Argosy Property Limited · NZX:ARG
Argosy Property — Debt Investor Presentation (October 2020)
22 slides from Argosy Property's debt investor presentation, Oct 12, 2020
Slide 1: Green Bond Offer
Green Bond Offer 12 OCTOBER 2020
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Argosy Property Limited ("Argosy") in relation to the offer ("Offer") of senior secured fixed rate green bonds described in this presentation ("Green Bonds"). The offer of Green Bonds by Argosy is made in reliance upon the exclusion in clause 19 of s
Slide 3: Agenda
Agenda Offer Highlights 4 PRESENTED BY Portfolio Update 6 Green Bond Offer 12 Key Terms & Dates 18 Dave Fraser Chief Financial Officer Appendix 21 Saatyesh Bhana Head of Sustainability Note: Due to rounding, numbers presented in this presentation may not add up exactly to the totals provided and per
Slide 4: Offer Highlights
Offer Highlights an ay ft] iim ae 4 i gr ‘| “{ ii | ' Z Y b iT ‘ ri « ey | i if, f ; li = ji ae] | r | | . | !
Slide 5: Offer Highlights
Offer Highlights Issuer Argosy Property Limited (“Argosy”) Instrument Senior secured fixed rate green bonds (“Green Bonds”) Offer Amount Up to NZ$125 million plus up to an additional NZ$25 million of oversubscriptions (at Argosy’s discretion) Tenor & Maturity Date 7 years, maturing 27 October 2027 A
Slide 6: Portfolio Update
Portfolio Update CHANGE IMAGE 6—
Slide 7: Auckland and Wellington Focus
Auckland and Wellington Focus1 42% Number of properties by location3 Portfolio weighting by value to industrial property2 27% of rent from Government tenants 1. September 2020 desktop valuations are not included in portfolio weightings as they are incomplete and remain subject to finalisation and re
Slide 8: Portfolio Snapshot
Portfolio Snapshot $1.84 BILLION1 BOOK VALUE @ 30 SEPTEMBER 2020 TOTAL PORTFOLIO VALUE TOTAL PORTFOLIO VALUE TOTAL PORTFOLIO VALUE BY SECTOR1 BY REGION1 BY ASSET MIX1 6% 15% 2% 13% 27% 42% 43% 71% 81% Target Target Target Bands Bands Band Industrial 45-55% Auckland 65-75% Core 75-90% Office Wellingt
Slide 9: 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 ambition to create vibrant sustainable workplaces for our tenants. W
Slide 10: Green Project Under Development
Green Project Under Development 8-14 Willis Street / 360 Lambton Quay Completion Targeting Q1 2022 Green Star Rating Targeting 6 Star Built NABERSNZ Targeting 5 Stars Major tenant Department of Statistics WALT 15 years Valuation1 $138.0 million 1. Expected value on completion based on ‘as if complet
Slide 11: Recently Completed Green Projects
Recently Completed Green Projects 107 Carlton Gore Rd, Auckland Completed 2019 Green Star Rating 5 Star Built NABERSNZ Targeting 4 Stars Major tenant Kāinga Ora (Housing New Zealand) WALT1 11. 4 years Valuation2 $42.9 million 82 Wyndham Street, Auckland Completed 2018 Green Star Rating 5 Star Built
Slide 12: Green Bond Offer
Green Bond Offer 12 —
Slide 13: Security
Security The Guaranteeing Subsidiaries, being Argosy Property Management Limited and Argosy Property No.1 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 interest granted by Argosy and the
Slide 14: Covenants and Events of Default
Covenants and Events of Default Key covenants under the Trust Deed include: Borrowed Money Indebtedness1 is no more than 50%2 of the Secured Property Value3; 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. Even
Slide 15: Adjusted Debt Profile & Tenor
Adjusted Debt Profile & Tenor Increases funding diversification from 23% to 41% of total debt from non-bank sources after bond issuance announced today1. Argosy’s weighted average funding tenor is extended from 3.1 years to 4.2 years from expected issue date of 27 October 20201. 4.2yrs Weighted
Slide 16: 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 limited assurance report to Argosy in relation to the proposed use of funds raised through the issuance of the Green Bonds
Slide 17: Green Assets
Green Assets Existing Green Assets Total Project Current 1 Address Use Current NABERSNZ Rating Green Star Rating Cost Market Value (NZDm) (NZDm) 143 Lambton Quay Office 4 Stars Energy Whole Building 5 Star Office Built $27.8 $23.8 15-21 Stout Street Office 5 Stars Energy Whole Build 5 Star Office Bu
Slide 18: Key Terms & Dates
Key Terms & Dates 18 —
Slide 19: Key Offer Terms
Key Offer Terms Summary Detail Issuer Argosy Property Limited. Instrument Senior secured fixed rate green bonds. Offer amount Up to NZ$125 million plus up to an additional NZ$25 million of oversubscriptions (at Argosy’s discretion). Use of proceeds The proceeds of the Offer are intended to be used t
Slide 20: Key Offer Dates
Key Offer Dates Key Event Date Offer opens Monday 12 October 2020 Rate Set Date Friday 16 October 2020 Closing Date 12pm, Friday 16 October 2020 Issue Date Tuesday 27 October 2020 Expected date of initial quotation and trading on the NZX Debt Market Wednesday 28 October 2020 First Interest Payment D
Slide 21: Appendix
Appendix 21 —
Slide 22: 5 Year Operating Snapshot
5 Year Operating Snapshot Occupancy WALT (years) 100% 7.0 6.0 80% 5.0 60% 4.0 40% 3.0 2.0 20% 1.0 0% 0.0 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Net Tangible Assets (per share) Debt-to-total assets $1.40 40% $1.20 35% 30% $1.00 25% $0.80 20% $0.60 15% $0.40 10% $0.20 5% $0.00 0% FY16 FY17
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