Al Sal M Reit Delivers Strong 3q Performance Its Landmark Sukuk Oversubscribed 5 Times

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DIVERSIFIED Shariah-compliant real estate investment trust Al-Salām REIT has posted strong financial results for its 9M FY2025 ended Sept 30, 2025 on the back of sustained retail momentum, disciplined cost management and improved funding strength through a landmark Sukuk issuance.
For the period under review, the group’s revenue firmed 12% year-on-year (yoy) to RM65.68 mil (9M FY2024: RM58.55 mil) while its net profit spiked 62% yoy to RM9.65 mil (9M FY2024: RM5.96 mil).
Al-Salām REIT’s net property Income (NPI) inched up 15% yoy to RM44.7 mil from RM38.8 mil to reflect expanding rental reversions, solid tenant demand and enhanced operating efficiencies.

While its property expenses increased by 6%, the group’s finance costs eased following the lower overnight policy rate (OPR).
All in all, Al-Salām REIT declared a distribution per unit (DPU) of 0.52 sen for its 3Q FY2025 which brings its total year-to-date (YTD) distributions to 1.50 sen, thus surpassing the full-year FY2024 DPU.
This milestone reinforces the Al-Salām REIT’s improving earnings trajectory and resilience across economic cycles.
“The growth in revenue and NPI coupled with our YTD DPU which already surpassed the full-year distribution delivered in FY2024 demonstrates the strength of our operating fundamentals and disciplined execution,” commented Al-Salām REIT’s CEO Zulhilmy Kamaruddin.
Al-Salām REIT’s CEO Zulhilmy Kamaruddin“As we head into the final quarter, we’re maintaining our focus on driving operational efficiency, enhancing asset performance and strengthening tenant partnerships to sustain momentum.”
Landmark sukuk issuance
Added Zulhilmy: “Looking ahead to 2026, we’re committed to pursuing disciplined growth opportunities, supported by a strengthened capital position and an active portfolio strategy that positions Al-Salām REIT for long-term value creation.”
A notable milestone for Al-Salām REIT is the group having successfully on Nov 24 completed a RM455 mil five-year Sukuk Wakalah issuance which is supported by an irrevocable and unconditional Shariah-compliant guarantee from Credit Guarantee and Investment Facility (CGIF).
The sukuk achieved an oversubscription rate of approximately five times at sub-4% pricing by having attracted strong demand from domestic and foreign institutional investors.
This achievement represents one of Al-Salām REIT’s most significant capital-market milestones, strengthening its funding flexibility and positioning the REIT for future portfolio expansion and growth initiatives.

“The overwhelming response to our Sukuk Wakalah issuance reflects investor confidence in the quality of our assets, the resilience of our cashflows and the clarity of our long-term strategy,” enthused Zulhilmy.
“With strengthened funding capacity, we are well-positioned to pursue strategic opportunities that enhance portfolio value and drive future growth.”
At the close of yesterday’s (Nov 28) market trading, Al-Salām REIT was down 1 sen or 2.08% to 47 sen with 38,000 shares traded, thus valuing the REIT at RM273 mil. –  Focus Malaysia

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