Argosy Property Limited · NZX:ARG
Argosy Property — Argosy Property Trust — H1 2011 Earnings Presentation
21 slides from Argosy Property's earnings presentation, Nov 29, 2010
Slide 1: Half Year Results
WWW.ARGOSYPROPERTYTRUST.CO.NZ HALF YEAR RESULTS 29 NOVEMBER 2010
Slide 2: Highlights
HIGHLIGHTS New independent brand in place Guidance to annual dividend of 7cpu Weighted average lease term increased to 5.3yrs Occupancy at 95.7% 40 lease transactions during the period Rental arrears at a 12 month low Solid unit price performance relative to property index and NZX50
Slide 3: ING/Argosy/ANZ/OnePath
ING/ARGOSY/ANZ/ONEPATH Just who are we? ING(NZ) was 50% owned by ANZ ANZ now owns 100% of the business ING name in New Zealand is to go this year ING (NZ) was re-branded OnePath ING Property Trust became Argosy Property Trust, reflecting the specialist nature of our business
Slide 4: Unit Price Performance
Gross Prices Indexed to 100 90 95 100 105 110 115 120 125 130 135 140 145 150 Mar-09 Apr-09 May-09 Jun-09 Jul-09 ARG Aug-09 Sep-09 NZ Property Gross Index Oct-09 Nov-09 NZX 50 Index Dec-09 Jan-10 Feb-10 Mar-10 UNIT PRICE PERFORMANCE
Slide 5: Portfolio Overview
Argosy » Property Trust PORTFOLIO OVERVIEW ! amen hy ai il! Te Ne Mh | Tana a BL te
Slide 6: Summary Statistics
SUMMARY STATISTICS As at 30 September 2010 Book value of properties $946,540,000 Number of properties 81 Average value of properties $11,685,679 Vacancy by area 4.87% Vacancy by rental 4.28% Weighted average lease term 5.3% Number of tenants 280
Slide 7: Diversification by Sector and Location
DIVERSIFICATION BY SECTOR AND LOCATION
Slide 8: Industrial
INDUSTRIAL Sector has performed with relative stability during GFC Export led recovery is expected to give fairly strong net absorption for the next three years BUT vacancy level is significant due to increased design build activity Potential for obsolescence is high Auckland is a focus for manufact
Slide 9: Commercial Offices
COMMERCIAL OFFICES A big issue in this sector is vacancy and pending vacancy in both Auckland and Wellington Increased supply when net absorption has been negative Has been a level of excess capacity in the market Additional level of supply is proposed in the future Watch on employment figures for a
Slide 10: Retail
RETAIL It has been a hard road and many have fallen Landlords have needed to work with some tenants to restructure leases Landlords will have traded for lease term and for future growth Those who haven't may be over rented and short on lease term Retail has virtually no excess capacity and the marke
Slide 11: Strategy
Argosy » Property Trust STRA TEG Y With , hy \, i 4 “4 Lat Weare Bye Tay
Slide 12: Strategy
STRATEGY Risk mitigation Capital management / debt reduction Portfolio positioning for the future
Slide 13: Valuations
VALUATIONS No evidence of significant movement in values Following assessment of markets and property details no interim valuations were commissioned Revaluations will be completed by 31 March 2011 for year-end results as normal Capitalisation rate and rate of return largely flat Management consider
Slide 14: The Environment
THE ENVIRONMENT 30.0% 20.0% 10.0% NZX50 annual return 0.0% INGPT revals INGPT sales GDP -10.0% -20.0% -30.0% 2007 2008 2009 2010
Slide 15: Positioning the Portfolio for the Future
POSITIONING THE PORTFOLIO FOR THE FUTURE 40 lease transactions 16 lease renewals and extensions 24 new leases Sales of vacant property Sale of higher risk property New 6-year leases for both of the Trust’s major Wellington Office towers from Te Puni Kokiri and the Department of Internal Affairs.
Slide 16: Financial Overview
Argosy » Property Trust FINANCIAL OVERVIEW ! amen hy ai il! Te Ne Mh | Tana a BL te
Slide 17: Financial Performance
FINANCIAL PERFORMANCE HY11 HY10 Change Net rental income $ 35.6m $ 40.9m (13%) Interest expense $ 13.5m $ 13.5m 0% Loss on derivatives $ 9.7m $ 7.3m Revaluation losses – on investment property - $ 13.6m – on construction - $ 1.5m Operating surplus (pre disposals and revaluations) $ 31.4m $ 34.4m (8.
Slide 18: Distributable Income
DISTRIBUTABLE INCOME HY11 HY10 Profit before finance income/(expenses) and $31.4m $34.4m other gains/(losses) Add back/(deduct): Interest income $0.4m $0.3m Interest expense $(13.5m) $(13.5m) Amortisation of management contract $0.7m $0.7m Gross distributable income $19.0m $21.9m Current Tax $(1.5m)
Slide 19: Financial Position
FINANCIAL POSITION HY11 HY10 Change Securities on issue 544.3m 534.2m Unitholders’ funds (includes minority interest) $405.0m $561.7m Net asset backing per unit (cents) 74.4c 105.8c Adjusted net asset backing per unit (cents) 93.4c 105.8c Total property value $956.3m $1,006.9m Bank debt $408.3m $404
Slide 20: Thank You
Argosy » Property Trust THANK YOU With , hy \, i 4 “4 Lat Weare Bye Tay
Slide 21: Disclaimer
DISCLAIMER This presentation has been prepared by Argosy Property Management Limited on behalf of Argosy Property Trust. 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 inde
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