General Announcement::Appendix 4E and FY2021 Annual Report

AIMS PROPERTY SECURITIES FUND

(ARSN 111 442 150)

Appendix 4E - Preliminary Final Report

For the year ended 30 June 2021

(The previous corresponding period is the financial year ended 30 June 2020)

Results for Announcement to the Market

		Movement	Movement	2021	2020
		($'000)	(%)	($'000)	($'000)
Revenue from ordinary	Up	16,958	N/A	14,017	(2,941)
activities1
Income from ordinary
activities attributable to	Up	17,037	N/A	12,770	(4,267)
unitholders
Net income for the period	Up	17,037	N/A	12,770	(4,267)
attributable to unitholders
Net tangible assets (NTA)	Up	$0.28	11.68%	$2.74	$2.46
per unit ($)

1 Revenue from ordinary activities comprises investment distribution income and interest income.

Distributions	Cents Per Unit
FY2021	0
Total	0

This Appendix 4E should be read in conjunction with the Annual Financial Report of AIMS Property Securities Fund for the financial year ended 30 June 2021 (in the attachment which forms part of Appendix 4E) and any public announcements made during the year in accordance with the continuous disclosure requirements of the Corporations Act 2001 and Listing Rules.

This Appendix 4E is based on the Annual Financial Report of AIMS Property Securities Fund for the financial year ended 30 June 2021 which has been audited by Hall Chadwick.

Claud Chaaya

Company Secretary

AIMS Fund Management Limited

Responsible Entity

AIMS Funds Management

A Member of AIMS Financial Group

AIMS PROPERTY SECURITIES FUND

FINANCIAL REPORT

FOR THE YEAR ENDED

ARSN 111 442 150 | ASX Code: APW | SGX Code: BVP

30 JUNE 2021

AIMS PROPERTY SECURITIES FUND
ARSN 111 442 150
FOR THE YEAR ENDED 30 JUNE 2021
CONTENTS
Financial Results Summary..................................................................................	1
Chairman's Report...............................................................................................	2
Board of Directors ...............................................................................................	4
Corporate Governance Statement......................................................................	6
Financial Report..................................................................................................	14
Directors' Report..................................................................................................	14
Lead Auditor's Independence Declaration.......................................................	20
Statement of Profit or Loss and other Comprehensive Income........................	21
Statement of Financial Position..........................................................................	22
Statement of Changes in Equity........................................................................	23
Statement of Cash Flows....................................................................................	24
Notes to the Financial Statements.....................................................................	25
Directors' Declaration Report.............................................................................	37
Independent Auditor's Report............................................................................	38
Stock Exchange Information...............................................................................	42
Corporate Directory............................................................................................	44

ABOUT THE FUND

The AIMS Property Securities Fund ("the Fund") is a diversified real estate securities fund, investing across a wide range of unlisted and listed property trusts. It has exposure to domestic and overseas commercial real estate through specialist property investment managers.

The Fund is listed on the Australian Securities Exchange (ASX code: APW) and the Singapore

Exchange Limited (SGX Code: BVP).

FINANCIAL RESULTS SUMMARY

Financial results summary for the year ended 30 June 2021

Income Statement Year to 30 June 2021	$Million
Income & Foreign Exchange (A)	1.46
Net Gains On Financial Assets Held At Fair Value Through Profit Or Gain (G)	12.56
Total Expenses (C)	(1.25)
Net Gain For The Year Before Finance Costs (D) = (A) + (B) + (C)	12.77
Finance Costs (E)	0.00
Change In Net Assets Attributable To Unitholders (D) + (E)	12.77

Annual Report 2021

01

CHAIRMAN'S REPORT

Overview

Uncertainty continued in the 2021 financial year. The COVID-19 pandemic has worsened in Australia with the delta variant causing case numbers to rise to their highest levels since the pandemic began in early 2020. This has brought the local economics of New South Wales and Victoria, in particular, to a standstill. The international environment is experiencing a new challenge from the delta variant and the future of the global economy remains uncertain.

Assets with short weighted average lease expiries continue to find it challenging to obtain bank finance and as such valuations for these types of properties may experience sharper drops in the future. Industrial / Logistics assets throughout this period have outperformed other asset classes. This is primarily due to the increase in demand for warehousing, as a result of increases in online purchases, due to work from home arrangements, lockdown measures and a fundamental change in consumer behaviour with an accelerated transition to the online environment. This has had a tremendous impact on our investments in industrial

• logistics products, which have performed significantly well over the past financial year.

Prudential Investment

Management

Learning from our experience in the GFC, AIMS has carefully followed its prudent, conservative and patient investment approach, focusing not only on income but also capital growth potential.

We have adhered to the following principles in our investment strategy:

1. Power as investor.

Where possible, hold material or majority interest in unlisted investments, such that the Fund is able to influence the strategy and direction of the investment.

2. Alignment of investor and fund manager's interest.

Invest in funds where the fund manager holds a material interest in the fund to ensure that the fund manager's interests are aligned with our unitholders.

3. Sufficient liquidity for listed investments.

There must be acceptable liquidity if the investment is listed.

4. Investment direction.

Underlying assets must typically be in good locations, with value add or long-term development potential. The assets should ideally produce an income stream, to service conservative borrowings and have potential for rental increases through active management.

5. Conservative gearing.

Maintained zero gearing since 2013 and also monitor the underlying investments' debt facilities, so as to sustain a conservative look-through gearing level.

The COVID-19 pandemic is causing unpredictable volatility and damage to the local and international investment market. During this uncertain period, with no clear light at the end of the tunnel, we have applied a more conservative investment approach, awaiting the appropriate time to take advantage of the right opportunities in this market.

02	AIMS Property Securities Fund