Argosy Property Limited · NZX:ARG
Argosy Property — Shareholder Meeting (August 2012)
21 slides from Argosy Property's shareholder meeting presentation, Aug 28, 2012
Slide 1: Argosy Property Limited CEO Presentation
ARGOSY PROPERTY LIMITED CEO Presentation 28 August 2012
Slide 2: Highlights
HIGHLIGHTS Share price performance in excess of NZX50 and Property Index Increase in property values for second successive year Internalisation savings achieved Corporatisation achieved Distribution of 6.0 cents per unit for the 12 months to 31 March 2012 Weighted average lease term at year end 4.77
Slide 3: Share Price Performance (One Year)
SHARE PRICE PERFORMANCE (ONE YEAR) 130 125 120 115 110 Gross Prices Indexed to 100 105 100 95 90 85 Apr-11 Sep-11 Nov-11 Jan-12 Dec-11 Feb-12 May-11 Jun-11 Jul-11 Aug-11 Oct-11 Mar-12 Mar-11 Argosy Property Limited NZ Property Gross Index NZX 50 Index
Slide 4: Share Price Performance (Three Year)
SHARE PRICE PERFORMANCE (THREE YEAR) 190 180 170 160 150 Gross Prices Indexed to 100 140 130 120 110 100 90 Sep-09 Sep-10 Sep-11 Mar-09 Mar-10 Mar-11 Mar-12 Dec-09 Dec-10 Dec-11 Jun-09 Jun-10 Jun-11 Argosy Property Limited NZ Property Gross Index NZX 50 Index
Slide 5: Financial Overview
Argosy Financial Overview
Slide 6: Internalisation Savings – 7 Months to 31 March 2012
INTERNALISATION SAVINGS – 7 MONTHS TO 31 MARCH 2012 Forecast to achieve reduction in operational costs of $2.2 million for 7 months ($3.8 million per annum). Actual results: $Millions Savings since internalisation Forecast fees payable to Former Manager 4.6 ($658,000 per month) Less direct costs sin
Slide 7: Financial Position
FINANCIAL POSITION FY12 FY11 Securities on issue 558.5m 549.2m Shareholders’ funds (less intangible assets) $488.4m $505.7m Net tangible asset backing per share (cents) 87.5 92.1 Investment properties $905.2m $960.1m Other assets $24.1m $15.1m Total assets $929.3m $975.2m Bank debt (excluding borrow
Slide 8: Financial Performance and Distributable Income
FINANCIAL PERFORMANCE FY12 FY11 Net rental income $71.2m $72.3m Revaluation gains/(losses) on investment property $ 3.7m $ 2.1m Profit/(loss) before tax $(3.0m) $28.7m DISTRIBUTABLE INCOME FY12 FY11 Profit/(loss) before income tax $(3.0m) $28.7m Adjustments $36.4m $6.2m Gross distributable income $
Slide 9: Debt Facility
DEBT FACILITY Restructured facility with existing lenders Increase in limit from $450m to $500m Two even tranches of $250m First tranche expires on 30 June 2015 and the second on 30 June 2017 Immediate margin and line fee reductions on both tranches averaging 25bps (after upfront fees) saving $1.125
Slide 10: Covenants
COVENANTS FY12 FY11 Loan to valuation ratio: Not to exceed 50% 42.5% 42.9% WALT: Must exceed 3 Years 4.8 4.9 Interest cover ratio: Equal or exceed 1.8:1 (until September 2012, then 2.0:1) 2.07x 2.15x
Slide 11: Portfolio Overview
Argosy Portfolio Overview
Slide 12: Diversification
DIVERSIFICATION Retail 35% Auckland 74% Commercial 28% Wellington 14% Regional 12% Industrlal 37%
Slide 13: Lease Maturity
LEASE MATURITY 44 18% Lease expiries in FY13 reduced to 8.2% 17% of portfolio at 31 July 2012 16% 15% 17.9% Percentage of portfolio (by income) 14% Vacancy at 31 July 23 18 13% 2012 reduced to 12% 4.26% of portfolio 21 11% 1 10% 35 9% 29 8% 7% 12 6% 12.4% 12.4% 8 5 5% 10.5% 9.9% 9.0% 4% 4.6% 7.3% 5.
Slide 14: Vacancy
VACANCY TOTAL Industrial Retail Commercial 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%
Slide 15: Commercial/Office
NUMBER OF BUILDINGS COMMERCIAL/OFFICE 16 MARKET VALUE OF ASSETS ($M) $255.25 VACANCY FACTOR (BY RENT) 7.14% WALT (YEARS) 3.53 PASSING YIELD 9.03% VALUATION CHANGE 0.53%
Slide 16: Retail
NUMBER OF BUILDINGS RETAIL 12 MARKET VALUE OF ASSETS ($M) $320.47 VACANCY FACTOR (BY RENT) 1.87% WALT (YEARS) 5.85 PASSING YIELD 8.00% VALUATION CHANGE 0.49%
Slide 17: Industrial
NUMBER OF BUILDINGS INDUSTRIAL 37 MARKET VALUE OF ASSETS ($M) $329.53 VACANCY FACTOR (BY RENT) 8.84% WALT (YEARS) 4.80 PASSING YIELD 7.25% VALUATION CHANGE 0.22%
Slide 18: Portfolio Valuation Changes
PORTFOLIO VALUATION CHANGES 10% 9.3% 8% % Change 6% 3.9% 4% 2% 0.4% 0.2% 0% 2007 2008 2009 2010 2011 2012 -2% -4% -7.1% -6% -8.5% -8% -10%
Slide 19: Key Focus Areas
KEY FOCUS AREAS As outlined at last years Annual Meeting, the Board and Management continue to look for opportunities that will be accretive to shareholders. Occupancy remains a key focus as values are fundamentally affected by weighted average lease term and projected incentive levels. Rental revie
Slide 20: 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 21: Thank You
Argosy Thank You