Argosy Property Limited · NZX:ARG
Argosy Property — Debt Investor Presentation (February 2019)
30 slides from Argosy Property's debt investor presentation, Feb 20, 2019
Slide 1: Green Bond Offer
Green Bond Offer Argosy Property Limited 20 February 2019 www.argosy.co.nz
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer This presentation has been prepared by Argosy Property Limited (“Argosy”). 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 p
Slide 3: Contents
Contents Key Offer Terms Page 4 Argosy Overview Page 6 Portfolio Summary Page 9 Financial Results Page 14 Green Bond Offer Page 18 Key Dates Page 25 Appendices Page 27 Note: Due to rounding, numbers presented in this presentation may not add up exactly to the totals provided and percentages may not
Slide 4: Key Offer Terms
Key Offer Terms Argosy Hi Ta » = Om al — ae ,
Slide 5: Key Offer Terms
Key Offer Terms Summary Detail Issuer Argosy Property Limited (“Argosy”) Description Senior secured fixed rate green bonds (“Green Bonds”) Offer amount Up to NZ$75 million plus up to NZ$25 million of oversubscriptions (at Argosy’s discretion) Use of proceeds The proceeds of the Offer are intended to
Slide 6: Argosy Overview
Argosy Overview 6 www. argosy.co.nz
Slide 7: Argosy Overview
Argosy Overview Argosy is one of New Zealand’s largest diversified property companies listed on the NZX. Owns a $1.62 billion1 real estate portfolio diversified across industrial, office and retail sectors. Portfolio focused in key Auckland (71% by value) 1 and Wellington (24% by value) 1 markets. Q
Slide 8: Strategy
Strategy Shareholder Transition Value Add properties to Core to drive earnings and capital return focus growth with an environmental focus. Streamlined tenant led development process and execution. Diversified approach Continue to manage and own a diverse range of properties across sectors, location
Slide 9: Portfolio Summary
Portfolio Summary Argosy 9 www.argosy.co.nz
Slide 10: $1.62B Portfolio Overview
$1.62B Portfolio Overview TOTAL PORTFOLIO VALUE TOTAL PORTFOLIO VALUE PORTFOLIO MIX BY SECTOR BY REGION BY VALUE Industrial 41% Auckland 71% Core properties 83% Office Wellington Value Add properties 37% 24% 7% Retail Regional North Island Properties and land to divest 22% & South Island 5% 10% Data
Slide 11: Auckland & Wellington Focus
Auckland & Wellington Focus Argosy’s property portfolio by location A diversified portfolio of high quality assets (62) and tenants (172). Value add opportunities with existing and potential new tenants. Note: Rental and property data as at 30 September 2018 (excludes property held for sale at 30 Se
Slide 12: Environmental Strategy
Environmental Strategy The impact of Argosy’s property investment business on the natural environment is an increasingly important consideration for investors, tenants and other stakeholders. Our environmental strategy reflects our long-term ambition to create vibrant sustainable workplaces for our
Slide 13: Green Projects Completed
Green Projects Completed 15-21 Stout Street, 82 Wyndham Street, Highgate Parkway, Auckland Wellington Auckland Completion: 2014 2017/18 2018 NLA / WALT: 21,000sqm / 7.8yrs 6,000sqm / 7.1yrs 10,600sqm / 9.4yrs Green Star rating: 5 Star Built 5 Star Built Targeting 4 Star Built NABERSNZ rating: 5 Star
Slide 14: Financial Results
Financial Results PICTURE 14
Slide 15: FY19 Half-Year Financial Highlights
FY19 Half-Year Financial Highlights FINANCIAL FINANCIAL POSITION PERFORMANCE $1.62B $50.8m Investment Portfolio Net property income +4.7% 36.8% $71.2m Debt-to-total assets ratio Profit before tax $1.17 3.47c NTA per share +4.5% Net Distributable Income per share +8.8% 15
Slide 16: Business Snapshot
Business Snapshot Our focus is delivering improved portfolio quality and is reflected in our strong portfolio metrics. Occupancy WALT (years) 100.0% 7.00 6.00 80.0% 5.00 60.0% 4.00 40.0% 3.00 2.00 20.0% 1.00 0.0% 0.00 FY15 FY16 FY17 FY18 1H19 FY15 FY16 FY17 FY18 1H19 Net Tangible Assets Debt-to-tota
Slide 17: Funding & Interest Rate Management
Funding & Interest Rate Management 1H19 FY18 Weighted average duration of bank facility 2.6 years 3.1 years Weighted average interest rate1 4.86% 4.98% Interest Cover Ratio 3.3x 3.3x % of fixed rate borrowings 57% 62% Average fixed interest rate2 4.56% 4.56% Argosy maintains strong relationships wit
Slide 18: Green Bond Offer
Green Bond Offer Argosy \ 2 TY te | oe ae | ae ae ey seul |pp Ge 2 Gh aang BORED |g MBE 2 Se a adae EHTS | GB EIS ae © Hea tance Llstateaag ERRLLLTTTLTE IH EX ~ st 18 www. argosy.co.nz
Slide 19: Security
Security The Guaranteeing Subsidiaries, being Argosy Property Management Limited, Argosy Property No.1 Limited and Argosy Property No.3 Limited, have granted an unconditional and unlimited guarantee of Argosy's obligations under the Green Bonds. The Green Bonds are secured by a general security inte
Slide 20: Covenants and Default
Covenants and Default Key covenants under the Trust Deed include: Borrowed Money Indebtedness1 is no more than 50% of the Mortgaged Property Value; No distributions to be paid if an Event of Default has occurred and is continuing, or would occur as a result of making that distribution. Events of Def
Slide 21: Loan to Value Ratio
Loan to Value Ratio As at 30 September 2018: The amount of Argosy’s Borrowed Money Indebtedness¹ was $605 million. The Mortgaged Property Value 2 is $1,598 million. Loan to Value Ratio Borrowed Money Indebtedness¹ $605m Mortgaged Property Value2 $1,598m Loan to Value Ratio (%) 37.9% 1. Borrowed Mone
Slide 22: Adjusted Debt Profile & Tenor
Adjusted Debt Profile & Tenor Delivers funding diversification with 15% of total debt from non-bank sources. Extends weighted average funding tenor from 2.1 years to 2.9 years from expected issue date of 27 March 2019, assuming $100 million of Tranche B is repaid. 1. Assumes $100 million (including
Slide 23: Green Bond Framework
Green Bond Framework Use of proceeds The proceeds of the Offer are intended to be used to refinance existing bank debt that supports Green Assets. External review EY has issued a reasonable assurance report to Argosy, advising that Argosy's pre- issuance process in relation to the Green Bonds (as de
Slide 24: Green Assets
Green Assets The assets included in the initial Use of Proceeds Report are set out below, along with their NABERSNZ Rating, Green Star Rating and latest valuation as at 31 March 2018. Value of Existing Green Assets Asset Value Address Use Current NABERSNZ Rating Green Star Rating (NZD m) 143 Lambton
Slide 25: Key Dates
Key Dates Argosy
Slide 26: Key Offer Dates
Key Offer Dates Key Event Date PDS lodged 20 February 2019 Announcement of minimum Interest Rate and indicative Margin 27 February 2019 range Firm bids due 6 March 2019 (12pm) Rate Set Date 6 March 2019 Opening Date 7 March 2019 Closing Date: Priority Offer 20 March 2019 General Offer 22 March 2019
Slide 27: Appendices
Appendices » www.argosy.co.nz
Slide 28: Board of Directors
Board of Directors Mike Smith - Chairman Peter Brook - Director Jeff Morrison - Director Extensive management and Extensive management and 40 years as a property lawyer, 29 of corporate governance experience governance experience in New these as a partner at Russell in New Zealand. Zealand. McVeagh.
Slide 29: Board of Directors
Board of Directors Stuart McLauchlan - Director Chris Gudgeon - Director Mike Pohio - Director More than 25 years experience Involved in property, investment 25 years of experience across across corporate New Zealand. and development for more than corporate New Zealand. 25 years in New Zealand. Prev
Slide 30: Management
Management Peter Mence - CEO Dave Fraser – CFO An engineer by background, Peter has 35 years of Has over 28 years in senior financial and general experience in the property industry working with management roles both in New Zealand and Progressive Enterprises, Challenge Properties, Richard overseas,
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