AIMS APAC REIT : Annual Report 2024

CAPTURING OPPORTUNITIES STRENGTHENING RESILIENCE

A N N U A L R E P O R T 2 0 2 4

About

AIMS APAC REIT

AIMS APAC REIT ("AA REIT") is a real estate investment trust listed on the Mainboard of the Singapore Exchange Securities Trading Limited ("SGX- ST") since 2007. The principal investment objective of AA REIT is to invest in a diversified portfolio of high quality income-producing industrial, logistics and business park real estate across Asia Pacific. As at 31 March 2024, AA REIT's portfolio comprises 28 properties, of which 25 properties are located across Singapore and 3 properties located in Australia, with a total portfolio value of S$2.16 billion.

1. REIT is managed by AIMS APAC REIT Management Limited (the "Manager"), which is wholly-owned by AIMS Financial Group ("AIMS"). Established in 1991, AIMS is a diversified financial services and investment group, active in the areas of funds management, mortgage lending, investment banking and property investment. AIMS is also the owner of the Sydney Stock Exchange.

AIMS' head office is in Sydney and it has businesses across Australia, mainland China, Hong Kong and Singapore. Its highly qualified, professional and experienced cross-cultural teams enable AIMS to bridge the gap between Australia and Asia across various sectors.

Mission

To be the preferred Asia Pacific industrial, logistics and business park real estate solutions provider to our tenants and partners.

Vision

To provide investors with sustainable long-term returns through strategic acquisitions and partnerships, prudent capital management and proactive asset management of a high quality industrial, logistics and business park real estate portfolio across Asia Pacific.

Capturing Opportunities, Strengthening Resilience

Just as net fishing covers a broad area to catch fish, this symbolises how AA REIT casts a wide net to capture diverse market opportunities and build a more resilient portfolio. The art of fishing showcases a fisherman's strategic planning and execution. It requires knowledge of the sea and understanding fish behaviour to yield a large catch. This is akin to AA REIT's ability to tap into its proven experience and expertise to net long- term sustainable returns for its Unitholders.

Each fishing net is made up of strong mesh to secure every catch. It is also a social activity that fisherman can enjoy in groups. These elements symbolise the strong partnership AA REIT cultivates with internal and external stakeholders, its alignment of shared goals for sustainable outcomes, and working together to drive business growth over the long term.

C O N T E N T S

2	Our	30	Financial
	Portfolio		Review
3	FY2024	33	Capital
	Key Highlights		Management
4	Financial	36	Portfolio
	Highlights		Review
7	Chairman's	44	Unit Price
	Message		Performance
10	CEO	46	Investor
	Interview		Relations
14	Our	48	Property
	Strategy		Portfolio
16	Key Market	56	Singapore Property
	Trends		Market Research
18	Trust	71	Australia Property
	Structure		Market Research
19	Board of	86	Sustainability
	Directors		Report
24	REIT	115	Corporate
	Manager Team		Governance
26	Property	141	Financial
	Manager		Statements
27	Corporate	220	Statistics of
	Directory		Unitholdings
		222	Additional
			Information

AIMS APAC REIT

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OUR PORTFOLIO

Diversified Portfolio of High Quality Industrial Assets

1. REIT owns a diversified portfolio of modern and high quality industrial, logistics and business park properties valued at S$2.16 billion1 and with a total net lettable area of 777,881 sqm across Singapore and Australia. Our properties are leased to over 190 global, regional and leading national customers across a range of industries.

AUSTR ALIA	SINGAPORE
Properties	Properties
32	25
Portfolio Value	Portfolio Value
32%	68%

LOGISTICS AND WAREHOUSE		BUSINESS PARK

Logistics and warehouse properties are typically used for storage and distribution by national, regional and international companies. In Singapore, these properties are usually multi-storey with vehicular ramp access or heavy duty cargo lift access.

Business Parks cater to companies engaged in high- technology, research and development, high value- added and knowledge intensive activities. These properties comprise modern decentralised office buildings situated within a business park zone.

INDUSTRIAL		HI-TECH

Industrial properties are dedicated to manufacturing and, production activities with ancillary storage. Tenants range from local distributors, food manufacturers and precision engineering companies.

Hi-Tech properties are high specifications mixed-used industrial buildings with a higher proportion of office space in conjunction with production and warehousing space. These buildings appeal to large multinational companies wanting to house both their headquarters and operations together.

1. Portfolio valuation as at 31 March 2024, including the 49.0% interest in Optus Centre located in Macquarie Park, NSW, Australia.
2. Includes a 49.0% interest in Optus Centre located in Macquarie Park, NSW, Australia.

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ANNUAL REPORT 2024

FY2024 KEY HIGHLIGHTS

STRONG FINANCIAL PERFORMANCE

Gross	Net Property	Distributions
Revenue	Income	to Unitholders
+ 5.9%	+ 6.9%	+ 3.8%
YoY	YoY	YoY
S$177.3 million	S$131.0 million	S$74.3 million
ROBUST BALANCE SHEET
Gearing	Debt on Fixed Rates	Interest Cover
		Ratio
32.6%	75.0%1	4.1 Times

PROACTIVE ASSET MANAGEMENT

Occupancy	Rental Reversion	Weighted Average
		Lease Expiry
97.8%	+24.3%2	5.1 Years

SUSTAINABILITY HIGHLIGHTS

Achieved

17% Carbon

Reduction

From FY2020 baseline; on track to meet SBTi goal of 42% reduction by FY2030

Completed Installation	Executed agreement
Phase 1 Rooftop	to install
EV Fast
Solar Panels
Charging
(10.8 MWp)
Station
at 6 properties;
Phase 2 underway	at 4 of our properties in
	Singapore

1. Includes forward interest rate swaps.
2. Full year average rental reversion.

AIMS APAC REIT

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FINANCIAL HIGHLIGHTS

For the Financial Year ended 31 March

Gross Revenue (S$'million)	Net Property Income (S$'million)
		177.3	131.0
	167.4
	142.4		122.5
118.9	122.6		103.2
89.1	87.5

FY2020

FY2021

FY2022

FY2023

FY2024

FY2020

FY2021

FY2022

FY2023

FY2024

Distributions to Unitholders (S$'million)

74.3

66.5		67.2	71.6
63.2

FY2020 FY2021 FY2022 FY2023 FY2024

Total Assets (S$'million)

2,403.7 2,336.4 2,316.6

1,846.6

1,648.9

FY2020 FY2021 FY2022 FY2023 FY2024

Distribution per Unit (Singapore cents)

9.500		9.460	9.944
	9.360
	8.950

FY2020 FY2021 FY2022 FY2023 FY2024

Net Asset Value per Unit (S$)

1.35	1.36	1.40	1.37
			1.31

FY2020 FY2021 FY2022 FY2023 FY2024

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ANNUAL REPORT 2024

For the Financial Year ended 31 March	FY2020	FY2021	FY2022	FY2023	FY2024
(S$'million unless otherwise stated)
Gross Revenue	118.9	122.6	142.4	167.4	177.3
Net Property Income1	89.1	87.5	103.2	122.5	131.0
Distributions to Unitholders	66.5	63.2	67.2	71.6	74.3
Distribution per Unit (Singapore cents)	9.500	8.950	9.460	9.944	9.360
Balance Sheet as at 31 March	FY2020	FY2021	FY2022	FY2023	FY2024
(S$'million unless otherwise stated)
Total assets	1,648.9	1,846.6	2,403.7	2,336.4	2,316.6
Total liabilities	693.9	759.2	1,029.9	969.0	882.3
Total borrowings2	541.9	593.8	858.9	796.0	690.6
Unitholders' funds	955.0	962.8	1,000.2	993.8	1,060.7
Perpetual Securities holders' funds	-	124.6	373.6	373.6	373.6
Key Financial Ratios as at 31 March	FY2020	FY2021	FY2022	FY2023	FY2024
Net asset value per Unit (S$))	1.35	1.36	1.40	1.37	1.31
Aggregate leverage ratio3 (%)	34.8	33.9	37.5	36.1	32.6
Interest coverage ratio4 (times)	4.0	4.0	5.1	3.8	4.1
All-in-cost of debt (%)	3.5	3.0	2.7	3.4	4.1

1. Pursuant to the adoption of FRS 116 Leases on 1 April 2019, land rent payments for certain properties in AA REIT's portfolio were excluded from property operating expenses and net property income from 1 April 2019.
2. Excluding unamortised loan transaction costs.
3. Aggregate leverage ratio is computed as total borrowings as a percentage of total assets and includes lease liabilities that are entered into in the ordinary course of AA REIT's business on or after 1 April 2019 in accordance with MAS guidelines. The total borrowings excluded Perpetual Securities holders' funds.
4. Based on the interest coverage ratio ("ICR") definition in the Code on Collective Investment Schemes. The ICR excluded the unwinding of the discounting effect on the present value of lease liabilities and the deferred consideration.

AIMS APAC REIT

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CAPTURING OPPORTUNITIES

STRENGTHENING RESILIENCE

EXTENDING

OUR REACH

BUILDING A

DIVERSE PORTFOLIO

Through continuous enhancements and re-development of our assets over the years, we have built a solid foundation that has enabled AA REIT to deliver another year of resilient performance. We achieved healthy financial growth, robust operational metrics and enhanced returns for Unitholders despite the uncertain market conditions. Our commitment to rejuvenating our portfolio and revitalising our assets has fostered long- term resilience and value for our stakeholders.

CHAIRMAN'S MESSAGE

George Wang

Chairman

Notwithstanding the increase in Distributions to Unitholder by 3.8% for FY2024, Distribution per Unit ("DPU") fell by 5.9% year-on-year, due to a larger unitholder base following the S$100 million equity fund raising ("EFR"). We believe this initiative provides AA REIT with the right foundation to continue to deliver sustainable income and long- term value.

BOLSTERING BALANCE SHEET

In light of the rising interest rate environment and heighten risks in global capital markets following the collapse of Silicon Valley Bank

& Signature Bank, and the UBS

emergency takeover of Credit Suisse

in early 2023, AA REIT launched a

DEAR UNITHOLDERS,

In another year marked by elevated inflation, higher interest rates, and geopolitical risks that have affected global supply chains, AA REIT has continued to build on its foundation in its core markets of Singapore and Australia.

We are pleased to report another year of resilient financial results, healthy portfolio metrics and strong balance sheet for the financial year ended 31 March 2024 ("FY2024"):

• Increased Distributions to Unitholders for FY2024 by 3.8%;
• Increased Gross Revenue and Net Property Income ("NPI") for FY2024 by 5.9% and 6.9% respectively;
• Delivered strong rental reversions of 24.3% (FY2023: 18.5%);
• Sustained strong occupancy of 97.8% (FY2023: 98.0%);
• Extended portfolio Weighted Average Lease Expiry ("WALE") to 5.1 years (FY2023: 4.4 years);
• Reduced gearing ratio to 32.6%, which is well below the Monetary Authority of Singapore's maximum gearing level; and

• Healthy interest cover ratio of
  4.1 times, with 75.0% (or 72.9% excluding forward starting interest rate swaps) of our borrowings hedged.

Our focus on selective investments and developments, active asset management and strategic partnerships, supported by prudent capital and risk management, form the pillars of our successful track record. Our high-quality portfolio curated over the years through strategic acquisitions and divestments, re-developments and enhancements, provides AA REIT with a strong foundation that has demonstrated its resilience, despite the volatile and uncertain market environment.

Between FY2022 to FY2024, our revenue and NPI achieved a compounded annual growth rate ("CAGR") of 7.6% and 8.3% respectively. The strong financial performance was supported by the record rental reversion of 24.3% achieved over FY2024, which surpassed the previous years of 18.5% in FY2023 and 7.4% in FY2022.

S$100 million EFR on 31 May 2023

and successfully completed the raise

in July 2023.

Against the uncertain market backdrop, we proceeded with the EFR for the following reasons:

1. To provide AA REIT with growth capital for deployment into organic growth opportunities via planned asset enhancement initiatives ("AEIs") and re- development, which is in line with the Manager's portfolio rejuvenation and "future proofing" strategy. The completed projects will generate higher income returns and capital growth over the long term;
2. To position AA REIT to capitalise on acquisition opportunities
   in Singapore and Australia at potentially favourable valuations in the current tight credit environment; and
3. To strengthen AA REIT's balance sheet though the reduction of gearing, which provides AA REIT with ample headroom, as well as improve AA REIT's financial and credit metrics given the prevailing credit and market uncertainty.

AIMS APAC REIT

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CHAIRMAN'S MESSAGE

With the completion of the EFR,

1. REIT's gearing currently sits at 32.6% and is well positioned to capture future growth opportunities to enhance long-term unitholder returns.

STRENGTHENING PORTFOLIO RESILIENCE

For a structure to grow, its foundation must be strong and sturdy. It is only through the ongoing enhancement and selection of strong foundational assets, coupled with a prudent and experienced management team, that we can drive financial performance and growth that can be sustained over the long term.

To date, we have completed six developments, five major asset enhancement projects and made several recent strategic acquisitions that have enhanced the overall portfolio quality. As a result, we have been able to consistently, secure and renew major global and national corporate occupiers on long term leases.

Furthermore, we are making good progress of our two identified AEIs highlighted under the EFR. The upgrade and modernisation strategy of our warehouse, and industrial buildings will not only improve the building specifications and services but will result in higher contracted rents on long lease terms which will lift earnings and valuations upon completion.

Our portfolio's geographic diversity and high quality tenant base has enabled us to maintain our resilient performance. Singapore's industrial market continues to be healthy with manufacturing sentiment improving and a tightening of supply that is fuelling a 'flight to quality'. With our portfolio undergoing constant rejuvenation and disciplined capital

recycling strategy to divest non-core assets such as 541 Yishun Industrial Park A, AA REIT will continue to benefit from sustained demand of our premium assets.

In Australia, our three properties are located in key hubs of innovation and economic activity with substantial infrastructure investments, such

as the Macquarie Park Innovation District, which contributed approximately A$13.6 billion to the economy, expansion of the Sydney Metro Train network which benefits our Woolworths HQ asset in Bella Vista, and infrastructure development within the Gold Coast region being a great benefit to our Boardriders HQ asset in Burleigh Heads, Gold Coast. Given the substantial land parcel of these three properties, we are confident in the long-term value creation opportunities through future enhancement or re-development of these sites.

Looking ahead, our strategic positioning across Singapore and Australia, supported by our high quality portfolio, strong tenant base and favourable market developments will continue to provide unitholders with sustainable long-term returns.

CAPTURING FUTURE GROWTH

With the elevated interest rate environment, we have maintained our focus on organic growth initiatives including executing on the two AEIs as well as evaluating other enhancement and re-development opportunities within the portfolio.

In addition, we continue to assess new acquisition opportunities of quality logistics, industrial and business park assets in Singapore and Australia. We have adopted a prudent and disciplined approach and will only proceed with acquisitions if they are able to generate favourable

risk-adjusted returns and sustainable long-term income.

PROGRESSING ON OUR SUSTAINABILITY GOALS

Environmental, Social, and Governance ("ESG") remain integral to our operations. In a world where ESG metrics are central to overall business performance, particularly for those in the investment community, it is also an important way of creating long term value for AA REIT and its stakeholders.

We are committed to reducing our carbon footprint and have made significant progress in FY2024, including expanding our rooftop solar panel installation project to additional properties and commencing several new sustainability projects that will reduce our energy consumption and carbon emissions within the portfolio. We have also commenced our assessment of climate and environmental risks and will continue to evaluate new initiatives to "future proof" our portfolio and mitigate the impact of climate and environmental risks over the long term.

On the social front, we are accelerating our engagement with local communities, which includes partnership with Club Rainbow, as well as enhancing our engagement with tenants and employees alike, whether through tenant satisfaction surveys or increased training hours per employee.

We are also proud to see AA REIT ranked 13th out of 43 REITs and Business Trust under the Singapore Governance and Transparency Index 2023. Backed by our ESG framework, we remain focused on progressing on our ESG roadmap. To read more on our ESG progress, please refer to our Sustainability Report on page 86.

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ANNUAL REPORT 2024