Argosy Property Limited · NZX:ARG
Argosy Property — Shareholder Meeting (August 2014)
29 slides from Argosy Property's shareholder meeting presentation, Aug 26, 2014
Slide 1: Annual Meeting CEO Presentation
Annual Meeting CEO Presentation Argosy Property Limited 26 August 2014
Slide 2: Argosy Continued Momentum
Argosy CONTINUED MOMENTUM
Slide 3: Highlights
Highlights gi | » www.argosy.co.nz
Slide 4: Highlights of FY14
Highlights of FY14 Valuation gain of $33.5 million, up 2.8% on book values Distributable income increased to $50.0 million (increase of 18.4%) Net property income increased to $82.2 million (increase of 17.7%) Net profit after tax increased to $85.6 million (increase of 118%) Occupancy (by
Slide 5: Total Shareholder Return – 1 Year
Total Shareholder Return – 1 Year 120 115 110 Gross Prices Indexed to 100 105 100 95 90 Mar-13 Mar-14 Oct-13 Nov-13 Dec-13 Jun-13 Apr-13 Jul-13 Sep-13 Jan-14 May-13 Aug-13 Feb-14 Argosy Property Limited NZ Property Gross Index NZX 50 Index
Slide 6: Total Shareholder Return – 5 Years
Gross Prices Indexed to 100 100 120 140 160 180 200 220 240 260 80 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Argosy Property Limited Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 NZ Property Gross Index Jun-12 Sep-12 Dec-12 Total Shareholder return – 5 Years Mar-13 NZX 50 Index Jun-13 Sep-13 Dec-
Slide 7: Strategy
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Slide 8: Clear investment strategy with diversified portfolio of desirable properties
We have a clear investment strategy marked by a diversified portfolio of desirable properties that attract high-quality, long-term tenants.
Slide 9: Portfolio Investment Strategy
Portfolio Investment Strategy Argosy is and will remain invested in a portfolio that is diversified by sector, grade, location and tenant mix. The portfolio will be in the Auckland and Wellington markets with modest tenant-driven exposure to provincial markets. Argosy’s portfolio consists of “Core”
Slide 10: Portfolio Mix as at July 2014
Portfolio Mix as at 31 July 2014 TOTAL PORTFOLIO VALUE TOTAL PORTFOLIO VALUE PORTFOLIO MIX BY SECTOR BY REGION 3% 5% 9% 6% 28% 36% 23% 69% 85% 36% Target Target Target Retail 15 – 25% Auckland 65 – 75% Core 75 – 85% Office 35 – 45% Wellington 20 – 30% Value Add properties Industrial 35 – 45% Palmers
Slide 11: Portfolio Overview
Portfolio Overview = * cot | vi | jee ~ {li we z {ny SSS » Www.argosy.co.nz
Slide 12: Office
Office NUMBER OF BUILDINGS 18 BOOK VALUE OF ASSETS ($M) $437.34 VACANCY FACTOR (BY RENT) 1.65% WALT (YEARS) 5.33
Slide 13: Industrial
Industrial NUMBER OF BUILDINGS 35 BOOK VALUE OF ASSETS ($M) $441.78 VACANCY FACTOR (BY RENT) 0.63% WALT (YEARS) 6.48
Slide 14: Retail
Retail NUMBER OF BUILDINGS 13 BOOK VALUE OF ASSETS ($M) $347.15 VACANCY FACTOR (BY RENT) 1.57% WALT (YEARS) 5.16
Slide 15: Leasing Environment
Leasing Environment The New Zealand economy is in an expansion phase with relatively strong growth expected for 2014. Increased expectation of growth in net effective rentals. Positive net absorption in industrial and office sectors in Auckland. Elevated levels of confidence, with activity e
Slide 16: Leasing
Leasing The core operational areas of occupancy, tenant retention and upcoming lease expiry remain the key focus for the asset management team. Occupancy (by rental) improved to 98.7% at March 2014, up from 96.2% at March 2013. Occupancy has since improved to 98.9% as at 31 July 2014. As at 31
Slide 17: Lease Maturity
Lease Maturity Lease maturity profile is in good shape 21% 8 45 20% 19% 40 18% 17% 21 Percentage of portfolio (by income) 16% 35 15% 21.0% 14% 30 13% 12% 32 30 25 11% 10% 42 23 9% 20 40 16.2% 8% 7% 12 15 6% 9.4% 10.3% 10.9% 5% 8.9% 10 10 4% 7.9% 3 3% 13 6.6% 2% 3 5 3.5% 2.9% 1% 1.3% 1.1% 0% 0 Vacant
Slide 18: Acquisitions: Favona Rd, Mangere
Acquisitions 80 Favona Rd, Mangere, Auckland The property comprises a large integrated distribution centre and head office complex on a large level industrial lot in the Auckland suburb of Mangere. Property type Industrial Net lettable area 59,448 sqm PHOTOS Settlement date June 2013 Lease term at a
Slide 19: Acquisitions: Carlton Gore Rd, Newmarket
Acquisitions 101 Carlton Gore Rd, Newmarket, Auckland A single tenanted, modern office building located in Newmarket, surrounded by quality commercial office blocks with great views of the Auckland Domain. The property has five levels of office space with carparking over two levels. Property type Of
Slide 20: Acquisitions: Nesdale Ave, Wiri
Acquisitions 19 Nesdale Ave, Wiri, Auckland The property is a modern, purpose-built warehouse storage facility located approximately 3 kilometres west of Manukau CBD and has good access to the South Western motorway, allowing direct connection to Auckland International Airport. Property type Industr
Slide 21: Developments
Developments 15-21 Stout Street The redevelopment was completed on time and on budget with MBIE occupying in July 2014. Property type Office Net lettable area 19,629 sqm Lease commencement July 2014 Lease term 12 years Passing yield on end cost 8.11% Purchase price $33.2 million Upgrade cost $46.6 m
Slide 22: Upgrade
Upgrade NZ Post House The contract to complete the upgrade has been awarded to Hawkins Construction. Work has commenced and is expected to be complete by mid 2016. Property type Office Net lettable area 24,977 sqm Lease commencement March 2013 Lease term 7 years Passing yield on end cost 8.50% Purch
Slide 23: Divestments
Divestments 10% of the portfolio marked for divestment as at 31 March 2014. Subsequent to year end, 8 Pacific Rise and vacant property in Palmerston North have both settled. Waitakere Mega Centre sale unconditional with settlement due in March 2015. Following this, 6% remains on the divestme
Slide 24: Financial Overview
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Slide 25: Financial Overview
Financial Overview Financial Performance FY14 FY13 Net property income $82.2m $69.9m Revaluation gains $33.5m $9.3m Profit before tax $98.8m $38.7m Distributable Income FY14 FY13 Profit before income tax $98.8m $38.7m Adjustments $(48.8m) $3.5m Gross distributable income $50.0m $42.2m Tax paid $0.0m
Slide 26: Concluding Comments
Concluding Comments. <<) MITRE 19 —_-_—_—_— —. freedoms | oy J 4 a - i ser 13 —— ——_ j » Www.argosy.co.nz
Slide 27: Key Focus Areas For This Year
Key Focus Areas For This Year Leasing remains a key focus as values are fundamentally affected by weighted average lease term and projected incentive levels. Ensuring that Argosy is well positioned to gain rental increases when these become available. Investment strategy – ensuring consistency with
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