Argosy Property Limited · NZX:ARG
Argosy Property — Non-Deal Roadshow (June 2023)
33 slides from Argosy Property's roadshow presentation, Jun 21, 2023
Slide 1: 2023 Retail Roadshow: 21 June to 13 July
2023 Retail Roadshow: 21 June to 13 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 Results Summary 7 Portfolio Highlights 8 Financials 17 Leasing Update 26 Focus and Outlook 30 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. .3
Slide 4: Vision and Strategy
Vision and Strategy Argosy
Slide 5: Vision
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 ee 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 attrib
Slide 6: 2023 Achievements
2023 Achievements Delivered a solid FY23 result Executed asset allocation strategy and portfolio repositioning Continued our sustainability and development strategies Delivered on key focus areas (key expiries and vacancies) ● XXX Prudent capital management Sustained dividend .6
Slide 7: Results Summary
Results Summary $112.8m $64.2m 35.1% Net property income Net distributable income Gearing in the mid-point of target range $1.58 ($146.6)m Unrealised revaluation loss to 31 March NTA per share .7
Slide 8: Portfolio highlights
Portfolio highlights 99.3% Occupancy 5.4yrs 3.6% Weighted average lease term Annualised rent review increase on rents reviewed Note: Portfolio value excludes right of use asset at 39 Market Place of $40.1 million .8
Slide 9: Sector Summary
Sector Summary INDUSTRIAL OFFICE LARGE FORMAT RETAIL Number of buildings 35 Number of buildings 15 Number of buildings 4 Market value of assets ($m) $1,127.8 Market value of assets ($m) $811.1 Market value of assets ($m) $206.0 Occupancy (by income) 100% Occupancy (by income) 98.5% Occupancy (by inc
Slide 10: Portfolio at a glance @ 31 March
Portfolio at a glance @ 31 March Sector by value % Region by value % Asset Mix by value % 2 1 1. Large Format Retail. 2. Regional North Island and South Island. This weighting also includes up to 5% allocation to the Golden Triangle area between Auckland, Tauranga and Hamilton. .10
Slide 11: Argosy Portfolio vs MSCI Benchmark
Argosy Portfolio vs MSCI Benchmark .11
Slide 12: Dividends
Dividends Steady and sustainable 6.80 A 4th quarter dividend of 1.6625cps has 6.60 6.65 6.65 been declared with 0.01801 cents per share imputation credits attached. 6.55 6.40 6.45 Overseas investors will receive an 6.35 additional supplementary dividend of 6.20 6.28 0.008171 cents per share to o
Slide 13: Revaluations
Revaluations Cap rate headwinds but rental growth delivers 31 Mar 23 31 Mar 23 Book Value Valuation ($m) $m % ($m) Independent valuations undertaken at 31 March. Auckland 1,617.6 1,507.6 (110.0) (6.8%) Wellington 607.8 577.4 (30.5) (5.0%) $146.6m decline reported, or 6.4% revaluation to book
Slide 14: Value Add Properties
Value Add Properties Green assets delivering Status & Project Sector Location Conversion and transformation of Value Add properties remains a key strategic Completed driver over the next decade. 12-16 & 18-20 Bell Ave, Mt Wellington Industrial Auckland Green project at 105 Carlton Gore Road 105
Slide 15: Value Add case study: 8-14 Willis Street
Value Add case study: 8-14 Willis Street 6 Star 5 Star 15yr Lease commitment to Statistics Green Built rating being targeted NABERSNZ energy rating being targeted New Zealand $150m Book Value @ 31 March 4.8% Final yield on cost .15
Slide 16: Value Add case study: Carlton Gore Road
Value Add case study: 105 Carlton Gore Road 6 Star 5 Star 5.3% Forecast yield on cost Green Built rating being targeted NABERSNZ energy rating being targeted 50% Leased by net lettable area .16
Slide 17: Financials
Financials Argosy
Slide 18: Gross Property Income Waterfall
Gross Property Income Waterfall All areas of business contributing to rental growth .18
Slide 19: Financial Performance
Financial Performance Top line growth maintained The net property income increase was FY23 FY22 driven by a range of factors including $m $m strong like-for-like rental growth, leasing up activity, the acquisition of Maui St and Net property income 112.8 105.1 developments. Administration expenses
Slide 20: Distributable Income
Distributable Income Stability key in a FY23 FY22 challenging market $m $m Profit before income tax (70.9) 241.2 Net distributable income for the year was $64.2m compared to $64.7m in the prior Adjustments: comparable period. Revaluation (gains)/losses on investment property 146.6 (163.7) Curren
Slide 21: Adjusted Funds From Operations (AFFO)
Adjusted Funds From Operations (AFFO) FY23 FY22 AFFO covered dividends key $m $m Net distributable income 64.2 64.7 7WQ façade works completed in FY22 Amortisation of tenant incentives and leasing costs 2.7 4.6 AFFO payout ratio was 97% for the Funds from operations (FFO) 66.9 69.4 period. Capit
Slide 22: Investment Properties
Investment Properties Portfolio value down slightly over the period 1 2 .22 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. 1. Including NZ IFRS16 adjustment. 2. Excluding NZ IFRS16
Slide 23: NTA Per Share
NTA Per Share NTA movement driven by unrealised revaluations 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. .23
Slide 24: Balance Sheet Management
Balance Sheet Management Balance sheet sound, green Value Add developments FY23 FY22 $m $m and acquisition drives debt Investment properties 2,184.9 2,247.7 movement Asset held for sale 22.0 Acquisition of Maui St and completion of developments pushes debt higher Other assets 27.7 21.8 Argosy ha
Slide 25: Debt Profile including Bonds
Debt Profile including Bonds 450 400 Green bonds provide 350 100 diversification and tenor 300 250 285 100 200 During the year Argosy extended its 150 190 existing syndicated bank facilities with its Facilities ($m) banking group. 100 125 50 Industrial and Commercial Bank of China 0 Limited (ICB
Slide 26: Leasing
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Slide 27: Value Add Case Study: Mt Richmond Estate
Value Add Case Study: Mt Richmond Estate Leasing 97,500 ~15% Of NLA leased over the year, Equivalent of total portfolio by NLA 36 Leasing transactions including 16 new leases, 16 renewals and 4 extensions Green 59,386 15km from CBD Prime industrial location development Of NLA renewed by G
Slide 28: Lease Expiry & Rent Review Profile
Lease Expiry & Rent Review Profile Expiry profile remains well managed The largest single expiry remains the 9.4% expiry in Mar-27 to Ministry for Business, Innovation and Employment, at 15-21 Stout Street. FY24 sees $91.4m of portfolio income subject to rent reviews. Of these, $61.8m is subject
Slide 29: Market Insights
MARKET INSIGHTS INDUSTRIAL OFFICE LARGE FORMAT RETAIL Strong demand continues to drive Flexible working environments continue Online proportion of total sales has additional supply but quieter period in but full-time remote work is declining. reduced post pandemic. 2024 is projected. Changes
Slide 30: Focus & Outlook
Focus & Outlook Argosy
Slide 31: FY24 brings fresh challenges, but we're well placed
FY24 brings fresh challenges, but we’re well placed Strategy delivery is our key focus New Zealand domestic economy continues to experience headwinds from high interest rates and inflation. Argosy’s diversified portfolio exposure to attractive sectors provides resilience in turbulent times. Dive
Slide 32: Thank you.
Thank you. Argosy
Slide 33: 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