157,250.00

June 2011


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Tamadam 1, Lot No. 11614, Jalan Perlabuhan Utara, North Klang Industrial Area, 42000 Port Klang, Selangor Darul Ehsan.

Tamadam Bonded Warehouse is located within an industrial area known as North Klang Straits Industrial Area, Port Klang. The area is located approximately 15 kilometres from Klang town centre.

Some of the prominent premises within the same area are of Ayamas, Nichiden Seimitsu (M) Sdn. Bhd., Scott & English Electronics Sdn. Bhd., Behn Meyer & Co. (M) Sdn. Bhd. and Johann Frieght. Lot No. 11614 held under PN 4564 and Lot No. PT 21596 held under H.S.(M) 19795, all situated in Mukim and District of Klang, Selangor Selangor Darul Ehsan.

Industrial Warehouse

Warehouse Complex comprising 12 units of single-storey warehouses and 2 units guard house.


Lot No. 11614 – Leasehold for 60 years Lot No. PT 21596 – Leasehold for 99 years

Lot No. 11614 – approximately 59 years Lot No. PT 21596 – approximately 81 years

10 years commencing from January 2007

237,033 sq.ft.

Used as a bonded warehouse.

Available within the compound of the property

28 December 2007

RM28,500,000.00

RM29,500,000.00


RM29,500,000.00

Tamadam Bonded Warehouse Berhad

100%

RM179,025.00

December 2010


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TAMADAM BONDED WAREHOUSE


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AIC FACTORY

Wisma AIC, Lot 1&3, Persiaran Kemajuan, Seksyen 16, 40200 Shah Alam, Selangor Selangor Darul Ehsan.

Wisma AIC is located within an industrial zone of Section 16 of Shah Alam. Shah Alam is a mixed development area mainly developed by the Selangor State Development Corporation, a state-government owned developer. Shah Alam, the capital city of the Selangor State is located about 30 kilometres to the south-west of Kuala Lumpur city centre.

Some of the prominent industrial premises within the same section are of Matsushita Electronic Devices, Lafarge Malayan Cement, Enersave, HL Industries and CCM Fertilisers.

Lot No. PT 611 held under HSD No. 97328 and Lot No PT 612 held under HSD No. 97329, both situated in Town of Shah Alam, District of Petaling, Selangor Darul Ehsan.

Industrial Factory

An industrial complex comprising a 3-storey office block annexed with a single storey factory and a single storey factory with canteen and a guard house.

Approximately between 5 to 13 years



10 years commencing from September 2006

159,708 sq.ft.

A factory manufacturing electronic products mainly flat screen TV.


28 December 2007

RM19,200,000.00

RM20,000,000.00


RM20,000,000.00

AIC Corporation Berhad

100%

RM110,833.33

September 2009



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Silver Bird Complex, Lot 72, Persiaran Jubli Perak, Seksyen 21, 40000 Shah Alam, Selangor Darul Ehsan.

SilverBird Complex is located within the industrial zone of section 21 of Shah Alam. The immediate surrounding is designated for industrial developments comprising of prominent industrial premises such as Nippon Electrics Glass (M) Sdn. Bhd., Panasonic, JVC Malaysia, DHL and TNT Logistics (M) Sdn. Bhd.

Section 21 is located about 4 kilometres from Shah Alam city centre and about 30 kilometres to the south-west of Kuala Lumpur city centre.

Lot No. PT 93, held under HSD No. 232293, Pekan Baru Hicom (formerly Mukim of Damansara), District of Petaling, Selangor Darul Ehsan.

Industrial Complex

A factory complex comprising a 2-storey office block annexed to a single storey factory together with single storey canteen, archives, gallery, security houses and others.


Freehold

Not Applicable

10 years commencing from October 2006

279,010 sq.ft.

Bread and confectionary manufacturing under the brand name of ‘High 5’.


28 December 2007

RM92,000,000.00

RM95,000,000.00


RM95,000,000.00

Silver Bird Group Berhad

100%

RM570,000.00

October 2009


SILVER BIRD FACTORY

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NAZA Warehouse, Lot 61B, Kawasan Perindustrian Gurun, 08800 Gurun, Kedah Darul Aman.

NAZA Warehouse is located within Gurun Industrial Estate which is a new heavy industrial estate in the Kedah State accommodating the premises of Petronas Urea Fertilizer Plant, NAZA Automotive Manufacturing and Assembly Plant, Sapura Automotive Industries Sdn. Bhd., KIA Auto Accessories Sdn. Bhd. and ACE Polymers (M) Sdn. Bhd.

Lot No. 61B (Part of Lot No. PT 6736), Town of Gurun, District of Kuala Muda, Kedah Darul Aman.

Industrial Warehouse

An Industrial complex, comprising single-storey warehouse and single storey office building.




10 years commencing from December 2007

214,450 sq.ft.

214,450 sq.ft.

Used as a warehouse operated by Konsortium Logistik Berhad to store NAZA motor vehicles parts.


28 December 2007

RM23,970,000.00

RM24,800,000.00


RM24,800,000.00

Teras Globalmas Sdn. Bhd.

100%

RM159,800.00

December 2010


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GURUN AUTOMOTIVE WAREHOUSE

40 Amanahraya • REIT

Corporate struCture

CIMB TrusTee Berhad

unITholders as at 31 December 2008

Kumpulan Wang Bersama 63.74%

Foreign Institutions 19.21%

Local Institutions 15.30%

Retail 1.75%

InVesTMenT CoMMITTee

1. Datuk Yahya Ya’acob

2. Tengku Dato’ Hasmuddin Tengku Othman

3. Dato’ Mani Usilappan

4. Mahadzir Azizan

5. S. Elias Abd. Rahman Alhabshi

ProPerTy asseTs and oTher InVesTMenTs

Managers’ fees >

< Management Services

ownership of assets >

< Rental Income

Trustee Fees >

< Acts on Behalf of unitholders

receives distribution >

< Invest Money

Property Management & Monitoring

Investment decisions

MalIk & kaMaruzaManProPerTy ManageMenT sdn Bhd(00721939-X)

I.M. gloBal ProPerTy ConsulTanTs(001639648-V)

41Amanahraya • REIT

organisation Chartof the reit Manager

head of Property Investment & reIT

Abas Abd Jalil

Board oF dIreCTors

Independent directors

Tan Sri Datuk Arshad Ayub

Datuk Mohamed Adnan Ali

Dato’ Haji Ahmad Kamal Abdullah Al-Yafii

non-Independent directors

Dato’ Ahmad Rodzi Pawanteh

Haji Rozan Mohd Sa’at

Dato’ Dr. Mohd Irwan Serigar Abdullah

Sharizad Juma’at

Alina Hashim(Alternate Director to Dato’ Ahmad Rodzi Pawanteh)

Managing director/Ceo

Sharizad Juma’at

head of risk Management

Zaffarin Hj. Zanal

head of Compliance & legal

Rizal Abdullah

Chief Investment officer

Meor Khairi Bazid

InVesTMenT CoMMITTeeDatuk Yahya Ya’acob

Tengku Dato’ Hasmuddin Tengku Othman

Dato’ Mani Usilappan

Mahadzir Azizan

S. Elias Abd. Rahman Alhabshi

ProPerTy InVesTMenT ProPerTy ManageMenT

reIT suPPorT

assistant Manager, accounts

Lim Jin Eng

Compliance officer

Nor Hakim Ismail

general Manager Finance and operations

Tai Ai Ngoh

general ManagerMarketing / Client services

Azlan Azizuddin

assistant general ManagerFixed Income and Money Market

Sharifah Md. Sidek

executive

Mohd Hafiz Jantan

executive

Siti Adilah Aziz

assistant Manager

Shahriman Abdol Rahman

Manager

Fakru Radzi Ab Ghani


Board of direCtorsFrom left to right:Dato’ Dr. Mohd Irwan Serigar Abdullah Sharizad Juma’atHaji Rozan Mohd Sa’at Dato’ Ahmad Rodzi PawantehTan Sri Datuk Arshad Ayub (Chairman)Dato’ Haji Ahmad Kamal Abdullah Al-YafiiAlina HashimDatuk Mohamed Adnan Ali

Tan sri datuk arshad ayub Chairman (Independent Non-Executive)

Tan Sri Datuk Arshad Ayub, a Malaysian, aged 81, was appointed to the Board on 11 October 1995.

He joined the Malaysian Civil Service upon his graduation and had a successful career. He was Deputy Controller, Industrial Development Division Ministry of Commerce and Industry (Ministry of Trade and Industry) from 1961 to 1965. He was the first Director of MARA Institute of Technology for 10 years from 1965 to 1975, Deputy Governor of Bank Negara Malaysia from 1975 to 1977, Deputy Director General in the Economic Planning Unit of the Prime Minister’s Department from 1977 to 1978. He was Secretary General to the Ministry of Primary Industries (1978), Ministry of Agriculture (1979 to 1981) and Ministry of Land and Regional Development (1981 to 1983). He sits on a number of committees at national and international level. He was a Member of Justice Harun’s Salaries Commission for Statutory bodies and Local Government.

His directorships in other public listed companies includes as Chairman of Malayan Flour Mills Berhad, Audrey International Berhad, LBI Capital Berhad and Tomypak Holdings Berhad. He also sits on the Board of Kulim (Malaysia) Berhad, KPJ Healthcare Berhad, Sindora Berhad, Top Glove Corporation Berhad, Greenyield Berhad.

He currently serves as President of the Malaysian Rubber Products Manufacturers’ Association (MRPMA), Chairman of Malaysian Rubber Export Promotion Council (MREPC) and a Member of Lembaga Getah Malaysia (LGM). He is Pro Chancellor of UiTM, Chairman of University of Malaya Board and Member of Kolej Ugama Sultan Zainal Abidin (KUSZA) and Institut Professional Baitulmal.

profile of the Board of direCtors


Tan Sri Datuk Arshad Ayub obtained a Diploma in Agriculture from College of Agriculture, Malaya, Serdang, Selangor in 1954 and a Bachelor of Science (Hons) Degree in Economics and Statistics from University College of Wales, Aberystwyth, United Kingdom in 1958. In 1964 he obtained a postgraduate Diploma in Business Administration (IMEDE), Switzerland.

dato’ haji ahmad kamal abdullah al-yafii Deputy Chairman (Independent Non-Executive) Chairman of ARJMF’s Investment Committee and Member of Management Committee

Dato’ Haji Ahmad Kamal Abdullah Al-Yafii, a Malaysian, aged 71, joined the Board on 1 October 2005. He is a Chartered Accountant by training, with more than 42 years experience in accounting and management consulting.

Prior to joining ARJMF, he was financial controller of Malayawata Steel Berhad from 1968 to 1970. He was also a Partner of Hanafiah, Raslan & Mohammad (later acquired by Ernst & Young), a public accounting firm, from 1970 to 1999. He held several senior managerial positions in local & multinational public listed companies. He was a board member of Telekom Malaysia Berhad, Malaysia Airport Holdings Berhad and Bank Simpanan Nasional.

He is presently a Director of Keramat Tin Dredging Berhad, Sitt Tatt Berhad Group, Amanah Raya Berhad Group and Integrated Rubber Corporation Berhad.

Dato’ Haji Ahmad Kamal is a Fellow of the Institute of Chartered Accountants, England and Wales.

dato’ ahmad rodzi Pawanteh Director (Non-Independent Non-Executive) Member of Audit, Risk Management & Compliance Committee

Dato’ Ahmad Rodzi Pawanteh, a Malaysian, aged 53, was appointed to the Board on 1 October, 2005.

He is a member of the Chartered Institute of Marketing, UK and formerly was a Director and EXCO Member of KUB Malaysia Berhad. He is also Registered Financial Planner.

He is the Group Managing Director of Amanah Raya Berhad since July 2004. He also serves as a Director of Amanah Raya Berhad Group, Al Nibras Limited and Safeena (L) Ltd.

Dato’ Ahmad Rodzi holds an MBA in General Management from Southern Cross University, Australia and an MBA in Banking & Finance from the University of Hull, UK. He graduated from the University of Malaya with a Bachelor of Economics (Hons) in Accounting and also from the University of Wolverhampton, UK with a Bachelor of Laws (Hons).



datuk Mohamed adnan ali Director (Independent Non-Executive)Chairman of ARJMF’s Audit, Risk Management & Compliance Committee, Management Committee and Member of ARJMF’s Investment Committee

Datuk Mohamed Adnan Ali, a Malaysian, aged 67, was appointed to the Board on 1 October 2005.

He was formerly Accountant-General, Malaysia. He had served as an Accountant with various Ministries such as Ministry of Trade and Industry, Ministry of Energy and Public Works. He was also a Senior Manager, Investment with the Employees Provident Fund (EPF), Treasurer of International Islamic University Malaysia and Bursar of Universiti Teknologi Malaysia.

He does not sit on the Board of any public listed companies in Malaysia.

Datuk Mohamed Adnan Ali is a Fellow, Chartered Institute of Management Accountants, United Kingdom.



sharizad Juma’at Managing Director / Chief Executive Officer

Sharizad Juma’at, a Malaysian, aged 49, was appointed to the Board on 1 October 2005. She has been in the fund management industry for over 20 years.

She has vast experience in the area of fixed income and equities, having started her career with Permodalan Nasional Berhad (PNB) as a Research Analyst and later joined Employees Provident Fund (EPF) as an Investment Analyst.

During her tenure in EPF, she was the Head of Treasury for 10 years managing a portfolio of fixed income. Subsequently, she was promoted to lead the Equity Investment Department and her last position was Head of Equity Investment of EPF.

She has extensive experience in financial analysis, equity investment, portfolio management, credit evaluation, fixed income investment, structured products and property investment.

She is currently a Director of Al Nibras Limited and Amanah Raya Berhad Group.

Sharizad holds an MBA (Finance) from Michigan State University, East Lansing, Michigan USA and a B.Sc. (Hons) in Biochemistry from Universiti Kebangsaan Malaysia.

She has been a Licensed Fund Manager’s Representative under the Capital Markets & Services Act (2007) since 2004.

dato’ dr. Mohd Irwan serigar abdullah Director (Non-Independent Non-Executive)

Dato’ Dr. Mohd Irwan Serigar Abdullah, a Malaysian, aged 52, was appointed to the Board on 29 November 2007.

He started his career in the Prime Minister’s Department as Assistant Director in 1984, after which he was posted to the Industry Division of the Economic Planning Unit in 1986, and was later promoted to Senior Assistant Director. In 2003, he was posted to the Economics and International Division, Ministry of Finance. He was the Deputy Under Secretary, Economics and International Division, Ministry of Finance from 2006-2008. Currently, he is the Under Secretary of the Economics and International Division.

He is a Director of International Islamic University Malaysia (IIUM), Felcra Berhad and Pendinginan Megajana Sdn. Bhd.

He is also a board member of the Institute of Strategic and International Studies (ISIS). He serves as a member of the Blue Ocean Strategy Group of the Economic Planning Unit, Steering Committee of the PRO3-Based Learning Project, German-Malaysia Institute as well as the Strategic KPI and Panel on Strategic Planning, Ministry of Finance.

Dato’ Dr. Mohd Irwan graduated from the University of Malaya, Kuala Lumpur with a Bachelor of Arts (Hons) in Demography in 1982 and subsequently obtained his Masters of Science in Energy, Management and Policy from the University of Pennsylvania, Philadelphia USA. He obtained his Ph.D. in Economics from International Islamic University Malaysia, Kuala Lumpur. He attended the Advanced Management Program at Harvard Business School, session 174, 2008.

haji rozan Mohd sa’at Director (Non-Independent Non-Executive) Member of Audit, Risk Management & Compliance Committee

Haji Rozan Mohd Sa’at , a Malaysian, aged 50, was appointed to the Board on 17 April 2003.

He started his career in 1983 as an Administrative Officer in the Corporate Planning & Research Department of Johor Corporation before being seconded as an Operations Manager at Sergam Berhad (a subsidiary of Johor Corporation) in 1986. From 1988 to 1993, he was Executive Director of several subsidiaries in Johor Corporation Group and in 1994, he was appointed as the General Manager of Johor Corporation’s Tourism Division before assuming the post as Chief Executive of the same Division in 1996. Prior to his appointment as the Managing Director of Sindora Berhad, he served as the Senior General Manager, Business Development of Johor Corporation from 1999 until August 2002.

He was appointed to the Board of Sindora Berhad on 23 May 2002 and assumed the position of Managing Director of Sindora Berhad on 1 September 2002. He is also a Director of Kulim (M) Berhad and KPJ Healthcare Berhad.

Haji Rozan holds a Bachelor of Economics (Hons) in Statistics from Universiti Kebangsaan Malaysia.



Family relationship with any director and/or substantial unitholder

None of the Directors of the Manager has any family relationship with any other Director or substantial unitholder.

Conflict of Interest

No conflict of interest has arisen between the Directors and ARREIT during the financial year under review.

Convictions for offences

None of the Directors have been convicted for offences within the past 10 years other than traffic offence.

attendance at aboard of director’s Meetings

The Board currently comprises of seven Directors, with one alternate Director, of whom three are independent non-executive, three non-independent non executive, one non-independent executive.

During the financial year, the Board met six times. The number of meetings attended by each Director is as follow:-

alina hashim (Alternate Director to Dato’ Ahmad Rodzi Pawanteh) Alternate Member to Dato’ Ahmad Rodzi Pawanteh for Audit, Risk Management & Compliance Committee and Member of Management Committee and ARJMF’s Investment Committee

Alina Hashim, a Malaysian, aged 43, was appointed to the Board on 4 May 2007.

Her attributes include a strong background in finance having served as Head of Accounts & Money Market Department, Finance and Administration Department (Islamic Banking Division) and Credit Control Administration Department of Southern Finance Berhad (Year 1992 to 2004). She is currently the Group Chief Operating Officer of Amanah Raya Berhad.

She also holds a Chartered Accountant certificate from the Malaysian Institute of Accountants, Certified Practicing Accountant certificate from Australia (CPA Australia) and Certified Financial Planner certificate from the Financial Planning Association of Malaysia.In addition, she was also Vice-President of the Malaysian Association of Accounting Administrators and Council Member of the Malaysian Institute of Accountants.

Alina graduated from Monash University, Melbourne with a degree in Business Accounting

Tan sri datuk arshad ayub 6 6

dato’ haji ahmad kamal abdullah al-yafii 6 6

dato’ ahmad rodzi Pawanteh 6 4

sharizad Juma’at 6 6

datuk Mohamed adnan ali 6 6

dato’ dr. Mohd Irwan serigar abdullah 6 1

haji rozan Mohd sa’at 6 4

alina hashim 6 2(Alternate Director to Dato’ Ahmad Rodzi Pawanteh)

directors

number of Board meetings held

during directors’ tenure in office

number of meetings

attended by directors



“The financial year ended 2008 was a milestone for ARREIT as it signified the first full year of its existence as a listed entity. ARREIT was listed on the Main Board of Bursa Malaysia on 26 February, 2007.”

Tan sri datuk arshad ayub

Message froM the ChairMan

48 Amanahraya • REIT48

dear unITholders,

On behalf of the Board of Directors of AmanahRaya-JMF Sdn. Bhd. (“ARJMF”), the Manager of AmanahRaya Real Estate Investment Trust (“ARREIT”), it is a great pleasure for me to present the Annual Report and audited financial statement of ARREIT for the financial period ended 31 December, 2008.

The financial year ended 2008 was a milestone for ARREIT as it signified the first full year of its existence as a listed entity. ARREIT was listed on the Main Board of Bursa Malaysia on 26 February, 2007.


49Amanahraya • REIT 49



2009 is expected to be a challenging time for the Malaysian economy due to gloomy outlook on the global economic and financial environment. International Monetary Fund (“IMF”) had recently released its 2009 global GDP forecast of 0.5% which is the lowest growth rate since World War II. In order to soften the blow to the Malaysian economy, the government is likely to implement a series of economic initiatives and measures. These include the RM7 billion stimulus package as part of the Economic Stabilisation Plan, as well as a supplementary budget, aimed at softening the impact of global conditions and staving its contagion effect on the country.

Going forward, the economic outlook will have to be tampered with realism. As a major trading nation, Malaysia is not insulated from external factors.

Thus the current fluctuations in the prices of commodities, the credit crisis in the western financial markets, as well as slower global economic activities would have an impact on the country. As a result, overall growth is likely to be affected and several sectors of the economy shall be negatively impacted.

Even though short-term opportunity for property sector would be affected with the rest of the economy, but long term prospect is still intact due to relatively resilient domestic demand, growing population and constant growth of demand for quality properties.

On top of the long-term opportunity, Budget 2009 offers encouraging news to the property sector given the reduction in Real Estate Investment Trust (REIT) withholding tax for tax for foreign institutional investors to 10 per cent from 20 per cent previously, and for non-corporate investors to 10 per cent from 15 per cent, respectively.

The reductions demonstrate the Government’s deepening efforts in promoting investments in Malaysian REITs, given its potential of relatively steady returns against traditional stocks and shares.

In 2008, AmanahRaya Real Estate Investment Trust performance matched its forecast. This is a considerable feat given that all institutions, funds and corporations encountered challenging times beginning the mid-year mark. ARREIT realised the full potential of its assets with full rental contribution from all of its 13 properties, which reported nearly 100 per cent occupancy. A strategic decision to focus on long-term lease arrangements for ARREIT’s properties has paid off, providing unitholders with sustainable returns even during difficult market conditions.


“For the current year and going forward, ARREIT has initiated plans to acquire more assets to further strengthen its position and enlarged its property holdings. We are confident that the combination of a lower withholding tax regime, the Government’s economic stimulus packages and ARREIT’s acquisition strategy for the year, would place the fund in a much stronger footing in the future.”


Tan sri datuk arshad ayub13 February 2009

PerForManCe oF arreIT

For the current year and going forward, ARREIT has initiated plans to acquire more assets to further strengthen its position and enlarged its property holdings. We are confident that the combination of a lower withholding tax regime, the Government’s economic stimulus packages and ARREIT’s acquisition strategy for the year, would place the fund in a much stronger footing in the future.

For the financial year ended 2008, ARREIT reported a significant jump in its pre-tax earnings to RM67.07 million, inclusive of unrealised income of RM36.81 million, up from RM10.65 million recorded for 2007. The 100 per cent occupancy for all the 13 ARREIT’s assets also suggests that it is low-risk investment vehicle that would appeal to investors looking for steady returns.

ARREIT has also embarked on enhancements and expansions of its properties, including reviewing several upgrading proposals put to us by Lessees.

Such enhancement efforts include the extension of Permanis Factory in which was completed in 2008.

Changes To The InVesTMenT CoMMITTee oF arreIT

We would like to welcome S. Elias Abdul Rahman Alhabshi to the Investment Committee of ARREIT. We view the appointment of S. Elias, who brings a

wealth of experience in the banking and property sectors, to be a significant addition to our team.

On behalf of the Board, I also wish to convey my heartfelt thanks to Sudirman Masduki for his contributions to ARREIT since its listing. En Sudirman left the Investment Committee on 30 July 2008 to assume new responsibilities at another institution.

On behalf of the Board, I would like to express our heartfelt thanks to the ARREIT’s unitholders and Lessees for their unwavering faith and trust in us. It is our fervent hope that this sound relationship will continue given that this has been the cornerstone of our success.

I must also record the Board’s appreciation for the input, insight and perspectives accorded us by the Investment Committee of ARREIT.

The Board extends its upmost thanks to the members of the Investment Committee for the invaluable contributions with regards to the various decisions and initiatives undertaken by ARREIT in enhancing the fund’s portfolio.

My appreciation also goes to the management team of ARREIT for their efforts in achieving ARJMF’s management strategies and for their continued dedication to the success of ARREIT.

I would also like to thank my fellow Board members for their invaluable advice and contributions in helping to safeguard and steer ARREIT through a successful year.

lookIng ahead

We will continue with our strategy to seek and acquire quality assets to further strengthen ARREIT’s holding.

The continued support and contribution of the Board, the Investment Committee, ARJMF management as well as our most important partners, the unitholders, shall give us confident that ARREIT will sustain stable returns and growth in years to come.

Managing direCtor’sstateMent


“ For 2008, ARREIT recorded earning before taxation of RM67,066,308 inclusive of unrealised income of RM36.81 million or a spectacular 530% higher as compared to 2007. This was achieved on the back of 135% improvement in total revenue to RM46,281,903, comprising gross rental income of RM45,560,808 and interest income of RM721,095. These significant improvements in earnings were the result of the full-year rental effect from the five (5) properties acquired via the second injection at the end of 2007. ”

sharizad Juma’atManaging Director / Chief Executive OfficerAmanahRaya-JMF Asset Management Sdn. Bhd.

Managing direCtor’s stateMent


Fy 2008 aCTual ForeCasTed*

earning Before taxation 30.3 30.1(rM’million)-realised

dPu/annualised dPu (sen) 7.0105 6.96

yield based on IPo price** 7.46% 7.40%

*Forecasted in ARREIT’s circular dated 11 October 2007 **ARREIT was listed at RM0.94 per unit on 26 February 2007

dear unITholders,

We are pleased to inform that ARREIT was still able to deliver the expected return to the unitholders in 2008; achieving a total Distribution Per Unit (“DPU”) amounting to 7.0105 sen, an increase of 7.37% as compared to the annualized DPU of 6.5294 sen for 2007.

FInanCIal PerForManCe

For 2008, ARREIT recorded earning before taxation of RM67,066,308 inclusive of unrealised income of RM36.81 million or a spectacular 530% higher as compared to 2007. This was achieved on the back of 135% improvement in total revenue to RM46,281,903, comprising gross rental income of RM45,560,808 and interest income of RM721,095. These significant improvements in earnings were the result of the full-year rental effect from the five (5) properties acquired via the second injection at the end of 2007. ARREIT successfully almost doubled the value of its property portfolio from RM336 million at Initial Public Offering (“IPO”) to more than RM645 million by end of 2007. The earning before taxation

and distribution per unit exceeded the forecast outlined in the ARREIT’s circular dated 11 October 2007.

The current global financial crisis has created a more cautious investment sentiment worldwide, which resulted in strong selling pressure experienced by stock exchanges across the globe. While ARREIT was not exempted from the effect of the dampening market sentiment, its market price was not severely affected as compared to many stocks listed on Bursa Malaysia. Towards the end of financial year 2008, ARREIT’s unit price was hovering between RM0.70 to RM0.85 as compared to the IPO price of RM0.94, which reflects its relatively defensive nature. The stability of income from the long-term leases by reputable lessees had contributed to the sustainability of ARREIT’s business outlook despite staring at tougher economic environment.

reValuaTIon oF asseTs

In accordance with the Securities Commission’s Guidelines on Real Estate Investment Trust (“REIT Guidelines”), we have recently conducted a revaluation exercise on all the existing properties in the ARREIT’s portfolio. This has

translated into a capital appreciation of RM36.81 million or an increase of the total portfolio’s value from RM649.52 million to RM686.33 million.

The recent valuation reflects the potential of all ARREIT’s properties which are favourable quality buildings, strategically located and have good capital appreciations. As the manager, we shall continue our active property management practice to ensure the assets’ values are well preserved as well as looking at opportunities for upgrading and enhancement for the properties under ARREIT’s portfolio.



“As the manager, we shall continue our active property management practice to ensure the assets’ values are well preserved as well as looking at opportunities for upgrading and enhancement for the properties under ARREIT’s portfolio.”

sTrengThenIng arreIT’s PorTFolIo and FInanCIal PosITIon

ARREIT’S gearing level stood at 35.6% at the end of 2008, and its interest rates exposure had been fixed until FY2011. Therefore, ARREIT is not exposed to refinancing risk in the next couple of years in view of the current financial crisis. In addition, due to its relatively low net gearing, ARREIT is in a strong position to take advantage of the current property market situation and low interest rate environment to acquire quality assets based on the available limit to obtain additional leverage.

As the Manager, we have further strengthened our working relationship with all the Lessees and provided the necessary support needed by them in the course of managing ARREIT’s properties. We would continue to work together with all Lessees to enhance the assets’ quality through refurbishment and upgrading works. We are also monitoring the property expenses

for ARREIT to ensure the efficiency in the property management without compromising the value preservation. The total property expenses incurred for the year 2008 has been in the vicinity of 3.2% of the total rental income for 2008, which is lower than market practice. This is due to the ‘triple-net’ lease arrangements in most of the ARREIT’s properties whereby the Lessees are responsible for all the property expenses.

We shall try our best to continue to acquire yield accretive assets with similar lease arrangement to ensure ARREIT has the same income stability with lower management costs.

reaFFIrMaTIon oF arreIT’s FInanCIal raTIng By sTandard & Poor’s

We are glad to inform ARREIT’s unitholders that Standard & Poor’s, a renowned rating agency, has reaffirmed ARREIT’s financial rating of BBB- with stable outlook for the medium-term. This rating affirms ARREIT’s stable income and its above industry-average in terms of its lease period. The rating also highlighted on the higher than industry level of “security deposit” and the long-term lease maturities of the properties under ARREIT’s portfolio. The reaffirmation of rating and the stable outlook given by Standard & Poor’s prove the sustainability of ARREIT’s business in the coming years.

We are delighted with Standard & Poor’s continued confidence in ARREIT as an investment with stable income in the near future despite the current financial turmoil.



sharizad Juma’at13 February 2009

“We are glad to inform ARREIT’s unitholders that Standard & Poor’s, a renowned rating agency, has reaffirmed ARREIT’s Financial Rating of BBB- with a stable outlook for the medium-term.”

lookIng ForWard

We have identified several properties for potential acquisitions by ARREIT in order to strengthen the existing portfolio and continue diversifying the portfolio risks. We envisage that this may come into fruition within the financial year of 2009 should the market stabilises.

It is our commitment to continue enhancing the returns for ARREIT’s unitholders and to seek yield-accretive assets even under the current difficult market environment. Through active asset management, which includes but not limited to, acquisitions and organic strategies, we aim to continue delivering an exceptional financial performance in the coming years.

ARREIT’s success would not be possible without the support of all the unitholders, especially the unitholders’ continuous confidence and trust in us to deliver the projected returns as per our commitment as stated during inception stage. We are extremely grateful to the unitholders who have been with ARREIT since our maiden listing in February 2007.

As everyone is aware, the outlook for 2009 is not encouraging due to the weaker global financial market outlook, which in turn may lead to a slower economic growth and uncertainties in business environment. Nevertheless, we are positive that Malaysia’s Property Sector would remain firm, and we anticipate a continuous improvement in ARREIT’s portfolio via acquisitions of quality assets that would continue to position ARREIT among the securities in the local bourse that would deliver stable return to investors.

aManahraya reit investMent CoMMittee MeMBers

From left to right:

Mahadzir Azizan

Datuk Yahya Ya’acob (Chairman)

Dato’ Mani Usilappan

Tengku Dato’ Hasmuddin Tengku Othman

S. Elias Abd. Rahman Alhabshi



datuk yahya bin ya’acob Chairman

Datuk Yahya Ya’acob, a Malaysian, aged 65, was appointed as an Independent Investment Committee Member on 27 December 2006.

He has served in various positions in government departments and ministries, including as the Secretary General of the Ministry of Information and the Secretary General of the Ministry of Works. He is a director of various companies, including listed companies such as IJM Corporation Berhad, LBI Capital Berhad, Damansara Realty Berhad and Emas Kiara Industries Berhad. He is also chairman of a number of companies, including, Touch ‘N Go Sdn Bhd (formerly known as Rangkaian Segar Sdn Bhd).

Datuk Yahya holds a Bachelor of Arts (Hons) and a Diploma in Public Administration both from University of Malaya. He also holds a Master’s degree in Business Management from Asian Institute of Management, Philippines.

dato’ Mani usilappan

Dato’ Mani Usilappan, a Malaysian, aged 59, was appointed as an Independent Investment Committee Member on 27 December 2006.

He is a member of the Royal Institution of Chartered Surveyors. He has vast experience in the field of property valuation. He was the Director General of the Valuation and Property Services Department in the Ministry of Finance. He also held various posts in various academic and professional institutions in Malaysia, such as the President of the Institution of Surveyors Malaysia. His current academic posts include being an Adjunct Professor in University of Malaya in the Faculty of Built Environment and Universiti Tun Hussein Onn. In addition, he has written various books and articles on property valuation. He is also active in research and development in areas relating to the property sector.

Dato’ Mani holds a Master’s degree in Property Development from the Southbank University in London.



Tengku dato’ hasmuddin Tengku othman

Tengku Dato’ Hasmuddin Tengku Othman, a Malaysian, aged 47, was appointed as an Independent Investment Committee Member on 27 December 2006.

He is a practicing lawyer and is currently the principal partner of Messrs Hisham, Sobri & Kadir. His areas of expertise include the various expects of Islamic banking and finance, corporate banking and project financing, corporate matters, corporate Muamalat Islamic banking and litigation as well as matters relating to Syariah. He is a director of a number of companies, including Aliran Ihsan Resources Berhad, Bank Muamalat Malaysia Berhad, HSK Corporate Advisory & Consultancy Sdn Bhd and Institut Jantung Negara Sdn Bhd.

He is also a member and adviser to the Labuan Offshore Financial Services Authority as well as an adviser to the Association of Islamic Banking Institutions.

Tengku Dato’ Hasmuddin holds a Bachelor of Laws (Hons) from University of Malaya and was admitted to the Bar in 1987.

Mahadzir azizan

Mahadzir Azizan, a Malaysian, aged 60, was appointed as an Independent Investment Committee Member on 27 December 2006.

He has held key positions both in private and public sector. After graduation he joined the Judicial and Legal Service of the Malaysian Government as a Deputy Public Prosecutor and Federal Counsel and subsequently ventured into the private sector and served Malaysian International Shipping Corporation (MISC) and Island & Peninsular Berhad, the property arm of Permodalan Nasional Berhad (“PNB”) for 24 years.

Whilst in the private sector, he also served as Ahli Majlis MARA, Director of Amanah Raya Berhad group of companies, Director of Tabung Haji group of companies as well as various other directorships in government linked companies.

Currently, Mahadzir is the Group Executive Director of Realmild (M) Sdn Bhd and is also a member of the boards of a number of companies, including ECM Libra Financial Group Berhad, ECM Libra Investment Bank Berhad, Avenue Invest Berhad, Syarikat Takaful Malaysia Berhad, Tabung Haji Properties Sdn Bhd, AmanahRaya Marine Fund, Realmild (M) Sdn Bhd and Realmild Logistics Sdn Bhd (formerly known as Real M Logistics Sdn Bhd).

Mahadzir is a Barrister-at-Law from Lincoln’s Inn, London.



s. elias abd. rahman alhabshi

S. Elias Abd. Rahman Alhabshi, a Malaysian, aged 66, was appointed as an Independent Investment Committee Member on 30 July 2008.

A seasoned banker, S. Elias has vast experience in banking industry and has served both local and international banking institutions and this includes Bank Bumiputra Malaysia Berhad, ASEAN Finance Operation, Merrill Lynch & Co. and Hong Leong Group. Currently he is the Group Executive Director for Realmild (M) Sdn Bhd and a director for Labuan Shipyard & Engineering Sdn Bhd.

S. Elias holds a Master of Management (with distinction) from Asian Institute of Management, Philippines.

datuk yahya ya’acob 5 5

dato’ Mani usilappan 5 5

Tengku dato’ hasmuddin Tengku othman 5 5

Mahadzir azizan 5 5

s. elias abd. rahman alhabshi 2 2(Appointed on 30 July 2008)

number of Investment Committee meetings

held during members’ tenure in office

number of meetings

attended by members

Investment Committee Members

Conflict of Interest

No conflict of interest has arisen between the Investment Committee Members and ARREIT during the financial year under review.

Convictions for offences

None of the Investment Committee Members have been convicted for offences within the past 10 years other than traffic offense.

attendance at Investment Committee Members’ Meetings

The Investment Committee currently comprises of five Members of whom all are independent and non-executive.

During the financial year, the Investment Committee met five times. The number of meetings attended by each current Member is as follows:-


stateMent of Corporate governanCe

AmanahRaya Real Estate Investment Trust (“ARREIT”) was established on 10 October 2006 pursuant to a trust deed (“Deed”) entered into between AmanahRaya-JMF Asset Management Sdn Bhd (“ARJMF” or “Manager”) and CIMB Trustee Berhad (the “Trustee”). ARREIT had been listed on the Main Board of Bursa Malaysia Securities Berhad (“Bursa Securities”) since 26 February 2007.

ARJMF as the Manager of ARREIT has established policies and procedures to ensure that effective corporate governance is adopted throughout the organization and its activities.

ARJMF has an obligation to act honestly, with due care and diligence, and in the best interest of ARREIT unitholders. This obligation ties in with the Manager’s responsibility in managing the assets and liabilities of ARREIT for the benefit of unitholders, and the Manager will endeavor to continue enhancing returns to unitholders.

In ensuring the implementation and operation of good corporate governance, ARJMF is guided by the measures recommended by the Guidelines on Real Estate Investment Trusts (“SC’s Guidelines”), the Malaysian Code on Corporate Governance (Revised 2007) and the Listing Requirements of Bursa Securities.

The Manager oF arreIT

ARREIT is managed by an external manager (“ARJMF”) and as a result has no employees. The Manager has appointed experienced and well qualified personnel to handle its day to day operations. All Directors and employees of the Manager are remunerated by the Manager and not by the Fund.

The Manager is responsible for the following:• develop business plans, strategic and investment policies for ARREITs; • provide recommendations on the acquisition, divestment or enhancement of ARREIT’s assets to the trustee;• monitor compliance to all legislation, rules and guidelines issued by the SC and Bursa Securities as well as ARREIT’s Deed;• ensure appropriate record keeping;• formulate risk management policies; and• supervision of the Property Manager.

dIreCTors oF The Manager

The Board

The Board of Directors of the Manager (the “Board”) is responsible for the effective stewardship and control of the Manager.

This responsibility of the Board, at the minimum, includes:• the formulation of corporate policies and strategies; • overseeing and evaluating the conduct of the Manager’s activities; • identifying principal risks and ensuring the implementation of appropriate systems to manage these risks; and • reviewing and approving key matters such as financial results, investments and divestment, acquisitions and disposals and

major capital expenditure.



Board Balance

The Board currently has seven Directors, with an alternate director, comprising the Managing Director and six non-executive members. Of the non-executive members, three are independent to ensure compliance with the requirement for at least one-third of the Board to be independent.

The Chairman leads the Board and is responsible for the vision and strategic direction of the Manager. The Managing Director is responsible for implementing the policies and decisions of the Board, overseeing the day-to-day operations, setting the plan and direction, benchmark and targets for the Manager, tracking compliance and progress of the operation, initiating innovative business ideas to create competitive edge and development of asset enhancement strategies with the aim of enhancing unitholders’ return.

Board Meetings

Board meetings are scheduled at least once every quarter. Six Board meetings were conducted in the year 2008.

access to and supply of Information and advice

All Board members are supplied with information on a timely manner. Board reports are circulated prior to Board meetings and the reports provide among others, financial and corporate information, significant operational, financial and corporate issues, performance of ARREIT and management’s proposals which require the approval of the Board.

All directors have access to the advice and services of the Investment Committee, Audit, Risk Management & Compliance Committee, Risk Management Department, Compliance and Legal Department, Company Secretary as well as to independent professional advice.

appointment to the Board

All new nominations received are accessed and approved by the entire Board in line with its policy of ensuring nominees are persons of sufficient calibre and experience.

Additionally, the Manager being a fund manager licensed under the Capital Markets & Services Act 2007 (“CMSA 2007”) under purview of the SC, has to notify the SC of any new appointment to the Board.

Committees under the Board

The Board has established the following committees to assist it in discharging its duties in relation to ARREIT. The committees are:• The Audit, Risk Management & Compliance Committee; and• The Investment Committee


audIT, rIsk ManageMenT & CoMPlIanCe CoMMITTee

The Audit, Risk Management & Compliance Committee (“ARCC”) was formed on 27 January 2006. It operates under the delegated authority from the Board and in-line with the Malaysian Code on Corporate Governance (Revised 2007), consists of three non-executive directors.

The Chairman of the ARCC is a Fellow of the Chartered Institute of Management Accountants and was the former Accountant- General of Malaysia. As such he can effectively read, analyze and interpret financial statements to effectively discharge the functions of the ARCC.

Duties and responsibilities of the ARCC include:• to oversee compliance with applicable laws and regulations;• to ensure the performance, qualifications and independence of the external auditors and that the results of the internal and

external audit findings are brought to the highest level for consideration;• safeguard the integrity of financial reporting;• to recognize and manage risk; and• to identify and recommend implementation of best practices in order to add value to the company.

The ARCC meetings are scheduled at least once every quarter. Five ARCC meetings were held in 2008.

InVesTMenT CoMMITTee

The Investment Committee (“IC”) for ARREIT was formed on 4 August 2006 . It operates under the delegated authority from the Board and is represented by fully-independent members from various fields including legal and property.

Duties and responsibilities of the IC include:• Review, deliberate and decide on any investment made by ARREIT• Review, assess and decide on any fund raising exercise to be undertaken by the REIT• Review and deliberate on the following reports:

• Property Market and Outlook Report• REIT Performance Report• Statutory Reporting

• Review on compliance with all legislation, rules and guidelines issued by the SC and Bursa Securities as well as ARREIT’s Deed

The IC meetings are scheduled at least once every quarter. Five IC meetings were held in 2008.

aCCounTaBIlITy and audIT

Financial reporting

The Board is responsible for ensuring the proper maintenance of accounting records for ARREIT and that appropriate accounting policies had been consistently applied.



Internal Control

The Board has overall responsibility of maintaining a system of internal control that covers financial and operation controls and risk management. The system provides reasonable but not absolute assurance against material misstatement of management and financial information or against financial losses and fraud.

relationship with auditors

An external auditor, independent of the Management and Trustee has been appointed. The appointment has been nominated by the Manager and approved by the Trustee. The remuneration of the Auditor is approved by the Trustee.

Compliance & legal department

The Manager, being a fund manager licensed under the CMSA 2007, has a registered compliance officer and a dedicated department working towards ensuring the compliance with all legislation, rules and guidelines issued by the SC and Bursa Securities as well as ARREIT’s Deed.

relaTed ParTy TransaCTIons and ConFlICTs oF InTeresT

The Manager has established procedures that will ensure that related party transactions and conflicts of interest are undertaken in full compliance to the SC’s Guidelines, ARREIT’s Deed and the Listing Requirement of Bursa Securities.

Among the policies adopted by the Manager to deal with potential conflicts of interest issues include:• transactions on an arm’s length basis and on normal commercial terms which are no more favourable than those extended

to related third parties; • ARREIT’s cash or other liquid assets should be placed in a current or deposit account of institutions licensed or approved

to accept deposits; and• the Manager may not act as principal in the sale and purchase of real estate, securities and any other Assets to and from

ARREIT.

rIsk assessMenT and ManageMenT oF BusIness rIsk

The Manager operates within overall guidelines and specific parameters set by the Board. Responsibility for managing risk lies initially with the Risk Management Department, working within the overall strategy outlined by the Board.

CoMMunICaTIon WITh unITholders

The Board acknowledges the importance of regular communication with unitholders and investors via annual reports, circulars and quarterly financial reports. Various announcements were also made during the period, through which unitholders and investors can have an overview of ARREIT’s performance and operation. Additionally, the Managing Director regularly meets with analysts, institutional unitholders and investors.

This statement was approved by the Board on 13 February 2009



aManahraya-JMf assetManageMent teaM


aManahraya-JMf asset ManageMent teaM

Fakru Radzi Abdul GhaniAzlan AzizuddinRizal Abdullah


From left to right

Sharizad Juma’atZaffarin Hj ZanalMeor Khairi Bazid

Abas Abd JalilTai Ai Ngoh

Sharifah Sidek

From left to rightMuhammad Hafiz JantanAbas Abd Jalil Shahriman Abdol RahmanSharizad Juma’atLim Jin EngFakru Radzi Abdul GhaniSiti Adilah AzizNor Hakim Ismail

the Manager’sproperty teaM


the Manager’s property teaM



no key FaCTors arreIT reMarks

1. Portfolio of Properties Diversified portfolio a) ARREIT’s property portfolio

comprises commercial (27%), industrial (29%),

hospitality (13%) and educational (31%)

properties, providing a diversified base for

rental income.

b) Properties are located in strategic areas within the

Federal Territory of Kuala Lumpur and the states

of Selangor and Kedah.

c) A diversified portfolio that offers more

opportunities in terms of asset acquisitions,

whereby ARREIT is not concentrated to

one particular sector. It facilitates fast asset

injections for exposure to various sectors.

It does provide dynamism in properties

management.

2. Lease Term Long term lease a) Long tenure of leases with master lessees, which

are primarily public listed companies,

with an average period of 10 years.

b) The master leases have stepped-up rental

agreements with average increases of 4% to 6%

per revision, except for Wisma UEP. This enables

the rentals to be varied in tandem with any

increase in value as a result of revaluation surplus

or a major renovation.

3. Projected Yield Triple net yield basis 11 out of 13 properties are leased on triple net

lease arrangements whereby the Lessees are fully

responsible for and bear all service, maintenance

and statutory charges (i.e. insurance, assessment

fees) as well as without limitation building repairs

and any other capex. Thus, the ARREIT’s

unitholders will not be affected if there is

an increase in the operating expenses.

snapshots of aManahraya reit

snapshots of aManahraya reit


no key FaCTors arreIT reMarks

4. High Security Deposit Between 1 to 3 years a) The default risk of single-tenant or master lease agreements is mitigated by the creation of security deposits in the form of cash or bank guarantees for a period of between 1-3 years. b) Security deposits are not construed as rental deposit. ARREIT has the right to call upon the security deposits for any non conformance of the leases agreement. c) The high security deposit provide ARREIT with adequate capital and time to turn around the properties into a more marketable condition in seeking for replacement of Lessees in the event of default.

5. Restoration Deposit Between RM200,000 to An additional restoration deposit is required for RM500,000 as industrial properties for the purpose of removing determined by the machineries should the Leasees cease their leases Manager’s appointed to ensure the property is immediately tenantable engineer.

6. Relationship involving The manager is related The manager is responsible to carry out the Manager and vendors to Amanah Raya Berhad activities in relation to the assets of ARREIT in accordance with the provision of the DEED. The manager is a subsidiary of Amanah Raya Berhad, the trustee of Kumpulan Wang Bersama (“KWB”), a fund that invest in real-estate. The manager has the priviledge of selecting the best properties from KWB’s portfolio, subject to the approval of the independent Investment Committee

7. Corporate Governance The only Real Estate All properties for the purpose of disposal and Investment Trust that has acquisitions will be presented to the Investment established an independent Committee for approval before being presented to Investment committee the Board of Directors of ARJMF.


The Directors of AmanahRaya-JMF Asset Management Sdn Bhd, Manager of AmanahRaya Real Estate Investment Trust (“ARREIT” or “Trust”) has the pleasure in presenting their Annual Fund Report to the Unitholders of ARREIT together with the audited financial statements of ARREIT for the financial year ended 31 December 2008.

The highlight for the financial year 2008 is that ARREIT has recorded a higher distribution per unit of 7.0105 sen which is 6 basis points higher than the projected yield.

ARREIT has distributed a total amount of RM30,254,308 which reflects a DPU of 7.0105 sen.

7.46% yield based on the IPO price of RM0.94.

9.60% yield based on the 31 December 2008 closing price of RM0.73.

The TrusT and ITs InVesTMenT oBJeCTIVe

ARREIT established on 10 October 2006 pursuant to a trust deed (“Deed”) between the Manager and CIMB Trustee Berhad (“Trustee”). ARREIT is classified as a real estate property fund and was listed on the Bursa Malaysia Securities Berhad on 26 February 2007. The investment objective of ARREIT is to provide stable distributions per unit with the potential for sustainable long term growth of such distributions and the NAV per unit.

ARREIT has achieved its objective for Financial Year 2008.

FInanCIal reVIeW

review of Performance since date as at of Inception up to 31 december 2008 31 december 2007

Total Asset Value (RM) 709,911,436 748,804,535Total Net Asset Value (RM) 440,104,122 404,967,451Units in Circulations (RM) 431,553,191 431,553,191Net Asset Value per unit (RM) 1.0198 0.9384Highest Net Asset Value per unit (RM) 1.0198 0.9466Lowest Net Asset Value per unit (RM) 0.9345 0.9384Market Value per unit (RM) 0.73 0.9900Highest Traded Price for the twelve months period (RM) 0.99 1.0500Lowest Traded Price for the twelve months period (RM) 0.72 0.8250

Distribution yield 7.46% 6.94%*

Distribution per unit (sen): 1st (16 October 2007) N/A 2.37002nd (25 January 2008) N/A 2.81493rd (25 February 2008) N/A 0.25634th (27 August 2008) 3.5758 N/A5th (27 February 2009) 3.4347 N/A

Total (sen) 7.0105 5.4412

* Annualised distribution yield is calculated based on ARREIT’s operation results for the financial period 2007 commencing from 26 February 2007

annualised over the 12 months of the calendar year 2007

Manager’s reports


Manager’s report

results of arreIT’s Performance

since date as at of Inception up to 31 december 2008 31 december 2007

Total Gross Rental Income 45,560,808 19,272,059 Total Property Expenses 1,448,058 728,823 Net Rental Income 44,112,750 18,543,236 Interest Income 721,095 382,960 Total Non-Property Expenses 14,579,537 8,279,563 Earnings before taxation and net appreciation on fair value of investment properties 30,254,308 10,646,633Net appreciation on fair value of investment properties 36,812,000 - Earnings before Taxation 67,066,308 10,646,633 Taxation NIL - Earnings after Taxation 67,066,308 10,646,633 Earnings per Unit after Taxation (sen) - After manager fee 15.5407 5.6872 - Before manager fee 15.8316 5.9330 Distribution per Unit (DPU) (sen) 7.0105 5.4412Earnings per Unit after Taxation (annualised)* - After manager fee N/A 6.8246- Before manager fee N/A 7.1196 Distribution per Unit (DPU) (sen) (annualised)* N/A 6.5294

* Annualised earnings per unit and distribution per unit are calculated based on ARREIT’s operation results for the financial period 2007 commencing from

26 February 2007 annualised over the 12 months of the calendar year 2007.

Note:

The net asset value per unit of the Fund is largely determined by market factors. Therefore past performance is not necessarily indicative of future

performance and that unit prices and investment returns may fluctuate.

The Manager is pleased to report that for the financial year ended 31 December 2008, the revenue totalling to RM46,281,903, comprising gross rental income of RM45,560,808 and interest income of RM721,095 (of which this represents 100% tax-exempt income). The effective interest rate received for placement with approved financial institution is within the range of 3.21% per annum to 3.55% per annum against the forecasted rate of 1.5% per annum. Earnings after taxation increased attributable to higher rental rates on renewed tenancies.

As at 31 December 2008, ARREIT incurred total expenses amounting to RM16,027,595 of which only 9.03% were attributed to property expenses as almost all of our properties are at triple-net lease arrangement whereby property related expenses are to be absorbed by tenants/lessees with exceptions given to Wisma ARB, Jalan Semantan and Wisma UEP. Most of expenses are attributable to interest paid for term loan totalling to RM12,645,000 during the financial year.

neT asseT Value

Analysis of net asset value since the date of inception for the financial year 31 December 2008 of the Trust: since date as at of Inception up to 31 december 2008 31 december 2007

Total net asset value (“NAV”) RM per unit- before provision for income distribution 1.0542 0.9530- after provision for income distribution 1.0198 0.9384

In line with listing requirements, the NAV has been announced quarterly with Bursa Malaysia and published on their website for public review.

unITs In Issue

As at 31 December 2008, the total number of units in issue is 431,553,191.

gearIng

As at 31 December 2008, ARREIT’s debt of RM253,000,000 is a medium term debt with maturity in 2011 and the gearing ratio (borrowings over total assets) of ARREIT was 35.64%. There is capacity to borrow RM101,955,718 or 14.36% before reaching the limit of 50% as restricted by the Securities Commission’s Guidelines on Real Estate Investment Trusts.

since date as at of Inception up to 31 december 2008 31 december 2007 Gearing ratio (%)* 35.64 37.90

* The gearing ratio is calculated based on total borrowings over total assets (excluding 2008: RM42,619,695; 2007: RM41,079,733, which is the total amount of rental and security deposits held on behalf of the Lessees and 2007: RM81,251,198 in trade and other receivables which are to be disbursed to other payables).

relaTed PerForManCe IndICaTors and BenChMarks

since date as at of Inception up to 31 december 2008 31 december 2007

Total return (%)* 7.92 5.84Asset Portfolio Turnover (times)** - 1.78

* Total returns is calculated based on the actual gross income distribution and the net change in the weighted average market price for the financial year, over the weighted average market price of the REIT for the respective year.

** Asset Portfolio Turnover is based on the average of total acquisitions and total disposals of investment in ARREIT for the financial year ended 31 December 2008 to the average net asset value during the financial year calculated on a daily basis.

Manager’s report


BenChMark releVanT To arreIT since date as at of Inception up to 31 december 2008 31 december 2007

Management Expense Ratio (“MER”)* 0.46% 0.44%

* MER is calculated based on the total of all the fees and expenses incurred by ARREIT for the financial period and deducted directly from the income (including manager’s fee, trustee’s fee, interest expense and other professional fees and expenses), all the expenses not recovered from and/or charged to the Trust (including repair & maintenance of properties and miscellaneous expenses), to the average net asset value of the Trust during the financial period calculated on a daily basis.

InVesTMenT sTraTegIes and PolICIes

Investment strategies

During the financial year, the Manager continued to carry out the following investment strategies in order to achieve the business and investment objectives of ARREIT:

operating strategy

The operating strategy is mainly geared towards preserving and enhancing the value of the properties as well as achieving sustainable growth in rental income based on the following:

a. actively monitoring on the maintenance and upkeep of the properties which are under lease

The Manager works closely with the two Property Managers in order to monitor the maintenance and upkeep of the properties which are under the purview of the respective Lessee. Although the maintenance and upkeep of the properties are the sole responsibility of the Lessee, constant monitoring is required to ensure that the long term quality and physical condition of the building are preserved. Periodical checks on each property are conducted every 3 months by our Property Managers whereby they will identify property management issues and recommend action(s) to be undertaken by the Lessee/Manager.

b. Fostering close relationships with lessees and ensuring the delivery of high quality services to them

The Manager fosters close relationships with the Lessees of the properties which ensure a better understanding by both parties in meeting each party’s needs and requirements. This will enable the Manager to consistently deliver prompt responses and tailored solutions to achieve the high satisfaction of the Lessee’s needs and requirements.

c. enhance property value

The Manager has worked closely with the property managers to constantly source solutions to enhance the value of the properties via internal and external methods. In determining appropriate improvements to be undertaken, financial analysis and market studies are conducted to ensure that any improvements made will increase the value of the individual properties.

Manager’s report


d. Improve financial performance of the properties

In ensuring that ARREIT sustains its potential earnings, new rental rates are immediately imposed to the Lessees at every rent reviews. More importantly, marketing efforts is in place to ensure that ARREIT is able to replace outgoing Lessees without disruption of income.

The above operating strategies can be achieved by adopting the following approaches:

• Commencing timely negotiations with Lessees whose leases are about to expire;

• Adopt marketing strategies emphasising on the properties’ competitive strengths to raise public awareness and maximise Lessees’ interests;

• Constant interaction with real estate agents and/or other referrals in respect of the property market;

• Offering Lessees competitively priced rental rates with pre-determined increases that will sufficiently compensate ARREIT in the long term; and

• Ensuring that the Lessees of the Properties possess good credit rating and are able to make periodic rental payments when they are due in order to ensure sufficient cash flow to ARREIT.

acquisition strategy

Prior to investment proposals being presented to the Investment Committee for approval, the Manager will assess the appeal of the property based on a rigorous prescribed process.

All potential acquisitions will undergo an evaluation using pre-determined acquisition criteria consistent with ARREIT’s investment objectives. A summary of the acquisition’s criteria are as follows:

a. location

The location of the potential property(ies) is evaluated with particular reference to its connectivity to major roads and highways, populated commercial districts and residential areas as well as availability of public transportation.

b. Price and yield

All investment proposals are subject to vigorous scrutiny based on our investment’s criteria which takes into account the price and yields to be derived of the potential acquisition. Consideration is also given to the tenure, expected future economic environment and the market demand for short and long term leases. The analysis focuses on ensuring that the terms of the acquisitions allow the current value of the portfolio to be at least, maintained, while enhancing accretion and/or the overall quality of the portfolio. For most property acquisitions, the purchase prices are below market value (refer to Property Portfolio section), thus delivering immediate appreciation in the values upon completion of the transactions.

c. Building Condition

The condition of the properties is evaluated mostly via physical inspections and checks. The focus is on, amongst others, the building’s age and size, interior and exterior condition, defects (particularly hidden defects), mechanical and electrical equipments, civil and structural conditions as well as building systems conditions such as security and fire protection systems, and compliance with local rules and regulations. Engineering due diligence exercises, which include examining the condition of the mechanical and electrical equipment as well as the structural condition are conducted by the Manager’s appointed engineers.

Manager’s report


d. diversity in Portfolio

Planned increase in the geographical and sectoral diversity of ARREIT’s current portfolio in order to cushion the impact of any adverse development in a particular sector or locality, providing a reliable flow of income to ARREIT. The potential acquisition of properties coming from various segments will be carefully evaluated. The Manager is well aware of the property market conditions and would capitalise on any rising rental and capital values of any high performing sectors.

After applying the above criteria and conducting the necessary analysis, studies, inspection and checks, the recommendation is then forwarded to the Investment Committee of ARREIT for further evaluation and approval.

Capital Management strategies

To optimise returns to unitholders, we plan to finance future property acquisitions and enhancements by to the existing properties by means of a balance of issuance of new ARREIT units and loan financing.

The strategies employed in achieving this are as follows:

a. sourcing for the most favourable funding terms;

b. diversifying our sources of funding;

c. managing cash flows by matching inflows from lessees with outflows arising from financial obligations; and

d. manage the interest rate exposure.

In addition to the above, the Manager will also comply with the provisions of the Deed and all applicable rules and guidelines prescribed by the SC relating to the financing of ARREIT. As at 31 December 2008, ARREIT has achieved a debt level of 35.64% of the total asset level.

Investment Policies

The Manager will continue to comply with the Deed, the SC Guidelines on Real Estate Investment Trust and other applicable guidelines imposed by SC and other relevant bodies, including:

a. Investing in areas as permitted by the SC and other relevant bodies;

b. Ensuring that the investment portfolio requirements and limits imposed by the Deed and the SC Guidelines on Real Estate Investment Trust are adhered to;

c. Not involved in extending loans and credit facilities to any party;

d. Not entering into forward purchases or forward sales in any currencies or any foreign contract; or

e. Not entering into any property development unless the development has met the criteria imposed by SC Guidelines on Real Estate Investment Trust.

Manager’s report


Manager’s reportManager’s report

ProPerTy MarkeT oVerVIeW For aManahraya reIT annual Fund rePorTIng 2008

The Year 2008 resounded the calling of change globally - highlighted by a spectrum of events, both locally and internationally. Locally, there was the eye-opening General Election Results, and overseas, the historic election of the first African-American President and the biggest business news headline – the Global Economic Crisis.

The Global Financial Crisis which started with the US sub-prime mortgage situation then compounded into a credit crunch, is intensifying in spite of massive liquidity injection and rigorous interest rate cuts. With the inevitable impact on the global economy, the International Monetary Fund (IMF) had projected the global economic growth to be severely dampened in 2009, with an anticipated growth slow down to 3%, the slowest rate since 2002.

Despite denting global downturn, the Malaysian economy had been resilient in the first half of 2008. After a strong GDP growth of 7.1% in 1Q2008, the rate had moderated to 6.3% in 2Q2008, yielding a 1H2008 average of 6.7%. Being partially boosted by fiscal spending, the growth was primarily driven by strong private consumption, high commodity prices and steady investment both from local and foreign investors.

Although it was widely argued that Malaysia has relatively smaller direct exposure to the US market which is the epicentre of the worldwide economic crisis, the country is progressively feeling the shock from the slowing US economy through trade and investment flows. Hit by escalating prices of raw materials and concerned towards the depressing global outlook, the government had reversed a 9-year progressive deficit reduction by stretching down the fiscal deficit to 4.8% in first half 2008.

year real gdP growth (%) Consumer Price Index (%) Industrial output growth (%)

2005 5.3 3.0 8.32006 5.8 3.6 7.02007 6.3 2.0 4.22008 5.5 4.4 0.9

Source: Economic Planning Unit (EPU)

Manager’s report

MALAYSIA KEY ECONOMIC INDICATORS

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

1994

Source : Bank Negera Reports

Producer Production IndexGDP GPI BLR

1995 1996 1997 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 20091999

FOREIGN DIRECT INVESTMENT INFLOWS (FDI)

2002

RM

Bili

on

50

45

40

35

30

25

20

15

10

5

0

2003 2004 2005 2006

Gross FDI (RM Bilion)

Net FDI (RM Bilion)

Source : Bank Negara Annual Report

2007

RM 187,220,000 @

29%RM 197,500,000

@31%

RM 174,800,000 @

27%

RM 86,000,000 @

13%

RM 14,033,535.30@

30.80%

RM 5,761,999.92@

12.65%RM 12,241,901.50

@26.87%

RM 13,523,371.00@

29.68%

Income Receivable Based on Sectors forFinancial Year Ended 2008

AmanahRaya REIT’sSectoral Break Down by Acquisition

COMMERCIAL

EDUCATIONAL

INDUSTRIAL

HOSPITALITY

COMMERCIAL

EDUCATIONAL

INDUSTRIAL

HOSPITALITY


Manager’s reportManager’s reportManager’s report

Forecasted figures of 2008 GDP published by Economic Planning Unit (EPU) demonstrate that industrial output is flattening further as export-oriented sectors face diminishing demand with only 0.9% growth recorded compared to 4.2% in 2007. Total exports have decelerated with electronics exports declining while commodity revenues are growing at a slower pace. Domestic inflation had increased during the oil price hike in mid-2008 but had re-rationalised to a more stable rate after the reduction in oil prices later in the year.

The services sector will remain the major contributor to Malaysia GDP despite diminishing growth contribution of 7.7% in 2008 compared to 9.7% in 2007 (to the total GDP growth). Manufacturing sector followed with 1.9% growth in 2008, also showing a diminishing trend. Construction sector recorded healthier growth of 4.8% in 2008 compared to 4.6% in 2007.

Albeit rising foreign direct investment (FDI) inflows in Malaysia, the outlook remains competitive with investors channelling their portfolios into other ASEAN countries. The Government has taken numerous efforts to maintain a conducive investment environment in Malaysia by ensuring that the costs of doing business remain competitive, improving the public sector’s delivery system and continuous improvement of key infrastructural facilities. Gross FDI in Malaysia was higher in 2007 at RM46.1 billion compared to RM37.1 billion in 2006. The inflows of FDI in 2007 were mainly into manufacturing, and oil and gas sectors.

After taking into account the adjustments for outflows due largely to loan repayments to parent companies abroad, net FDI recorded an inflow of RM29.1 billion – showing an increase of 13.67% from its previous year.

For the short- to medium-term outlook, the gloomy outlook on global economy will undoubtedly affect consumer’s confidence and spending hence slower demand for properties. This will be especially so for poorly differentiated products which the consumers perceive as lower-yielding in terms of both financial and non-financial returns. Capital values and rents of property may see moderate decline although properties in good locations may continue to have strong demand given the lessening inflationary pressure as well as lower interest rates for borrowing.

New buildings nearing completion and newly completed ones may experience higher vacancy rates especially if owner-occupancy is low. For office sector, it is anticipated to face softer demand as companies postpone relocation plans to bigger or more expensive premises. However, demand for offices on the city fringes could increase as companies seek lower office rents hence justifying location as the all-important factor.

MALAYSIA KEY ECONOMIC INDICATORS

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

1994

Source : Bank Negera Reports

Producer Production IndexGDP GPI BLR

1995 1996 1997 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 20091999

FOREIGN DIRECT INVESTMENT INFLOWS (FDI)

2002

RM

Bili

on

50

45

40

35

30

25

20

15

10

5

0

2003 2004 2005 2006

Gross FDI (RM Bilion)

Net FDI (RM Bilion)

Source : Bank Negara Annual Report

2007

RM 187,220,000 @

29%RM 197,500,000

@31%

RM 174,800,000 @

27%

RM 86,000,000 @

13%

RM 14,033,535.30@

30.80%

RM 5,761,999.92@

12.65%RM 12,241,901.50

@26.87%

RM 13,523,371.00@

29.68%

Income Receivable Based on Sectors forFinancial Year Ended 2008

AmanahRaya REIT’sSectoral Break Down by Acquisition

COMMERCIAL

EDUCATIONAL

INDUSTRIAL

HOSPITALITY

COMMERCIAL

EDUCATIONAL

INDUSTRIAL

HOSPITALITY



Due to cautious investors’ sentiment, it is expected that the property market will face a slowdown this year. The poor investors’ sentiment will lead to weak yet competitive and speculative market. Although the market will be more location and price-sensitive, the country will still enjoy its favourable property market environment stimulated by a series of measures by the government which include the establishment of one-stop centre for fast-tracking approval, exemption of Real Property Gain Tax, relaxation of Foreign Investment Committee guidelines and availability of loans to foreigners.

oFFICe seCTor

Malaysia office investment market has seen steady growth throughout 2008 with strong interest from both local and foreign investors; largely as a result of the expectation of future rental and capital growth. Demand for office space remained strong in areas like CBD and Golden Triangle due to the limited supply of prime office space.

On the supply side, 3.08 million square feet of new office spaces completed in 2007 throughout the country – equivalent to 22.5% growth against the previous year. The completion of The Pavillion in Bukit Bintang and No 24, Jalan Perak added another 263,000 sq. ft of office space in the Golden Triangle of Kuala Lumpur. At least six office buildings will be completed within the next two years namely The Capsquare (Tower 2), Goldis Tower, Crest Jalan Sultan Ismail and The ICON at Jalan Tun Razak which provide total net lettable area of 2,123,765 sq. ft.

Occupancy rate for purpose-built office across the country rose slightly from 84.7% in 2006 to 85% in 2007 equivalent to 0.35% growth with mixed performance from each state. Twelve states achieved occupancy rates above 80% including Kuala Lumpur and Selangor – the two states where office buildings owned by ARREIT are located with both states registered an average occupancy rate of 83.2% and 84.3% respectively.

Occupancy rates for selected office buildings in Kuala Lumpur and Damansara (Year 2008) which demonstrate the high demand of office space within these areas are tabulated below:

name of Building occ. rates (%) name of Building occ. rates (%)

selected office occupancy rate In kuala lumpur selected office occupancy rate In damansara

Menara Citibank 100% Bangunan Malaysia RE 100%

Kenanga International 100% Menara Manulife (Menara John Hancock) 100%

Menara Great Eastern 100% Menara Millenium 100%

Menara Maxis 99% PNB Damansara (Plaza Kelanamas) 100%

Menara Chan 97% Plaza Damansara, Block B 100%

Bangunan Am Finance 97% Plaza Damansara A 100%

Menara Tan & Tan 95% Bangunan Setia 1 99%

Wisma UOA Centre 95% Bangunan Antah 95%

Menara IMC 90% UOA Damansara 94%

Source: Rahim & Co Research

In 2008, Kuala Lumpur registered 10 transactions for purpose-built office with total volume of transaction recorded at RM623.7 million. The purchase of Menara YNH by KFH (Malaysia) Bhd set the highest record for office transaction in Golden Triangle area with the price of RM 1,227 psf followed by the acquisition of Glomac Tower by Prestige Scale Sdn Bhd at RM 1,120 psf. Notable transactions of office buildings in 2008 are tabulated below.



office Building net lettable rM psf date Vendor Purchaser area

Menara Felda, 689,000 sq ft RM930 Jan, 2008 TTDI Development Federa Land development

Platinum Park Sdn Bhd Authority (FELDA)

Office Tower 2, 600,000 sq ft Rm732 Jan, 2008 Bandaraya Development Union Investment Real

Capsquare Bhd estate Aktiengesellscraft

Kuala Lumpur

Menara YNH 750,000 sq ft RM1,227 Jan, 2008 YNH Property Bhd Kuwait Finance House

(Malaysia) Bhd

KUB.com Building 198,000 sq ft RM437 March, 2008 KUB Realty Sdn Bhd Park Residence

Development Sdn Bhd

Glomac Tower, 515,003 sq ft RM1,120 March, 2008 Glomac Berhad Prestige Scale Sdn Bhd

Kuala Lumpur

Menara Standard 345,000 sq ft RM950 Nov, 2008 ING Insurance Bhd Reco City Sdn Bhd

Chartered

Source: Bursa Malaysia (2008)

Despite the global economic uncertanties, rental rates were stable. Rental in Klang Valley are expected to continue growing at 5% to 10% since they will be no significant influx of supply this year. The following table listed the rentals of selected purpose office buildings in Kuala Lumpur and Damansara area.

name of Building location rental highlight name of Building rental highlight (rM psf per month) (rM psf per month)

selected office rental in kuala lumpur selected office rental in damansara

KLCC (Tower 2) Jalan Ampang 10.00 UOA Damansara II 5.50

Menara Citibank Jalan Ampang 8.30 Menara Millenium 5.00

Menara Maxis Jalan Ampang 8.00 UOA Damansara 4.80

Wisma Hong Leong Jalan Perak 7.00 Wisma E & C 4.50

Menara IMC Jalan Sultan Ismail 7.00 HP Towers 4.50

Menara Dion Jalan Sultan Ismail 6.80 Menara TSH 4.50

Kenanga International Jalan Sultan Ismail 5.50 Bangunan Setia 1 4.20

Menara SPK Jalan Sultan Ismail 5.50 Bangunan Malaysian RE 4.20

Menara Standard Chartered Jalan Raja Chulan 5.50 Plaza Damansara A 3.30

Menara Multi-Purpose Jalan Munshi Abdullah 4.50 Wisma Chase Perdana 3.20

Source: Rahim & Co Research 2008

Rental performance for office space in Subang Jaya area where Wisma UEP is located remains stable with no significant rental changes recorded over the past two years. Overall, Subang Jaya area has shown steady office market with an average occupancy rate of 98.2%. Rental of selected comparable of office building within this locality is tabulated in the table below:

name of Building rental (rM psf per month)

Wisma Consplant 2 4.00

Wisma Consplant 1 3.30

Wisma Subang Jaya 2.40

Menara Summit 2.50

Source: Property Market Report 2007



Transected office units in South City Plaza shows that the selling price ranges between RM110 to RM160 per square foot. Asking rental for comparable properties is tabulated in the table below:

Building asking rental (rM psf per month)

The Mines Sri Kembangan 2.80

MINES Waterfront Business Park 3.00

MINES Resort City 3.50

Equine Park, Seri Kembangan 1.20

Overall, the office market growth is expected to stabilise amidst business adjusting to the challenging global economic environment. Although interests from foreign investors and institutions may experience some decline in growth, it is expected that the overall demand will continue to be strong for investment-grade offices. This is backed by the healthy domestic demand with tight supply of prime office market in the short term, plus the regional price competitiveness of Malaysia’s property market. Malaysian properties will have the edge from pricing perspective compared to other regional markets given the quality of supply and availability of strong infrastructural support.

IndusTrIal seCTor

Despite the fact that industrial market has never been as buoyant as other property sectors, the performance of manufacturing sector has been continuously encouraging over the past year.

As at 3Q2008, existing stock of industrial units were amounted to 90,140 units. Selangor and Johor remained the main focus states as shown by their collective contribution of 51.8% to the total market share. Overall, terraced factory continues to dominate with 60.8% (54,846 units) of the total share. Demand for factories in Selangor has been boosted by the demand for logistics/warehousing facilities in Klang Valley, Petaling Jaya, Shah Alam, Klang and Puchong.

Transaction activities saw active transactions of industrial properties in Petaling, Klang and Hulu Langat districts. The number of transaction recorded within these districts as at 3Q2008 amounted to 308, 146 and 127 respectively. These transactions recorded an amount of RM 1,034.58 million which contribute about 87.88% of total industrial properties transaction in Selangor. This should be good for ARREIT’s industrial properties located in the Distirct of Petaling, Klang and Hulu Langat (Bangi) as these locations are renowned for its manufacturing activities hence potential growth in terms of rental and capital values. In addition, the location of ARREIT’s Gurun Warehouse in the locality of Mukim Kuala Muda also shows great potential, in which Mukim of Kuala Muda registered the highest value of transactions for industrial property transaction in Kedah with total value of RM14.95 million in 3Q2008. The total number of transactions for the same property type in Mukim of Kuala Muda was amounted to 47 units, contributed about 54.65% of the total market share for the number of industrial property transactions in Kedah.



Notable industrial property transactions in 2008 were as follows (in the table below):

description location net lettable Consideration date of Vendor Purchaser area/size (rM) Transaction (sq. ft)

1-storey Chan Saw Lin, KL 30,240 7,700,000 May, 2008 PMB Central Able Matchwarehouse Sdn Bhd Sdn Bhd

3-storey Hicom Glenmarie 23,670 7,220,000 Jan, 2008 Yinson Holdings Mini Toonwarehouse Industrial Park Bhd Sdn Bhd

1-storey Jalan 219, 118,017 32,000,000 Dec, 2008 Bizlot (M) Sdn Bhd AXIS-REITwarehouse Petaling Jaya

Vacant Industrial Klang 257,279 7,000,000 July, 2008 Guocera Tile Jadi ImagingLand Industries Sdn Bhd Holding Bhd

Vacant Industrial Bukit Jelutong, 253,167 11,150,000 Apr, 2008 Boon Koon Group Euro Chemo-Land Sec U8 Shah Alam Sdn Bhd Pharma Sdn Bhd

Vacant Industrial Taman Sains Selang 575,471 30,773,550 Aug, 2008 Perfect Resources Paramount Land or,Kota Damansara (M) Sdn Bhd Corporation Bhd

Vacant Industrial Bukit Raja Industrial 520,812 20,500,000 March, 2008 Paos Industries KYS EnterpriseLand Park Sdn Bhd Sdn Bhd

Source: Bursa Malaysia (2008)

In Bangi area, transaction activities are more concentrated into small type industrial units. Selected transacted industrial properties in Bangi are as follows:

location Type of Building Built up area (sf) selling Price (rM)

Bandar Baru Bangi Terrace Factory 3,091 283,450 Terrace Factory 4,885 700,000 Semi-D Factory 4,676 622,460 Semi-D Factory 4,676 640,037

Source: Valuation and Property Services Department

Noted below are asking rentals of industrial properties located within Selangor:

Property address Built-up area asking rental

Shah AlamType : Warehouse 33,000 sq. feet RM1.40 psf




Puchong UtamaType : 1/2 Semi-Detached Factory 4,500 sq. feet RM1.67 psf

Bandar Baru BangiType : Factory 20,000 sq. feet RM0.80 psf

BangiType : Warehouse 22,000 sq. feet RM1.20 psf

Source: www.iproperty.com



To stimulate the industrial performance in the country, the Government has initiated several incentive schemes which include the tax relaxations etc. Examples of measures implemented are shown in the table below (for the state of Selangor):

Incentives schemes description

Incentives forManufacturing Companies a) Pioneer Status A company granted Pioneer Status enjoys 5-year partial exemption from the

payment of income tax. It will pay tax on 30% of its statutory income, with the exemption period commencing from its Production Day.

b) Investment Tax Allowance (ITA) As an alternative to Pioneer Status, a company may apply for Investment Tax Allowance (ITA). A company granted ITA gets an allowance of 60% of qualifying capital expenditure (such as factory, plant, machinery or other equipment used for the approved project) incurred within 5 years from the date on which the first qualifying capital expenditure is incurred.

Incentives for highTechnology Companies a) Pioneer Status Pioneer Status with tax exemption of 100% of its statutory income for a period

of five years.

b) Investment Tax Allowance (ITA) Investment Tax Allowance of 60% on the qualifying capital expenditure incurred within five years from the date the first qualifying capital expenditure is incurred. Any unutilised allowance can be carried forward to subsequent years until the whole amount has been fully utilised. The allowance can be utilised to offset against 100% of its statutory income for each year of assessment

Incentives for small- andMedium- scale Companiesa) Pioneer Status Pioner Status with an income tax exemption of 100% of the statutory income

for a period of 5 years.

b) Investment Tax Allowance (ITA) Investment Tax Allowances of 60% on the qualifying capital expenditure incurred with 5 years. This allowance can be offset against 100% of the statutory income for each year of assessment. Any unutilised allowances can be carried forward to subsequent years until the whole amount has been fully utilised.

With strong interest and numerous acquisitions of industrial properties by REITS coupled with strong growth in business amongst SMI, the industrial sector has become more active hence spurred demand for factories. The industrial property sub-sector market is expected to perform along with the performance of the nation’s manufacturing sector in 2009.

eduCaTIonal seCTor

The number of students in tertiary education institutions has recorded a steady growth of 4.55% average since 2003 to 2007 with an enormous growth recorded in 2007 at 12.98% from its previous year. The rising trend is resulted from the efforts of the Government through Ministry of Higher Education in promoting quality education throughout the country.



In parallel with the Government aspiration to ensure greater access to higher education, the private sectors has been continuously encouraged by the government to play their part in providing quality and excellence education in term of setting up more private universities and colleges that offers quality courses. This is evident through the allocation of RM12 billion for education sector by the Government in Malaysia 2008 budget.

The Government’s ambition in boosting education tourism and make Malaysia a recognized Education Hub in Southeast Asia by 2010 is expected to create greater potential demand of commercial spaces for education sector in which; private colleges have been encouraged to upgrade their status into university status. The rising trend of number of tertiary education institutions are shown in the table below:

Institution 2002 2007

Private University 11 18

Private University College 1 15

Private University

(Local Private University Branch Campus) 3 15

Private University

(Foreign Private University Branch Campus) 4 4

Source: Ministry of Higher Education

Amidst the rising quality of education facilities provided, the enrolment of foreign students into local private university had risen tremendously from 25,158 students in 2003 to 33,604 students in 2007 equivalent to 33.57% growth wherein the majority of these foreign students are from the Republic of China, Middle East, Indonesia, Africa and Bangladesh.

By virtue of the promising potential in education sector, SEGi College with its five campuses nationwide has good prospect in being integral part to the success of the country’s education aspiration.

hoTel seCTor

The Malaysian tourism industry continues to stimulate growth in the services sector essentially due to the extension of the Visit Malaysia Year program to August 2008 and the promotional activities in conjunction with Visit Kedah, Kelantan and Terengganu Year; launched in January 2008.

Catalysed by these programs and further fuelled by the Government’s efforts in strengthening domestic tourism by developing tourist attractions; tourist arrivals during the first half of 2008 has amounted to 11 million compared to 10.7 million during the first half of 2007. Major tourist generating markets were Singapore, Indonesia, Thailand, China, India, Europe and West Asia.


ToTal TerTIary sTudenTs In MalaysIa

400, 000

350, 000

300, 000

250, 000

200, 000

2003 2004 2005 2006 2007

source : Ministry of higher educatution, Malaysia

no.of students

Due to the noteworthy contribution from the tourism industry, the Government has focused on encouraging specific tourism products and destinations throughout the country. To market niche tourism products, special promotions such as –eco tourism, edu-tourism, health-tourism, sports-tourism, Malaysia My Second Home (MM2H) as well as homestay have been undertaken by the Government. Moreover, a Multiple Entry Visa, which provides a longer validity period up to one year was also introduced by the Government to facilitate the entry of business travellers.

International Meetings, Incentives, Conventions and Exhibitions (MICE) activity has also benefited Malaysia’s tourism industry with 1 million visitors attended 4,221 events recorded in 2007, yielding RM3.2 billion receipts.

Total supply of hotel rooms as at 3Q2008 offered by 2,230 hotels across the country was 154,659 rooms. The 1- to 5-star rated hotel rooms formed 26.7% of the total rooms available (596 hotels: 103,142 rooms), orchid rated hotels at 18.7% (417 hotels: 11,478 rooms) and unrated hotels at 54.6% (1,217 hotels: 40,039 rooms).

Demand for hotel rooms throughout the country has been averaging at 65.2% occupancy rate in 3Q2008. Table below shows the trends of quarterly average occupancy rates of 1- to 5-star rated hotels in Malaysia against tourist arrivals since Q2 2005.

Source: JPPH Property Stock Report 3Q2008



0

10

20

30

40

50

60

70

80

Q2/05

AVERAGEOCCUPANY

RATE%

NUMBER OF TOURIST ARRIVALS(’00,000)

Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q1/08 Q3/08

57.1 64.1 57.0 57.7 58.3 65.0 58.0 60.8 63.9 70.1 58.1 58.0 62.5 65.2

41 40 41 43 43 42 44 46.9 47 53.6 49 54 54 57

TRENDA OF QUARTERLY AVERAGE OCCUPANCY RAYE FOR 1-5 STAR HOTELS IN MALAYSIA AGAINSTTROURIST ARRIVSLS FOR THE PERIOR FROM Q2005 TO Q3 2008



Kedah has performed tremendously well in 1Q2008 with its high average occupancy rate at 75.6% before declined to 58.5% during 2Q2008. In 3Q2008, the average occupancy rate rebounded to 60.3% making an average of 64.8% for the whole three quarters.

hotel average occupancy rates in 2008(%)

Seri Malaya, Alor Star 80%

Star City Hotel, Alor Star 60%

Federal Villa Langkawi 90%

The Land Langkawi Beach Resort 90%

Source: Rahim & Co Research (2008)

Exceptional occupancy rates of hotels located in the vicinity of ARREIT’s property in Kedah, as demonstrated in the table shown, justify the attractive location of Holiday Villa Langkawi and Holiday Villa Alor Setar. Apart from location, other factors that have significant influence on the occupancy rates of Holiday Villa Langkawi and Holiday Villa Alor Setar are hotel services and management, room rates and branding.

Views on future performance of the hotel sector is mixed as it is expected that the number of foreign tourists arrival may drop due to the rippling effects of the global economic crisis. Nevertheless, the country may be able to capitalise on the situation by offering a these foreign tourists an experience that is more affordable than the rest of the world – due to currency exchange and proximity to neighbouring ASEAN tourism destinations. Regional tourism is expected to grow further, supported by growth in the low-cost carrier industry. Domestic tourism (local tourists) is expected to remain healthy supported by the continuous efforts taken by the Government to promote tourism as well as constantly enhancing various tourism products and locations.

2009 ouTlook

It is expected that the Year 2009 will be a challenging one. Although many argue that the full impact of the Global Economic Crisis has not really reached Malaysian shores, equally as many are saying the Malaysian property market in general will be somewhat resilient. The country weathered through the 1997 Asian Economic Crisis, which was centred primarily Asia while the western markets were still healthy. The difference with the current crisis is that it hits hard on the western economies and on a key fundamental, i.e. the financial sector. The strategies implemented in addressing the former revolved around capital control, pegging of the Malaysian Ringgit and reduction of fire sale risks through vehicles like Danaharta, on top of various stimulus packages. The strategies today centred towards financial foundation and credit/funds availability, also complemented with stimulus packages. With the continued concerted efforts and expansive government policies, deterioration of consumer and business confidence under the present situations should not be over the edge. The efforts are evident through means such as waiver of Real Property Gains Tax, further relaxation of FIC regulations, low interest rates and even reduction in EPF contributions to increase public’s disposable income.

A strength in the Malaysian market, which inherently controlled the rate of growth from reaching an ‘unsustainable’ level, was and still is strong domestic demand and consumption. The protective and restricted nature of the economic climate has its benefits which should bear fruit right now, that is to minimise the exposure to market fluctuations. Nonetheless, what is going to happen in 2009 remains a big question mark – hence, one can only brace and prepare for any drastic market changes while re-adjusting one’s focus on main economic fundamentals and core businesses.



dIsTrIBuTIon oF InCoMe

During the financial year ended 31 December 2008, the Board of Directors of the Manager has paid an income distribution of RM15,431,482 on 29 August 2008 representing 3.5758 sen per unit in respect of the financial period from January to June 2008

A second income distribution of RM14,822,557 has been declared at 3.4347 sen per unit payable on 27 February 2009 in respect of the six months period ending December 2008.

Summary of distribution since Listing

dPu/unit date

First income distribution 2.3700 sen 16 October 2007

Second income distribution 2.8149 sen 25 January 2008

Third income distribution 0.2563 sen 25 February 2008

Fourth income distribution 3.5758 sen 29 August 2008

Fifth income distribution 3.4347 sen 27 February 2009

The total income distribution for the financial year ended 31 December 2008 totalling to RM30,254,308 of which RM721,095 is tax-exempted income. The combination represents 7.0105 sen and annualised yield based on the closing price of RM0.73 on 31 December 2008 is at 9.60%.

Manager’s reMuneraTIon

Pursuant to the Deed dated 10 October 2006, the Manager is entitled to receive from the ARREIT:

i. A base fee (exclusive of GST, if any) of up to a maximum of 1.0% per annum of the net asset value of ARREIT calculated on daily basis and payable to the Manager in monthly arrears.

ii. Any increase in the maximum permitted level of the Manager’s fee by way of approval from Trustee and Unitholders through a resolution of not less than 2/3 of all Unitholders passed at the Unitholders’ meeting.

For the financial year ended 31 December 2008, the Manager’s fee was RM1,255,253 representing 0.29% of net asset value of ARREIT after deducting provision for income distribution. No soft commission was received by the Manager during the financial period.

Expenses incurred for general overheads and cost of services which the Manager is expected to provide, or expenses falling within the normal expertise of the Manager, the Manager has the right to be reimbursed the fee, costs, charges, expenses and outgoings incurred by it that are directly related and necessary to the business of the Trust.

sIgnIFICanT eVenT

On 4 December 2008, a landslip had occurred and the retaining wall had collapsed in the land adjacent to Wisma Amanah Raya Berhad, one of the properties under ARREIT’s property portfolio. The said building is currently leased to CIMB Investment Bank Berhad (“CIMB”).

While there are no visual signs of structural distress to the building and the adjacent area, the said building had been temporarily evacuated between 4 to 26 December by CIMB, as advised by Dewan Bandaraya Kuala Lumpur (“DBKL”) as a preventive measure to ensure the safety of its employees.


DBKL had instructed Institut Kerja Raya Malaysia (“IKRAM”) to conduct soil tests and investigations on the matter. DBKL had also instructed the landowner of the landslip area that immediate steps be taken to provide remedial measure to the affected area to prevent any further soil erosion. ARREIT had also appointed its own geologist firm to provide geotechnical assessment of the affecting surrounding area of the said building.

Due to the said landslip and collapse, ARREIT had to bear a cost of RM486,957 being primarily the cost of appointing its own geologist and inclusive of loss of rental for duration of the evacuation, amounting to RM67,021.

ARREIT is awaiting the results of the investigations by IKRAM and DBKL before proceeding with further actions.

soFT CoMMIssIon

During the financial year under review, the Manager did not receive any soft commission from its broker or any parties by virtue of transactions conducted by the Trust.

reserVes and ProVIsIons

There were no material transfers to and from reserves or provisions during the financial year ended 31 December 2008 other than those disclosed in the Statement of Changes in Net Asset Value.

InForMaTIon on The FInanCIal sTaTeMenTs

In arriving at the financial statements of ARREIT the Manager took reasonable steps:

a. To ascertain that proper action has been taken in relation to the writing off of bad debts and making of allowance for doubtful debts and satisfied themselves that all known bad debts have been written off and that adequate allowance has been made for doubtful debts; and

b. To ensure that any current assets which were unlikely to realise their values in the accounting records of ARREIT in the ordinary course of business have been written down to an amount which they might be expected so to realise.

At the date of this report, the Manager is not aware of any circumstances:

a. Which would render the amount written off for bad debts or the amount of allowance for doubtful debts in the financial statements of ARREIT inadequate to any substantial extent; or

b. Which would render the values attributed to current assets in the financial statements of ARREIT misleading; or

c. Which have arisen which render adherence to the existing method of valuation of assets or liabilities of ARREIT misleading or inappropriate.

At the date of this report, there does not exist: (Rizal to confirm)

a. Any charge on the assets of ARREIT which has arisen since the end of the financial period which secures the liability of any other person, except as disclosed in Note 9 to the financial statements; or

b. Any contingent liability of ARREIT which has arisen since the end of the financial period.



No contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve (12) months after the end of the financial year of which, in the opinion of the Directors of AmanahRaya-JMF Asset Management Sdn Bhd, will affect the ability of ARREIT to meet its obligations as and when they fall due.

oTher sTaTuTory InForMaTIon

The Directors of AmanahRaya-JMF Asset Management Sdn. Bhd. state that:

At the date of this report, they are not aware of any circumstances not otherwise dealt with in this report or the financial statements of ARREIT which would render any amount stated in the financial statements misleading.

In their opinion,

a. the results of the operations of ARREIT during the period under review were not substantially affected by any item, transaction or event of material and unusual nature save that declared in the significant event; and

b. there has not arisen in the interval between the end of the period under review and the date of this report, any item, transaction or event of material and unusual nature likely to affect substantially the results of the operations of ARREIT for the financial period in which this report is made.



FINANCIAL STATEMENT 90 StatementbyDirectorsoftheManager

91 StatutoryDeclaration

92 ReportoftheTrustee

93 IndependentAuditors’Report

95 BalanceSheet

96 IncomeStatement

98 StatementofChangesinNetAssetValue

100 CashFlowStatement

101 NotestotheFinancialStatements


STATEMENT BY DIRECTORS OF THE MANAGER

IntheopinionoftheDirectors,thefinancialstatementssetoutonpages95to124havebeendrawnupinaccordancewiththeprovisionsoftheTrustDeeddated10October2006andtheSupplementalTrustDeeddated4January2007,theSecuritiesCommission’s Guidelines on Real Estate Investment Trusts, applicable Securities Laws and applicable approved FinancialReportingStandardsinMalaysia,soastogiveatrueandfairviewofthestateofaffairsofAmanahRayaRealEstateInvestmentTrust(“ARREIT”or“Trust”)asat31December2008andoftheresultsoftheoperationsoftheTrustandofthecashflowsoftheTrustforthefinancialyearthenended.

SignedonbehalfoftheManager,AmanahRaya-JMFAssetManagementSdn.Bhd.InaccordancewitharesolutionoftheDirectorsoftheManager

TanSriDatukArshadAyub SharizadJuma’at

KualaLumpurDate:13February2009


I,TAIAINGOH,beingtheofficeroftheManager,AmanahRaya-JMFAssetManagementSdn.Bhd.primarilyresponsibleforthefinancialmanagementofAmanahRayaRealEstateInvestmentTrust,dosolemnlyandsincerelydeclarethatthefinancialstatementssetoutonpages95to124,are,tothebestofmyknowledgeandbelief,correctandImakethissolemndeclarationconscientiouslybelievingthesametobetrueandbyvirtueoftheprovisionsoftheStatutoryDeclarationsAct,1960.

SubscribedandsolemnlydeclaredbytheabovenamedatKualaLumpurintheFederalTerritoryon13February2009

TaiAiNgoh

Beforeme,

CommissionerforOaths

STATUTORY DECLARATION


REPORT OF THE TRUSTEE TO THE UNITHOLDERS OF AMANAHRAYAREAL ESTATE INVESTMENT TRUST

We,CIMBTrusteeBerhad,haveactedasTrusteeofAmanahRayaRealEstateInvestmentTrust(“ARREIT”or“Trust”)forthefinancialyearended31December2008.Inouropinionandtothebestofourknowledge,AmanahRaya-JMFAssetManagementSdn.Bhd.(“theManager”)hasmanagedAmanahRayaRealEstateInvestmentTrustinaccordancewiththelimitationsimposedontheinvestmentpowersoftheManagerandtheTrusteeundertheTrustDeeddated10October2006andtheSupplementalTrustDeeddated4January2007,otherapplicableprovisionsoftheTrustDeed,theSecuritiesCommission’sGuidelinesonRealEstateInvestmentTrusts,theCapitalMarketsandServicesAct2007andotherapplicablelawsduringthefinancialyearthenended.Wealsoconfirmthattheincomedistributionsdeclaredandpaidinrelationtothedistributableincomeforthefinancialyearended31December2008areinlinewithandarereflectiveoftheobjectivesofARREIT.Two(2)distributionsthathavebeendeclaredinrelationtothedistributableincomeforthefinancialyearended31December2008areasfollows:-

1) Firstincomedistributionof3.5758senperunitpaidon29August2008;and

2) Proposedsecondincomedistributionof3.4347senperunitpayableon27February2009.

WehavealsoensuredthattheproceduresandprocessesemployedbytheManagertovalueandpricetheunitsofARREITareadequateandthatsuchvaluation/pricingiscarriedoutinaccordancewiththeTrustDeed,SupplementalTrustDeedandotherregulatoryrequirements.

ForandonbehalfoftheTrustee,CIMBTRUSTEEBERHAD(CompanyNo.167913M)

KHOOLENGKEEChiefOperatingOfficerKualaLumpur,Malaysia

Date:13February2009

(ESTABLISHEDINMALAySIA)


ReportontheFinancialStatements

WehaveauditedthefinancialstatementsofAmanahRayaRealEstateInvestmentTrust(“ARREIT”or“Trust”),whichcomprisethebalancesheetasat31December2008,andtheincomestatement,statementofchangesinnetassetvalueandcashflowstatementforthefinancialyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatorynotes,assetoutonpages95to124.

Directors’ResponsibilityfortheFinancialStatements

TheDirectorsofAmanahRaya-JMFAssetManagementSdn.Bhd.(“theManager”)ofARREITareresponsibleforthepreparationandfairpresentationofthesefinancialstatementsinaccordancewiththeprovisionoftheTrustDeeddated10October2006andtheSupplementalTrustDeeddated4January2007,theSecuritiesCommission’sGuidelinesonRealEstate InvestmentTrusts (“the Guidelines”), applicable Securities Laws and applicable approved Financial Reporting Standards in Malaysia.This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fairpresentationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror;selectingandapplyingappropriateaccountingpolicies;andmakingaccountingestimatesthatarereasonableinthecircumstances.

Auditors’Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit inaccordancewithapprovedstandardsonauditinginMalaysia.Thosestandardsrequirethatwecomplywithethicalrequirementsand plan and perform the audit to obtain reasonable assurance whether the financial statements are free from materialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependonourjudgement,includingtheassessmentofrisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,weconsiderinternalcontrolrelevanttoARREIT’spreparationandfairpresentationofthefinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessofARREIT’sinternalcontrol.AnauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebytheDirectorsoftheManager,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

INDEPENDENT AUDITORS’ REPORT TO THE UNITHOLDERS OF AMANAHRAYA REAL ESTATE INVESTMENT TRUST(ESTABLISHEDINMALAySIA)


Opinion

Inouropinion,thefinancialstatementshavebeenproperlydrawnupinaccordancewiththeprovisionoftheTrustDeeddated10October2006andtheSupplementalTrustDeeddated4January2007, theSecuritiesCommission’sGuidelinesonRealEstateInvestmentTrusts,applicableSecuritiesLawsandapplicableapprovedFinancialReportingStandardsinMalaysiasoastogiveatrueandfairviewofthestateofaffairsoftheARREITasat31December2008andoftheresultsoftheoperationsoftheTrustandofthecashflowoftheTrustforthefinancialyearthenended.

ReportonOtherLegalandRegulatoryRequirement

InaccordancewiththerequirementsoftheSecuritiesCommission’sGuidelinesonRealEstateInvestmentTrusts,wealsoreportthatinouropiniontheaccountingandotherrecordsandtheregistersrequiredbytheGuidelinestobekeptbytheTrusthavebeenproperlykeptinaccordancewiththeGuidelines.

OtherMatters

ThisreportismadesolelytotheunitholdersofARREIT,asabody,inaccordancewiththeSecuritiesCommission’sGuidelinesonRealEstateInvestmentTrustsandfornootherpurpose.Wedonotassumeresponsibilitytoanyotherpersonforthecontentofthisreport.

BDOBinder LawKianHuatAF:0206 2855/07/10(J)CharteredAccountants Partner

KualaLumpur13February2009

INDEPENDENT AUDITORS’ REPORT TO THE UNITHOLDERS OF AMANAHRAYA REAL ESTATE INVESTMENT TRUST(ESTABLISHEDINMALAySIA)


BALANCE SHEET

2008 2007 NOTE RM RM

ASSETS

Non-currentassets Investmentproperties 5 686,332,000 645,520,000

Currentassets Tradeandotherreceivables 6 679,484 85,613,677 SecuritydepositsinTrustaccountsandfinancialinstitution 7 42,619,695 41,079,733 Depositsplacedwithlicensedfinancialinstitutions 8 22,896,129 17,310,494 Cashandbankbalances 3,823 360,364

66,199,131 144,364,268

TOTALASSETS 752,531,131 789,884,268

LIABILITIES

Non-currentliabilities Borrowings 9 253,000,000 253,000,000

Currentliabilities Tradeandotherpayables 10 44,604,180 125,631,330 Provisionforincomedistribution 11 14,822,829 6,285,487

59,427,009 131,916,817

TOTALLIABILITIES 312,427,009 384,916,817

NETASSETVALUE(“NAV”) 440,104,122 404,967,451

FINANCEDBY:UNITHOLDERS’FUND Unitholders’capital 12 403,291,776 404,967,105 Undistributedincome 36,812,346 346

TOTALUNITHOLDERS’FUND 440,104,122 404,967,451

NUMBEROFUNITSINCIRCULATIONS 431,553,191 431,553,191

NAVPERUNIT(RM)- beforeprovisionforincomedistributions 1.0542 0.9530- afterprovisionforincomedistributions 1.0198 0.9384

ASAT31DECEMBER2008

The accompanying notes form an integral part of the financial statements.


INCOME STATEMENT FORTHEFINANCIALyEARENDED31DECEMBER2008

1.1.2008 26.2.2007 to31.12.2008 to31.12.2007 NOTE RM RMGrossrevenue 13 45,560,808 19,272,059Propertyexpenses 14 (1,448,058) (728,823)

Net rental income 44,112,750 18,543,236Interestincome 721,095 382,960Changeinthefairvalueofinvestmentproperties 36,812,000 -

Totalincome 81,645,845 18,926,196

Trustexpenses Manager’sfee 15 (1,255,253) (460,164) Trustee’sfee 16 (167,367) (61,356) Auditors’remuneration (65,000) (38,000) Taxagent’sfee (25,000) (18,000) Administrativeexpenses (271,917) (224,770) Valuationfees (150,000) - Interestexpense 17 (12,645,000) (7,477,273)

Totaltrustexpenses (14,579,537) (8,279,563)

Incomebeforetaxation 67,066,308 10,646,633 Taxation 18 - -

Netincomeforthefinancialyear/period 67,066,308 10,646,633

Netincomeforthefinancialyear/periodismadeupasfollows:Realised 30,254,308 10,646,633Unrealised-changeinthefairvalueofinvestmentproperties 36,812,000 -

67,066,308 10,646,633

Earningsperunit(sen)# 19-beforemanager’sfee 15.8316 5.9330-aftermanager’sfee 15.5407 5.6872



INCOME STATEMENT


1.1.2008 26.2.2007 to31.12.2008 to31.12.2007 NOTE RM RM

Netincomedistribution 20-Firstinterimincomedistributionof3.5758senpaidon 29August2008(2007:2.3700senpaidon16October2007) 15,431,479 4,360,800-SecondinterimincomedistributionofNil (2007:2.8149senpaidon25January2008) - 5,179,416-ProposedthirdinterimincomedistributionofNil (2007:0.2563senpayableon25February2008) - 1,106,071-Proposedsecondinterimincomedistributionof3.4347sen payableon27February2009(2007:Nil) 14,822,829 -

30,254,308 10,646,287

Incomedistributionperunit(sen) 20- Firstinterimincomedistribution 3.5758 2.3700- Secondinterimincomedistribution - 2.8149- Proposedthirdinterimincomedistribution - 0.2563- Proposedsecondinterimincomedistribution 3.4347 -

7.0105 5.4412

#Earningsperunitforthefinancialyearended31December2008iscalculatedusingnetincomeforthefinancialyearwhichincludesunrealisedincomearisingfromthechangeinfairvalueofinvestmentproperties.

FORTHEFINANCIALyEARENDED31DECEMBER2008


STATEMENT OF CHANGES IN NET ASSET VALUEFORTHEFINANCIALyEARENDED31DECEMBER2008

Distributable/ Undistributed Total Unitholders’ Income Unitholders’ Capital Realised Fund Note RM RM RMAt26February2007(dateofcommencement) - - -Operationsforthefinancialperiod ended31December2007

Netincomeforthefinancialperiod - 10,646,633 10,646,633

Increaseinnetassetresultingfromoperations - 10,646,633 10,646,633

Unitholders’transactions

Proceedsfrominitialpublicoffering 180,274,060 - 180,274,060Listingexpenses 21 (8,006,955) - (8,006,955)Proceedsfromcreationofunits 232,700,000 - 232,700,000Distributiontounitholders:- paid - (4,360,800) (4,360,800)- provision 11 - (6,285,487) (6,285,487)

Netincreaseinnetassetsresulting fromunitholders’transaction 404,967,105 (10,646,287) 394,320,818

At31December2007 12 404,967,105 346 404,967,451



Distributable/ Undistributed Total Unitholders’ Income Unitholders’ Capital Realised Unrealised Fund Note RM RM RM RMAt1January2008 404,967,105 346 - 404,967,451

Operationsforthefinancialyear ended31December2008

Netincomeforthefinancialyear - 30,254,308 36,812,000 67,066,308

Increaseinnetassetresultingfromoperations 404,967,105 30,254,654 36,812,000 472,033,759

Unitholders’transactions

Listingexpenses 21 (1,675,329) - - (1,675,329)Distributiontounitholders:- paid - (15,431,479) - (15,431,479)- provision 11 - (14,822,829) - (14,822,829)

Decreaseinnetassetsresulting fromunitholders’transaction (1,675,329) (30,254,308) - (31,929,637)

At31December2008 12 403,291,776 346 36,812,000 440,104,122

STATEMENT OF CHANGES IN NET ASSET VALUEFORTHEFINANCIALyEARENDED31DECEMBER2008



CASH FLOW STATEMENTFORTHEFINANCIALyEARENDED31DECEMBER2008

1.1.2008 26.2.2007 to31.12.2008 to31.12.2007 RM RMCASHFLOWFROMOPERATINGACTIVITIES

Incomebeforetaxation 67,066,308 10,646,633Adjustmentsfor: Interestexpense 12,645,000 7,477,273 Interestincome (721,095) (382,960)Changeinfairvalueofinvestmentproperties (36,812,000) -Operatingincomebeforeworkingcapitalchanges 42,178,213 17,740,946

Decrease/(Increase)intradeandotherreceivables 84,934,193 (85,613,677) IncreaseinsecuritydepositsinTrustaccountsandfinancialinstitution (1,539,962) (41,079,733) (Decrease)/Increaseintradeandotherpayables (81,027,150) 125,475,866

Netcashfromoperatingactivities 44,545,294 16,523,402

CASHFLOWFROMINVESTINGACTIVITIES

Interestreceived 721,095 382,960Enhancement/Purchaseofinvestmentproperties (4,000,000) (645,520,000)

Netcashusedininvestingactivities (3,278,905) (645,137,040)CASHFLOWSFROMFINANCINGACTIVITIES

Distributionpaidtounitholders (21,716,966) (4,360,800) Listingexpenses (1,675,329) (8,006,955) Proceedsfromissuanceofunits - 232,700,000 Proceedsfromborrowings - 253,000,000 Interestpaid (12,645,000) (7,321,809)

Netcash(usedin)/fromfinancingactivities (36,037,295) 466,010,436

Netincrease/(decrease)incashandcashequivalents 5,229,094 (162,603,202)Cashandcashequivalentsatbeginningoffinancialyear/period 17,670,858 180,274,060

Cashandcashequivalentsatendoffinancialyear/period 22,899,952 17,670,858

Cashandcashequivalents

Cashandcashequivalentsincludedinthecashflowstatementcomprise thefollowingbalancesheetamounts:

Cashandbankbalances 3,823 360,364Depositsplacedwithlicensedfinancialinstitutions 22,896,129 17,310,494

22,899,952 17,670,858



NOTES TO THE FINANCIAL STATEMENTS31DECEMBER2008

1. GENERALINFORMATION

AmanahRaya Real Estate Investment Trust (“ARREIT” or “Trust”) is a Malaysian-domiciled real estate investment trustconstitutedpursuanttotheTrustDeeddated10October2006andtheSupplementalTrustDeeddated4January2007(collectively referred to “the Deed”) between AmanahRaya-JMF Asset Management Sdn. Bhd. (the “Manager”) andCIMBTrusteeBerhad(the“Trustee”).TheDeedisregulatedbytheCapitalMarketsandServicesAct2007,theSecuritiesCommission’sGuidelinesonRealEstateInvestmentTrusts,theListingRequirementsofBursaMalaysiaSecuritiesBerhad,theRulesoftheDepositoryandtaxationlawsandrulings.ARREITwillcontinueitsoperationsuntilsuchtimeasdeterminedbytheTrusteeandtheManagerasprovidedundertheprovisionofClause26oftheTrustDeeddated10October2006.

ARREITwaslistedontheMainBoardofBursaMalaysiaSecuritiesBerhadon26February2007.

TheregisteredofficeoftheTrust’sManagerislocatedatLevel15,WismaAmanahRaya,No.2,JalanAmpang,50450KualaLumpur.

Theprincipal placeof business of the Trust’sManager is located at Level 7&8,WismaAmanahRaya,No. 2, JalanAmpang,50450KualaLumpur.

ARREITisprincipallyengagedininvestmentofadiverseportfolioofpropertieswiththeobjectivesofachievinganattractivelevelofreturnfromrentalincomeandforlongtermcapitalgrowth.Therehasbeennosignificantchangeinthenatureofthisactivityduringthefinancialyear.

ThefinancialstatementswereauthorisedforissueinaccordancewitharesolutionbytheBoardofDirectorsoftheManager,AmanahRaya-JMFAssetManagementSdn.Bhd.on13February2009.

2. BASISOFPREPARATION

2.1 Statementofcompliance

ThefinancialstatementsofARREIThavebeenpreparedinaccordancewiththeprovisionsoftheTrustDeeddated10October2006andtheSupplementalTrustDeeddated4January2007,theSecuritiesCommission’sGuidelinesonRealEstateInvestmentTrusts,applicablesecuritieslaws,applicableapprovedFinancialReportingStandards(“FRS”)inMalaysia.

2.2 Basisofmeasurement

The financial statements of the Trust have been prepared under the historical cost convention unless otherwiseindicatedinthesignificantaccountingpolicies.

2.3 Functionalandpresentationcurrency

ThefinancialstatementsarepresentedinRinggitMalaysia,whichistheTrust’sfunctionalcurrency.

2.4 Useofestimatesandjudgements

ThepreparationoffinancialstatementsrequirestheDirectorsoftheManagertomakejudgements,estimatesandassumptionsthataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,liabilities,incomeandexpenses.

AlthoughtheseestimatesandassumptionsarebasedontheManager’sbestknowledgeofcurrenteventsandactions,actualresultsmayultimatelydifferfromtheseestimates.


NOTES TO THE FINANCIAL STATEMENTS

2. BASISOFPREPARATION(Cont’d)

2.4 Useofestimatesandjudgements(Cont’d)

Revisionstoaccountingestimatesarerecognisedintheperiodwhichtheestimateisrevisedandinanyfutureperiodsaffected.

Theestimatesandunderlyingassumptionsareassessedonanongoingbasis.

2.4.1 Judgementmadeinapplyingtheaccountingpolicies

JudgementshavebeenmadebytheDirectorsoftheManager inapplyingtheTrust’saccountingpolicies.Amongst others, the classification of the sales and leaseback transactions entered into in respect ofinvestment properties recorded in Note 5 may have significant effect on the amounts recognised in thefinancialstatements.Judgementisrequiredtobemadeinclassificationofthesaidtransactions.TheseleaseshavebeenclassifiedastheTrust’sinvestmentpropertiesbytheTrust,asthelesseehastransferredsubstantiallyalltherisksandrewardsincidentaltoownershiptotheTrustandthelesseehasanoptiontobuybackthepropertiesupontheexpiryoftheleaseperiod,atpurchasepriceequivalenttotheprevailingmarketvalueofthepropertiesatthattime.

2.5Keysourcesofestimationuncertainty Thefollowingiskeyassumptionconcerningthefutureandotherkeysourcesofestimationuncertaintyatthebalance

sheetdatehaveasignificantriskcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyear.

Fairvaluesofborrowings

ThefairvaluesofborrowingsareestimatedbydiscountingfuturecontractualcashflowsatthecurrentmarketinterestratesavailabletotheTrustforsimilarfinancialinstruments.ItisassumedthattheeffectiveinterestratesapproximatethecurrentmarketinterestratesavailabletotheTrustbasedonitssizeanditsbusinessrisk.

3. ADOPTIONOFNEWFRSsANDAMENDMENTTOFRS

3.1 AmendmenttoFRSandnewFRSsadopted

(a) AmendmenttoFRS121The Effects of Changes in Foreign Exchange Rates - Net Investment in a Foreign Operationismandatoryforannualperiodsbeginningonorafter1July2007.

Theadoptionofthisamendmentdoesnothaveanyimpactonthefinancialstatements.



3. ADOPTIONOFNEWFRSsANDAMENDMENTTOFRS(Cont’d)

3.1 AmendmenttoFRSandnewFRSsadopted(Cont’d)

(b) ThefollowingFRSaremandatoryforannualperiodsbeginningonorafter1July2007: FRS 107 Cash Flow Statements FRS 111 Construction Contracts FRS 112 Income Taxes FRS 118 Revenue FRS 120 Accounting for Government Grants and Disclosure of Government Assistance FRS 134 Interim Financial Reporting FRS 137 Provisions, Contingent Liabilities and Contingent Assets

TheseFRSaligntheMalaysiaAccountingStandardsBoard(“MASB”)FRSwiththeequivalentInternationalAccountingStandards(“IASs”),bothintermsofformandcontent.TheadoptionoftheseStandardswillonlyimpacttheformandcontentofdisclosurespresentedinthefinancialstatements.

(c) ICInterpretation1ChangesinExistingDecommissioning,RestorationandSimilarLiabilitiesismandatoryforannualperiodsbeginningonorafter1July2007.

This Interpretation addresses the effects of events that changes the measurement of an existingdecommissioning, restoration or similar liability, namely a change in the estimated outflow of resourcesembodyingeconomicbenefitsrequiredtosettletheobligation,achangeinthecurrentmarket-baseddiscountrateasdefinedinparagraph47ofFRS137andanincreasethatreflectsthepassageoftime.

ThisICInterpretationisnotrelevanttotheTrust’soperation. (d) ThefollowingICInterpretationsaremandatoryforannualperiodsbeginningonorafter1July2007: IC Interpretation 2 Members’ Shares in Co-operatives Entities and Similar Instruments IC Interpretation 5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds IC Interpretation 6 Liabilities arising from Participating in a Specific Market - Waste Electrical and Electronic Equipment IC Interpretation 7 Applying the Restatement Approach under FRS 129 Financial Reporting in Hyperinflationary Economies IC Interpretation 8 Scope FRS 2 Share-based Payment

TheseICInterpretationsarenotrelevanttotheTrust’soperation. (e) Framework for the Preparation and Presentation of Financial Statements(“Framework”)iseffectiveforannual

periodsbeginningonorafter1July2007.

TheFrameworksetsouttheconceptsthatunderliethepreparationandpresentationoffinancialstatementsforexternalusers.ItisnotaMASBapprovedFRSasdefinedinparagraph11orFRS101Presentation of Financial Statementsandhence,doesnotdefinestandardsforanyparticularmeasurementordisclosureissue.



3. ADOPTIONOFNEWFRSsANDAMENDMENTTOFRS(Cont’d)

3.2 NewFRSsnotadopted (a) FRS 8 Operating Segments and the consequential amendments resulting from FRS 8 are mandatory for

annualfinancialperiodsbeginningonorafter1July2009.FRS8isnotrelevanttoTrust’soperation.

(b) FRS4Insurance ContractsandtheconsequentialamendmentsresultingfromFRS4aremandatoryforannualfinancial periods beginningon or after 1 January 2010. FRS4 replaces the existing FRS2022004GeneralInsuranceBusinessandFRS2032004LifeInsuranceBusiness.FRS4isnotrelevanttoTrust’soperation.

(c) FRS 7 Financial Instruments: Disclosures and the consequential amendments resulting from FRS 7 aremandatoryforannualfinancialperiodsbeginningonorafter1January2010.FRS7replacesthedisclosurerequirementsoftheexistingFRS132Financial Instruments: Disclosure and Presentation.

Thestandardappliestoallrisksarisingfromawidearrayoffinancialinstrumentsandrequiresthedisclosuresofthesignificanceoffinancialinstrumentsforanentity’sfinancialpositionandperformance.

The standard requires the disclosure of qualitative and quantitative information about exposure to risksarisingfromfinancial instruments, includingspecifiedminimumdisclosuresaboutcreditrisks, liquidityriskandmarketrisk.Thequalitativedisclosuresdescribethemanagement’sobjectives,policiesandprocessesformanagingthoserisks.Thequantitativedisclosuresprovideinformationontheextenttowhichtheentityisexposedtorisk,basedoninformationprovidedinternallytotheentity’skeymanagementpersonnel.

(d) FRS139Financial Instruments: Recognition and MeasurementandtheconsequentialamendmentsresultingfromFRS139aremandatoryforannualfinancialperiodsbeginningonorafter1January2010.

Thestandardestablishestheprinciplesfortherecognitionandmeasurementoffinancialassetsandfinancialliabilities includingcircumstancesunderwhichhedgeaccounting ispermitted.Byvirtueoftheexemptionprovidedunderpara103ABofFRS139,theimpactofapplyingFRS139onthefinancialstatementsuponfirstadoptionoftheFRSasrequiredbyparagraph30(b)ofFRS108Accounting Policies, Changes in Accounting Estimates and Errorsisnotdisclosed.

(e) ICInterpretation9Reassessment of Embedded Derivativesismandatoryforannualfinancialperiodsbeginningonorafter1January2010.

ThisInterpretationprohibitsthesubsequentreassessmentofembeddedderivativesunlessthereisachangeinthetermsofthehostcontractthatsignificantlymodifiesthecashflowsthatwouldotherwiseberequiredbythehostcontract.

The Trust does not expect any impact on the financial statements arising from the adoption of thisInterpretation.

(f) IC Interpretation10 Interim Financial Reporting and Impairment ismandatoryforannualfinancialperiods

beginningonorafter1January2010.

This Interpretationprohibits the reversalofan impairment loss recognised inaprevious interimperiod inrespectofgoodwilloraninvestmentineitheranequityinstrumentorafinancialassetcarriedatcost.

TheTrustdoesnotexpectanyimpactonthefinancialstatementsarisingfromtheadoptionofthisInterpretationinthefuture.



4. SIGNIFICANTACCOUNTINGPOLICIES

Thesignificantaccountingpoliciessetoutbelowhavebeenappliedconsistentlytotheperiodpresentedinthesefinancialstatements:

4.1Leases

Operatingleases

Aleaseisclassifiedasanoperatingleaseif itdoesnottransfersubstantiallyalltherisksandrewardsincidentaltoownership.

4.2 Investmentproperties

InvestmentpropertiesarepropertieswhichareheldtoearnrentalyieldsorforcapitalappreciationorforbothandarenotoccupiedbytheTrust.Investmentpropertiesareinitiallymeasuredatcost,whichincludestransactioncosts.Afterinitialrecognition,investmentpropertiesarestatedatfairvalue.Thefairvalueofinvestmentpropertiesarethepricesatwhichthepropertiescouldbeexchangedbetweenknowledgeable,willingpartiesinanarm’slengthtransaction.Thefairvalueofinvestmentpropertiesreflectmarketconditionsatthebalancesheetdate,withoutanydeductionfortransactioncoststhatmaybeincurredonsalesorotherdisposal.

Fairvalueof investmentpropertiesarearrivedatby reference tomarketevidenceof transactionprices for similarproperties. It isperformedbyregisteredindependentvaluerswithappropriaterecognisedprofessionalqualificationandhasrecentexperienceinthelocationandcategoryoftheinvestmentpropertiesbeingvalued.

Againorlossarisingfromachangeinthefairvalueofinvestmentpropertiesisrecognisedinprofitandlossfortheperiodinwhichitarises.

Investmentpropertiesarederecognisedwheneither theyhavebeendisposedoforwhentheyarepermanentlywithdrawnfromuseandnofutureeconomicbenefit isexpectedfromtheirdisposal.Thegainsor lossesarisingfromtheretirementordisposalofinvestmentpropertiesisdeterminedasthedifferencebetweenthenetdisposalproceeds, ifany,and thecarryingamountof theassetand is recognised inprofitand loss in theperiodof theretirementordisposal.

4.3 Financialinstruments

Afinancialinstrumentisanycontractthatgivesrisetoafinancialassetofoneenterpriseandafinancialliabilityorequityinstrumentofanotherenterprise.

Afinancialassetisanyassetthatiscash,anequityinstrumentofanotherenterprise,acontractualrighttoreceivecashoranotherfinancialassetfromanotherenterprise,oracontractualrighttoexchangefinancialassetsorfinancialliabilitieswithanotherenterpriseunderconditionsthatarepotentiallyfavourabletotheTrust.

Afinancialliabilityisanyliabilitythatisacontractualobligationtodelivercashoranotherfinancialassettoanotherenterprise,oracontractualobligationtoexchangefinancialassetsorfinancialliabilitieswithanotherenterpriseunderconditionsthatarepotentiallyunfavourabletotheTrust.



4. SIGNIFICANTACCOUNTINGPOLICIES(Cont’d)

4.3 Financialinstruments(Cont’d)

4.3.1 Financialinstrumentsrecognisedonthebalancesheet

Financial instruments are recognised on the balance sheet when the Trust has become a party to thecontractualprovisionsoftheinstrument.

Financialinstrumentsareclassifiedasliabilitiesorequityinaccordancewiththesubstanceofthecontractualarrangement.Interest,dividendsandlossesandgainsrelatingtoafinancialinstrumentoracomponentthatisafinancialliabilityshallberecognisedasincomeorexpenseinprofitorloss.Distributionstoholdersofanequityinstrumentaredebiteddirectlytoequity,netofanyrelatedtaxeffect.FinancialinstrumentsareoffsetwhentheTrusthasalegallyenforceablerighttooffsetandintendstosettleonanetbasisortorealisetheassetandsettletheliabilitysimultaneously.

(a) Receivables

Tradereceivablesandotherreceivables,areclassifiedasloansandreceivablesunderFRS132FinancialInstruments:DisclosureandPresentation.

Receivables are carried at anticipated realisable value.Knownbaddebts arewrittenoff and specificallowanceismadefordebtsconsideredtobedoubtfulofcollection.

Receivablesarenotheldfortradingpurposes.

(b) Cashandcashequivalents

Cashandcashequivalentsincludecashandbankbalances,depositsandothershortterm,highlyliquidinvestmentwithoriginalmaturitiesofthree(3)monthsorless,whicharereadilyconvertibletocashandaresubjecttoinsignificantriskofchangesinvalue.

(c) Payables

Liabilitiesfortradeandotheramountspayables,areinitiallyrecognisedatfairvalueoftheconsiderationtobepaidinthefutureforgoodsandservicesreceived.

(d) Borrowings

Allloansandborrowingsareinitiallyrecognisedatthefairvalueoftheconsiderationreceivedlessdirectlyattributable costs. After initial recognition, interest bearing loans and borrowings are subsequentlymeasuredatamortisedcostusingeffectiveinterestmethod.

4.3.2 Financialinstrumentsnotrecognisedonthebalancesheet

Therewerenofinancialinstrumentsnotrecognisedonthebalancesheet.




4.4 Incometaxes

Incometaxesintheincomestatementforthefinancialyearcomprisecurrenttaxanddeferredtax.

(a) Currenttax

Currenttaxistheamountofincometaxespayableorreceivableinrespectofthetaxableprofitorlossforaperiod.

Currenttaxforthecurrentandpriorperiodsismeasuredattheamountexpectedtoberecoveredfromorpaidtothetaxationauthorities.Thetaxratesandtaxlawsusedtocomputetheamountarethosethathavebeenenactedorsubstantivelyenactedbythebalancesheetdate.

(b) Deferredtax

Deferredtaxisrecognisedinfullusingtheliabilitymethodontemporarydifferencesarisingbetweenthecarryingamountofanassetorliabilityinthebalancesheetanditstaxbase.

Deferred tax is recognised for all temporary differences, unless the deferred tax arises from goodwill or theinitialrecognitionofanassetorliabilityinatransactionwhichisnotabusinesscombinationandatthetimeoftransaction,affectsneitheraccountingprofitnortaxableprofit.

A deferred tax asset is recognised only to the extent that it is probable that taxable profits will be availableagainstwhichthedeductibletemporarydifferencescanbeutilised.Thecarryingamountofadeferredtaxassetisreviewedateachbalancesheetdate.Ifitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowthebenefitofpartorallofthatdeferredtaxassettobeutilised,thecarryingamountofthedeferredtaxassetwillbereducedaccordingly.Whenitbecomesprobablethatsufficienttaxableprofitwillbeavailable,suchreductionswillbereversedtotheextentofthetaxableprofits.

Deferredtaxassetsandliabilitiesareoffsetwhenthereisalegallyenforceablerighttosetoffcurrenttaxassetsagainstcurrenttaxliabilitiesandwhenthedeferredincometaxesrelatetothesametaxationauthority.

Deferredtaxwillberecognisedasincomeorexpenseandincludedintheprofitorlossfortheperiodunlessthetaxrelatestoitemsthatarecreditedorcharged,inthesameoradifferentperiod,directlytoequity,inwhichcasethedeferredtaxwillbechargedorcrediteddirectlytoequity.

Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheyearwhentheassetisrealisedortheliabilityissettled,basedontaxratesandtaxlawsthathavebeenenactedorsubstantivelyenactedbythebalancesheetdate.

4.5 Provisions

Provisionsarerecognisedwhenthereisapresentobligation,legalorconstructive,asaresultofapastevent,whenitisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligationandareliableestimatecanbemadeoftheamountoftheobligation.

Wheretheeffectofthetimevalueofmoneyismaterial,theamountofaprovisionwillbediscountedtoitspresentvalueatapre-taxratethatreflectscurrentmarketassessmentofthetimevalueofmoneyandtherisksspecifictotheliability.




4.5 Provisions(Cont’d)

Provisionarereviewedateachbalancesheetdateandadjustedtoreflectthecurrentbestestimate.Ifitisnolongerprobable thatanoutflowof resourcesembodyingeconomicbenefitswillbe required tosettle theobligation, theprovisionwillbereversed.

Provisions are not recognised for future operating losses. If the Trust has a contract that is onerous, the presentobligationunderthecontractshallberecognisedandmeasuredasaprovision.

Provisionforincomedistributionisrecognisedwhenanydistributionisdeclared,determinedorpubliclyrecommendedbytheDirectorsoftheManagerandapprovedbytheTrusteebutnotdistributedatthebalancesheetdate.

4.6 Contingentliabilitiesandcontingentassets

Acontingentliabilityisapossibleobligationthatarisesfrompasteventswhereexistencewillbeconfirmedbytheoccurrenceornon-occurrenceofoneormoreuncertainfutureeventsbeyondthecontroloftheTrustorapresentobligationthatisnotrecognisedbecauseitisnotprobablethatanoutflowofresourceswillberequiredtosettletheobligation.Acontingentliabilityalsoarisesinextremelyrarecaseswherethereisaliabilitythatcannotberecognisedbecauseitcannotbemeasuredreliably.TheTrustdoesnotrecogniseacontingentliabilitybutdiscloseitsexistenceinthefinancialstatements.

A contingent asset is a possible asset that arises from past events whose existence will be confirmed by theoccurrenceornon-occurrenceofoneormoreuncertainfutureeventsbeyondthecontroloftheTrust.TheTrustdoesnotrecognisecontingentassetsbutdiscloseitsexistencewhereinflowsofeconomicbenefitsareprobable,butnotvirtuallycertain.

4.7 Revenuerecognition

RevenueisrecognisedtotheextentthatitisprobablethattheeconomicbenefitsassociatedwiththetransactionwillflowtotheTrust,andtheamountofrevenueandthecostincurredortobeincurredinrespectofthetransactioncanbereliablymeasuredandspecificrecognitioncriteriahavebeenmetforeachofTrust’sactivityasfollows:

(a) Rentalincome

Rentalincomeisaccountedforonastraightlinebasisovertheleasetermofanongoinglease.Theaggregatecostofincentivesprovidedtothelesseeisrecognisedasreductionofrentalincomeovertheleasetermonastraightlinebasis.

(b) Interestincome Interestincomeisrecognisedasitaccrues,usingtheeffectiveinterestmethod.

4.8 Expenses

4.8.1 Propertyexpenses

Propertyexpensesconsistofpropertymanagementfees,quitrents,assessment,andotheroutgoingsinrelationtoinvestmentpropertieswheresuchexpensesaretheresponsibilitiesoftheTrust.Propertymanagementfeesarerecognisedonanaccrualbasis.




4.8 Expenses(Cont’d)

4.8.2 Interestexpense

Allborrowingcostsarerecognisedintheincomestatementsusingtheeffectiveinterestmethod,intheperiodinwhichtheyareincurred.

4.8.3 Establishmentandissueexpenses

EstablishmentexpensesrepresentexpensesincurredinestablishingandlistingtheTrustandissueexpensesrelatetoexpensesincurredintheissuanceandplacementofadditionalunitsintheTrust.Theseexpensesarededucteddirectlyagainstunitholders’capital.

4.8.4 Manager’sandTrustee’sfees

TheManager’sandTrustee’sfeesarerecognisedonanaccrualbasis.

5. INVESTMENTPROPERTIES

2008 2007 RM RM At1January/26February(dateofcommencement) 645,520,000 336,850,000 Acquisitions - 308,670,000 Additions 4,000,000 - Changeinfairvalue 36,812,000 -

At31December 686,332,000 645,520,000 Includedintheaboveare:

Landandbuildings 686,332,000 645,520,000


NOTES TO THE FINANCIAL STATEMENTS5.

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(7)

Free

hold

N

/A

N/A

Sh

ahA

lam

In

dust

rial

100

95,0

00,0

00

92,0

00,0

00

21.5

9

w

areh

ouse

AIC

Fac

tory

(8)

Leas

ehold

99y

ears

exp

iring2

094

Shah

Ala

m

Indust

rial

100

20,0

00,0

00

19,2

00,0

00

4.5

4

w

areh

ouse

SEG

iCam

pus

Colle

ge

(7)

Leas

ehold

99y

ears

exp

iring2

106K

ota

Dam

ansa

ra

Colle

ge/

100

152,0

00,0

00

145,0

00,0

00

34.5

4

C

ampus

Guru

nA

uto

motiv

e

War

ehouse

(9)

Leas

ehold

99y

ears

exp

iring2

104

Guru

n,K

edah

In

dust

rial

100

24,8

00,0

00

23,9

70,0

00

5.6

4

w

areh

ouse

Ta

mad

amB

onded

War

ehouse

(10)

Lot1164

60y

ears

exp

iring2

067

Port

Kla

ng

Bonded

100

29,5

00,0

00

28,5

00,0

00

6.7

0

Le

aseh

old

war

ehouse

686,3

32,0

00

645,5

20,0

00



5. INVESTMENTPROPERTIES(Cont’d) ASAT31DECEMBER2008 (1) The properties were valued on 13 November 2008 by Hakimi & Associates Sdn. Bhd., an independent firm of

professionalvaluerusingthediscountedcashflowandcomparisonmethodsofvaluation.

(2) The properties were valued on 17 November 2008 by Hakimi & Associates Sdn. Bhd., an independent firm ofprofessionalvaluerusingthediscountedcashflowandcomparisonmethodsofvaluation.

(3) The properties were valued on 13 November 2008 by Hakimi & Associates Sdn. Bhd., an independent firm ofprofessionalvaluerusingtheinvestmentandcomparisonmethodsofvaluation.



(6) The properties were valued on 12 November 2008 by Hakimi & Associates Sdn. Bhd., an independent firm ofprofessionalvaluerusingthecostandcomparisonmethodsofvaluation.

(7) Thepropertieswerevaluedon13November2008byRahim&CoCharteredSurveyorsSdn.Bhd.,anindependentfirmofprofessionalvaluerusingtheinvestmentandcomparisonmethodsofvaluation.

(8) Thepropertieswerevaluedon17November2008byRahim&CoCharteredSurveyorsSdn.Bhd.,anindependentfirmofprofessionalvaluerusingthelandandbuildingcomparisonandinvestmentmethodsofvaluation.

(9) Thepropertieswerevaluedon14November2008byRahim&CoCharteredSurveyorsSdn.Bhd.,anindependentfirmofprofessionalvaluerusingtheinvestmentandcomparisonmethodsofvaluation.

(10)Thepropertieswerevaluedon14November2008byRahim&CoCharteredSurveyorsSdn.Bhd.,anindependentfirmofprofessionalvaluerusingthelandandbuildingcomparisonandinvestmentmethodsofvaluation.


NOTES TO THE FINANCIAL STATEMENTS5.

IN

VES

TMEN

TPR

OPE

RTI

ES(

Co

nt’

d)

A

SA

T31

DEC

EMBE

R20

07

%o

ffa

ir

v

alu

et

o

N

et

Ass

et

Rem

ain

ing

O

ccu

pan

cy

Fair

valu

e

Co

st

Valu

e

Te

nu

re

Term

of

te

rmo

f

Exis

tin

g

rate

sas

at

as

at

as

at

as

at

of

lan

d

lease

year

le

ase

year

Loca

tio

n

use

31D

ece

mb

er

31D

ece

mb

er

31D

ece

mb

er

31D

ece

mb

er

2007

2007

2007

2007

%

R

M

RM

Holid

ayV

illa

Alo

rSe

tar(1

)Fr

eehold

N

/A

N/A

A

lorSe

tar

Hote

l100

31,0

00,0

00

31,0

00,0

00

7.6

5

Leas

ehold

99y

ears

exp

iring2

084

Holid

ayV

illa

Langka

wi1

)Fr

eehold

N

/A

N/A

Pu

lauL

angka

wi

Hote

l100

55,0

00,0

00

55,0

00,0

00

13.5

8

S EG

iColle

ge

(2)

Free

hold

N

/A

N/A

Su

ban

gJay

aC

olle

ge

100

52,5

00,0

00

52,5

00,0

00

12.9

6

Blo

ckA

&B

,

South

City

Pla

za(3

)Le

aseh

old

99y

ears

exp

iring2

093S

eriK

emban

gan

O

ffice

(Blo

ckA

)100

18,3

00,0

00

18,3

00,0

00

4.5

3

Col

lege

(Blo

ckB

)

Wism

aA

man

ahRay

a(4

)Le

aseh

old

99y

ears

exp

iring2

065

Kual

aLu

mpur

Offi

ce

100

70,0

00,0

00

68,0

00,0

00

17.2

8

Wism

aA

man

ahR

aya

Ber

had

(4)

Leas

ehold

99y

ears

exp

iring2

072

Kual

aLu

mpur

Offi

ce

100

55,0

00,0

00

53,0

00,0

00

13.5

8

W

ism

aU

EP(4

)Fr

eehold

N

/A

N/A

Su

ban

gJay

aO

ffice

100

36,0

00,0

00

35,5

00,0

00

8.8

9

Perm

anisF

acto

ry(5

)Le

aseh

old

99y

ears

exp

iring2

089

BdrBar

uB

angi

Indust

rial

100

24,0

00,0

00

23,5

50,0

00

5.9

3

w

areh

ouse

Si

lver

Bird

Fac

tory

(6)

Free

hold

N

/A

N/A

Sh

ahA

lam

In

dust

rial

100

94,7

00,0

00

92,0

00,0

00

23.3

8

w

areh

ouse

AIC

Fac

tory

(6)

Leas

ehold

99y

ears

exp

iring2

094

Shah

Ala

m

Indust

rial

100

20,0

00,0

00

19,2

00,0

00

4.9

4

w

areh

ouse

SEG

iCam

pus

Colle

ge

(7)

Leas

ehold

99y

ears

exp

iring2

106K

ota

Dam

ansa

ra

Colle

ge/

100

149,0

00,0

00

145,0

00,0

00

36.7

9

C

ampus

Guru

nA

uto

motiv

e

War

ehouse

(8)

Leas

ehold

99y

ears

exp

iring2

104

Guru

n,K

edah

In

dust

rial

100

24,0

00,0

00

23,9

70,0

00

5.9

3

w

areh

ouse

Ta

mad

amB

onded

War

ehouse

(6)

Lot1164

60y

ears

exp

iring2

067

Port

Kla

ng

Bonded

100

29,5

00,0

00

28,5

00,0

00

7.2

8

Le

aseh

old

war

ehouse

659,0

00,0

00

645,5

20,0

00



5. INVESTMENTPROPERTIES(Cont’d) ASAT31DECEMBER2007 (1) Thepropertieswerevaluedon16December2005byColliers,JordanLee&JaafarSdn.Bhd.,anindependentfirmof

professionalvaluerusingthediscountedcashflowandcomparisonmethodsofvaluation.

(2) Thepropertieswerevaluedon15November2005byColliers,JordanLee&JaafarSdn.Bhd.,anindependentfirmofprofessionalvaluerusingtheinvestmentandcomparisonmethodsofvaluation.

(3) Thepropertieswerevaluedon2December2005byColliers,JordanLee&JaafarSdn.Bhd.,anindependentfirmofprofessionalvaluerusingtheinvestmentandcomparisonmethodsofvaluation.

(4) Thepropertieswerevaluedon15November2005byColliers,JordanLee&JaafarSdn.Bhd.,anindependentfirmofprofessionalvaluerusingtheinvestmentandcomparisonmethodsofvaluation.

(5) Thepropertieswerevaluedon1December2005byColliers,JordanLee&JaafarSdn.Bhd.,anindependentfirmofprofessionalvaluerusingthecostandinvestmentmethodsofvaluation.

(6) Thepropertieswerevaluedon12April2007byAzmi&CoSdn.Bhd.,anindependentfirmofprofessionalvaluerusing

thecostandinvestmentmethodsofvaluation.

(7) Thepropertieswerevaluedon3April2007byAzmi&CoSdn.Bhd.,anindependentfirmofprofessionalvaluerusingthecostandinvestmentmethodsofvaluation.

(8) Thepropertieswerevaluedon10April2007byAzmi&Co.Sdn.Bhd.,anindependentfirmofprofessionalvaluerusingthecostandinvestmentmethodsofvaluation.

Thetitledeedsofcertainpropertiesarependingtransfertothenameofthetrusteeorissuancebytherelevantauthority.

CertainpropertiesarechargedtofinancialinstitutionsforbankingfacilitiesgrantedtoARREIT. Allinvestmentpropertiesareleased/rentedtothirdpartiesexceptforWismaAmanahRayawhichisleasedtotheholding

companyoftheManager.

Investmentpropertiesleasesoutwithdifferenttenorofleasesrangingbetween6to15years.Twelveofthepropertiescontainaninitialnon-cancellableperiodof3yearsto15years(Note27).Subsequentrenewalsarenegotiatedwiththelessees.Nocontingentrentsarecharged.

Thefairvalueoftheinvestmentpropertiesasat31December2008,werederivedfromtheDirectors’assessmentbasedonindicativevalueobtainedfromlatestvaluationconductedbyindependentprofessionalvaluers.



6. TRADEANDOTHERRECEIVABLES

2008 2007 RM RM Tradereceivables 518,850 461,562 Otherreceivables,depositsandprepayments 160,634 85,152,115

679,484 85,613,677 Tradereceivablesrepresentunpaidrentalincomeasat31December2008.

Inthepreviousfinancialperiod,includedinotherreceivableswasanamountofRM85,000,000representingtheadditionalfacility drawndown but held in trust in the stakeholders account. An amount of RM81,251,198 was disbursed on 3January2008tovendorbeingfinalpaymentforbalanceofpurchasepriceofSEGiCampusCollege,KotaDamansara.TheremainingbalanceamountingtoRM3,748,802isforthepurposeofcapitalexpenditureofthepropertieswhichwillincreasethenetlettableareaandtherentalincome.

7. SECURITYDEPOSITSINTRUSTACCOUNTSANDFINANCIALINSTITUTION

2008 2007 RM RM SecuritydepositsplacedwithITA-ARB(Note24) 41,790,957 40,325,454 Securitydepositplacedwithlicensedfinancialinstitution 828,738 754,279

42,619,695 41,079,733

SecuritydepositsintrustaccountsandfinancialinstitutionconsistsofsecuritydepositsreceivedfromLesseestogetherwiththeaccumulatedinterestswhichareplacedintotheInstitutionalTrustAccountofAmanahRayaBerhad(“ITA-ARB”)andlicensedfinancialinstitutionwithinterestratesrangingfrom3.55%to5.00%(2007:3.50%to5.50%)perannum(Note10).

In accordance to the lease agreements, Lessees will be entitled to the interest earned from security deposits in trustaccountsandfinancialinstitution.TheTrusthastherighttodeductfromthesecuritydepositsintheeventofdefaultorarrearsinrentalpaymentwithinstipulatedperiodintheleaseagreementfromthedateofrentalpaymentdueorwherebyanyearlyterminationoccurredbytheLessees.

8. DEPOSITSPLACEDWITHLICENSEDFINANCIALINSTITUTIONS

Thedepositswereplacedwithlicensedfinancialinstitutionsatinterestratesrangingfrom3.21%to3.55%(2007:3.00%to3.52%)perannum.

9. BORROWINGS

2008 2007 RM RM

Non-current: Termloan–secured 253,000,000 253,000,000



9. BORROWINGS(Cont’d)

Thetermloanfacilitieshavetenuresoffour(4)yearsandshallberepayableinonelumpsumon28February2011.Thetermloansbearfixedinterestrangingfrom4.50%to5.25%perannum.TheproceedsfromthetermloanarewhollyusedforthepurposeoffinancingtheacquisitionofthepropertiesasdisclosedinNote5tothefinancialstatements.

ThetermloansaresecuredbywayoflegalchargeoncertainpropertiesoftheTrust.

Thetermloaninterestsarepayableonmonthlybasis.

10. TRADEANDOTHERPAYABLES

2008 2007 RM RM

Tradepayables(Notea) 203,507 125,926 Otherpayablesandaccruedexpenses(Noteb) 3,760,297 84,635,069 Tenantdeposits(Notec) 40,640,376 40,870,335

44,604,180 125,631,330

(a) IncludedintradepayablesareamountduetotheManagerandtheTrusteeamountingtoRM131,543(2007:RM61,549).

(b) Inthepreviousfinancialperiod,includedintheotherpayablesandaccruedexpenseswasanamountduetovendorofRM81,251,198forthepurchaseofSEGiCampusCollegeatKotaDamansarawhichhadbeenfullysettledon3January2008.

(c) Included in tenant deposits are security deposits of RM40,353,481 (2007: RM40,205,122) received from LesseeswhichareplacedwithfinancialinstitutionsandAmanahRayaBerhad-InstitutionalTrustAccountasdisclosedinNote7tothefinancialstatements.

11. PROVISIONFORINCOMEDISTRIBUTION

2008 2007 RM RM At1January/26February(dateofcommencement) 6,285,487 - Provisionmadeduringthefinancialyear/period 30,254,308 10,646,287 Distributionpaidduringthefinancialyear/period (21,716,966) (4,360,800)

At31December 14,822,829 6,285,487

Duringthefinancialyearended31December2008,theManagerproposedasecondinterimincomedistributionof3.4347senperunitpayableon27February2009.



12. UNITHOLDERS’CAPITAL 2008 2007 Numberofunits

Authorised: At1January/26February(dateofcommencement) 431,553,191 184,000,000 Createdduringthefinancialperiod - 247,553,191

At31December 431,553,191 431,553,191

2008 2007 RM RM

Issuedandfullypaid: At1January/26February(dateofcommencement) 404,967,105 - Issueofnewunits: 128,801,000unitsofRM1.00eachforpurchaseofproperties - 128,801,000 45,999,000unitsofRM0.94each - 43,239,060 9,200,000unitsofRM0.895each - 8,234,000 Listingexpenses(Note21) - (6,091,000) Additionalissuanceandplacementofunits: 148,617,021unitsofRM0.94eachforpurchaseofproperties - 139,700,000 98,936,170unitsofRM0.94each - 93,000,000 Listingexpenses(Note21) (1,675,329) (1,915,955)

At31December 403,291,776 404,967,105

TheManagerandDirectorsof theManagerdidnotholdanyunits inARREIT.However,parties related to theholdingcompanyoftheManagerheldunitsinARREITasfollows:

---------------------------2008---------------------------- Numberof Percentage Market unitsheld oftotalunits value % RM KumpulanWangBersama 275,078,291 63.74 200,807,152 ARSMTrustFund 2,032,600 0.47 1,483,798

277,110,891 64.21 202,290,950

---------------------------2007---------------------------- Numberof Percentage Market unitsheld oftotalunits value % RM KumpulanWangBersama 248,847,691 57.66 246,359,214 ARSMTrustFund 2,036,600 0.47 2,016,234

250,884,291 58.13 248,375,448

ThemarketvalueoftheunitsheldbythepartiesrelatedtotheholdingcompanyoftheManagerisdeterminedbyusingclosingmarketvalueoftheTrustasat31December2008ofRM0.73(2007:RM0.99)perunit.



13. GROSSREVENUE

1.1.2008 26.2.2007 to31.12.2008 to31.12.2007

RM RM

Rentalincome 45,254,276 19,026,194 Carparkincome 306,532 245,865

45,560,808 19,272,059

14. PROPERTYEXPENSES

1.1.2008 26.2.2007 to31.12.2008 to31.12.2007

RM RM Assessmentandquitrent 351,188 295,633 Servicecontractsandmaintenance 396,996 265,057 Propertymanagementfees 243,500 140,000 Insurance 24,963 21,133 Consultancyfees 419,936 - Others 11,475 7,000

1,448,058 728,823

ThePropertyManagers,MalikKamaruzamanPropertyManagementSdn.Bhd.andI.M.GlobalPropertyConsultants,areentitledtopropertymanagementfeesinrespectofthemanagementoftheinvestmentpropertiesownedbyARREITasprovidedintheTrustDeed.Thefeesaredeterminedbyaguaranteedscalebasedonthegrossannualrentalincomeasprovided intheprovisionsoftherevisedValuers,AppraisersandEstateAgentsAct,1981asrequiredbytheSecuritiesCommission’sGuidelinesonRealEstateInvestmentTrusts.Thepropertymanagementfeesarepayablemonthlyinarrearswithpermissiblediscounts.

Duringthefinancialyear,consultancyfeesandotherrelatedcostsamountedtoRM419,936wereincurredfortheTrust’spropertyaffectedbynaturaldisaster.

15. MANAGER’SFEES

PursuanttotheDeed,theManagerisentitledtoreceiveafeeofuptoamaximumof1.0%perannumoftheNetAssetValueofARREIT.TheManager’sfeeispayableinarrears,calculatedandaccrueddaily.However,theManagerhasonlybeenchargingattherateof0.3%(2007:0.3%)perannumoftheNetAssetValuepursuanttoInitialPublicOffering’sProspectusdated26January2007.



16. TRUSTEE’SFEES

PursuanttotheDeed,theTrusteeisentitledtoreceiveafeeofuptoamaximumof0.1%perannumoftheNAVoftheTrust.TheTrustee’sfeeispayableinarrears,calculatedandaccrueddaily.However,theTrusteehasonlybeenchargingattherateof0.04%(2007:0.04%)perannumoftheNetAssetValuepursuanttoInitialPublicOffering’sProspectusdated26January2007.

17. INTERESTEXPENSE

1.1.2008 26.2.2007 to31.12.2008 to31.12.2007

RM RM Interestontermloan 12,645,000 7,477,273

18. INCOMETAXEXPENSE

TheTrustdistributed100%ofthedistributableincome(realised)tounitholders,whichisexemptedfromtaxpursuanttoSection61A(1)ofIncomeTaxAct,1967undertheFinanceAct,2006.Thus,theTrusthasnotprovidedanytaxexpenseduringthefinancialyear.

AreconciliationbetweentheapplicableincometaxexpenseandeffectiveincometaxexpenseoftheTrustisasfollows:

1.1.2008 26.2.2007 to31.12.2008 to31.12.2007

RM RM Incomebeforetaxation 67,066,308 10,646,633 IncometaxusingMalaysiantaxrateat26%(2007:27%) 17,437,240 2,874,591 Non-deductibleexpenses 216,898 91,921 Effectofinterestincomenotsubjecttotax (187,485) (103,399) Effectofincomedistributionexemptedfromtax (17,466,653) (1,000,491) Utilisationofcapitalallowances - (1,862,622)

Taxexpense - -

19. EARNINGSPERUNIT

TheearningsperunitbeforeManager’sfeeof15.8316sen(2007:5.9330sen)iscalculatedbasedonthenetincomeaftertaxationofRM68,321,561(2007:RM11,106,797)forthefinancialyear/periodtotheweightedaveragenumberofunitsincirculationduringthefinancialyear/periodof431,553,191units(2007:187,204,572units).

TheearningsperunitafterManager’sfeeof15.5407sen(2007:5.6872sen)iscalculatedbasedonthenetincomeaftertaxationofRM67,066,308(2007:RM10,646,633)forthefinancialyear/periodtotheweightedaveragenumberofunitsincirculationduringthefinancialyear/periodof431,553,191units(2007:187,204,572units).



20. DISTRIBUTIONTOUNITHOLDERS

1.1.2008 26.2.2007 to31.12.2008 to31.12.2007

RM RM

Distributionstounitholdersarefromthefollowingsources: Grossrentalincome 45,560,808 19,272,059 Interestincome 721,095 382,960

46,281,903 19,655,019 Expenses (16,027,595) (9,008,386)

30,254,308 10,646,633 Totalincomedistribution 30,254,308 10,646,287

Grossprovisionfordistributionperunit(sen) 7.0105 5.4412*

Netprovisionfordistributionperunit(sen) 7.0105 5.4412* * In the previous financial period, annualised distribution per unit was 6.5294 sen and annualised yield based on the

closing price of RM0.99 on 31 December 2007 was 6.60% .

Thetotalincomedistributionforthefinancialyearended31December2008amountingtoRM30,254,308andthetotalincomedistributionforthefinancialperiodended31December2007amountingtoRM10,646,287ofwhichRM721,095(2007:RM382,960)isinterestincomerepresenting0.1671sen(2007:0.0887sen)perunit.

Thetotalactualdistributionpaidandpayableforthefinancialyear/periodare:

2008 Senperunit RM

- Firstinterimincomedistributionpaidon29August2008 3.5758 15,431,479 - Proposedsecondinterimincomedistributionpayableon27February2009 3.4347 14,822,829

7.0105 30,254,308 2007 Senperunit RM - Firstinterimincomedistributionpaidon16October2007 2.3700 4,360,800 - Secondinterimincomedistributionpaidon25January2008 2.8149 5,179,416 - Proposedthirdinterimincomedistributionpayableon25February2008 0.2563 1,106,071

5.4412 10,646,287



20. DISTRIBUTIONTOUNITHOLDERS(Cont’d)

**Withholdingtaxwillbedeductedfordistributionsmadetothefollowingtypesofunitholders:

Residentcorporate - nowithholdingtax;taxatprevailingcorporatetaxrate Residentnon-corporate - withholdingtax10%;effectivefrom1January2009to31December2011 (2007:withholdingtax15%) Non-residentindividual - withholdingtax10%;effectivefrom1January2009to31December2011 (2007:withholdingtax15%) Non-residentcorporate - withholdingtax25%;effectivefrom1January2009to31December2011 (2007:withholdingtax27%) Non-residentinstitutional - withholdingtax10%;effectivefrom1January2009to31December2011 (2007:withholdingtax20%)

21. LISTINGEXPENSES

1.1.2008 26.2.2007 to31.12.2008 to31.12.2007

RM RM Brokerageandcommissions 1,431,600 3,906,784 Professionalfees 242,049 2,568,233 Miscellaneousexpenses 1,680 1,531,938

1,675,329 8,006,955

Inthepreviousyear,anamountofRM1,915,955(Note12)wasduetoholdingcompanyoftheManager.Thisamountwasinterestfreeandwithoutfixedtermofrepayment.

22. PORTFOLIOTURNOVERRATIO 1.1.2008 26.2.2007 to31.12.2008 to31.12.2007

(times) (times) PortfolioTurnoverRatio(“PTR”)(times) - 1.78

ThecalculationofPortfolioTurnoverRatio (“PTR”) isbasedon theaverageof totalacquisitionsand totaldisposalsofinvestmentinARREITtotheaveragenetassetvalueforthefinancialyear/periodcalculatedonadailybasis.

SincethebasisofcalculatingPTRmayvaryamongrealestateinvestmenttrusts,comparisonofPTRofARREITwithotherrealestateinvestmenttrustsmaynotbeanaccuratecomparison.



23. MANAGEMENTEXPENSERATIO

1.1.2008 26.2.2007 to31.12.2008 to31.12.2007

% % Managementexpenseratio(“MER”) 0.46 0.44

ThecalculationoftheMERisbasedonthetotalexpensesofARREITincurred,includingManager’sfees,Trustee’sfees,auditfees,taxagent’sfeesandadministrativeexpenses,totheaveragenetassetvalueoftheTrustforthefinancialyear/periodcalculatedonadailybasis.

SincethebasisofcalculatingMERmayvaryamongrealestateinvestmenttrusts,comparisonofMERofARREITwithotherrealestateinvestmenttrustsmaynotbeanaccuratecomparison.

24. TRANSACTIONSWITHCOMPANYRELATEDTOTHEMANAGER

1.1.2008 26.2.2007 to31.12.2008 to31.12.2007

RM RM

AcquisitioncostofpropertiespaidtoholdingcompanyoftheManager [Partoftheacquisitionscostsaresatisfiedbytheissuanceof277,417,021units (“ConsiderationUnits”)toKumpulanWangBersamaatanissuepriceof RM1.00perunitforfirsttrancherepresenting128,800,000unitsand RM0.94perunitforsecondtrancherepresenting148,617,021units]. - 476,550,000 IssuanceofunitstoholdingcompanyoftheManager - 268,500,000 RentalreceivedandreceivablefromholdingcompanyoftheManager 5,407,625 4,554,636 SecuritydepositfromLesseesplacedwithholdingcompanyoftheManager(Note7) 41,790,957 40,325,454

Theabovetransactionshavebeenenteredintointhenormalcourseofbusinessandhavebeenestablishedontermsandconditionsthatarenotmateriallydifferentfromtheseobtainableintransactionswithunrelatedparties.

25. TRANSACTIONSWITHBROKERS/DEALERS

Therewerenotransactionsmadewithbrokers/dealersduringthefinancialyear/period.

26. FINANCIALINSTRUMENTS

Financialrisksmanagementobjectivesandpolicies

Expensetocredit, interest rateand liquidity riskarises in thenormalcourseofARREIT’sbusiness.ARREIT’shaswrittenriskmanagementpoliciesandguidelineswhichsetsoutitsoverallbusinessstrategiesanditsgeneralriskmanagementphilosophy.



26. FINANCIALINSTRUMENTS(Cont’d)

Creditrisk

Atbalancesheetdate,therewerenosignificantconcentrationsofcreditrisk.TheTrustisexposedtocreditriskmainlyfromreceivables.TheTrustextendscredittoitstenantsbaseduponestablishedcreditevaluationandcreditcontrol&monitoringguidelines.Themaximumexposuretocreditriskisrepresentedbythecarryingamountoffinancialassets.

Interestraterisk

TheTrust’sexposuretofluctuationininterestratesrelatesprimarilytointerest-earningfinancialassetsandinterest–bearingfinancialliabilities.InterestrateriskismanagedbytheTrustonanongoingbasiswiththeprimaryobjectiveoflimitingtheextenttowhichnetinterestexpensecouldbeaffectedbyadversemovementsininterestrates.Interestrateexposurewhicharisesfromborrowingismanagedthroughtheuseoffixedratedebtwithlongtermtenure.TheTrustseekstoinvestcashassetssafelyandprofitablywithplacementofsuchassetswithcreditworthylicensedbanksandfinancialinstitutions.

Liquidityrisk

The Manager monitors and maintains a level of cash and cash equivalents and bank facilities deemed adequate bymanagementtofinancetheTrust’soperationsandtomitigatetheeffectsoffluctuationsincashflows.Inaddition,theManageralsomonitorsandobservestheSecuritiesCommission’sGuidelinesonRealEstateInvestmentTrustsconcerninglimitsontotalborrowings.

Effectiveinterestratesandre-pricinganalysis

In respectof interest-bearingfinancialassetsand interest-bearing liabilities, the following table indicates theiraverageeffective interest ratesat thebalancesheetdateand remainingmaturitiesof theTrust’sfinancial instruments thatareexposedtointerestraterisk:

---------------------------------------------------2008------------------------------------------------- Average effective interest Within 2-5 After rate Total 1year years 5years % RM RM RM RM

Financialassets Depositsplacedwithlicensed financialinstitutions(Note8) 3.21-3.55 22,896,129 22,896,129 - - Financialliabilities Longtermborrowings (firsttranche)(Note9) 5.83 168,000,000 - 168,000,000 - Longtermborrowings (secondtranche)(Note9) 4.96 85,000,000 - 85,000,000 -



26. FINANCIALINSTRUMENTS(Cont’d)

Financialrisksmanagementobjectivesandpolicies(Cont’d)

---------------------------------------------------2007------------------------------------------------- Average effective interest Within 2-5 After rate Total 1year years 5years % RM RM RM RM

Financialassets Depositsplacedwithlicensed financialinstitutions(Note8) 3.00-3.52 17,310,494 17,310,494 - - Financialliabilities Longtermborrowings (firsttranche)(Note9) 5.30 168,000,000 - 168,000,000 - Longtermborrowings (secondtranche)(Note9) 3.89 85,000,000 - 85,000,000 -

Fairvalueofrecognisedfinancialinstruments

ThecarryingamountsofthefinancialassetsandliabilitiesoftheTrustareapproximatetheirfairvaluesduetotherelativelyshorttermnatureofthesefinancialinstrumentsexceptassetoutbelow:

2008 2007 Carrying Fair Carrying Fair amount value amount value

RM RM RM RM Termloans 253,000,000 231,106,100 253,000,000 227,412,829

Fairvalueisdeterminedusingestimatedfuturecashflowsdiscountedatmarketrelatedrateforasimilarinstrumentatthebalancesheetdate.Theinterestrateusedtodiscounttheestimatedcashflowis7%(2007:7%).

27. OPERATINGLEASES

LeaseswherebyARREITistheLessor

TheTrustleasesoutitsinvestmentpropertywithdifferenttenureofleases(Note5).Thefutureminimumleasepaymentsundernon-cancellableleasesareasfollows:

1.1.2008 26.2.2007 to31.12.2008 to31.12.2007 RM RM Notlaterthanoneyear 44,444,129 42,644,953 Betweentwotofiveyears 184,261,589 169,989,554 Laterthanfiveyears 153,672,462 187,663,797

382,378,180 400,298,304



28. CONTINGENTASSETS

SincetheinceptionoftheARREIT,theManagerhasreceivedarentaldepositfromtenantsbywayofbankguaranteeletterwhicharecontractedtobutnotrecognisedforinthefinancialstatementsasfollows:

Amount Tenants Property RM Remarks SEGInternationalBerhad SEGiCollege 9,418,500 Equivalenttothree(3)yearsrental

SEGiCampusCollege, KotaDamansara 20,880,000 Equivalenttotwo(2)yearsrental

BlockA&B, SouthCityPlaza 2,412,000 Equivalenttotwo(2)yearsrental

SilverBirdGroupBerhad SilverBirdFactory/ IndustrialComplex 7,296,000 Equivalenttoone(1)yearrental

Total 40,006,500

Thebankguaranteesareunconditional,irrevocableandguaranteedtobepaidtoARREITintheeventofdefaultoftheleaseagreementbytheLessees.

29. SEGMENTALREPORTING

AstheprincipalactivityofARREITistoinvestinpropertieswiththeprimaryobjectivetoderiverentalincome,therearenoriskandreturnsdistinguishablebetweenbusinessandgeographicalsegments.Nosegmentalreportingisthuspresented.

30. SIGNIFICANTEVENT On4December2008,alandsliphadoccurredandtheretainingwallhadcollapsedinthelandadjacenttoWismaAmanah

Raya Berhad, one of the properties under ARREIT’s property portfolio. The said building is currently leased to CIMBInvestmentBankBerhad(“CIMB”).

Whiletherearenovisualsignsofstructuraldistresstothebuildingandtheadjacentarea,thesaidbuildinghadbeentemporarilyevacuatedbetween4to26DecemberbyCIMB,asadvisedbyDewanBandarayaKualaLumpur(“DBKL”)asapreventivemeasuretoensurethesafetyofitsemployees.

DBKLhadinstructedInstitutKerjaRayaMalaysia(“IKRAM”)toconductsoiltestandinvestigationsonthematter.DBKL

hadalsoinstructedthelandownerofthelandslipareathatimmediatestepsbetakentoprovideremedialmeasuretotheaffectedareatopreventanyfurthersoilerosion.ARREIThadalsoappointeditsowngeologistfirmtoprovidegeotechnicalassessmentoftheaffectingsurroundingareaofthesaidbuilding.

Duetothesaidlandslipandcollapse,ARREIThadtobearacostofRM486,957beingprimarilythecostofappointingitsowngeologistandinclusiveoflossofrentalfordurationoftheevacuation,amountingtoRM67,021.

ARREITisawaitingtheresultsoftheinvestigationsbyIKRAMandDBKLbeforeproceedingwithfurtheractions.


UNITHOLDERS’ STATISTICS

AnalysisofUnitholdings

DistributionofUnitholdersasat31December2008 UnitClass No.ofUnitholders % No.ofUnitholding %

Lessthan100 2 0.18 100 0.00100–1,000 381 34.76 355,700 0.081,001–10,000 521 47.54 2,184,900 0.5110,001–100,000 135 12.32 4,938,100 1.14100,001andabove 57 5.20 424,074,391 98.27

1096 100.00 431,553,191 100.00

Thereisnoexercisetosplitunitsbeingcarriedoutduringthefinancialperiod.

ClassificationofUnitholdersasat31December2008

No.ofHolders No.ofSecuritiesHeld Malaysian Foreign Malaysian Foreign Bumiputra Non- Bumiputra Non-CategoryofUnitholder Bumiputra Bumiputra 1) Individual 219 710 7 1,839,400 5,570,000 121,3002) BodyCorporate a.Banks/financecompanies 0 1 0 0 52,000 0 b.Investmentstrust/foundation/charities 0 0 0 0 0 0 c.Othertypesofcompanies 3 18 0 5,502,000 31,298,000 03) Governmentagencies/Institutions 0 0 0 0 0 04) Nominees 75 36 27 282,116,391 22,171,700 82,882,400

297 765 34 289,457,791 59,091,700 83,003,700


AnalysisofUnitholdings(Cont’d)

ThirtyLargestofUnitholdersasat31December2008

Unitholders

1) AmanahRayaNominees(Tempatan)Sdn.Bhd. -KumpulanWangBersama

2) CartabanNominees(Asing)Sdn.Bhd. -RoyalBankofScotlandPlc

3) CartabanNominees(Asing)Sdn.Bhd. -StateStreetMunichFund0173ForGlobalInvestmentHouseCompany

4) KurniaInsurans(Malaysia)Berhad

5) CartabanNominees(Tempatan)Sdn.Bhd. -PetroliamNasionalBerhad(TradingPF)

6) KurniaInsurans(Malaysia)Berhad

7) CitigroupNominees(Asing)Sdn.Bhd. - CBSporeGWForNTUCIncomeInsuranceCo-OperativeLimited(Lifepre)

8) CitigroupNominees(Tempatan)Sdn.Bhd. -ExemptAnForAmericanInternationalAssuranceBerhad

9) KoperasiPermodalanFeldaBerhad

10) CitigroupNominees(Asing)Sdn.Bhd. -CBGWSporeForAmericanInternationalAssuranceCoLtd(SLFPAR)

11) MCISZurichInsuranceBerhad

12) DB(Malaysia)Nominee(Asing)Sdn.Bhd. -DeutscheBankAGLondon

13) CartabanNominees(Tempatan)Sdn.Bhd. -PetronasForPetroliamResearchFund

14) MaybanSecuritiesNominees(Asing)Sdn.Bhd. -PT.PerdanaGapuraprimaTBK

15) AmanahRayaNominees(Tempatan)Sdn.Bhd. -ForARSMTrustFund

16) MCISZurichInsuranceBerhad

17) CitigroupNominees(Asing)Sdn.Bhd. -CBSGPGWForAIGInternationalFunds-SingaporeBondFund


No.ofunit

275,078,291

38,295,000

17,000,000

12,000,000

10,734,100

9,000,000

9,000,000

5,440,000

5,000,000

5,000,000

4,250,000

3,938,000

3,500,000

3,500,000

2,032,600

2,000,000

1,200,000

Percentage

63.74%

8.87%

3.94%

2.78%

2.49%

2.09%

2.09%

1.26%

1.16%

1.16%

0.98%

0.91%

0.81%

0.81%

0.47%

0.46%

0.28%


AnalysisofUnitholdings(Cont’d)ThirtyLargestofUnitholdersasat31December2008(Cont’d)

Unitholders

18) CitigroupNominees(Asing)Sdn.Bhd. -CBSporeGWForAIARegionalFixedIncomeFund

19) CitigroupNominees(Asing)Sdn.Bhd. -CBHKPBGHKForSableInvestmentCorporation

20) JohariBinMat

21) CitigroupNominees(Asing)Sdn.Bhd. -CBSGPForAIGInternationalFunds-AcornsOfAsiaBalancedFund22) SEGEquitySdn.Bhd.

23) HSBCNominees(Tempatan)Sdn.Bhd. -HSBC(Malaysia)TrusteeBerhadForAmanahSahamSarawak

24) StateInsuranceBrokersSdn.Bhd.

25) CitigroupNominees(Tempatan)Sdn.Bhd. -ExemptAnForAIGGeneralInsurance(Malaysia)Berhad

26) CIMSECNominees(Tempatan)Sdn.Bhd. -CIMBForAhmadBinMuhamed(PB)

27) CitigroupNominees(Asing)Sdn.Bhd. -CBGWSporeForAmericanInternationalAssuranceCoLtd(AIAGrowthFD)

28) AntaraHolidayVillasSdn.Bhd.

29) ModernProgressSdn.Bhd.

30) MKICSecuritiesSdn.Bhd.


No.ofunit

1,100,000

1,063,800

1,000,000

1,000,000

1,000,000

1,000,000

1,000,000

1,000,000

999,700

700,000

500,000

500,000

500,000

418,331,491

Percentage

0.25%

0.25%

0.23%

0.23%

0.23%

0.23%

0.23%

0.23%

0.23%

0.16%

0.12%

0.12%

0.12%

96.94

www.amanahrayajmf.com

AmanahRaya-JMF Asset Management Sdn Bhd (309646-H)

Level 8, Wisma AmanahRaya,

2, Jalan Ampang, 50450 Kuala Lumpur, Malaysia.

Tel : +603 2687 5200

Fax : +603 2687 5399

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pROpERTy pORTfOlIO - malaysiastock.biz several heritage buildings which include Bangunan Sultan Abdul Samad, High Court building, Dataran Merdeka and the Royal Selangor Club