Argosy Property Limited · NZX:ARG
Argosy Property — Shareholder Meeting (August 2018)
28 slides from Argosy Property's shareholder meeting presentation, Aug 6, 2018
Slide 1: 2018 Annual Meeting
2018 Annual Meeting Strength in diversity Argosy Property Limited 6th August 2018 www.argosy.co.nz
Slide 2: The Board
The Board Mike Smith - Chairman Peter Brook - Director Mark Cross - Director Chris Hunter - Director Jeff Morrison - Director Andy Evans - 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 Introduction 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 Introduction
Chairman's Introduction Argosy
Slide 6: Strategy
Strategy Diversified Continue to invest in a diverse range of properties across sectors, grades, sizes approach and locations Investment Strategy Core properties between 75-90% of the portfolio by value underpinned by Core and Value Investment Policy sector bands well established. Industrial 40-50%,
Slide 7: 2018 Highlights
2018 Highlights $101m Net property income 6.62c 98.8% NDI per share +1.1% Occupancy (by rental) $33.8m of $1.12 6.1 years green projects NTA +5.5% on prior year WALT Value Add Activities 7
Slide 8: Dividends
Dividends FY19 dividend guidance of 6.25 cents per share is an increase of ~1.0% on FY18 The FY19 dividend reflects the Boards wish for shareholders to share in the continued strong results whilst allowing Argosy to maintain its momentum towards an AFFO based dividend policy over the medium term Q1
Slide 9: 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 New Environmental Policy recognises the impact our business has on the natural environment is a consideration for investors We have a
Slide 10: Capital Management
Capital Management We operate within our Capital Management Framework The Board’s policy is for debt to total assets to be between 30% to 40% The debt to total assets ratio was 35.9% at 31 March 2018 We aim to maximise earnings through the property cycle within the following parameters: properties a
Slide 11: Looking ahead
Looking ahead Income and Earnings per share growth earnings AFFO based dividend policy in medium term sustainability Sound capital Liquid, flexible and diverse capital base position Improve portfolio Reduce key vacancies and proactive management of expiry profile metrics and quality Undertake Value
Slide 12: Chief Executive Officer's Review
Chief Executive Officer’s Review Change image 12
Slide 13: Focus Areas
Focus Areas ENVIRONMENTAL, SOCIAL & GOVERNANCE + Sustainability “Tenants *Community - Shareholders engagement Staff - Governance +Health & safety -Portfolio positioning - Asset allocation PROPERTY 13 PEOPLE Argosy » WWW.argosy.co.nz
Slide 14: Portfolio at a Glance
Portfolio at a Glance TOTAL PORTFOLIO VALUE TOTAL PORTFOLIO VALUE PORTFOLIO MIX BY SECTOR BY REGION BY VALUE 5% 6% 20% 7% 24% 42% 71% 38% 87% Industrial Auckland Core properties Office Wellington Properties and land to divest Regional North Island & Value Add properties Retail South Island Focus on
Slide 15: Sector Summary
Sector Summary NUMBER OF BUILDINGS NUMBER OF BUILDINGS NUMBER OF BUILDINGS 36 17 8 MARKET VALUE OF ASSETS ($M) MARKET VALUE OF ASSETS ($M) MARKET VALUE OF ASSETS ($M) $637.6 $577.3 $298.3 OCCUPANCY (BY INCOME) OCCUPANCY (BY INCOME) OCCUPANCY (BY INCOME) 99.9% 97.3% 100% WALT (YEARS) WALT (YEARS) WAL
Slide 16: Completed Developments
Completed Developments Total Cost $m Development Major Tenant Type Location Highgate Business Park Mighty Ape IND AKL 24.7 82 Wyndham Panuku OFF AKL 9.1 Foundry Drive Polarcold Stores Ltd IND CHC 7.5 Snickel Lane Various OFF AKL 7.5 TOTAL 48.8 Argosy completed two green developments totalling $33.8m
Slide 17: Lease Maturity
Lease Maturity Lease maturity profile relatively stable over the medium term, no material single tenant exposure 22% 35 20% 30 18% Percentage of portfolio (by income) 16% 13 25 12 14% 15.0% 8 20 12% 12.8% 9 29 23 21 10% 11.3% 10.0% 28 15 9.9% 9.7% 10.0% 8% 8.6% 6% 12 10 17 4% 4.7% 4 4.2% 5 2% 2.6% 1
Slide 18: Financial Summary
Financial Summary NDI per share increased 1.1% on FY17 FY18 FY17 $m $m Net property income 101.0 100.8 Distributable Income FY18 FY17 $m $m Profit before income tax 109.3 120.4 Adjusted for: Revaluations gains (47.3) (42.3) Realised losses/(gains) on disposal (0.3) (2.7) Derivative fair value loss/(
Slide 19: Market Update
Market Update Modest economic growth still forecast which will drive steady net absorption The mixture of a stable economy and continued technology change is driving demand for industrial assets Growth in Auckland office supply is yet to cause concern, projections for increased vacancy around 2020 a
Slide 20: Outlook
Outlook Fundamental real estate drivers remain sound Whilst global volatility is still present, the New Zealand economic outlook is still positive with economic growth forecast and resilient local equity markets Argosy’s diversified portfolio provides balance across sectors allowing it to make the m
Slide 21: Questions
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Slide 22: Resolutions
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Slide 23: Resolution 1
Resolution 1 That Jeff Morrison be re-elected as a Director 23
Slide 24: Resolution 2
Resolution 2 That the Board be authorised to fix the Auditor’s Fees and Expenses 24
Slide 25: General Business
General Business Change image 25
Slide 26: Close of Meeting
Close of Meeting Change image 26
Slide 27: Thank you
Thank you _ tT i Ia = - -™. ae = == = Ce ae = WWW.argosy.co.nz
Slide 28: 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