Argosy Property Limited · NZX:ARG
Argosy Property — Non-Deal Roadshow (June 2022)
29 slides from Argosy Property's roadshow presentation, June 2022
Slide 1: 2022 Retail Roadshow
2022 Retail Roadshow 22 June – 8 July Argosy Property Limited
Slide 2: CEO quote on portfolio diversity
“Our strength lies in the diversity of our portfolio by sector, location and tenant mix, providing flexibility to support our tenants changing needs, ensuring a resilient business through various economic cycles.” Peter Mence CEO .2
Slide 3: Agenda
Agenda Vision & Strategy 4 Achievements & Highlights 7 Portfolio Highlights 8 Peter Mence CEO Financials 14 Leasing Update 23 Focus and Outlook 26 Dave Fraser Note: Due to rounding, numbers presented in this presentation may not add up exactly to the totals provided and percentages may not reflect e
Slide 4: Vision and Strategy
Vision and Strategy Argosy
Slide 5: Vision: A better future through sustainable growth
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 6: 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 7: 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 .7
Slide 8: Portfolio Highlights
Portfolio Highlights 98.7% Occupancy 5.7yrs 3.0% Weighted average lease term Annualised rent review increase on rents reviewed .8
Slide 9: 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 10: 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 11: 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 12: Annual Revaluations
Annual Revaluations 31 Mar 22 Auckland industrial stars Valuation $163.7m gain reported, or 8% increase ($m) % over book value. Portfolio market yield Auckland 1,578.4 9.9% firms 35bps. On a cap rate basis, the portfolio firmed 39bps to 5.16%. Wellington 596.6 3.4% Auckland was again the large
Slide 13: Value Add Case Study: Mt Richmond Estate
Value Add Case Study: Mt Richmond Estate Mt Wellington Highway Great South Rd Key Case study metrics: 15km from CBD 40,000m2 of new warehouse space Mt Richmond +$250m projected end value Drive 4,000m2 of new office space Bell Avenue ~7% IRR .13
Slide 14: Financials
Financials Argosy
Slide 15: Gross Property Income Waterfall
Gross Property Income Waterfall Acquisition income offset by disposals of low growth assets .15
Slide 16: Financial Performance
Financial Performance Another solid result despite FY22 FY21 COVID impact $m $m Net property income was bolstered by Net property income 105.1 106.5 steady rental growth, a full year Administration expenses (11.8) (10.9) contribution from Mt Richmond, lower Covid-19 rent rebates over the period, P
Slide 17: 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 18: 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 19: Investment Properties
Investment Properties Capitalised costs and revaluations continue to drive investment portfolio higher .19 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. * Totals inclusive of NZIFR
Slide 20: NTA Per Share
NTA Per Share Revaluations drive 14% increase for year to 31 March 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. .20
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: Dividends
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 23: Leasing
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Slide 24: Leasing: Mt Richmond Estate Case Study
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 25: 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 8.8% expiry in Mar-27 to Ministry for Business, Innovation and Employment
Slide 26: Focus & Outlook
Focus & Ouilsok Argosy
Slide 27: 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 28: Thank you
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Slide 29: 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