Argosy Property Limited · NZX:ARG
Argosy Property — Shareholder Meeting (August 2016)
38 slides from Argosy Property's shareholder meeting presentation, Aug 9, 2016
Slide 1: Annual Shareholders Meeting
Annual Shareholders Meeting Argosy Property Limited 9 August 2016
Slide 2: The Board
The Board Chris Hunter Peter Brook Michael Smith, Chairman Andrew Evans Mark Cross Jeff Morrison
Slide 3: Executive Team
Executive Team Peter Mence Dave Fraser Chief Executive Officer Chief Financial Officer
Slide 4: Agenda
Agenda Introduction Chairman’s Address Chief Executive Officer’s Review Questions from Shareholders Resolutions General business Close of Meeting and refreshments
Slide 5: Chairman's Address
Argosy CHAIRMAN’S ADDRESS
Slide 6: Your Company
Your Company Purpose – to be the preferred property investment choice, delivering sustainable and attractive returns to shareholders through the execution of a clearly defined investment strategy, the development of long-term tenant relationships and skilled asset management. Argosy is and will rema
Slide 7: Our Values
Our Values Argosy’s values guide our internal conduct as well as our relationships with external parties. In striving for outstanding performance, we do not compromise our ethics or principles. Communication Culture Ethics Accountability Respect
Slide 8: Highlights
Highlights Sale of vacant land Health & Safety: Acquisition of 8 in Palmerston New Policy & Nugent St North Strategic Goals 99.4% 5.24 years $1.37b Occupancy WALT Portfolio $98.4m 7.60c 6.25c Net Property Gross Distributable Net Distributable Income Income per share Income per share 17.6% 5 year TSR
Slide 9: Dividends
Dividends 6.025c 96.4% 1.525c FY17 1st Quarter FY16 Dividend FY16 Pay-out Ratio Dividend 28 Sep 2016 6.10c 1st Quarter Dividend FY17 Dividend Payment Date Guidance¹ ¹ based on current projections for the portfolio
Slide 10: Governance
Governance Strong corporate governance and stewardship are fundamental to the strong performance of Argosy. Your board are committed to the highest standards of business behaviour and accountability. Participation in the Future Directors Programme Our policies are publicly available on our websi
Slide 11: Health & Safety
Health & Safety 7 STRATEGIC GOALS Proactive hazard identification Engagement with employees and contractors Maintenance and improvement of health & safety system Encouragement of contractors & tenants to demonstrate same health & safety commitment Support for the health & wellbeing of Argo
Slide 12: Risk Management
Risk Management Argosy strives to deliver reliable and sustainable returns to shareholders We take a considered approach to development, acquisition, divestment, leasing and capital management decisions Argosy operates within a medium/low overall risk range Argosy adopts a medium risk appeti
Slide 13: Capital Structure
Capital Structure The Board’s policy is for debt to total assets to be between 35% to 40% in the medium term. Argosy’s capital structure should be one that enables the Company to maximise earnings through the property cycle within the following parameters: properties acquired when they meet approv
Slide 14: Outlook
Outlook We are confident that with a diversified portfolio of good quality and well located properties, a clear investment strategy and the continued application of a patient, careful and disciplined approach to property investment and management, the Company remains in a strong position to enable
Slide 15: CEO's Review
Argosy CEO'S REVIEW
Slide 16: Highlights
Argosy » Www.argosy.co.nz
Slide 17: Consistent Growth
Argosy CONSISTENT GROWTH
Slide 18: Total Shareholder Return – 5 Years
Gross Prices Indexed to 100 100 120 160 180 200 220 240 80 140 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Argosy Property Limited Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 NZ Property Gross Index Jun-14 Sep-14 Total Shareholder return – 5 Years Dec-14 Mar-15 NZX 50 Index Jun-15 Sep-15 Dec-15 M
Slide 19: Portfolio Mix as at March 2016
Portfolio Mix as at 31 March 2016 TOTAL PORTFOLIO VALUE TOTAL PORTFOLIO VALUE PORTFOLIO MIX BY SECTOR BY REGION 6% 8% 23% 11% 37% 27% 67% 81% 40% Target Target Target Retail 15 – 25% Auckland 65 – 75% Core 75 – 85% Office 35 – 45% Wellington 20 – 30% Value Add properties Industrial 35 – 45% North Is
Slide 20: Investment & Leasing Environment
Investment & Leasing Environment Investment market continues to be led by an excess of demand over supply for investment stock. Continued focus by property syndications and offshore interest, however domestic purchasers remain active. Net absorption continues across the Auckland market and the
Slide 21: Investment & Leasing Environment cont.
Investment & Leasing Environment cont. Commercial offices in both Auckland and Wellington are expected to see an oversupply of space as new developments and reduced work space allowance have an impact respectively. Retail is continuing to show impact of internet sales, and significant new supply
Slide 22: Our People
Our People Warren Cate ASSET MANAGER Saatyesh Bhana ASSET MANAGER Anna Hamill FINANCIAL CONTROLLER Marilyn Storey ASSET MANAGER Scott Lunny INVESTOR RELATIONS MANAGER Wade Allen LEASING MANAGER Peter Mence CHIEF EXECUTIVE OFFICER Rob Smith ASSET MANAGER Dave Fraser CHIEF FINANCIAL OFFICER Joanna Sha
Slide 23: Portfolio Overview
etfolio Overview Su. i aE
Slide 24: Portfolio
Portfolio Industrial Office Retail NUMBER OF BUILDINGS NUMBER OF BUILDINGS NUMBER OF BUILDINGS 39 17 10 BOOK VALUE OF ASSETS ($M) BOOK VALUE OF ASSETS ($M) BOOK VALUE OF ASSETS ($M) $507.11 $548.61 $311.83 VACANCY FACTOR (BY RENT) VACANCY FACTOR (BY RENT) VACANCY FACTOR (BY RENT) 0.1% 0.9% 0.8% WALT
Slide 25: Lease Maturity as at June 2016
Lease Maturity as at 30 June 2016 20% 18% 16% 14% Percentage of portfolio (by income) 37 33 5 12% 11 11.9% 12.0% 11.9% 10% 11.1% 4 No. of leases 25 22 18 8% 9.4% 8.6% 8.6% 8 8.4% 20 6% 6.7% 6.1% 4% 11 2% 3.0% 2.3% 0% Vacant Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26 Mar-27
Slide 26: Financial Overview
Financial Overview
Slide 27: Financial Overview
Financial Overview Financial Performance FY16 FY15 Net property income $98.4m $90.8m Revaluation gains $42.2m $38.6m Profit before tax $83.6m $68.6m Distributable Income FY16 FY15 Profit before income tax $83.6m $68.6m Adjustments $(22.3m) $(12.3m) Gross distributable income $61.3m $56.3m Tax adjust
Slide 28: Concluding comments
Argosy » www.argosy.co.nz
Slide 29: Concluding comments
Concluding comments Argosy has a diversified portfolio of good quality and well located properties. Our focus remains on adhering to the strategy, maintaining the portfolio’s high level of occupancy, reducing near term lease expiries and improving tenant retention rates. We will also continue
Slide 30: Thank you
Argosy » www.argosy.co.nz
Slide 31: Questions from Shareholders
QUESTIONS FROM SHAREHOLDERS
Slide 32: Resolutions
Argosy RESOLUTIONS
Slide 33: Resolution 1
Resolution 1 That Michael Smith be re-elected as a Director
Slide 34: Resolution 2
Resolution 2 That Peter Brook be re-elected as a Director
Slide 35: Resolution 3
Resolution 3 That the Board be authorised to fix the auditor’s fees and expenses
Slide 36: General Business
Argosy GENERAL BUSINESS
Slide 37: Close of Meeting and Refreshments
CLOSE OF MEETING AND REFRESHMENTS
Slide 38: 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