Argosy Property Limited · NZX:ARG
Argosy Property — Shareholder Meeting (August 2019)
31 slides from Argosy Property's shareholder meeting presentation, Aug 8, 2019
Slide 1: 2019 Annual Meeting
2019 Annual Meeting Create. Manage. Own. Argosy Property Limited 8th August 2019 www.argosy.co.nz
Slide 2: The Board
The Board Mike Smith - Chairman Peter Brook - Director Jeff Morrison- Director Stuart McLauchlan - Director Chris Gudgeon - Director Mike Pohio - Director 2
Slide 3: Executive Team
Executive Team Peter Mence – Chief Executive Officer Dave Fraser – Chief Financial Officer 3
Slide 4: Agenda
Agenda Chairman’s Review Chief Executive Officer’s Review Questions Resolutions General Business Close of Meeting Note: Due to rounding, numbers presented in this presentation may not add up exactly to the totals provided and percentages may not exactly reflect absolute figures. 4
Slide 5: Chairman's Review
Chairman’s Review Change image 23 Customs Street, Snickel Lane 5
Slide 6: FY19 Full Year Highlights
FY19 Full Year Highlights 35.1% 5.0% Total shareholder Net Distributable return for 12 months Income increase $70.5m $100m Annual revaluation gain, Successful Green Bond 4.3% above book value Issue 4 Henderson Place, Compaq 6.1yr 6.275c 7WQ Weighted average Full year dividend Solid progress lease te
Slide 7: Dividends
Dividends The Board has signalled FY20 dividend guidance of 6.275 cents per share. The FY20 dividend reflects the Board’s wish for shareholders to share in the continued strong results whilst allowing Argosy to maintain its momentum towards an AFFO based dividend policy. A Q1 cash dividend of 1.5687
Slide 8: Governance / Risk Management
Governance / Risk Management Your Board is committed to the highest standards of business behaviour and accountability; We are guided by our Code of Conduct and Ethics; and We have a well developed risk management policy & framework which manages Argosy’s risks within the overall risk appetite set b
Slide 9: Capital Management
Capital Management Argosy operates within its Capital Management Framework The Board’s policy is for debt to total assets to be between 30% to 40% As at 31 March 2019 Argosy’s debt to total assets ratio was 35.6% We aim to maximise earnings through the property cycle within the following parameters:
Slide 10: Chief Executive Officer's Review
Chief Executive Officer’s Review 23 Customs Street, Level 2 – Predict HQ 10
Slide 11: Create. Manage. Own.
Create. Manage. Own. Proactive delivery of sustainable growth. Manage all elements of the business to deliver the right outcomes for all our stakeholders. Own the right assets, with the right attributes in the right locations. 11
Slide 12: Portfolio at a Glance
Portfolio at a Glance TOTAL PORTFOLIO VALUE TOTAL PORTFOLIO VALUE PORTFOLIO MIX BY SECTOR BY REGION BY VALUE 3% 8% 18% 10% 25% 44% 38% 72% 82% Industrial Auckland Core properties Office Wellington Value Add properties Retail Regional North Island Non Core & South Island Divestment of non Core assets
Slide 13: Distributable Income
Distributable Income FY19 FY18 $m $m Profit before income tax 143.3 109.3 Adjusted for: Revaluations gains (70.5) (47.3) Realised losses/(gains) on disposal (6.1) (0.3) Derivative fair value loss/(gain) 7.4 4.1 Earthquake expense net of recoveries (6.8) (0.2) Gross distributable income 67.3 65.6 Dep
Slide 14: Value Add
Value Add The following properties have been designated as Value Add and make up ~10% of the total portfolio: Valuation Property Location Sector $m 90 - 104 Springs Road, East Tamaki AKL Industrial 5.7 80 Springs Road, East Tamaki AKL Industrial 13.2 211 Albany Highway, Albany AKL Industrial 26.2 96
Slide 15: Green Assets
Green Assets Assets with Green Star Ratings and their NABERSNZ Ratings shown below. Value of Existing Green Assets Asset Value Address Use Current NABERSNZ Rating Green Star Rating (NZDm)1 143 Lambton Quay Office 4 Stars Energy Whole Building 5 Star Office Built $29.3 15-21 Stout Street Office 5 Sta
Slide 16: Lease Maturity
Lease Maturity Normalised lease maturity profile relatively stable over the medium term. Strong Crown interest in 7 Waterloo Quay space. 16
Slide 17: 2020 Focus
2020 Focus Create Continue transitioning Value Add properties to drive earnings and capital growth. Proactive delivery of sustainable growth. Ensure projects are completed on time and on budget. Keep investigating strategic acquisitions (off market or contiguous). Manage Maintain high tenant retenti
Slide 18: Questions
Questions Change image Albany Mega Centre 18
Slide 19: Resolutions
Resolutions Change image Albany Mega Centre 19
Slide 20: Resolution 1
Resolution 1 That Mike Smith be re-elected as a Director. 20
Slide 21: Resolution 2
Resolution 2 That Peter Brook be re-elected as a Director. 21
Slide 22: Resolution 3
Resolution 3 That Stuart McLauchlan be elected as a Director. 22
Slide 23: Resolution 4
Resolution 4 That Chris Gudgeon be elected as a Director. 23
Slide 24: Resolution 5
Resolution 5 That Mike Pohio be elected as a Director. 24
Slide 25: Resolution 6
Resolution 6 That for the purposes of NZX Listing Rule 2.11.1, the maximum aggregate amount of remuneration payable by the Company to Directors (in their capacity as Directors) be increased by $32,000 per annum, from $746,500 per annum to $778,500 per annum, with effect on and from 8 August 2019. 25
Slide 26: Resolution 7
Resolution 7 As a special resolution: That the existing constitution of the Company is revoked, and the constitution tabled at the meeting, and referred to in the explanatory memorandum under the heading “Change to Constitution”, is adopted as the constitution of the Company. 26
Slide 27: Resolution 8
Resolution 8 That the Board be authorised to fix the Auditor’s Fees and Expenses. 27
Slide 28: General Business
General Business Change image 28
Slide 29: Close of Meeting
Close of Meeting 29
Slide 30: Thankyou
Thankyou 30
Slide 31: 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