Amara DTP 1-6.Indd

Corporate Governance (Cont’d)

DIRECTORS OF THE MANAGER The Board met four (4) times during the financial year ended 31 March 2009. The number of meetings attended by each Director The Board is as follow:

The Manager is led and managed by an experienced Board of Directors Designation Attendance Directors (“Board”) with a wide and varied range of expertise. This Dato’ Azlan Hashim Non-Independent broad spectrum of skills and experience gives added strength to Non-Executive Chairman 4 the leadership, thus ensuring the Manager is under the guidance of Cheah Tek Kuang Non-Independent an accountable and competent Board. The Directors recognize the Non-Executive Director 3 key role they play in charting the strategic direction, development Dato’ Teo Chiang Quan Independent and control of the Manager and have adopted the primary Non-Executive Director 4 responsibilities as listed in the REIT Guidelines as well as the roles Tuan Haji Salleh Akram Independent and duties set out in the REIT Guidelines, which facilitate the Non-Executive Director 4 discharge of the Directors’ stewardship responsibilities. Lim Hwee Chiang Non-Independent Board Balance Non-Executive Director 2

The Board has five (5) members comprising of three (3) Non- Access to and Supply of Information and Advice Independent Non-Executive Director and two (2) Independent Non-Executive Director. More than 1/3 of Directors are considered All Board members are supplied with information on a timely independent which complies with paragraph 15.02 of Bursa Listing manner. The Agenda together with the full set of Board papers Requirements, which requires at least one-third of the Board containing information relevant to the Board meetings are circulated members to be Independent Directors. The profile of the members to the Directors prior to the Board meetings. There is sufficient time of the Board are provided in pages 7 to 9 of the Annual Report. for the Directors to review and seek clarification where necessary prior to meeting being held and this process enables the Directors The Chief Executive Officer is responsible for the day-to-day to make better and informed decisions. operations and he works with the Board to determine the overall business, investment and operational strategies for AmFIRST and All Directors have access to the advice and services of the Company ensures that they are implemented as planned and in accordance Secretary and have the right to seek independent professional with the Trust Deed, Securities Commission Act and Guidelines. advice when necessary in discharging their duties, making In addition, the Chief Executive Officer is also responsible for the acquisition decisions and complying with relevant legislations and overall planning in respect of the future strategic development and regulations. growth of AmFIRST. Appointment to the Board The Board focuses mainly on strategy, financial performance and The Board as a whole will serve as the Nominating Committee. critical business issues, including:- All new nominations received are assessed and approved by the • The strategic business plans entire Board in line with its policy of ensuring nominees are persons • Key financial performance indicators of sufficient caliber and experience. The process of assessing the • Principal risks and their management Directors is an on-going responsibility of the entire Board. • Succession planning for senior management • Investors and Unitholders relations programs ACCOUNTABILITY AND AUDIT • Systems of internal control Financial Reporting Board Meetings The Board is responsible for ensuring that financial statements Board meetings are scheduled at least four (4) times per annum are drawn up in accordance with the provisions of the Act, and to review the operations of AmFIRST and to approve the annual applicable approved accounting standards in Malaysia. The financial statements of AmFIRST. Additional meetings are held as Directors are satisfied that in preparing the financial statements of and when urgent issues and important decisions need to be taken AmFIRST for the financial year ended 31 March 2009, AmFIRST has between the scheduled meetings. applied consistently, suitable accounting policies and supported by reasonable and prudent judgments and estimates.

16 AmFIRST Annual Report 2009 Corporate Governance (Cont’d)

Internal Control CORPORATE SOCIAL RESPONSIBILITY

The Board is responsible for maintaining a system of internal Corporate Social Responsibility (“CSR”) is part of the organization control that covers financial and operational controls and risk way of succeeding in business, and is, in essence, a set of management. The system provides reasonable but not absolute transparent and ethical actions to give back, nurture and aid in assurance against material misstatement of management and the progress of the various environments in which the corporation financial information or against financial losses and fraud. operates. This is to contribute to the partners, customers and sources without which the organization would not be able to Relationship with Auditors succeed and prosper.

The Board maintains a transparent relationship throughout their As part of our responsibility to the market place, AmFIRST’s business association with the external auditors. The appointment of external transactions, deals and relationships with all its groups of customers, auditors, who may be nominated by the Manager, is approved by suppliers and partners are executed with the highest concern the Trustee. The auditors appointed must be independent of the for transparency and ethical conduct, guided by high corporate Manager and Trustee. The remuneration of the auditors is approved governance standards. At the workplace, we encouraged staff to be by the Trustee. environmentally friendly and adopt cost saving measures.

RELATED PARTY TRANSACTIONS AND OTHER INFORMATION CONFLICT OF INTEREST Family Relationship with any Director and/or substantial The Manager will establish procedures that will ensure that related party Unitholders transactions and conflicts of interest are undertaken in full compliance with the SC REIT Guidelines, the Trust Deed and the Bursa Listing None of the Directors of the Manager has any family relationship with any other Directors or major Unitholders, except for Dato’ Requirements. Azlan Hashim, who is a brother of Tan Sri Dato’ Azman Hashim, a The Board will consider AmFIRST’s best interest in relation to decision substantial Unitholder of AmFIRST. affecting it when they vote as a member of the Board. In addition, the Conflict of Interest Directors and Chief Executive Officer of the Manager are expected to act with honesty and integrity at all times. Save for the Directors’ interests in AmFIRST (as disclosed under Director’s interests in the Manager’s Report) and the transactions with companies related to the Manager (as disclosed in the notes RISK ASSESSMENT AND MANAGEMENT to the financial statements), no conflict of interest has arisen during OF BUSINESS RISK the financial year under review. The Manager operates within overall guidelines and specific Convictions for Offences parameters set by the Board. Each transaction is comprehensively analyzed to understand the risk involved. Responsibility for None of the Directors has been convicted for offences within the managing risk lies initially with the business unit concerned, working past 10 years. within the overall strategy outlined by the Board. Material Contracts The Board reviews the risk to the assets of AmFIRST, and act There were no material contracts entered by the Trust that involved upon any comments of the auditors. In assessing business risk, the Directors of the Manager or substantial Unitholders of the Trust the Board considers the economic environment and the property during the financial year under review. industry risk. Directors’ Training

COMMUNICATION WITH UNITHOLDERS All the Directors have attended the prescribed “Mandatory Accreditation Program for Directors of Public Listed Companies” The Board acknowledges the importance of regular communication and “Continuing Education Program” (CEP) to enable them to with Unitholders and investors to ensure that they are well informed discharge their duties and responsibilities effectively. In addition, all of the activities and performance of AmFIRST. The communication Directors are encouraged to attend briefings and seminars to keep channels are via AmFIRST website, annual reports, quarterly abreast with the latest developments in the industry. financial reports and the various disclosures and announcements During the year the Directors have attended “Strategic Project released on Bursa Malaysia Securities Berhad’s website. Management”, “Warrant Buffett & Investment” and “Operational Risk Management Awareness” trainings, and “Leadership Profiling and Coaching” conference. 17 AmFIRST Annual Report 2009 Property Portfolio

BANGUNAN AmBANK GROUP (“BAG”)

Bangunan AmBank Group is located within the prime commercial centre of the Kuala Lumpur Golden Triangle, which is predominantly characterized by modern high-rise office buildings, international class hotels, exclusive shopping complexes and luxury condominiums/service apartments. The 26-storey office building is situated at Jalan Raja Chulan and it is easily accessible from all parts of Kuala Lumpur.

18 AmFIRST Annual Report 2009 Property Portfolio (Cont’d)

BANGUNAN AMBANK GROUP TENANT MIX

��

Location : Bangunan AmBank Group �� No. 55, Jalan Raja Chulan �� 50200 Kuala Lumpur ��

Land Title : Title No. Pajakan Negeri 4512 Lot No. 1200, Section 57 Town and District of Kuala Lumpur Major Tenants Wilayah Persekutuan 1. �� AmBank Group

2. Shook�� Lin & Bok �� Tenure : Leasehold 99 years expiring on 3. Syed Alwi, Ng & Co �� 3 June 2084 (unexpired term of �� approximately 75 years) �� CATEGORY�� SQ. FT. % �� Banking�� & Financial Institution 311,662 86.53 Limitation on Title : Nil �� Advocates & Solicitors�� 43,407 12.05 �� Encumbrances : Nil Health ��780 0.22 � �� Services & Others�� 4,317 1.20 �� Year of Completion : 1987

Age : 23 years LEASE RENEWAL PROFILE

�� Net Lettable Area : 360,166 sq ft �� Car Park : 477 ��

�� Number of Tenants : 7 �� Purchase Price : RM180.15m ��

� �� Market Value1 : RM226.00m ��

Date of Valuation : 27 February 2009 AmBank % Total % Occupancy Rate2 : 100.00% FYE Group (sq. ft.) (sq. ft.) 2010 43,678 83.14 52,538 14.59 Gross Revenue : RM21.28m 2011 72,372 95.16 76,053 21.11 2012 195,612 84.47 231,575 64.30 Net Property Income : RM15.36m TOTAL 311,662 360,166 100.00

Capital Expenditure : Nil

Notes: 1. Valued by CH Williams Talhar & Wong Sdn Bhd 2. As at 31 March 2009 19 AmFIRST Annual Report 2009 Property Portfolio (Cont’d)

AmBANK GROUP LEADERSHIP CENTRE (“AGLC”)

AmBank Group Leadership Centre is 13-storey office building located at Lorong P. Ramlee within the prime business district of Kuala Lumpur Golden Triangle. It is situated within a short walking distance to one of Kuala Lumpur’s famous tourist attraction, the KL Tower. The surrounding is developed with multi storey office towers, shopping complexes, hotels and high- rise high-end condominiums. It is easily accessible via Jalan Raja Chulan or Jalan Sultan Ismail and Jalan P. Ramlee.

20 AmFIRST Annual Report 2009 Property Portfolio (Cont’d)

AMBANK GROUP LEADERSHIP CENTRE TENANT MIX ��

Location : AmBank Group Leadership Centre �� Lorong P. Ramlee 50250 �� Kuala Lumpur

Land Title : Title No. Geran 6312 Lot No. 1153, Section 57 Town and District of Kuala Lumpur Major Tenants Wilayah Persekutuan 1.�� AmBank Group 2. BZ Bees Florist �� Tenure : Freehold ��

�� CATEGORY �� SQ. FT. % �� Limitation on Title : Nil �� Banking�� & Financial Institution 53,101 99.62 �� Florist 200 0.38 Encumbrances : Nil ��

�� Year of Completion : 1990 � �� LEASE RENEWAL PROFILE �� Age : 19 years �� Net Lettable Area : 57,801 sq ft ��

�� Car Park : 57 ��

�� Number of Tenants : 2 ��

� �� Purchase Price : RM19.05m ��

Market Value1 : RM20.00m AmBank % Total %

Date of Valuation : 27 February 2009 FYE Group (sq. ft.) (sq. ft.) 2010 42,577 100.00 42,577 79.88 Occupancy Rate2 : 92.21% 2011 10,524 98.14 10,724 20.12 2012 - - - - Gross Revenue : RM1.92m TOTAL 53,101 53,301 100.00

Net Property Income : RM0.96m

Capital Expenditure : RM0.60m

Notes: 1. Valued by CH Williams Talhar & Wong Sdn Bhd 2. As at 31 March 2009 21 AmFIRST Annual Report 2009 Property Portfolio (Cont’d)

MENARA MERAIS (“MERAIS”)

Menara Merais is a landmark building in Petaling Jaya, as it is the only high rise building in the area. It is located at Jalan 19/3, Section 19 Petaling Jaya, next to the Rothmans roundabout. Its immediate locality mainly purpose-built factories, warehouses and prominent showroom premises such as UMW Toyota, British American Tobacco, Ssangyong and Citroen. Over the past few years, the traditional industrial area of Petaling Jaya has been experiencing a shift from accommodating industrial based premises to limited commercial, office and service-based premises. Today, Menara Merais is surrounded by integrated commercial development such as Jaya 33, 32 Square and Jaya One. This 22- storey building is easily accessible from Kuala Lumpur, Subang Jaya, Shah Alam and Klang via the Federal Highway. It is also accessible from Kuala Lumpur via Jalan Duta, Jalan Semantan in Damansara and the Sprint Highway.

22 AmFIRST Annual Report 2009 Property Portfolio (Cont’d)

MENARA MERAIS TENANT MIX

��

Location : Menara Merais �� No. 1, Jalan 19/3 �� 46300 Petaling Jaya �� Selangor Darul Ehsan ��

Land Title : HSM 9104 Major Tenants PT No 29649 �� Mukim of Sungai Buloh 1. KAO (M) Sdn Bhd 2. Alliance�� Teamwork Marketing Sdn Bhd District of Petaling �� 3. AGFA�� Film (Asean) Sdn Bhd State of Selangor Darul Ehsan ��

�� CATEGORY�� SQ. FT. % Tenure : Freehold �� Health�� 45,110 43.78 �� Telecommunication / IT / Limitation on Title : Nil �� Electronic�� / Electrical ��30,058 29.17

� �� Encumbrances : Lien Holder’s Caveat Utilities �� 7,671 7.45 �� Construction & Real Estate�� 7,671 7.45 �� Year of Completion : 1994 Services & Others ��12,522 12.15 ��

Age : 15 years LEASE RENEWAL PROFILE Net Lettable Area : 159,001 sq ft ��

�� Car Park : 324 ��

�� Number of Tenants : 29 ��

�� Purchase Price : RM57.08m ��

�� Market Value1 : RM62.00m � �� Date of Valuation : 27 February 2009 FYE Total (sq. ft.) % 2 64.80% Occupancy Rate : 2010 88,451 87.05 2011 10,966 10.79 Gross Revenue : RM4.52m 2012 2,188 2.16 TOTAL 101,605 100.00 Net Property Income : RM2.31m

Capital Expenditure : Nil

Notes: 1. Valued by CH Williams Talhar & Wong Sdn Bhd 2. As at 31 March 2009 23 AmFIRST Annual Report 2009 Property Portfolio (Cont’d)

MENARA AmBANK (“MAB”)

Menara AmBank is located along Jalan Yap Kwan Seng and within the heart of the Kuala Lumpur Golden Triangle. It is situated about 0.5km from the Kuala Lumpur City Centre (KLCC) and is easily accessible from city centre via Jalan Ampang and Jalan Yap Kwan Seng. Alternatively, it is accessible via Jalan Tun Razak. The nearest light rail transit station, Putra- KLCC Station is located within walking distance from the building. This 46-storey prominent office building (one of the top three winners in the 2007 Building Illumination and Decorative Competition) is surrounded by high-rise purpose built office building, prime retail complexes, luxurious high-rise condominiums and service apartments as well as international hotels.

24 AmFIRST Annual Report 2009 Property Portfolio (Cont’d)

MENARA AMBANK TENANT MIX ��

Location : Menara AmBank �� No. 8, Jalan Yap Kwan Seng �� 50450 Kuala Lumpur �� Land Title : Title No. Geran 52468 �� Lot No. 140, Section 44 �� Town and District of Kuala Lumpur Major Tenants Wilayah Persekutuan ��

1. AmBank�� Group �� 2. Germanischer�� Lloyd (M) Sdn Bhd Tenure : Freehold �� 3. Acer�� Sales & Services Sdn Bhd

��

Limitation on Title : Nil �� CATEGORY SQ. FT. % �� Banking & Financial Institution 325,630 75.59 Encumbrances : Nil �� Oil &�� Gas 37,260 8.65 �� Telecommunication� / IT / Year of Completion : 1997 �� Electronic / Electrical ��26,836 6.23 �� Food & Beverages 12,569 2.92 Age : 12 years �� Construction & Real Estate 4,415 1.02

Health ��2,349 0.55 Net Lettable Area : 458,465 sq ft �� Surveillance & Security ��1,931 0.45 �� Car Park : 776 Service & Others ��19,784 4.59 �� Number of Tenants : 22 �� LEASE RENEWAL PROFILE Purchase Price : RM230.16m ��

�� 1 Market Value : RM292.00m ��

��

Date of Valuation : 27 February 2009 ��

��

Occupancy Rate2 : 94.37% �� Gross Revenue : RM21.78m ��

Net Property Income : RM13.60m AmBank % Total % FYE Group (sq. ft.) (sq. ft.) Capital Expenditure : RM1.87m 2010 310,539 94.84 329,898 76.15 2011 2,650 21.97 12,061 2.78 2012 12,441 13.63 91,273 21.07 TOTAL 325,630 433,232 100.00 Notes: 1. Valued by CH Williams Talhar & Wong Sdn Bhd 2. As at 31 March 2009 25 AmFIRST Annual Report 2009 Property Portfolio (Cont’d)

KELANA BREM TOWERS (“KBT”)

Kelana Brem Towers is located within SS7, Kelana Jaya and it is easily accessible from Kuala Lumpur city centre via the North Klang Valley Expressway (NKVE), Lebuhraya Damansara-Puchong (LDP) and Federal Highway. The office building comprises of two 16-storey purpose-built office towers sitting atop a 5-storey podium block and one level basement car park. Other prominent properties located in the close proximity include the Kelana Jaya Recreational Park Kelana Jaya Centre Court Sports Complex, Kelana Jaya Commercial Centre and prominent residential area.

26 AmFIRST Annual Report 2009 Property Portfolio (Cont’d)

KELANA BREM TOWER TENANT MIX

��

Location : Kelana Brem Towers �� Jalan SS 7/15 (Jalan Stadium) �� 47301 Kelana Jaya �� Selangor Darul Ehsan �� Land Title : HSM 8547 �� Lot No. PT 5135 �� Mukim of Damansara �� District of Petaling Major Tenants State of Selangor Darul Ehsan �� 1. Lembaga Hasil Dalam Negeri 2. LG Electronics�� (M) Sdn Bhd �� Tenure : Leasehold 99 Years expiring on 3. Kimberly-Clark Trading (M) Sdn Bhd�� 4. Swisslog�� Malaysia Sdn Bhd 19 February 2094 (unexpiring term of 5. Superkad�� Services�� Sdn Bhd approximately 85 years) �� CATEGORY�� SQ. FT. % Limitation on Title : Nil �� Government�� Agencies 83,294 29.32 Telecommunication / IT/ �� Encumbrances : Lien Holder’s Caveat �� Electronic / Electrical 81,765 28.78 � Trading �� 39,611 13.94 Construction & Real Estate �� 21,456 7.55 �� Year of Completion : 2001 Transportation & Freight ��11,805 4.16 �� Health & Personal Care ��11,400 4.01 Education �� 11,171 3.93 Age : 8 years Investment ��6,171 2.17 Advocates & Solicitors ��1,000 0.35 Services & Others ��16,400 5.77 Net Lettable Area : 287,223 sq ft �� Car Park : 645 �� LEASE RENEWAL PROFILE Number of Tenants : 27 ��

�� Purchase Price : RM86.05m ��

�� Market Value1 : RM105.00m ��

��

Date of Valuation : 5 February 2009 ��

�� Occupancy Rate2 : 98.90% � �� Gross Revenue : RM9.43m FYE Total (sq. ft.) % Net Property Income : RM6.06m 2010 105,820 37.25 2011 150,781 53.08 Capital Expenditure : Nil 2012 27,472 9.67 TOTAL 284,073 100.00

Notes: 1. Valued by Rahim & Co Chartered Surveyors Sdn Bhd 2. As at 31 March 2009 27 AmFIRST Annual Report 2009 Property Portfolio (Cont’d)

THE SUMMIT SUBANG USJ (“The SUMMIT”)

The Summit Subang USJ is located within one of the commercial hubs of UEP Subang Jaya and one of the major townships in the Klang Valley. The Summit Subang USJ is an integrated commercial complex, which comprises of a 13-storey office tower and a 17-storey hotel tower, both located atop a 6-storey retail podium. The retail mall is currently undergoing enhancement works, to transform it into a “Preferred Shopping Mall” in the locality. Located about 35 km from Kuala Lumpur city centre, it is accessible via the Federal Highway or the New Pantai Expressway, which will eventually intersect with Persiaran Kewajipan. Alternatively, it is also accessible from the Lebuh Raya Shah Alam via the Kewajipan Interchange. Lebuhraya Shah Alam forms part of the Kuala Lumpur Middle Ring Road II and is connected to three major highways namely the North-South Expressway, Puchong- Damansara Expressway and North-South Expressway Central Link.

28 AmFIRST Annual Report 2009 Property Portfolio (Cont’d)

THE SUMMIT SUBANG USJ THE SUMMIT HOTEL

Average Room Rate RM148.58 ** No. of Rooms 332 Location : The Summit Subang USJ Occupancy Rate 75.58% ** Persiaran Kewajipan, USJ 1 Gross Hotel Income RM22.59m * 47600 UEP Subang Jaya Selangor Darul Ehsan Net Rental Received by AmFIRST RM7.00m ** * As at 31 December 2008 ** As at 31 March 2009 Land Title : Geran 43528 Lot 14, Pekan Subang Jaya District of Petaling State of Selangor Darul Ehsan

Tenure : Freehold

Limitation on Title : Nil

Encumbrances : Lien Holder’s Caveat

Year of Completion : 1998

Age : 11 years

Net Lettable Area : Office - 102,294 sq ft Retail - 521,895 sq ft Hotel - 286,599 sq ft

Car Park : 2,125

Number of Tenants : Office - 21 Retail - 95

Purchase Price : RM263.49m

Market Value1 : RM275.00m

Date of Valuation : 10 February 2009

Occupancy Rate2 : Office - 69.93% Retail - 84.27% Hotel - 75.58%

Gross Revenue : RM34.14m

Net Property Income : RM23.00m

Capital Expenditure : Nil

Notes: 1. Valued by Rahim & Co Chartered Surveyors Sdn Bhd 2. As at 31 March 2009 29 AmFIRST Annual Report 2009 �� Property Portfolio (Cont’d) ��

OFFICE THE SUMMIT SUBANG USJ - RETAIL ��

��

Major Tenants �� Major Tenants �� 1. EcoFirst Consolidated Berhad �� 1. Point B! �� 2. Meda Inc. Berhad �� 2. Ampang�� Superbowl �� 3. UPS SCS Services (Malaysia) Sdn Bhd 3. Cold�� Storage �� CATEGORY �� SQ. FT. % CATEGORY SQ. FT. % �� Construction ��17,314 24.20 Anchor�� (Supermarket & Health / Personal Care / Beauty 6,449 9.01 �� Departmental�� Store) 95,359 22.17 �� Logistics�� 11,429 15.98 �� Food &� Beverages �� 50,228 11.68 �� Telecommunication�� & IT 6,233 8.71 �� Fashion & Accessories ��27,723 6.44 �� Services & Others 30,113 42.09 �� Hobbies / Jewellery / �� Specialty Shops 23,158 5.38 �� Electrical & Telecommunication 15,240 3.54 �� Health / Personal Care / Beauty 5,887 1.37 LEASE RENEWAL PROFILE �� Leisure�� & Entertainment/ �� Sports & Fitness 120,275 27.96 �� Education�� & Auditorium 76,115 17.69 �� Home Improvement �� 7,238 1.68 �� Services�� & Others 8,954 2.08 �� LEASE RENEWAL PROFILE ��

�� FYE �� Total (sq. ft.) % �� 2010 33,969 48.70 ��

�� 2011 �� 18,107 25.96 �� 2012 �� 17,678 25.34 � �� TOTAL �� 69,754 100.00 ��

FYE Total (sq. ft.) %

2010 207,469 48.53 2011 150,541 35.21 2012 69,526 16.26 TOTAL 427,536 100.00

30 AmFIRST Annual Report 2009 Portfolio Review

PROPERTY REVIEW DIVERSIFICATION AND GROWTH

Acquisition of yield accretive properties has been the focus of AmFIRST now owns a well diversified portfolio of properties in the AmFIRST’s strategy to build up the portfolio of the Trust. The following sectors:- acquisition of The Summit was completed on 31 March 2008 • Office and its full year performance was recognized over the last twelve • Retail months. It contributed RM 34.14 million in terms of gross revenue • Hotel and RM 23.00 million in terms of net property income. Similarly, we are also able to account for the full year’s performance for This diversification enables AmFIRST to mitigate any income KBT, since this acquisition was completed on 21 June 2007. streams volatility and to reach out to other property sectors for KBT’s gross revenue and net property income contribution for the investment opportunities to support its growth. The main focus, financial year ended 31 March 2009 were RM 9.43 million and RM however, is in the commercial office sector in the Klang Valley. 6.06 million respectively. In evaluating future acquisitions, AmFIRST will continue to focus AmFIRST remains one of the larger office space REITs in Malaysia on the yield accretion, location, tenant strength, lease structure, and is well positioned to capitalize on rising rental rates and capital enhancement possibilities, valuation, occupancy and capital values. The total assets under management of AmFIRST as at 31 appreciation potential. March 2009 stood at RM 980 million, an increase of 17% over the previous year.

SUMMARY OF INVESTMENT PORTFOLIO

Book values Enhancements Total based on Net Acquisition Acquisition up till Investment Fair Value latest Gross Property Property Name Date Cost 31/03/2009 outlay Adjustments valuation Rental Expenses Income (RM’000) (RM’000) (RM’000) (RM’000) (RM’000) (RM’000) (RM’000) (RM’000)

MAB 21/12/06 230,170 1,873 232,043 59,957 292,000 21,784 8,184 13,600 BAG 21/12/06 180,152 0 180,152 45,848 226,000 21,284 5,925 15,359 AGLC 21/12/06 19,056 596 19,652 348 20,000 1,924 967 957 Merais 21/12/06 57,081 0 57,081 4,919 62,000 4,517 2,204 2,313 KBT 21/06/07 86,051 0 86,051 18,949 105,000 9,430 3,372 6,058 The Summit 31/03/08 263,487 0 263,487 11,513 275,000 34,142 11,136 23,006

835,997 2,469 838,466 141,534 980,000 93,081 31,788 61,293

PORTFOLIO GROWTH

As at 31 March 2009, the total investment properties of AmFIRST was RM 980 million This represented an increase of 17% over the previous year.

��

�� 31 AmFIRST Annual Report 2009 Portfolio Review (Cont’d)

GROWTH OF SPACE UNDER MANAGEMENT

��

PORTFOLIO DIVERSIFICATION (BY NLA)

��

TOP TEN TENANTS AS AT 31 MARCH 2009

Nos. Names Location Total Revenue %

1. AmBank Group BAG/MAB/AGLC 38.23 2. Lembaga Hasil Dalam Negeri KBT 2.94 3. Shook Lin & Bok BAG 2.00 4. Germanischer Llyod GLM Sdn Bhd MAB 1.49 5. LG Electronics (M) Sdn Bhd KBT 1.02 6. Kimberly-Clark Trading (M) Sdn Bhd KBT 1.01 7. Ampang Superbowl The Summit 0.90 8. Golden Screen Cinema Sdn Bhd The Summit 0.88 9. MBF Cards (M) Sdn Bhd MAB 0.70 10. Acer Sales And Services Sdn Bhd MAB 0.68

49.85

32 AmFIRST Annual Report 2009 Portfolio Review (Cont’d)

TOP TEN TENANTS AS AT 31 MARCH 2009

��

PROACTIVE ASSET MANAGEMENT

Organic growth and enhancements AmBank Group Leadership Centre

The Asset Management team is constantly exploring ways to The two lifts at AGLC were upgraded for a total cost of RM 220,000 enhance value of the Trust’s assets and revenue through:- and have since improved its operation to the tenants’ comfort.

• Revenue enhancements via tenant profiling and retention, Menara Merais including early renewals, effective car park management and proactive lease management; The upgrading works will commence at end May 2009 and • Exploring and increasing tenantable areas – effective space expected to cost around RM 6.70 million. Target completion period utilization hence increasing net lettable area; is six months and we are confident that this upgrading will enhance • Upgrading and refurbishment; Menara Merais iconic status, as a preferred office building. • Effective operating expense management to ensure best possible service contract rates and service level to benefit The Summit Subang USJ tenants We have embarked on the repositioning study of the mall and expected For the past financial year we have undertaken the following to be completed by end June 2009. The objective of the study is to enhancements and this is an on-going commitment of the Trust:- formulate the repositioning strategy to be implemented to make The Summit Subang USJ as a “Preferred Shopping Destination’. This will Menara AmBank entail both physical enhancements and retail mix.

During the financial year we have completed the retrofitting to Level 11 at a cost of RM 1.70 million and in due course created a tenantable floor space of about 16,446 sq. ft. (from 16,946 sq. ft. which was rented out as storage space due to its ‘unfinished’ raw state by the previous owner). In addition, RM 168,000 was spent to upgrade the toilets and its facilities at four levels in the building.

33 AmFIRST Annual Report 2009 Portfolio Review (Cont’d)

OCCUPANCY RATES RENT REVERSION (BY REVENUE)

% 2008 2009 % 2008 2009

110 25 99.44 100 100 98.90 100 95.80 94.37 92.21 92.21 20.58 20 90 84.27 20 19.05 18.35 80 17.23 16.16 70 68.02 69.93 15.49 64.80 15 60 50 10 8.90 8.52 40 30 6.39 5.50 5.62 20 5 10 0 0 BAG MAB AGLC MM KBT SUMMIT- SUMMIT- BAG MAB AGLC MM KBT SUMMIT- SUMMIT- retail office retail office

PROSPECTS

At the beginning of 2009, the Malaysian economy was predicted b) contribution from our yield-accretive acquisition of 36,000 to contract in excess of 1% for the current year and any recovery sq. ft. of strata office space at Menara Summit, which we was expected to be gradual and likely take off in the latter half of expect to complete before end June 2009. 2009. We could expect some difficult times as a result of higher unemployment, lower disposable income, downsizing and falling c) efficient debt management - which has minimized, and will corporate earnings due to revenue contraction. At the time of continue to minimize, our interest expense. The bulk of this reporting, there are some signs of improvement in the global AmFIRST’s borrowings was negotiated on floating cost of credit markets and we have seen some positive movement in fund basis and the continuing low interest rate environment equity prices in the stock market - supported by the sprinkling of has benefited AmFIRST. The reduction in the Overnight positive economic news and improved sentiments. Our banking Policy Rate announced by Bank Negara between the last and financial sectors have also remained fairly intact from the quarter of 2008 and the first quarter of 2009 also helped. fallout of the sub-prime crisis. This, together with the reduction of Management is continually engaging its bankers in active interest rates and increased fiscal spending to revive the Malaysian discussion on economic trends and potential impact on economy, has bolstered the likelihood of our economy bottoming- interest rates. Management is currently exploring the out towards the year-end and starting to recover early next year. feasibility of locking in a portion of the borrowings at fixed rates to take advantage of the low interest rate level. In terms of the property outlook for the office sector, the short term outlook for the KL City Centre office market is that it will remain d) cost containment initiatives. fundamentally stable. The prime office rentals and capital values In terms of new acquisitions, as with all M-REITs, given the within the Golden Triangle area are expected to remain stable for current high REIT distribution yield, we would need to focus on the next twelve months barring any further worsening of economic high income-yielding assets with strong capital appreciation conditions. As for the retail sector, the market will continue to opportunities in view of the prevailing yield gap between physical be impacted by poor consumer sentiments and contraction in asset yield and equity yield. However, if the capital market spending. Retail sales are forecasted to grow at a modest 3% for conditions continue to improve (as they seemed to have started 2009 as compared to 7% for 2008. Neighborhood retail malls are to, at the time of this reporting), the yield gap should narrow and more resilient and they tend to target non-discretionary customers. there will be good opportunity to look at equity-raising to fund Rental rates are mixed with some registering a modest increase yield-accretive acquisitions and/or pare down borrowings. whilst others are under stress due to downsizing or holding back of expansion plans.

Regarding the outlook for AmFIRST, we are confident that it will continue to improve its performance and deliver steady growth in earnings based on the following contributory factors:

a) continuing proactive management of our assets – striving to maximize rental income from positive rental reversions as well as from asset upgrading works aimed at increasing occupancy levels (including upgrading of our Menara Merais where we expect upgrading works to complete in late 2009 / early 2010). 34 AmFIRST Annual Report 2009 Property Market Report For the Financial Year Ended 31 March 2009

INVESTMENT With price declines and yields becoming more attractive in the Investment market continued to lose momentum amid major regional financial centres, offshore funds are finding these worsening market condition cities more attractive and are thus bypassing the Malaysian market for the time being. While there are some opportunity funds that are The investment market turned for the worse in Q1 2009 as global actively scouting the Malaysian market for distressed assets, to sentiments fell in the light of continuing gloomy news on the date there has been no fire sale that meets their expectations. financial and economic fronts. Most institutional funds stayed by the sidelines as the market struggled to find a new price level in With prices in Kuala Lumpur showing no sign of a major decline, the midst of high volatility in the capital market. potential buyers, especially foreigners, are happy to stay sidelined until better opportunities arise. This is expected to be in the second Although Bank Negara continued to ease monetary policy, new half of the year as the recession bites harder. The market is likely funding is not likely to be easily available or cheap. Since Q3 2008, to consolidate slowly in the next two years with new supply and the Overnight Policy Rate has eased from 3.5% to 2% p.a. However, economic factors being the key drivers of values and activities, banks are increasingly jittery on their property sector exposures in the with the new Najib Administration in place and with no signs of a light of potential increase in non-performing loans. On the brighter political consolidation. side, there is no news of borrowers having refinancing issues that could lead to distressed sales on the horizon. Investment Sales Outlook Q1 2009 12 months Outlook The market has been relatively slow with few and no major Sales Volume transactions. While the number of deals remained the same as in Source: DTZ Research, May 2009 Q4 2008, total investment value for the quarter was only RM113 million compared to RM466 million in the previous quarter. Major Investment Sales in 1Q 2009 There were two mid-sized office transactions in the quarter with Building Purchaser Price Price relatively high prices and low yields. Both were purchased by (RM mil) (RM / sq ft) Government Linked Companies - Perbandanan Nasional Bhd Wisma Perbadanan Nasional 50 469 bought Wisma Glomac 3, while EXIM Bank purchased Menara Glomac 3 Berhad Bank Industri. The transaction prices ranged from RM469 psf to Menara EXIM Bank 63 639 RM639 psf, and did not seem to be affected by current realities Bank Industri with prices. The net yields are 5.0% and 5.3% respectively. Source: DTZ Research, May 2009

The retail sector continued to see some investment activities as the sale of basic household necessities is believed to still have �� room for growth in business. The market saw Aeon Co (M) Bhd, �� the Japanese operator of Jusco Stores, entering into a Sale and �� Purchase agreement for a piece of land together with a proposed �� retail centre on a completed basis at Bandar Sri Permaisuri for �� RM107.2 million. This acquisition represented the continued �� aggressive expansion of Jusco in Malaysia, in its attempt to ��

accelerate its retail business to compete with the hypermarkets. ��

� The REITs are relatively inactive in the acquisition market as their �� shares have been battered down with the general share market, �� in line with other equities. With generally below par values, their dividend yields are relatively attractive making it hard to acquire properties with higher yields.

On the sale side, there are not many sellers also. Thus the market could enter into a quandary with a lack of market markers on when it reaches its bottom.

35 AmFIRST Annual Report 2009 Property Market Report (Cont’d) For the Financial Year Ended 31 March 2009

OFFICE MARKET Office Sales Outlook Upcoming supply will exert pressure on rentals in the Q1 2009 12 months Outlook midst of slowing demand Average Monthly Gross Rents

With the global economic recession affecting every corner of the Source: DTZ Research, May 2009 world, demand for office space has softened with slow leasing enquiries for office space in the first quarter of 2009. Potential �� business tenants, especially the multi-national companies

(MNCs), have turned cautious on business expansion while some �� have decided to downsize. Most of the recent transactions were �� attributed to renewals or relocation from city centre to areas such �� as Petaling Jaya, Damansara Heights and Putrajaya. ��

Prime office space continued to experience declining rents for the �� second consecutive quarter, which eased 2.85% QOQ to RM6.14 � per sq ft per month. �� The office market is expected to experience continued pressure �� on rental rates due to the large stock of incoming supply of new Source: DTZ Research, May 2009 office buildings during the year. Approximately 4.13 mil sq ft is expected to be completed in 2009. With another 6.55 mil sq ft of new supply hitting the market in 2010 and 2011, developers are Notable Lease Deals during Q1 2009 more likely to defer their planned projects. Tenant Building Type NLA (RM / sq ft) Despite slower demand and increasing supply, the occupancy WorleyParsons Wisma Denmark Relocation 100,000 level is still holding up well. Grade A space in the city centre TMI Quill 7 @ KL Sentral New Lease 50,000 remained resilient at an average occupancy of 95%, compared to 90% in Q4 2008. This is mainly attributed to Kuala Lumpur’s tight Source: DTZ Research, May 2009 supply of prime space, coupled with the fact that Kuala Lumpur has benefited from strong, broad-based demand from a wide Proposed should be potential? spectrum of growth sectors such as oil & gas, Islamic finance and

other domestic-driven activities. ��

There is currently no discernible pattern or evidence of tenants �� vacating city centre market, despite expectations of cost- conscious tenants relocating to cheaper locations. These are �� likely to be those which do not need to be in the city centre and �� can be lcoated in decentralized or suburban alternatives with good transport accessibility. The city centre has a solid base of ��

companies that still choose to remain in the core area. However, �� existing tenants will have more bargaining power for lower rents, � ��

while new tenants would have more alternatives to choose from. ��

Despite the great uncertainty over the economic performance, Source: DTZ Research, May 2009 there is still a demand for office space as business is anticipated to continue and tenants will still require space to operate their Notes: business. However, newly completed buildings in the next two GT = Golden Triangle CCA = Centralized Commercial Area years will have great challenges in filling up the space, while owners of existing buildings will have to come up with good packages at competitive rates to maintain their existing tenants. Generally, it is anticipated that new leases will see smaller space being committed and at lower rates.

36 AmFIRST Annual Report 2009 Property Market Report (Cont’d) For the Financial Year Ended 31 March 2009

RETAIL Retail Market Outlook Weak consumer sentiments and employment Q1 2009 12 months Outlook

The retail market continued to be hit by poor consumer sentiments. Average Monthly Gross Rents The Consumer Sentiment Index is now at a historical low of 71.4 Source: DTZ Research, May 2009 points as at Q4 2008. After fairly strong sales in both January and February, turnover dropped dramatically after the lunar new year �� celebrations. Fashion retailers have since been resorting to sales and promotions to prop up turnover. Households are spooked by

the poor employment prospects and are tightening their purse- �� strings. Overall, growth in consumption spending is expected to �� decline to 5% for 2009, from 14% in 2008. The Malaysia Retailers Association has forecasted retail sales to grow at a modest 3% for the year compared to 7% for 2008. �� Although new supply is tapering off in the coming years, it is still substantial in absolute total. However, construction on some �� projects may not start or their completions may be delayed by a year �� or so. For example, the completion of SSTwo, a neighbourhood mall in Petaling Jaya, is expected to be delayed to end next year, �� from the original completion date of end 2009. The completion of Four Seasons, next to Kuala Lumpur City Centre (KLCC) and with a

mid-sized retail component, has also been delayed with construction �� work stopped for the last few months.

Average occupancy remains high with no major attrition rate �� reported to date amongst retailers. Nevertheless, if the current tough trading conditions remain, the market can expect to see �� some closure of outlets, especially those located in the more secondary locations with no strong population catchment. Suria � �� KLCC, the most premier of the malls, has reported that rental growth �� this year is expected to be in the 5% single digit level, compared to previous years when growths were in the double digits. �� With the tough trading environment, retailers are very reluctant to expand and this makes it challenging for new centres coming on �� stream to fill up, especially where there is no pre-committed anchor tenants. To survive, retailers are changing their merchandise mix �� to cater to more price/value conscious consumers. Some fashion retailers have also been affected by weak principals due to adverse overseas conditions, leading to a loss of licenses, or a cutback in ��

their expansions. � ��

�� Currently, rental level remains stable with selective rental

concessions provided by landlords. However, a decline of 5- Source: DTZ Research, May 2009 10% by the end of 2009, over Q4 2008 level is expected as the economic recovery is unlikely to happen until early next year when global economic prospects brighten up. Even rents in the prime Upcoming Retail Centre 2009 retail centres will not be immuned. Project NLA (sq. ft.) Location Wangsa Walk 273,243 Wangsa Maju The recent announcement by the government on liberalization of foreign investment regulations of the service sector, of which Source: DTZ Research, May 2009 the retail sector is a subcomponent, will facilitate the growth of new foreign retailers that have previously been turned off by the local equity requirements. This will spur another round of growth in the industry. The industry certainly looks forward to that day, as the country aspires to compete with its regional peers such as Bangkok and Singapore as a shopping haven. 37 AmFIRST Annual Report 2009 Property Market Report (Cont’d) For the Financial Year Ended 31 March 2009

RESIDENTIAL Residential Market Outlook High end condominiums beginning a period of price Q1 2009 12 months Outlook correction Average Monthly Gross Rents Sales activities were slow in the quarter, with no new launches Source: DTZ Research, May 2009 and poor sales take-up for projects launched earlier. Generally, potential buyers are defering purchases of properties as they believe prices have reached the peak and are anticipating lower �� prices. In the secondary market of completed units and sold units ��

that are still under construction, foreign investors who are badly �� affected by the economic downturn in their home countries will �� have weak holding power and are under pressure to sell these �� properties and pull funds back home. �� With developers postponing or shelving the launching of new �� projects, there have been no launches of condominium projects in �� Kuala Lumpur’s inner city. The long-awaited Four Season project is �� reported to be launched only in the later part of the year. However, �� the weak market condition will dampen takeup. Source: DTZ Research, May 2009 The high end residential market, especially the condominium sub- sector, is most affected by the global economic slowdown. Prices of high end condominiums are going through a correction period, Upcoming Condominiums in KLCC Area in 2009 with an anticipated drop of 15% to 20% in some projects by end Project Units 2009. Already, there is an average of about 7% drop in capital value in some condominiums in Kuala Lumpur during Q1 2009. Idaman Residences 248 The Oval 140 The rental market is becoming more competitive. Average gross The Avare 78 rent of condominiums in KLCC area has dropped by some 5% QOQ, to about RM3.83 per sq ft per month. With an impending Hampshire Residences 388 supply of some 2,190 units by 2009, rents are expected to drop One KL 94 further. Hence, it will be a tenant’s market, with plenty of new units Pavilion Residences 368 to choose from at bargain rates. As a result, rental yields are also The Troika 229 expected to decline further as the newly completed units compete for the limited expatriate population. Ampersand 71 Hampshire Place 186 In response to the slow take-up, developers are offerin innovative Binjai on the Park 171 and aggressive packages to attract buyers. During this challenging market condition, many developers are coming up with incentives Fraser Residences KL 217 and schemes such as waiver of stamp duties, legal fees, interest Total: 2,190 payment during construction period as part of their strategies to Source: DTZ Research, May 2009 make their developments saleable. Some developers even came up with 5/95 home loan packages where a buyer is required to pay only 5% of purchase price as down payment upon signing �� of sales and purchase agreement, with no progressive payment ��

required until the unit is completed. �� On a positive note, the recent improvements to Malaysia My Second �� Home (MM2H) programme may bring favourable news to the high- �� end residential market segment. Among the new announcements, �� effective 9 January 2009, foreign citizens may apply to participate �� in MM2H programme directly. Besides that, Qualified MM2H � �� participants aged 50 and above with specialised skills and expertise ��

that are required in the critical sectors of the economy are allowed �� to work for not more than 20 hours per week. MM2H participants are also now allowed to invest and actively participate in business, subject to existing Government policies, regulations and guidelines which are in force for the relevant sectors. All these changes are anticipated to attract investors from overseas, especially the high net worth and skilled individuals. These moves are expected to help create demand for investment properties especially in the higher end market in urban areas. 38 AmFIRST Annual Report 2009 Property Market Report (Cont’d) For the Financial Year Ended 31 March 2009

EXPLANATORY NOTES

AREA TAXONOMY STOCK NEW SUPPLY

Study Area Business Space (office) Refers to the supply of new properties confirmed, i.e., projects with planning Klang Valley & Environs (KVE) is located Refers to purpose-built office or mixeduse approval and there are definite plans to centrally within the State of Selangor. KV premises with net lettable areas of 50,000 proceed with the development or under itself accommodates the Kuala Lumpur sq ft or more. It excludes buildings construction at the time of reporting. The City (KLC) and the State’s District of developed and solely used by Federal and year for new supply refers to the year in Petaling, Klang, Gombak and Hulu Langat. State Government or government-related which the projects/units are expected Its environs would include surrounding organisations. The stock is defined into two to receive Certificate of Fitness for growth areas such as Cyberjaya, Putrajaya distinct categories as follows: occupation. City and the Sepang localities. The KVE property market is divided into two distinct Prime – buildings are those with advanced geographical areas: KLC and other areas “Building Automation System”, high level of ABSORPTION in KVE (OKVE). computerised M&E and ‘state-of-the-art’ telecommunication. Refers to the total number of net take up Business Space (office) Secondary – buildings are those with of accommodation or units in new projects The office market in KLC is sub-divided into average/basic office accommodation. being leased or sold. Resale of units is three sub-markets: Central Commercial excluded. Area (CCA), Golden Triangle (GT) and Retail Decentralised Areas (DA). DA will comprise Stock includes purpose-built shopping areas fringing the city centre. The office complexes with net lettable areas of 50,000 RENTS market within OKV is sub-divided into six sq ft or more. The stock is defined into two sub-markets – Petaling Jaya (PJ, Subang Average gross rents are computed based distinct categories as follows: Jaya (SJ), Shah Alam (SA), Klang, Puchong on a basket of properties, inclusive of and Ampang. Prime – complexes with good layout, service charges. Office – typical net floor design, management, maintenance, image, size adopted are between 2,000 sq ft and Retail facilities, internal finishes and tenant mix, 5,000 sq ft. and high-level computerised M&E. Retail complexes within the city and main Retail - only rents of prime speciality retail town centres are referred to as “urban Secondary – complexes that provide shops, e.g. those with good frontage or areas”. Those located within commercial average/basic retail space. pedestrian footage, are included in the areas of residential estates in KV, other publication. than city or town centres, are defined as “suburban”. MARKET PRICES

Market prices are reported on per sq ft (psf) basis on net floor areas. The office and retail market are reflective of en bloc sales evidence (referring to the sale) of entire land and building.

39 AmFIRST Annual Report 2009 Report by the Directors of The Manager For the Financial Year Ended 31 March 2009

The Directors of Am ARA REIT Managers Sdn Bhd, the Manager of AmFIRST Real Estate Investment Trust (“AmFIRST” or the “Trust”), have pleasure in presenting their report to the Unitholders of the Trust together with the audited financial statements of the Trust for the financial year ended 31 March 2009.

THE TRUST, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES

The Trust was constituted pursuant to the execution of a Trust Deed dated 28 September 2006 (as amended by the Supplemented, Revised and Restated Trust Deed dated 15 December 2006) by the Manager, Am ARA REIT Managers Sdn Bhd (“Am ARA REIT”) and the Trustees, Mayban Trustees Berhad. The principal activity of the Trust is to own and invest in a portfolio of commercial properties in major growth areas of Malaysia, primarily in the Klang Valley.

The Manager, incorporated in Malaysia, is a wholly-owned subsidiary of Am ARA REIT Holdings Sdn Bhd. Am ARA REIT Holdings Sdn Bhd is 70% owned by AmInvestment Group Berhad (“AIGB”) and 30% owned by ARA Asset Management (Malaysia) Limited. AIGB is a wholly-owned subsidiary of AMMB Holdings Berhad while ARA Asset Management (Malaysia) Limited is ultimately wholly-owned by Singapore-listed, ARA Asset Management Limited, an affiliate of the Cheung Kong Group based in Hong Kong.

MANAGER’S INVESTMENT OBJECTIVES AND STRATEGIES

Am ARA REIT is a professional manager. The Manager’s investment objectives are to deliver regular and stable distributions to Unitholders and to achieve long-term growth in the net asset value per unit through proactive management of the Trust’s portfolio of assets and acquisition of yield accretive properties.

The Manager intends to achieve AmFIRST’s investment objectives through three key strategies:-

(i) Operating Strategy

Am ARA REIT operating strategy is to continue to enhance the performance of the existing properties by increasing yields and returns through retaining existing tenants, reducing vacancy levels, adding and/or optimising office space at the properties and minimising interruptions in rental income and operational costs. Am ARA REIT expects to apply the following key operating and management principles in order to continue to manage the properties efficiently, to increase the yields of the properties and to maximise growth:-

• Improve rental rates; • Establish close relationships with tenants to optimise tenant retention; • Diversify tenant base; • Review tenant mix and re-configure existing space; • Maintain the quality of the properties; • Maximise the performance of each property; • Improve operating efficiencies and economies of scale; and • Raise the profile of the properties.

(ii) Acquisition Strategy

The Manager intends to pursue an acquisition strategy for AmFIRST to increase net property income and the potential for asset growth based on the following criteria:

• Yield-accretive; • Healthy tenant mix and occupancy level; • Good location; • Value adding opportunities; and • Good building and facilities specifications.

40 AmFIRST Annual Report 2009 Report by the Directors of The Manager (Cont’d) For the Financial Year Ended 31 March 2009

MANAGER’S INVESTMENT OBJECTIVES AND STRATEGIES (CONT’D)

(ii) Acquisition Strategy (cont’d)

The Manager expects to benefit from the network of the sponsor and its joint-venture partner, ARA Asset Management (Malaysia) Limited, which is part of the ARA Group. ARA Group is a leading real estate fund management house in Asia. It has a strong presence in the region, with investments in many parts of Asia. ARA Group possesses expertise in identifying opportunities in the development of the Asian real estate industry, and is dedicated to the real estate fund management business. Its key staff have been involved with many corporate restructurings in Asia involving real estate assets. Their experience and network will provide an edge to the Manager in its efforts to grow AmFIRST.

AmFIRST intends to hold the properties on a long-term basis. In the future where the Manager considers that any property has reached a stage that offers only limited scope for growth, it may consider selling the property and using the proceeds for alternative investments in properties that meet the Manager’s investment criteria.

(iii) Capital Management Strategy

The Manager’s strategy for the management of AmFIRST’s capital structure involves adopting and maintaining an appropriate debt- equity structure with gearing level to be maintained within the prescribed limits and utilising an active interest rate management policy to manage the risks associated with interest rate fluctuations. The Manager believes that this strategy will:-

• Optimise Unitholders’ returns; • Maintain operating flexibility when considering capital expenditure requirements; and • Enable AmFIRST to maintain financing flexibility in the funding of future acquisitions.

AmFIRST has in total RM402,000,000 secured facility comprising of RM147,000,000 Term Loan (of which RM57,000,000 is pegged against a fixed rate of 5% per annum and RM90,000,000 based on variable rates) representing 36.6% and RM255,000,000 Revolving Credit (“RC”) facility representing 63.4% of the total secured facility.

The variable rates for the Term Loan and RC range between 2.75% to 4.35% per annum during the financial year ended 31 March 2009.

INVESTMENT POLICIES AND COMPLIANCE WITH REIT GUIDELINES

(i) Permitted Investments and Restrictions

AmFIRST is allowed to invest in real estate, single-purpose companies whose principal assets comprise real estate, real estate- related or non real estate-related assets, liquid assets, asset-backed securities, listed or unlisted debt securities, and any other investment which is permissible under the REIT Guidelines or otherwise permitted by the SC.

AmFIRST will not extend loans and any other credit facilities to any party, enter into forward purchases or sales in any currency or any foreign-exchange contracts unless these instruments are in compliance with the Exchange Control Act 1953. The Trust will also not be involved in property development, except in the case where the development is made with a view of purchasing the real estate upon completion and having met the criteria stipulated under the REIT Guidelines.

(ii) Portfolio Composition

AmFIRST’s investments may be allocated in the following manner, as prescribed by the REIT Guidelines:

(a) invest in real estates, single-purpose companies, real estate-related assets, non-real estate related assets and liquid assets;

(b) at least 50% of AmFIRST’s total assets must be invested in real estate and/or single-purpose companies at all times; and

(iii) Diversification

AmFIRST will seek to diversify its real estate portfolio by property type and location. AmFIRST will focus on investing in real estate which are primarily used for commercial and retail purposes. 41 AmFIRST Annual Report 2009 Report by the Directors of The Manager (Cont’d) For the Financial Year Ended 31 March 2009

MANAGER’S INVESTMENT OBJECTIVES AND STRATEGIES (CONT’D)

(iv) Gearing

AmFIRST is able to leverage on borrowings to make permitted investments which will enhance the returns to Unitholders. Under the REIT Guidelines, AmFIRST is permitted to procure borrowings of up to 50%, or any other percentage as stipulated by the REIT Guidelines from time to time, of its total asset value.

As at 31 March 2009, AmFIRST has a gearing ratio of 39.31% (45.12% as at 31 March 2008) and borrowings stood at RM402,000,000. There is capacity for an additional RM219,250,000 debt financing before reaching the 50% threshold under the SC’s Guidelines on REITs.

The Manager will be utilizing additional credit facilities and the issuance of any new Units to further pursue its acquisitions.

REVIEW OF PERFORMANCE As at As at 31 March 2009 31 March 2008

Net asset value (RM’000) 568,415 426,873 Units in circulation (units) (000) 429,001 429,001 Net asset value per Unit (RM) 1.32 1.00

Market price per unit at close of financial year (RM) 0.85 0.87 Highest traded price per Unit during the financial year (RM) 0.95 1.00 Lowest traded price per Unit during the financial year (RM) 0.74 0.83

Comparison of results for 31 March 2009 Actual Prospectus (RM’000)

Gross income 93,365 52,871 Property expenses (31,788) (15,036) Change in the fair value of investment properties 141,534 - Non-property expenses (24,040) (6,129)

Income before taxation, of which: 179,071 31,706 - realized 37,537 31,706 - unrealized 141,534 -

Income after taxation 179,071 31,706 Income available for distribution - realized 37,537 31,706 Realized earnings per Unit (sen) 8.75 7.39 Distribution per Unit (sen) 8.75 7.39 Distribution yield (%) - based on IPO price (RM1.00) 8.75 7.39 - based on closing price as at 31 March 2009 (RM0.85) 10.29 8.69

The realized income before and after tax have exceeded by 18.4% from the forecast published in the intial public offering prospectus dated 9 November 2006.

DISTRIBUTION OF INCOME

In respect of the current financial year ended 31 March 2009, the total income available for distribution was RM37,536,765, translated to 8.75 sen per unit.

During the financial year, AmFIRST made an interim income distribution of 4.268 sen per unit totalling to RM18,309,752 for the six months period ended 30 September 2008, which was paid on 28 November 2008.

42 AmFIRST Annual Report 2009 Report by the Directors of The Manager (Cont’d) For the Financial Year Ended 31 March 2009

DISTRIBUTION OF INCOME (CONT’D)

A proposed final income distribution in respect of the six months period from 1 October 2008 till 31 March 2009 amounting to 4.48 sen per unit, totalling to RM19,219,245, was recommended by the Manager and approved by the Trustees. This final income distribution shall be paid on 29 May 2009 to all Unitholders.

This is in line with the objective of AmFIRST to deliver regular and stable distributions to Unitholders.

The effect of the income distribution in terms of NAV per unit as at 31 March 2009 is as follows:

Before After Distribution Distribution RM RM

Net asset value per unit 1.37 1.32

INVESTMENTS OF THE TRUST

AmFIRST’s composition of investments as at 31 March 2009 is as follows:

% of RM Million Investment

At fair value Menara AmBank 292.0 29.00% Bangunan AmBank Group 226.0 22.50% Menara Merais 62.0 6.20% AmBank Group Leadership Centre 20.0 2.00% Kelana Brem Towers 105.0 10.40% The Summit Subang USJ 275.0 27.30%

980.0 97.40% Deposits with financial institutions 26.5 2.60%

1,006.5 100.00%

The asset values of investment properties has increased by RM144.0 million in the current financial year mainly due to increase in fair values on the revaluation of six (6) investment properties.

BREAKDOWN OF UNIT HOLDINGS AS AT 31 MARCH 2009

Number of Number Unitholders of Units

5,000 and below 10,268 13,524,162 5,001 to 10,000 838 6,986,807 10,001 to 50,000 886 20,772,179 50,001 to 500,000 338 46,754,976 500,001 and above 40 340,962,876

12,370 429,001,000

43 AmFIRST Annual Report 2009 Report by the Directors of The Manager (Cont’d) For the Financial Year Ended 31 March 2009

DIRECTORS OF THE MANAGER

The names of the Directors of the Manager who served on the Board at the date of this report are:

Dato’ Azlan bin Hashim (Chairman) Cheah Tek Kuang Dato’ Teo Chiang Quan Tuan Haji Mohd Salleh bin Akram Lim Hwee Chiang Pushpa Rajadurai (Alternate Director to Cheah Tek Kuang) Lim Poh Kok Michael (Alternate Director to Lim Hwee Chiang)

In accordance with Article 64 of the Manager’s Article of Association, Dato’ Teo Chiang Quan and Lim Hwee Chiang retire at the forthcoming annual general meeting and being eligible, offer themselves for re-election.

DIRECTORS’ BENEFITS

Neither at the end of the financial year, nor at any time during the financial year, did there subsist any arrangement to which the Manager or the Trust was a party, whereby the Directors might acquire benefits by means of acquisition of shares in or debentures of the Manager or any other body corporate or of the acquisition of units of the Trust.

Since the end of the previous financial year, no Director of the Manager has received or become entitled to receive a benefit (other than benefits which accrue from the fee paid to the Manager or from transactions made with companies related to the Manager as shown in the notes to the financial statements of the Trust) by reason of a contract made by the Manager or the Trust or a related corporation with any Director or with a firm of which he is a member, or with a company in which he has a substantial financial interest.

DIRECTORS’ INTEREST

The interest in the Trust of the Directors of the Manager in office at the end of the financial year ended 31 March 2009 are as follows:

Number of units in the Trust As at As at 01.04.2008 Bought Sold 31.03.2009

Dato’ Azlan bin Hashim 80,000 - - 80,000 Cheah Tek Kuang 1,000 - - 1,000

Other than as stated above, none of the other Directors of the Manager in office at the end of the financial year had any interest in the Trust during the financial year.

MANAGER’S FEES AND COMMISSION

Pursuant to the Trust Deed, the Manager’s fees consist of a base fee (excluding any taxes payable) of up to 0.5% per annum of the total asset value (for the period from 21 December 2006 to 31 March 2007 and the next 3 financial years ending 31 March 2010, the base fee shall be fixed at 0.3% per annum) and a performance fee (excluding any taxes payable) of 3% per annum of the net property income, but before deduction of property management fees.

In addition, the Manager will also be entitled to an acquisition fee of 1% of the acquisition price of any real estate or single-purpose company whose principal assets comprise real estate for any acquisition by AmFIRST and a divestment fee of 0.5% of the sale price of any real estate or single-purpose company whose principal assets comprise real estate, sold or divested by AmFIRST (pro-rated if applicable to the proportion of the interest in real estate or single-purpose company purchased or sold).

During the financial year, the Manager did not receive any soft commission (i.e. goods and services) from its broker, by virtue of transactions conducted by AmFIRST.

44 AmFIRST Annual Report 2009 Report by the Directors of The Manager (Cont’d) For the Financial Year Ended 31 March 2009

OTHER STATUTORY INFORMATION

(a) Before the income statement and balance sheet of the Trust were made out, the Manager took reasonable steps:-

(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision for doubtful debts and satisfied themselves that there were no known bad debts and that adequate provision had been made for doubtful debts; and

(ii) to ensure that any current assets which were unlikely to realize their value as shown in the accounting records in the ordinary course of business had been written down to their estimated realizable values.

(b) At the date of this report, the Manager is not aware of any circumstances not otherwise dealt with in this report or financial statements of the Trust which would render:

(i) the amount written off for bad debts or the amount of the provision for doubtful debts made in the financial statements of the Trust inadequate to any material extent; and

(ii) the values attributed to the current assets in the financial statements of the Trust misleading.

(c) At the date of this report, the Manager is not aware of any circumstances which have arisen which would render adherence to the existing method of valuation of assets or liabilities of the Trust misleading or inappropriate.

(d) At the date of this report, the Manager is not aware of any circumstances not otherwise dealt with in this report or the financial statements of the Trust which would render any amount stated in the financial statements misleading.

(e) At the date of this report, there does not exist:

(i) any charge on the assets of the Trust which has arisen since the end of the financial year which secures the liabilities of any other person; or

(ii) any contingent liability of the Trust which has arisen since the end of the financial year.

(f) In the opinion of the Directors of the Manager:

(i) no contingent or other liability of the Trust has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which will or may affect the ability of the Trust to meet its obligations when they fall due; and

(ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financial year and the date of this report which is likely to affect substantially the results of the operations of the Trust for the financial year in which this report is made.

SIGNIFICANT EVENT

During the financial year, a revaluation exercise was carried out for all six properties of AmFIRST. Bangunan AmBank Group, AmBank Group Leadership Centre, Menara AmBank, Menara Merais and Kelana Brem Towers were revalued to comply with Clause 10.03 of the Securities Commission’s REIT Guidelines. Whilst the revaluation exercise on The Summit was to determine the current market value of the property to reflect the fair value at the balance sheet date.

The total revaluation surplus derived from the said revaluation exercise was RM141,534,127 or 16.9% increase in value. The revalued amount was incorporated into the financial statements as at 31 March 2009 and consequently, the net asset value increased from RM1.00 to RM1.32 per unit.

45 AmFIRST Annual Report 2009 Report by the Directors of The Manager (Cont’d) For the Financial Year Ended 31 March 2009

AUDITORS

The auditors, Ernst & Young, have expressed their willingness to continue in office.

Signed on behalf of the Board in accordance with a resolution of the Directors of the Manager.

Dato’ Azlan bin Hashim Tuan Haji Mohd Salleh bin Akram

Kuala Lumpur, Malaysia Date : 22 May 2009

46 AmFIRST Annual Report 2009 Statement by the Directors of The Manager

We, Dato’ Azlan bin Hashim and Tuan Haji Mohd Salleh bin Akram, being two of the Directors of the Manager, do hereby state that, in the opinion of the Directors of the Manager, the financial statements of AmFIRST Real Estate Investment Trust (the “Trust”) as set out on pages 50 to 65 are drawn up in accordance with applicable Financial Reporting Standards in Malaysia, applicable provisions of the Trust Deed and the Securities Commission’s Guidelines on Real Estate Investment Trusts so as to give a true and fair view of the financial position of the Trust as at 31 March 2009 and of the results and the cash flows of the Trust for the financial year then ended.

Signed on behalf of the Board in accordance with a resolution of the Directors of the Manager.

Dato’ Azlan bin Hashim Tuan Haji Mohd Salleh bin Akram

Kuala Lumpur, Malaysia Date : 22 May 2009

Statutory Declaration

I, Lim Yoon Peng, being the officer primarily responsible for the financial management of AmFIRST Real Estate Investment Trust, do solemnly and sincerely declare that the financial statements set out on pages 50 to 65 are, to the best of my knowledge and belief, correct, and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act l960.

Subscribed and solemnly declared by the abovenamed Lim Yoon Peng at Kuala Lumpur in Wilayah Persekutuan on 22 May 2009 Lim Yoon Peng

Before me:

Commissioner for Oaths

47 AmFIRST Annual Report 2009 Trustee’s Report To the Unitholders of AmFIRST Real Estate Investment Trust

We have acted as Trustee of AmFIRST Real Estate Investment Trust (the “Trust”) for the financial year ended 31 March 2009. To the best of our knowledge, Am ARA REIT Managers Sdn. Bhd. has managed the Trust in accordance with the roles and responsibilities and limitation imposed on the management company under the Trust Deed, the Securities Commission’s Guidelines on Real Estate Investment Trusts, the Capital Markets and Services Act 2007 and other applicable laws during the financial year ended 31 March 2009.

We are of the opinion that the recommended final income distribution of 4.48 sen per unit for the six months period ended 31 March 2009 is in line with and is reflective of the objectives of the Trust.

For Mayban Trustees Berhad

Tracy Hazel Siguji Head, Unit Trust & REIT

Kuala Lumpur, Malaysia Date : 22 May 2009

48 AmFIRST Annual Report 2009 Independent Auditors’ Report To the Unitholders of AmFIRST Real Estate Investment Trust

Report on the financial Statements

We have audited the financial statements of AmFIRST Real Estate Investment Trust, which comprise the balance sheet as at 31 March 2009, and the income statement, statement of changes in net asset value and cash flow statement for the financial year ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 50 to 65.

Manager’s and Trustee’s responsibility for the financial statements

The Manager of the Trust is responsible for the preparation and fair presentation of these financial statements in accordance with Financial Reporting Standards in Malaysia and the Securities Commission’s Guidelines on Real Estate Investment Trusts. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. The Trustee is responsible for ensuring that the Manager maintains proper accounting and other records as are necessary to enable fair presentation of these financial statements.

Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the Directors of the Manager, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards in Malaysia and the Securities Commission’s Guidelines on Real Estate Investment Trusts so as to give a true and fair view of the financial position of the Trust as at 31 March 2009 and of its financial performance, the changes in net asset value and the cash flows of the Trust for the financial year then ended.

Other matters

This report is made solely to the Unitholders of the Trust, as a body, and for no other purpose. We do not assume responsibility to any other person for the content of this report.

Ernst & Young Lim Saw Keng AF: 0039 No. 2215/10/09(J) Chartered Accountants Chartered Accountant

Kuala Lumpur, Malaysia Date : 22 May 2009

49 AmFIRST Annual Report 2009 Balance Sheet As at 31 March 2009

Note 2009 2008 RM RM

ASSETS

INVESTMENTS Investment properties 3 980,000,000 835,990,441 Deposits with financial institutions 4 26,501,246 16,136,756

1,006,501,246 852,127,197

OTHER ASSETS Receivables 5 8,875,059 5,689,073 Cash and bank balances 7,370,657 18,898,191

16,245,716 24,587,264

TOTAL ASSETS 1,022,746,962 876,714,461

LIABILITIES Provision for income distribution 6 19,220,105 15,769,250 Payables 7 16,393,171 25,727,284 Rental deposits 8 16,718,346 12,738,549 Borrowings 9 402,000,000 395,605,972

TOTAL LIABILITIES 454,331,622 449,841,055

NET ASSET VALUE 10 568,415,340 426,873,406

NUMBER OF UNITS IN CIRCULATION 429,001,000 429,001,000

NET ASSET VALUE PER UNIT - before proposed final distribution 1.37 1.03

- after proposed final distribution 1.32 1.00

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

50 AmFIRST Annual Report 2009 Income Statement For the Financial Year Ended 31 March 2009

2009 2008 Note RM RM

Gross revenue 12 93,080,961 57,853,430 Property expenses 13 (31,788,215) (17,209,000)

Net rental income 61,292,746 40,644,430 Interest income 284,003 396,594 Other income - 19,304 Change in the fair value of investment properties 141,534,127 -

203,110,876 41,060,328

Administrative expenses Manager’s fee 14 4,445,254 2,998,315 Trustee’s fee 15 176,292 174,998 Valuation fee 283,000 37,000 Auditors’ remuneration 15,000 15,000 Tax agent’s fees 12,000 12,000 Others 1,947,968 599,315 Interest expense 17,160,470 5,911,085

24,039,984 9,747,713

Income before taxation 16 179,070,892 31,312,615 Taxation 17 - -

Income for the financial year 179,070,892 31,312,615

Net income for the financial year is made up as follows:- - Realized 37,536,765 31,312,615 - Unrealized 141,534,127 -

179,070,892 31,312,615

Earnings per unit (sen) 18 - after managers’ fees 41.74 7.30 - before managers’ fees 42.78 8.00

Net income distribution 19 Interim income distribution of 4.268 sen per unit paid on 28 November 2008 (2008 : 3.623 sen paid on 30 November 2007) 18,309,752 15,543,692 Proposed final income distribution of 4.480 sen per unit payable on 29 May 2009 (2008 : Final income distribution of 3.676 sen per unit paid on 30 May 2008) 19,219,245 15,768,923

37,528,997 31,312,615

Income distribution per unit * - Interim 4.27 3.62 - Final 4.48 3.68

8.75 7.30

* Withholding tax will be deducted for distributions made to the following types of Unitholders 2009 2008 Resident individual 10% 15% Non-resident individual 10% 15% Resident institutional investors 10% 15% Non-resident institutional investors 10% 20% Non-resident companies 25% 26%

The accompanying notes form an integral part of these financial statements. 51 AmFIRST Annual Report 2009 Statement of Changes in Net Asset Value For the Financial Year Ended 31 March 2009

Distributable Unitholders’ Undistributed Income Unitholders’ Capital Realized Unrealized Fund RM RM RM RM

As at 1 April 2008, as previously stated 426,873,733 15,768,923 - 442,642,656 Effects of prior year restatement (Note 26) (327) (15,768,923) - (15,769,250)

As at 1 April 2008, as restated 426,873,406 - - 426,873,406 Net income for the financial year 37,536,765 141,534,127 179,070,892 Distribution to Unitholders (37,528,958) - (37,528,958)

As at 31 March 2009 426,873,406 7,807 141,534,127 568,415,340

As at 1 April 2007, as previously stated 426,872,412 8,348,692 - 435,221,104 Effects of prior year restatement (Note 26) - (8,348,692) - (8,348,692)

As at 1 April 2007, as restated 426,872,412 - - 426,872,412 Listing expenses 1,321 - - 1,321 Net income for the financial year - 31,312,615 - 31,312,615 Distribution to Unitholders - (15,543,692) - (15,543,692)

426,873,733 15,768,923 - 442,642,656

Restatement -provision for income distribution (327) (15,768,923) - (15,769,250)

As at 31 March 2008 (restated) 426,873,406 - - 426,873,406

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

52 AmFIRST Annual Report 2009 Cash Flow Statement For the Financial Year Ended 31 March 2009

2009 2008 RM RM

CASH FLOW FROM OPERATING ACTIVITIES

Income before taxation 179,070,892 31,312,615

Adjustments for: Allowance for doubtful debts 1,289,595 153,945 Interest income from placements with financial institutions (284,003) (396,594) Interest expense 17,160,470 5,911,085 Change in fair value of investment properties (141,534,127) -

Operating profit before working capital changes 55,702,827 36,981,051

Changes in working capital (Increase)/Decrease in receivables (4,475,581) 6,718,962 (Decrease)/Increase in payables (9,750,480) 20,808,341 Increase in rental deposits 3,979,797 2,700,858

Net cash generated from operating activities 45,456,563 67,209,212

CASH FLOW FROM INVESTING ACTIVITIES Purchase of investment properties (2,475,433) (349,531,475) Interest income 284,003 396,594

Net cash used in investing activities (2,191,430) (349,134,881)

CASH FLOW FROM FINANCING ACTIVITIES Interest paid (16,743,529) (5,681,994) Distribution paid to Unitholders (34,078,675) (23,892,384) Drawdowns of borrowings 6,394,027 330,105,972

Net cash (used in)/generated from financing activities (44,428,177) 300,531,594

Net (decrease)/increase in cash and cash equivalents (1,163,044) 18,605,925 Cash and cash equivalents as at the beginning of the financial year 35,034,947 16,429,022

Cash and cash equivalents as at the end of the financial year 33,871,903 35,034,947

CASH AND CASH EQUIVALENTS Cash and cash equivalents included in the cash flow statement comprise the following balance sheet amounts:- Cash and bank balances 7,370,657 18,898,191 Deposits with financial institutions 26,501,246 16,136,756

33,871,903 35,034,947

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

53 AmFIRST Annual Report 2009 Notes to the Financial Statements As at 31 March 2009

1. GENERAL INFORMATION

AmFIRST was listed on the Main Board of Bursa Malaysia Securities Berhad on 21 December 2006.

The key objectives for AmFIRST is to own and invest in real estate whether directly or indirectly through the ownership of single- purpose companies whose principal assets comprise real estate and real estate-related assets.

The registered office of the Manager is located at 22nd Floor, Bangunan AmBank Group, No. 55, Jalan Raja Chulan, 50200 Kuala Lumpur.

The financial statements were authorized for issue by the Board of Directors of the Manager in accordance with a resolution of the Directors.

2. SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of accounting

The financial statements have been prepared under the historical cost convention and comply with applicable Financial Reporting Standards in Malaysia, applicable provisions of the Trust Deed and the Companies’ Act 1965 and the Securities Commission’s Guidelines on Real Estate Investment Trusts.

The accounting policies are consistent with those adopted in the previous audited financial statements except for the adoption of the followings:-

The new and revised FRSs that are applicable to the Trust with effect from the financial period beginning on or after 1 April 2008:

FRS 107 : Cash Flow Statements FRS 112 : Income Taxes FRS 118 : Revenue FRS 119 : Employee Benefits FRS 134 : Interim Financial Reporting FRS 137 : Provisions, Contingent Liabilities and Contingent Assets Amendment to FRS 121 : The Effects of Changes in Foreign Exchange Rates – Net Investment in a Foreign Operation IC Interpretation 8 : Scope of FRS 2 Share-based Payments

The adoption of the above did not result in significant changes in accounting policies of the Trust.

54 AmFIRST Annual Report 2009 Notes to the Financial Statements (Cont’d) As at 31 March 2009

2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(a) Basis of accounting (cont’d)

Standards and IC Interpretations to existing standards that are not relevant or material for the Trust’s operations:

FRS 111 : Construction Contracts FRS 120 : Accounting for Government Grants and Disclosure of Government Assistance IC Interpretation 1 : Changes in Existing Decommissioning, Restoration and Similar Liabilities IC Interpretation 2 : Members’ Shares in Co-operative 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 to FRS 129 Financial Accounting in Hyperinflationary Economies

The Trust has not early adopted the following FRSs, amendments to FRS and IC Interpretations, issued by MASB as of the balance sheet date:

FRS 4 : Insurance Contracts FRS 7 : Financial Instruments : Disclosure FRS 8 : Operating Segments FRS 139 : Financial Instruments : Recognition and Measurement IC Interpretation 9 : Reassessment of Embedded Derivatives IC Interpretation 10 : Interim Financial Reporting and Impairment

All the new FRSs and IC intepretations are effective from 1 January 2010 with the exception of FRS 8, which is effective from 1 July 2009.

The impact of applying the above FRSs, amendments to accounting standards and IC interpretations on these financial statements upon first adoption of these standards as required by paragraph 30(b) of FRS 108: Accounting Policies, Changes in Accounting Estimates and Errors are not disclosed as FRS 4 and 8, and IC Interpretations 9 and 10 do not have any significant financial impact on the financial statements to the Trust. The Trust is also exempted from disclosing the possible impact, if any, to the financial statements upon the initial application of FRS 7 and FRS 139.

(b) Investment properties

Investment properties are properties held to earn rental income or for capital appreciation or both rather than for use in the production or supply of goods and services or for administrative purpose, or sale in the ordinary course of business.

Investment properties are measured initially at cost, including transaction costs. The carrying amount includes the cost of replacing part of an existing investment properties at the time the cost is incurred if the recognition criteria are met; and excludes the costs of day-to-day servicing of an investment property.

Investment properties are stated at fair value which reflects market condition at the balance sheet date. The fair value is arrived at by reference to market evidence of transaction prices or price which the properties could be exchanged between knowledgeable, willing parties in an arm length transaction. Gains and losses arising from changes in the fair values of investment properties are included in the income statement in the year in which they arise.

Investment properties are derecognized upon disposal or when they are permanently withdrawn from use and no future economic benefits are expected from their disposal. On disposal, the difference between the net disposal proceeds and the carrying amount is recognized in the income statement.

Trade and other receivables are carried at anticipated realisable values. Known bad debts are written off and specific provisions are made for any debts considered to be doubtful of collection.

55 AmFIRST Annual Report 2009 Notes to the Financial Statements (Cont’d) As at 31 March 2009

2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(d) Cash and cash equivalents

Cash and cash equivalents consist of cash at bank and deposits with licenced financial institutions.

(e) Trade and other payables

Trade and other payables are stated at cost which is the fair value of the consideration to be paid in the future for goods and services received.

(f) Provisions

A provision is recognized when it is probable that an outflow of resources embodying economic benefit will be required to settle a present obligation (legal or constructive) as a result of a past event and a reliable estimate can be made of the amount.

(g) Borrowings

Interest bearing borrowings are recorded at the amount of borrowings received.

(h) Income tax

Income tax on the profit or loss for the year comprises current and deferred tax. Current tax is the expected amount of income tax payable in respect of the taxable profit for the year and is measured using the tax rates that have been enacted at the balance sheet date.

Deferred tax is provided for, using the liability method, on temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts in the financial statements. In principle, deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised. Deferred tax is not recognized if the temporary difference arises from the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit.

Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is recognized in the income statement, except when it arises from a transaction which is recognized directly in equity, in which case the deferred tax is also charged or credited directly in equity.

(i) Impairment of assets

At each balance sheet date, the Manager reviews the carrying amounts of its assets to determine whether there is any indication of impairment. If any such indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable amounts. Recoverable amount is the higher of net selling price and value in use, which is measured by reference to discounted future cash flows.

An impairment loss is charged to the income statement immediately, unless the asset is carried at revalued amount. Any impairment loss of a revalued asset is treated as a revaluation decrease to the extent of any available previously recognized revaluation surplus for the same asset. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

56 AmFIRST Annual Report 2009 Notes to the Financial Statements (Cont’d) As at 31 March 2009

2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(i) Impairment of assets (cont’d)

The reversal is recognized to the extent of the carrying amount of the asset that would have been determined (net of amortisation and depreciation) had no impairment loss been recognized. The reversal is recognized in the income statement immediately, unless the asset is carried at revalued amount. A reversal of an impairment loss on a revalued asset is credited directly to revaluation surplus. However, to the extent that an impairment loss on the same revalued asset was previously recognized as an expense in the income statement, a reversal of that impairment loss is recognized as income in the income statement.

(j) Revenue

Rental income and interest income are recognized on an accrual basis.

(k) Expenses

(i) Property expenses

Property expenses consist of property management fees, quit rent, assessment and other outgoings in relation to investment properties.

(ii) Interest expense

Interest expense is recognized in the income statement in the period which they are incurred.

(iii) Listing expenses

Listing expenses represent expenses incurred for the listing of AmFIRST on the Main Board of Bursa Malaysia Securities Berhad. The expenses are deducted directly against the Unitholders’ capital.

(iv) Manager’s and Trustee’s fees

The Manager’s and Trustee’s fees are recognized on an accrual basis.

3. INVESTMENT PROPERTIES

Acquisition % of Description of Tenure Existing Cost Valuation Valuation to Property of Land Location Use RM RM Net Asset Value

(i) Menara AmBank* Freehold Kuala Lumpur Office 232,042,687 292,000,000 51.4 (ii) Bangunan AmBank Leasehold Kuala Lumpur Office 180,152,206 226,000,000 39.8 Group *@ (iii) Menara Merais* Freehold Petaling Jaya Office 57,080,705 62,000,000 10.9 (iv) AmBank Group Leadership Centre* Freehold Kuala Lumpur Office 19,652,236 20,000,000 3.5 (v) Kelana Brem Tower ^ # Leasehold Kelana Jaya Office 86,050,991 105,000,000 18.5 (vi) The Summit Subang Freehold Subang Jaya Mixed 263,487,048 275,000,000 48.4 USJ ** Commercial Complex

838,465,873 980,000,000

57 AmFIRST Annual Report 2009 Notes to the Financial Statements (Cont’d) As at 31 March 2009

3. INVESTMENT PROPERTIES (CONT’D)

* The properties were revalued on 27 February 2009 by C H Williams Talhar & Wong Sdn. Bhd., an independent professional valuer using comparison and investment method.

@ The leasehold land is expiring on 3 June 2084.

^ The property was revalued on 5 February 2009 by Rahim & Co. Chartered Surveyors Sdn Bhd, an independent professional valuer using comparison and investment method.

# The leasehold land is expiring on 19 February 2094.

** The property was revalued on 10 February 2009 by Rahim & Co. Chartered Surveyors Sdn Bhd, an independent professional valuer using comparison and investment method.

4. DEPOSITS WITH FINANCIAL INSTITUTIONS

2009 2008 RM RM

Placements maturing within three months placed with a licensed bank 25,437,789 15,107,530 Placements maturing more than three months placed with a licensed bank 1,063,457 1,029,226

26,501,246 16,136,756

The deposits have been placed with a financial institution related to the Manager of the Trust.

5. RECEIVABLES

2009 2008 RM RM

Trade receivables 6,832,010 4,291,188 Other receivables, deposits and prepayments 3,332,644 1,551,830

10,164,654 5,843,018 Less : Allowance for doubtful debts (1,289,595) (153,945)

8,875,059 5,689,073

Included in trade receivables are rental outstanding from companies related to the Manager amounting to RM1,151,899 (2008: RM901,563) and are subject to normal trade terms.

The Trust’s primary exposure to credit risk arises through its trade receivables. The Trust seeks to maintain strict control over its outstanding receivables and has a credit control department to minimise credit risk. Overdue balances are reviewed regularly by senior management. In view of the aforementioned and the fact that the Trust’s trade receivables relate to a large number of diversified tenants, there is no significant concentration of credit risk. Trade receivables are non-interest bearing.

58 AmFIRST Annual Report 2009 Notes to the Financial Statements (Cont’d) As at 31 March 2009

6. PROVISION FOR INCOME DISTRIBUTION 2009 2008 RM RM

At beginning of financial year 15,769,250 8,348,692 Provision during the financial year 37,528,997 31,312,615 Underprovision in prior financial year 533 327 Payment made during the financial year (34,078,675) (23,892,384)

At end of the financial year 19,220,105 15,769,250

7. PAYABLES 2009 2008 RM RM

Trade payables 4,584,395 4,950,767 Other payables and accrued expenses 11,808,776 20,776,517

16,393,171 25,727,284

Included in other payables and accrued expenses are amount owing to the Manager and Trustee of RM2,254,823 (2008: RM1,551,356) and RM88,784 (2008: RM94,823) respectively and retention sum in relation to the acquisition of The Summit Subang USJ of RM6,838,760 (2008: RM18,417,594) which are unsecured, interest free and repayable upon fulfillment of conditions stipulated in Sales and Purchase Agreement.

8. RENTAL DEPOSITS 2009 2008 RM RM

Payable within 12 months 5,868,447 7,143,138 Payable after 12 months 10,849,899 5,595,411

16,718,346 12,738,549

Included in the above are rental deposits received from companies related to the Manager amounting to:

2009 2008 RM RM

Payable within 12 months 4,065,101 3,679,897 Payable after 12 months 3,826,875 3,982,338

7,891,976 7,662,235

9. BORROWINGS 2009 2008 RM RM

Secured : Term loans 147,000,000 147,000,000 Revolving credit facilities 255,000,000 248,605,972

402,000,000 395,605,972

Term loan for the acquisition of Menara Merais is secured by way of lien holder’s caveat over Menara Merais for a tenure of 3 years with fixed interest of 5.00% per annum. Term loans for the acquisition of The Summit Subang USJ are secured by way of lien holder’s caveat and for a tenure of between 3 years to 4 years with interest between 2.75% to 4.32% (2008: 4.28 % to 4.35%) per annum.

Revolving credit facilities are secured for the acquisition of Kelana Brem Towers and The Summit Subang USJ. The facilities bear interest rate ranging from 2.75% to 4.32% (2008: 4.28% to 4.35%) per annum. 59 AmFIRST Annual Report 2009 Notes to the Financial Statements (Cont’d) As at 31 March 2009

10. NET ASSET VALUE

Net asset value attributable to Unitholders is represented by:

2009 2008 RM RM

Unitholders’ capital 426,873,406 426,873,406 Undistributed income 7,807 - Undistributed unrealized income 141,534,127 -

568,415,340 426,873,406

Unitholders’ capital comprised:

2009 2008 RM RM

Authorized, at beginning and end of year: 429,001,000 429,001,000

Issued and fully paid: At the beginning of the financial year 426,873,406 426,872,412 Adjustment to listing expenses - 1,321 Restatement - provision for income distribution - (327)

At end of the year 426,873,406 426,873,406

As at 31 March 2009, the Manager did not hold any units in the Trust (2008: Nil). However, the parties related to the Manager who hold units in the Trust are as follows:

% No. of units of total units

Unitholdings of companies related to the Manager AmEquities Sdn. Bhd. 80,000,000 18.65 Jadeline Capital Sdn. Bhd. 53,700,000 12.52 AmBank (M) Berhad 25,344,486 5.91 AMG Insurance Berhad on behalf of General Fund 19,949,700 4.65 AmLife Insurance Berhad on behalf of Life Non Par Fund 12,577,500 2.93 AmLife Insurance Berhad on behalf of Life Fund 8,086,400 1.88 AmLife Insurance Berhad on behalf of Shareholders Fund 995,600 0.23

11. ESTABLISHMENT AND ISSUE EXPENSES

Included in establishment and listing expenses, which have been deducted directly against Unitholders’ funds in prior years, are:

Brokerages and commissions 474,438 Professional fees 378,660 Miscellaneous expenses 1,274,496

2,127,594

60 AmFIRST Annual Report 2009 Notes to the Financial Statements (Cont’d) As at 31 March 2009

12. GROSS REVENUE

2009 2008 RM RM

Gross rental income 86,816,375 55,031,749 Carpark income 6,203,982 2,752,530 Other income 60,604 69,151

93,080,961 57,853,430

13. PROPERTY EXPENSES

Included in property expenses are the following:

2009 2008 RM RM

Property management fee* 2,177,695 1,738,276 Land assessment 4,642,309 3,987,459 Quit rent 148,804 94,718

* The property management fee is based on a scale fee as prescribed under the Valuers, Appraisers and Estate Agents Act, 1981 with permissable discount.

14. MANAGER’S FEE

Pursuant to the Trust Deed, the Manager’s fee consists of a base fee up to 0.50% per annum of the total asset value of the Trust (excluding any taxes payable) and a performance fee of 3.00% per annum of net property income (excluding any taxes payable), accruing monthly but before deduction of property management fee. However, the Manager’s fee, for the period from 1 April 2008 to 31 March 2009 consists of a base fee of only 0.30% per annum.

15. TRUSTEE’S FEE

Pursuant to the Trust Deed, the Trustee is entitled to receive a fee up to 0.10% per annum of the net asset value. The Trustee’s fee for the period from 1 April 2008 to 31 March 2009, is calculated based on 0.03% per annum of the net asset value.

16. INCOME BEFORE TAXATION

Income before taxation is arrived at after charging:

2009 2008 RM RM

Allowance for doubtful debts 1,289,595 153,945 Audit fee 15,000 15,000 Interest expenses on revolving credit facilities and term loans 17,160,470 5,911,085

And crediting: Interest income 284,003 396,594 Change in fair value of investment properties 141,534,127 -

61 AmFIRST Annual Report 2009 Notes to the Financial Statements (Cont’d) As at 31 March 2009

17. TAXATION

2009 2008 RM RM

Current tax expense - -

Reconciliation of effective tax expense

Income before taxation 179,070,892 31,312,615

Income tax using Malaysian tax rate of 25% (For YA 2008 : 26%) 44,767,723 8,141,280 Non-deductible expenses 56,836 60,670 Effect of income exempted from tax (44,824,559) (8,201,950)

Tax expense - -

18. EARNINGS PER UNIT

(a) The earnings after manager’s fee is computed based on net income for the financial year and on the number of units in issue of 429,001,000.

(b) The earnings before manager’s fee is computed based on net income for the financial year and on the number of units in issue of 429,001,000.

19. INCOME DISTRIBUTION

In respect of the current financial year ended 31 March 2009, the Manager proposes a final income distribution of 4.48 sen per unit, totalling RM19,219,245, which is line with the objectives of AmFIRST to deliver regular and stable distributions to Unitholders.

2009 2008 RM RM

Distribution to Unitholders is from the following sources:- Net rental income 61,284,978 40,644,430 Interest income 284,003 396,594 Other income - 19,304 Less: Administrative expenses (24,039,984) (9,747,713)

37,528,997 31,312,615

Gross distribution per unit (sen) 8.75 7.30

Net distribution per unit (sen) 8.75 7.30

62 AmFIRST Annual Report 2009 Notes to the Financial Statements (Cont’d) As at 31 March 2009

20. PORTFOLIO TURNOVER RATIO

2009 2008

Portfolio Turnover Ratio (“PTR”) (Times) - 0.80

The calculation of PTR is based on the average of total acquisition and total disposal of investments in AmFIRST for the financial year calculated to the average net asset value during the financial year.

21. MANAGEMENT EXPENSE RATIO

2009 2008

Management Expense Ratio (“MER”) (%) 1.56 0.88

The calculation of MER is based on total fees of AmFIRST incurred, including the Manager’s fees, Trustee’s fees, audit fees, tax agent’s fees and administrative expenses, to the average net asset value during the financial year. Comparison of MER of AmFIRST with other real estate investment trusts which use different basis of calculation may not be an accurate comparison.

22. CAPITAL COMMITMENT

There were no capital commitments as at the end of the financial year.

23. TRANSACTIONS WITH COMPANIES RELATED TO THE MANAGER

2009 2008 RM RM

Rental earned from AMMB Holdings Berhad and its subsidiaries and associates (“AmBank Group”) 35,604,773 34,741,963 Interest earned from AmBank Berhad 284,003 396,594

The above transactions have been entered into in the normal course of business and have been established under terms and conditions that are no less favourable than those arranged with independent third parties.

Also included in the financial statements are the following balances with companies related to the Manager:

2009 2008 RM RM

Cash and bank balances, and deposits placed with AmBank (M) Berhad 33,871,903 33,189,825 Rentals deposits received from the AmBank Group 7,891,976 7,662,235 1% acquisition fees for The Summit Subang USJ payable to the Manager - 2,600,000

63 AmFIRST Annual Report 2009 Notes to the Financial Statements (Cont’d) As at 31 March 2009

24. FINANCIAL INSTRUMENTS

AmFIRST operates within clearly defined guidelines as set out in the Securities Commission’s Guidelines for Real Estate Investment Trusts (“the Guidelines”). These Guidelines have been formulated with the objective of providing a regulatory framework that would protect the interests of the investing public. AmFIRST’s risk management policies, which ensure compliance with the spirit of the Guidelines, are set out below. It is not the Trust’s policy to engage in speculative transactions.

(a) Interest rate risk

AmFIRST’s exposure to changes in interest rates relate primarily to interest-earning financial assets and interest bearing financial liabilities. Interest rate risk is managed by the Manager on an ongoing basis with the primary objective of limiting the extent to which interest expense could be affected by adverse movements in interest rate.

(b) Credit risk

At balance sheet date, there were no significant concentration of credit risk. The maximum exposure to credit risk is represented by the carrying amount of financial asset.

The Trust does not have any significant exposure to any individual customer or counterparty nor does it have any major concentration of credit risk related to any financial assets.

The Trust manages its liquidity risk by maintaining a portion of its resources in deposits and balances with financial institutions to meet estimated commitments arising from financial liabilities.

(d) Effective interest rates and repricing analysis

In respect of interest-earning financial assets and interest bearing liabilities, the following table indicates their effective interest rates at the balance sheet date and the periods in which they mature.

In respect of interest-earning Effective Within financial assets and interest bearing interest rate Total 1 year > 1 - 5 years liabilities, the following table % RM RM RM

Financial assets

Deposits with licensed bank 1.90 - 3.50 26,501,246 26,501,246 -

Financial liabilities

Term loans 2.75 - 5.00 147,000,000 147,000,000 - Revolving credit facilities 2.75 - 4.32 255,000,000 255,000,000 -

In respect of cash and cash equivalents, receivables and payables, the carrying amounts approximate fair value due to relatively short term nature of these financial instruments.

64 AmFIRST Annual Report 2009 Notes to the Financial Statements (Cont’d) As at 31 March 2009

25. SIGNIFICANT EVENT

During the financial year, a revaluation exercise was carried out for all six properties of AmFIRST. Bangunan AmBank Group, AmBank Group Leadership Centre, Menara AmBank, Menara Merais and Kelana Brem Towers were valued to comply with Clause 10.03 of the Securities Commission’s REIT Guidelines. Whilst the revaluation exercise on The Summit was to determine the current market value of the property to reflect the fair value at the balance sheet date.

26. PRIOR YEAR ADJUSTMENT AND RESTATEMENT OF COMPARATIVES

In the previous financial years, the proposed final income distribution in respect of each financial year were only reflected in Unitholders’ funds as an appropriation of unditributed income only when it had been approved by the Directors of the Manager and the Trustee after the financial year end.

In the current financial year, the Manager has obtained the Trustee’s approval for the proposed final income distribution prior to the financial year end and accordingly, the proposed final income distribution in respect of the financial year ended 31 March 2009 had been reflected in Unitholders’ funds as of that date. Correspondingly, management is of the opinion that the proposed final income distribution for the previous financial years should be reflected in Unitholders’ funds in the year in which they relate to for better comparison purposes as well as to be consistent with the industry’s practice. Accordingly, certain comparatives have been restated, as follows:

As previously As stated Restatement restated RM RM RM

Effects on the Balance Sheet as at 31 March 2008:

Provision for income distribution - 15,769,250 15,769,250 Total liabilities 434,071,805 15,769,250 449,841,055 Net asset value 442,642,656 (15,769,250) 426,873,406

Effects on the Statement of Changes in Net Asset Value:

Undistributed income as at 31 March 2007 8,348,692 (8,348,692) - Undistributed income as at 31 March 2008 15,769,250 (15,769,250) -

65 AmFIRST Annual Report 2009 Analysis of Unitholders As at 31 March 2009

THIRTY (30) LARGEST UNITHOLDERS AS AT 31 MARCH 2009

Nos. Names Unitholdings %

1. AMSEC NOMINEES (TEMPATAN) SDN BHD* 80,000,000 18.65 AMEQUITIES SDN BHD

2. AMMB NOMINEES (TEMPATAN) SDN BHD* 53,700,000 12.52 AMBANK (M) BERHAD FOR JADELINE CAPITAL SDN BHD (BK JCSB)

3. PUBLIC NOMINEES (TEMPATAN) SDN BHD* 33,563,526 7.82 PLEDGED SECURITIES ACCOUNT FOR RCE SYNERGY SDN BHD (KLC)

4. AM NOMINEES (TEMPATAN) SDN BHD* 25,344,486 5.91 AMBANK (M) BERHAD

5. CIMB GROUP NOMINEES (TEMPATAN) SDN BHD* 23,279,696 5.43 PLEDGED SECURITIES ACCOUNT FOR AMCORPGROUP BHD (49234 JTRK-RC2)

6. CITIGROUP NOMINEES (TEMPATAN) SDN BHD 20,344,072 4.74 EXEMPT AN FOR AMERICAN INTERNATIONAL ASSURANCE BERHAD

7. AMSEC NOMINEES (TEMPATAN) SDN BHD 19,949,700 4.65 AMG INSURANCE BERHAD (FM-AMAB-GF)

8. AMSEC NOMINEES (TEMPATAN) SDN BHD 12,577,500 2.93 AMLIFE INSURANCE BERHAD (FM-AMAB-LNP)

9. VALUECAP SDN BHD 12,544,796 2.92

10. AMANAH RAYA BERHAD 10,225,880 2.38 KUMPULAN WANG BERSAMA

11. AMSEC NOMINEES (TEMPATAN) SDN BHD 8,086,400 1.88 AMLIFE INSURANCE BERHAD (FM-AMAB-LF)

12. ECML NOMINEES (TEMPATAN) SDN BHD 6,050,000 1.41 FULCRUM ASSET MANAGEMENT SDN BHD FOR FIXED INCOME FUND (001)

13. HSBC NOMINEES (ASING) SDN BHD 5,829,000 1.36 EXEMPT AN FOR THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED (HBFS-I CLT ACCT)

14. CIMB NOMINEES (TEMPATAN) SDN BHD 4,968,920 1.16 CIMB INVESTMENT BANK BERHAD (ETP)

15. MAYBAN NOMINEES (TEMPATAN) SDN BHD 1,880,000 0.44 MAYBAN TRUSTEES BERHAD FOR MAAKL VALUE FUND (950290)

16. AMANAHRAYA NOMINEES (TEMPATAN) SDN BHD 1,750,000 0.41 PUBLIC FAR-EAST PROPERTY & RESORTS FUND

17. CITIGROUP NOMINEES (TEMPATAN) SDN BHD 1,366,800 0.32 EXEMPT AN FOR PRUDENTIAL FUND MANAGEMENT BERHAD

18. LIM KEW SENG 1,365,800 0.32

19. TEOH GUAN KOK & CO. SDN BHD 1,203,800 0.28

66 AmFIRST Annual Report 2009 Analysis of Unitholders (Cont’d) As at 31 March 2009

THIRTY (30) LARGEST UNITHOLDERS AS AT 31 MARCH 2009 (CONT’D)

Nos. Names Unitholdings %

20. DETIK JALUR SDN BHD 1,200,000 0.28

21. GOH BENG BENG 1,133,000 0.26

22. CITIGROUP NOMINEES (ASING) SDN BHD UBS AG 1,111,500 0.26

23. HSBC NOMINEES (TEMPATAN) SDN BHD 1,050,000 0.24 HSBC (M) TRUSTEE BHD FOR MAAKL DIVIDEND FUND (5311-401)

24. TAN BOK HOOI 1,032,000 0.24

25. HSBC NOMINEES (TEMPATAN) SDN BHD 1,015,000 0.24 HSBC (M) TRUSTEE BHD FOR MAAKL PROGRESS FUND (4082)

26. YAP AH NGAH @ YAP NEO NYA 1,000,000 0.23

27. AMSEC NOMINEES (TEMPATAN) SDN BHD 995,600 0.23 AMLIFE INSURANCE BERHAD (FM-AMAB-SH)

28. NEO CHOO EE & COMPANY SDN BHD 800,000 0.19

29. MAYBAN NOMINEES (TEMPATAN) SDN BHD 764,000 0.18 PLEDGED SECURITIES ACCOUNT FOR LEE CHONG GEE

30. CHOW SOI WAH 727,000 0.17

TOTAL 334,858,476 78.05

* Substantial Unitholders (5% and above).

DISTRIBUTION SCHEDULE OF UNITS AS AT 31 MARCH 2009

Size of Unitholdings No. of Unitholders No. of Units %

Less than 100 493 104,342 0.03 100 to 1,000 6,463 4,273,529 0.99 1001 to 10,000 4,151 16,213,098 3.78 10,001 to 100,000 1,058 33,710,456 7.86 100,001 to less than 5% of issued units 200 158,811,867 37.02 5% and above of issued units 5 215,887,708 50.32

Total 12,370 429,001,000 100.00

67 AmFIRST Annual Report 2009 Corporate Directory

MANAGER AUDITORS

Am ARA REIT Managers Sdn Bhd (730964-X) Ernst & Young Registered Address: Public Accountants 22nd Floor, Bangunan AmBank Group Level 23A, Menara Milenium, Jalan Damanlela No. 55, Jalan Raja Chulan, 50200 Kuala Lumpur Pusat Bandar Damansara, 50490 Kuala Lumpur Tel: 03-2036 2633 Fax: 03-2031 6453 Tel: 03-7495 8000 Fax: 03-2095 5332

Business Address: 16th Floor, Bangunan AmBank Group No. 55, Jalan Raja Chulan, 50200 Kuala Lumpur TAX ADVISER Tel: 03-2026 9102 Fax: 03-2732 0644 PricewaterhouseCoopers Taxation Services Sdn Bhd Website: www.amfirstreit.com.my Level 10, 1 Sentral, Jalan Travers Kuala Lumpur Sentral P.O.Box 10192, 50706 Kuala Lumpur BOARD OF DIRECTORS OF THE MANAGER Tel: 03-2173 1188 Fax: 03-2173 1288 Dato’ Azlan Hashim Non-Independent Non-Executive Chairman BANKERS Cheah Tek Kuang Non-Independent Non-Executive Director AmBank (M) Berhad Level 18, Menara Dion, Jalan Sultan Ismail Dato’ Teo Chiang Quan 50250 Kuala Lumpur Independent Non-Executive Director Tel: 03-2026 3939 Fax: 03-2026 6855 Tuan Haji Salleh Akram Bangkok Bank Berhad Independent Non-Executive Director 105, Jalan Tun H.S. Lee Lim Hwee Chiang 50000 Kuala Lumpur Non-Independent Non-Executive Director Tel: 03-2173 7200 Fax: 03-2173 7300 Pushpa Rajadurai Alternate Director to Cheah Tek Kuang SOLICITORS Michael Lim Poh Kok Shook Lin & Bok Alternate Director to Lim Hwee Chiang Syed Alwi, Ng & Co Tay & Partners COMPANY SECRETARY OF THE MANAGER

Toh Li Ang (MAICSA No. 7024717) UNIT REGISTRAR

Symphony Share Registrars Sdn Bhd TRUSTEE Level 26, Menara Multi-Purpose, Capital Square, Mayban Trustees Bhd (5004-P) No 8 Jalan Munshi Abdullah , 50100 Kuala Lumpur 34th Floor, Menara Maybank Tel: 03-2721 2222 Fax: 03-2721 2531 100, Jalan Tun Perak, 50050 Kuala Lumpur Tel: 03-2074 7389 Fax: 03-2070 9387 BURSA MALAYSIA STOCK NAME AND CODE

AmFIRST / 5120 PROPERTY MANAGERS

Jones Lang Wootton FOR ENQUIRIES, PLEASE CONTACT Rahim & Co. Chartered Surveyors Sdn Bhd Am ARA REIT Managers Sdn Bhd (730964-X) DTZ Nawawi Tie Leung 16th Floor, Bangunan AmBank Group ReGroup No. 55, Jalan Raja Chulan, 50200 Kuala Lumpur Tel: 03-2026 9102 Fax: 03-2732 0644 Website: www.amfirstreit.com.my

68 AmFIRST Annual Report 2009