Argosy Property Limited · NZX:ARG
Argosy Property — Shareholder Meeting (June 2022)
32 slides from Argosy Property's shareholder meeting presentation, Jun 21, 2022
Slide 1: 2022 Annual Meeting: Building a Better Future
2022 Annual Meeting: Building a Better Future 21.6.22 Argosy Property Limited
Slide 2: Hybrid AGM: Voting and Q&A
HYBRID AGM VOTING Q&A We will open the poll now, to give you plenty of time to vote. Any shareholder or appointed proxy / The ability to vote will appear on representative attending is eligible to your screen as a bar chart icon, and ask questions. from here, the resolution and voting If you
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 Chairman’s Review 6 CEO’s Review 11 Questions 25 Resolutions 26 General Business 30 Close 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 reflect exactly absolute figures. .5
Slide 6: Chairman's Review
Chairmans Review Argosy
Slide 7: FY22 Achievements
FY22 ACHIEVEMENTS Delivered solid results through a challenging year Laid a strong foundation for 2023 and beyond XX ● XXX XX Continued to deliver on our sustainability and development strategies Continued building strong relationships with tenants ● XXX Delivered on key focus areas (key e
Slide 8: Vision: Building a Better Future
VISION — Proactive deli B e | d e of sustainable growth, U | l n g a A business culture that i i tally focused Better Future enna Executing green Value Add portfolio opportunities to drive earnings and capital growth Acommitment to funding for green assets Owning the right assets with the right attr
Slide 9: Stakeholder Engagement – Material Sustainability Factors
STAKEHOLDER ENGAGEMENT – MATERIAL SUSTAINABILITY FACTORS OUR APPROACH Sustainability and efficient use of resources…minimizing impact on the environment.. Actively transitioning to a net carbonzero economy.. Creating flexible, healthy and high quality environments.. Cultivating a strong and
Slide 10: Dividends: Steady and sustainable
Dividends Steady and sustainable 6.80 A 4th quarter dividend of 1.6375cps was 6.60 6.65 declared with 0.1276 cents per share 6.55 imputation credits attached. 6.40 6.45 6.35 The record date was 8th June and the 6.20 6.28 payment date is 22nd June. 6.20 6.00 The Dividend Reinvestment Plan has b
Slide 11: CEO's Review
CEO’s Review .11
Slide 12: Key result highlights
Key result highlights $105.1 $m in net property income $163.7 $236.2 $m annual revaluation increase, or 8% $m net profit after tax above book value $1.74 NTA up ~14% from $1.53 @ 31 March 21 6.55ps FY22 dividend delivered .12
Slide 13: Portfolio highlights
Portfolio highlights 98.7% Occupancy 5.7yrs 3.0% Weighted average lease term Annualised rent review increase on rents reviewed .13
Slide 14: Sector Summary
Sector Summary INDUSTRIAL OFFICE LARGE FORMAT RETAIL Number of buildings 34 Number of buildings 15 Number of buildings 4 $1,127.0 $857.4 $223.2 1 Market value Market value Market value of assets ($m) of assets ($m) of assets ($m) Occupancy (by income) 100% Occupancy (by income) 97.4% Occupancy (by i
Slide 15: Portfolio at a glance
Portfolio at a glance @ 31 March Sector by value % Region by value % Asset Mix by value % 10 New Previous Band Band Industrial 55-65% (45-55%) Office 25-35% (30-40%) 51 39 2 LFR 1 5-15% (10-20%) 1. Large Format Retail. 2. 2. Regional North Island and South Island. This weighting also includes up to
Slide 16: Value Add Properties
Value Add Properties Green assets driving Status & Project Sector Location Value @ Total organic growth 31 Mar 22 Transformation of Value Add properties Complete remains key to delivering Strategy 2031 8-14 Willis Street/ 360 Lambton Quay Office Wellington 146.1 146.1 Strong industrial sector fu
Slide 17: Value Add Case Study: Mt Richmond Estate
Value Add Case Study: Mt Richmond Estate1 15km From the CBD 40,000 +$250m m2 of new warehouse space Project end value over quarter of a billion dollars 4,000 m2 of new office space ~7% Internal rate of return 1. Potential development strategy .17
Slide 18: Annual Revaluations
Annual Revaluations 31 Mar 22 31 Mar 22 Auckland industrial stars Book Value Valuation ($m) ($m) $m % $163.7m gain reported, or 8% increase over book value. Portfolio market yield Auckland 1,436.3 1,578.4 142.1 9.9% firms 35bps. On a cap rate basis, the Wellington 577.2 596.6 19.4 3.4% portfol
Slide 19: Distributable Income
Distributable Income Prior period comparison FY22 FY21 $m $m affected by one offs Profit before income tax 241.2 248.4 Net distributable income was $64.7 million Adjustments: compared to $67.7 million in the prior Revaluations gains (163.7) (157.7) comparable period. Realised losses/(gains) on dis
Slide 20: Adjusted Funds From Operations (AFFO)
Adjusted Funds From Operations (AFFO) AFFO affected by one-offs FY22 FY21 Capitalisation of leasing incentives was $m $m lower overall due to large incentives on Net distributable income 64.7 67.7 developments (7WQ and 107 Carlton Amortisation of tenant incentives and leasing costs 4.6 5.1 Gore Rd
Slide 21: Debt Profile including Bonds
Debt Profile including Bonds Green bonds provide diversification and tenor During the year Argosy extended $215 million of its existing syndicated bank facilities with its banking group. The total amount of the bank facility has also reduced by $35 million and is now $455 million, down from $490
Slide 22: Value Add Case Study: Mt Richmond Estate
Value Add Case Study: Mt Richmond Estate Leasing 74,376 ~12% Of NLA leased over the year Equivalent of total portfolio by NLA 31 Leasing transactions including 23 new leases, 5 renewals and 3 extensions Green 23,750 15km from CBD Prime industrial location development Of NLA leased to PBT
Slide 23: Lease Expiry
Lease Expiry Expiry profile remains well managed Overall vacancy remains very low at year end and strategic lease extensions are included as part of new developments and leasing deals. The largest single expiry remains the 9.4% expiry in Mar-27 to Ministry for Business, Innovation and Employment
Slide 24: FY23 has challenges ahead, but we're well placed
FY23 has challenges ahead, but we’re well placed We will stay focused on delivering on Strategy Local and global economy experiencing rising interest rates (tightening) and inflation headwinds. This is creating construction cost tension together with ongoing global supply chain pressure. Globall
Slide 25: Questions
Questions ——T —_ Argosy | i
Slide 26: Resolutions
Resolutions Argosy
Slide 27: Resolution 1
RESOLUTION 1 That Chris Gudgeon be elected as a Director. .27
Slide 28: Resolution 2
RESOLUTION 2 That Mike Pohio be elected as a Director. .28
Slide 29: Resolution 3
RESOLUTION 3 That the Board be authorised to fix the Auditor’s Fees and Expenses. .29
Slide 30: General Business
General Business Argosy
Slide 31: Close of Meeting
Close of Meeting .31
Slide 32: 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