Argosy Property Limited · NZX:ARG
Argosy Property — Shareholder Meeting (August 2015)
27 slides from Argosy Property's shareholder meeting presentation, Aug 18, 2015
Slide 1: Annual Meeting CEO Presentation
Annual Meeting CEO Presentation Argosy Property Limited 18 August 2015
Slide 2: 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
Slide 3: Argosy Executing Strategy
Argosy EXECUTING STRATEGY
Slide 4: Highlights
Highlights » www.argosy.co.nz
Slide 5: Highlights of FY15
Highlights of FY15 Gross distributable income increased to 7.07 cents per share (increase of 6.5%) Net distributable income of 6.02 cents per share Net property income increased to $90.9 million (increase of 10.5%) Occupancy (by rental) increased to 99.2% Weighted average lease term at 5.5
Slide 6: Total Shareholder Return – 1 Year
Total Shareholder Return – 1 Year 140 135 130 125 120 Gross Prices Indexed to 100 115 110 105 100 95 Mar-14 Mar-15 Oct-14 Nov-14 Dec-14 Jun-14 Apr-14 Jul-14 Sep-14 Jan-15 May-14 Aug-14 Feb-15 Argosy Property Limited NZ Property Gross Index NZX 50 Index
Slide 7: Total Shareholder Return – 5 Years
Gross Prices Indexed to 100 100 120 140 160 180 200 220 80 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Argosy Property Limited Jun-12 Sep-12 Dec-12 Mar-13 NZ Property Gross Index Jun-13 Sep-13 Total Shareholder return – 5 Years Dec-13 Mar-14 NZX 50 Index Jun-14 Sep-14 Dec-14 Mar-1
Slide 8: Portfolio Investment Strategy
Portfolio Investment Strategy Argosy is and will remain invested in a portfolio that is diversified by sector, grade, location and tenant mix. The portfolio will be in the Auckland and Wellington markets with modest tenant-driven exposure to provincial markets. Argosy’s portfolio consists of “Core”
Slide 9: Portfolio Mix
Portfolio Mix TOTAL PORTFOLIO VALUE TOTAL PORTFOLIO VALUE PORTFOLIO MIX BY SECTOR BY REGION 4%3% 6% 11% 24% 39% 29% 64% 37% 83% Target Target Target Retail 15 – 25% Auckland 65 – 75% Core 75 – 85% Office 35 – 45% Wellington 20 – 30% Value Add properties Industrial 35 – 45% Palmerston North Propertie
Slide 10: Portfolio Overview
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Slide 11: Industrial
Industrial NUMBER OF BUILDINGS 40 MARKET VALUE OF ASSETS ($M) $510.42 VACANCY FACTOR (BY RENT) 0.3% WALT (YEARS) 5.72 PASSING YIELD 7.59%
Slide 12: Office
Office NUMBER OF BUILDINGS 17 MARKET VALUE OF ASSETS ($M) $483.56 VACANCY FACTOR (BY RENT) 1.2% WALT (YEARS) 5.60 PASSING YIELD 7.63%
Slide 13: Retail
Retail NUMBER OF BUILDINGS 11 MARKET VALUE OF ASSETS ($M) $312.42 VACANCY FACTOR (BY RENT) 1.1% WALT (YEARS) 5.15 PASSING YIELD 7.49%
Slide 14: Leasing Environment
Leasing Environment The New Zealand economy is facing headwinds, especially with falling global dairy prices. The outlook for the property market remains positive with good levels of enquiry for quality space. Interest rates are expected to remain lower for longer. Vacancy rates remain low a
Slide 15: Leasing
Leasing Incentive levels have reduced, especially in the office market. Occupancy, tenant retention and lease expiries remain the key focus areas for the asset management team. Occupancy (by rental) has improved to 99.2%, from 98.7% at March 2014. Outstanding lease expiries for the period to
Slide 16: Lease Maturity as at 31 March 2015
Lease Maturity as at 31 March 2015
Slide 17: Lease Maturity as at 31 July 2015
Lease Maturity as at 31 July 2015
Slide 18: Weighted Average Lease Term
WALT (YEARS) - 1.00 2.00 3.00 4.00 5.00 7.00 6.00 Mar 2008 Sep 2008 Mar 2009 Sep 2009 Mar 2010 Sep 2010 Mar 2011 Sep 2011 WALT remains in a strong position at 5.54 years Mar 2012 Sep 2012 Mar 2013 Weighted Average Lease Term Sep 2013 Mar 2014 Sep 2014 Mar 2015
Slide 19: Occupancy (by rental)
91.0% 92.0% 93.0% 94.0% 95.0% 96.0% 97.0% 98.0% 99.0% 100.0% Mar 2008 Sep 2008 Mar 2009 Sep 2009 Mar 2010 Sep 2010 Mar 2011 Occupancy at 99.2%, highest since 2008 Sep 2011 Occupancy (by rental) Mar 2012 Sep 2012 Mar 2013 Sep 2013 Mar 2014 Sep 2014 Mar 2015
Slide 20: Acquisitions
Acquisitions Industrial Portfolio in Wellington In February 2015, Argosy acquired an industrial portfolio in Wellington for $59 million. The portfolio comprises 5 properties located in the Seaview and Grenada North areas of Lower Hutt. Property type Industrial Net lettable area 42,588 sqm Acquisitio
Slide 21: Developments
Developments The redevelopment at 15-21 Stout Street, Wellington was successfully completed on time with MBIE occupying in July 2014. The development of NZ Post House, Wellington is continuing and we are working with the tenant to meet their requirements. The property at Foundry Dr, Christchurch, wh
Slide 22: Portfolio Activity since Balance Date
Portfolio Activity since Balance Date There has been a lot of activity in the portfolio since year end, including: The settlement of the sale of 1 Allens Road, East Tamaki for $3.3 million, 10.7% above book value. The settlement of the disposal of 5,733 sqm of vacant land at the Manawatu Busines
Slide 23: Financial Overview
Financial Overview
Slide 24: Financial Overview
Financial Overview Financial Performance FY15 FY14 Net property income $90.8m $82.2m Revaluation gains $38.6m $33.5m Profit before tax $68.6m $98.8m Distributable Income FY15 FY14 Profit before income tax $68.6m $98.8m Adjustments $(12.3m) $(48.8m) Gross distributable income $56.3m $49.6m Tax adjust
Slide 25: Concluding Comments
Concluding Comments
Slide 26: Key Focus Areas For This Year
Key Focus Areas For This Year The New Zealand economy is facing some headwinds. The outlook for the New Zealand property market remains positive. Our focus remains on the leasing fundamentals of maintaining the portfolio’s high level of occupancy, improving the lease expiry profile and tenant re
Slide 27: Thank You
Thank You