Argosy Property Limited · NZX:ARG
Argosy Property — Shareholder Meeting (July 2020)
33 slides from Argosy Property's shareholder meeting presentation, Jul 28, 2020
Slide 1: 2020 Annual Meeting
2020 Annual Meeting Looking through 28.07.2020
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 Mike Smith Chairman Peter Brook Director Jeff Morrison Director Stuart McLauchlan Director 3—
Slide 4: The Board
The Board Chris Gudgeon Director Mike Pohio Director Rachel Winder Director Martin Stearne Director 4—
Slide 5: The Executive Team
The Executive Team Peter Mence Chief Executive Officer Dave Fraser Chief Financial Officer 5—
Slide 6: Agenda
Agenda PRESENTED BY Chairman’s Review 7 Chief Executive Officer’s Review 12 Questions 23 Resolutions 24 General Business 29 Closing of Meeting 31 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 7: Chairman's Review
Chairman’s Review 7—
Slide 8: FY20 Annual Result
FY20 Annual Result 3.8% Net distributable income 2.7% Annualised rent increase on rents increase reviewed $1.30 A 6.5% increase driven by a $60m 100m 2nd successful 7 year green bond revaluation gain 6.35¢ Full year FY20 dividend, an increase of 1.2% on the prior year 8—
Slide 9: Dividends
Dividends RESILIENT AND SUSTAINABLE DIVIDENDS The FY20 dividend was increased 1.2% on the prior year. A 1st quarter cash dividend of 1.5875 cents per share has been declared, with imputation credits of 0.151267 cents per share attached, and will be paid on 30 September 2020. The Dividend Reinv
Slide 10: Governance / Risk Management
Governance / Risk Management COMMITMENT TO THE HIGHEST STANDARDS Your Board is committed to the highest standards of corporate behaviour, accountability and corporate governance best practice; We are guided by our Code of Conduct and Ethics; and We have a well developed risk management policy
Slide 11: Capital Management
Capital Management DIVERSIFIED CAPITAL STRUCTURE, GEARING WELL BELOW COVENANT 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 2020 Argosy’s debt to total assets remained within the target range. We
Slide 12: Chief Executive Officer's Review
Chief Executive Officer’s Review 12 —
Slide 13: Covid-19 Update
Covid-19 Update WORKING CLOSELY WITH ALL STAKEHOLDERS Staff Ensuring safe working conditions at work and at home. Greater use of technology. Tenants Working together to find short term solutions. Those tenants that need assistance have received it primarily via deferral and rental abatem
Slide 14: Create. Manage. Own.
Create. Manage. Own. Proactive delivery of sustainable growth Manage all elements of the business to deliver the right outcomes for all our stakeholders. Own the right assets, with the right attributes in the right New Zealand locations. 14 —
Slide 15: 2020 Results
2020 Results STRONG DELIVERY OF STRATEGY Create Successfully transitioned Value Add properties to drive earnings and capital growth Proactive delivery of (107 Carlton Gore Road). sustainable growth. Current organic value add development pipeline of over $200m will add more quality and resilience t
Slide 16: Portfolio Snapshot
Portfolio Snapshot 98.8% 6.1 yr Occupancy Weighted average lease term 71% Auckland portfolio weighting 45% Industrial portfolio weighting Figures are as at 31 March 2020 16 —
Slide 17: Portfolio at a glance
Portfolio at a glance $1.87 BILLION1 @ 31 MARCH 2020 TOTAL PORTFOLIO VALUE TOTAL PORTFOLIO VALUE TOTAL PORTFOLIO VALUE BY SECTOR BY REGION BY ASSET MIX 2% 8% 15% 12% 27% 45% 40% 71% 80% Bands Bands Bands Industrial 45-55% (was 40-50%) Auckland 65-75% 75-90% Core Office Wellington 30-40% 20-30% Value
Slide 18: Distributable Income
Distributable Income INCREASE IN NET DISTRIBUTABLE INCOME PER SHARE FY20 FY19 $m $m After non-cash adjustments and Profit before income tax 123.9 143.3 current tax, net distributable Adjusted for: income increased by $2.2 million Revaluations gains (59.9) (70.5) or 3.8%. Impairment (loss) on held fo
Slide 19: Value Add
Value Add OPPORTUNITIES TO DRIVE CAPITAL GROWTH AND EARNINGS Value Add properties total 12% of the Valuation 1 portfolio. Property Sector Location $m Several major development projects 5 Unity Drive, Albany Industrial Auckland 7.4 underway within the group to 960 Great South Road, Penrose Indust
Slide 20: Development Pipeline
Development Pipeline GREEN DEVELOPMENTS REMAIN THE KEY FOCUS 107 Carlton Gore Road: Cost to Forecast completed December-19. Development Major Tenant Type Location complete $m 1 completion FY 2021 FY 2022 Sep-20 Mar-21 Sep-21 Mar-22 180-202 Hutt Road: Underway / commenced completed March-20. 7WQ
Slide 21: Lease Expiry
Lease Expiry STABLE PROFILE OVER THE MEDIUM TERM 5yr average income percentage expiring in any year ~9%. Largest single expiry over next 5 years is 5.5% in March-25 being General Distributors at 80-120 Favona Road, Mangere. Key lease expiries being focused on over the first six months of FY21
Slide 22: 2021 Focus
2021 Focus Create Proactive delivery of Maintain our green / sustainable focus on all acquisition and development sustainable growth. opportunities. Continue transitioning Value Add opportunities to drive earnings and capital growth. Make appropriate risk / reward decisions, with pre-commitments pre
Slide 23: Questions
Questions 23 —
Slide 24: Resolutions
Resolutions 24 —
Slide 25: 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 26: Resolution 1
Resolution 1 That Rachel Winder be elected as a Director. 26 —
Slide 27: Resolution 2
Resolution 2 That Martin Stearne be elected as a Director. 27 —
Slide 28: Resolution 3
Resolution 3 That the Board be authorised to fix the Auditor’s Fees and Expenses. 28 —
Slide 29: General Business
~” ” © c a =) a Fe} —_ © c i) O
Slide 30: CEO additional comments
CEO additional comments 30 —
Slide 31: Close of Meeting
Close of Meeting 31 —
Slide 32: Thank you.
=] oO > a4 Cc eo] < —
Slide 33: 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