Argosy Property Limited · NZX:ARG
Argosy Property — Shareholder Meeting (June 2021)
35 slides from Argosy Property's shareholder meeting presentation, Jun 29, 2021
Slide 1: Annual Meeting: Building a better future
2021 Annual Meeting Building a better future 29.06.2021
Slide 2: Hybrid AGM Q&A and Voting
HYBRID AGM Q&A VOTING Any shareholder or appointed proxy / We will open the poll now, to give representative attending is eligible to you plenty of time to vote. ask questions. The ability to vote will appear on your If you wish to ask a question, select screen as a bar chart icon, and from
Slide 3: The Board
THE BOARD Jeff Morrison Chairman Stuart McLauchlan Director Chris Gudgeon Director Mike Pohio Director Rachel Winder Director Martin Stearne Director 3—
Slide 4: The Executive Team
THE EXECUTIVE TEAM Peter Mence Chief Executive Officer Dave Fraser Chief Financial Officer 4—
Slide 5: Agenda
AGENDA PRESENTED BY Chairman’s Review 6 Chief Executive Officer’s Review 11 Questions 25 Resolutions 26 General Business 32 Closing of Meeting 33 Note: Due to rounding, numbers presented in this presentation may not add up exactly to the totals provided and percentages may not exactly reflect absolu
Slide 6: Chairman's Review
CHAIRMAN’S REVIEW 6—
Slide 7: FY21 Achievements
FY21 ACHIEVEMENTS Carefully managed our way through Covid-19, minimising the financial impact on Argosy Resilient operating results reflecting a high quality portfolio of diversified real estate Continued to progress green developments despite the Covid-19 impact on construction Strong leasing
Slide 8: Vision - Building a Better Future
VISION - BUILDING A BETTER FUTURE
Slide 9: Resilient and Sustainable Dividends
DIVIDENDS RESILIENT AND SUSTAINABLE DIVIDENDS A 4th quarter cash dividend of 1.6125 cents per share has been declared (nil imputation credits) and paid on 23 June 2021. The Dividend Reinvestment Plan will be available for participation in the 4th quarter dividend with a 2% discount. FY22 divid
Slide 10: New Dividend Policy
NEW DIVIDEND POLICY TRANSITIONING INTO AFFO DIVIDEND POLICY FRAMEWORK FROM FY23 Argosy Div idend New Policy In 2017, Argosy’s Board advised of its Transition Period Commences intention to move (in the medium term) to 7.50 an amended dividend policy, based on AFFO earnings. 7.00 Commensurate with
Slide 11: Chief Executive Officer's Review
CHIEF EXECUTIVE OFFICERS REVIEW 11 —
Slide 12: Key FY21 Result Highlights
KEY FY21 RESULT HIGHLIGHTS 13.7% 3.3% Net distributable income Annualised rent increase on rents increase reviewed $1.53 NTA up 17.7% from $1.30 driven by a $125m A 3rd successful 7 year green bond $157.7m revaluation gain issue 6.45ps Full year FY21 dividend increased by 1.6% 12 —
Slide 13: Big Corporate Goals - 2031
BIG CORPORATE GOALS - 2031 >50% Of the portfolio to be green CO2 Target carbon neutral assets >50% >$3bn Portfolio activity will result in Of total debt finance being green increased scale through non-bank funding acquisitions and green developments -30% Greater engagement and bigger Reduction in ca
Slide 14: Portfolio Highlights
PORTFOLIO HIGHLIGHTS 99.0% 5.5yrs Weighted average lease term Occupancy (WALT) 6.3% $157.7m Annual revaluation gain 8.5% above Like for like rental growth 31 March book values 14 —
Slide 15: Portfolio at a Glance
PORTFOLIO AT A GLANCE $2.01 BILLION1 @ 31 MARCH 2021 TOTAL PORTFOLIO VALUE TOTAL PORTFOLIO VALUE TOTAL PORTFOLIO VALUE BY SECTOR BY REGION BY ASSET MIX 0% 11% 17% 2% 26% 49% 40% 72% 83% Target Target Target Bands Bands Band Industrial 45-55% Auckland 65-75% 75-90% Core Office Wellington 20-30% - 30-
Slide 16: Value Add Properties
VALUE ADD PROPERTIES GREEN OPPORTUNITIES WILL DRIVE EARNINGS AND CAPITAL GROWTH Value Add properties total ~17% of the Valuation 1 Property - Value Add Sector Location portfolio. $m Some Covid-19 deferred projects are 5 Allens Road, East Tamaki Industrial Auckland 5.6 likely to be re-initiated i
Slide 17: Current Development Project
CURRENT DEVELOPMENT PROJECT FOCUS ON COMPLETING 6 STAR GREEN DEVELOPMENT Cost to Forecast Development Major Tenant Type Location complete completion FY 2021 FY 2022 Sep-20 Mar-21 Sep-21 Mar-22 Underway 8-14 Willis Street Statistics New Zealand OFF/RET WTN 37.9 Feb-22 TOTAL 37.9 8-14 Willis Street/
Slide 18: Annual Revaluations
ANNUAL REVALUATIONS CAP RATE FIRMING AND RENTAL GROWTH KEY DRIVERS OF INCREASE For the year to 31 March, the Market Yield 1 31 Mar 21 31 Mar 21 portfolio recorded a revaluation Book Value Valuation gain of $157.7m or 8.5%. The ($m) ($m) $m % 31 Mar 21 31 Mar 20 portfolio market yield firmed 63bp
Slide 19: Distributable Income
DISTRIBUTABLE INCOME STRONG PERFORMANCE ON PER SHARE BASIS FY21 FY20 After non-cash adjustments and $m $m current tax, net distributable Profit before income tax 248.4 123.9 income increased by $8.2 million Adjusted for: or 13.7%. Revaluations gains (157.7) (59.9) Impairment loss on held for sale -
Slide 20: Adjusted Funds From Operations (AFFO)
ADJUSTED FUNDS FROM OPERATIONS (AFFO) A FOCUS ON SUSTAINABLE DISTRIBUTIONS FY21 FY20 $m $m Higher capitalised incentives Net distributable income 67.7 59.6 reflects large leasing deals with Amortisation of tenant incentives and leasing costs 5.1 3.5 government departments ($3.6m Funds from operation
Slide 21: Capital Management
CAPITAL MANAGEMENT GREEN BONDS ATTRACTIVE DIVERSIFICATION TOOL Argosy operates within its Capital Management Framework. The Board’s policy is for debt to total assets to be between 30% to 40%. As at 31 March 2021 Argosy’s debt to total assets remained within the target range. Green bonds sup
Slide 22: Lease Expiry Profile
LEASE EXPIRY PROFILE RELATIVELY STABLE PROFILE OVER THE MEDIUM TERM Low year end portfolio vacancy. 5yr average income percentage expiring in any year ~10%. Largest single expiry over the next 10 years is Ministry for Business, Innovation and Employment, in 15-21 Stout Street, 9.4% in Mar-27.
Slide 23: Market Update
MARKET UPDATE INDUSTRIAL OFFICE RETAIL LARGE FORMAT ► Net absorption continues to drive ► Flexible working environments ► Many retailers’ systems have been additional supply. continue to drive a disconnect shown to be inadequate to cope between employment growth and with higher online sales volumes.
Slide 24: 2022 Outlook
2022 OUTLOOK The current domestic and global economic outlook still remains challenging. Vaccination rollouts globally are accelerating. Countries will open up again for tourism in the near term. However, central banks globally are dealing with the conflicting forces of transitory inflationary press
Slide 25: Questions
ye QUESTIONS ATSOSY
Slide 26: Resolutions
RESOLUTIONS 26 —
Slide 27: Hybrid AGM Q&A and Voting
HYBRID AGM Q&A VOTING Any shareholder or appointed proxy / We will open the poll now, to give representative attending is eligible to you plenty of time to vote. ask questions. The ability to vote will appear on your If you wish to ask a question, select screen as a bar chart icon, and from
Slide 28: Resolution 1
RESOLUTION 1 That Jeff Morrison be elected as a Director. 28 —
Slide 29: Resolution 2
RESOLUTION 2 That Stuart McLauchlan be elected as a Director. 29 —
Slide 30: Resolution 3
RESOLUTION 3 That, for the purposes of NZX Listing Rule 2.11.1, the maximum aggregate amount of remuneration payable by the Company to Directors (in their capacity as Directors) be increased by $49,500 per annum, from $778,500 per annum to $828,000 per annum, with effect on and from 29 June 2021.
Slide 31: Resolution 4
RESOLUTION 4 That the Board be authorised to fix the Auditor’s Fees and Expenses. 31 —
Slide 32: General Business
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Slide 33: Close of Meeting
CLOSE OF MEETING 33 —
Slide 34: Thank You
THANK YOU 34 —
Slide 35: Disclaimer
DISCLAIMER This presentation has been prepared by Argosy Property Limited. The details in this presentation provide general information only. It is not intended as investment or financial advice and must not be relied upon as such. You should obtain independent professional advice prior to making an