Argosy Property Limited · NZX:ARG
Argosy Property — Non-Deal Roadshow (May 2025)
43 slides from Argosy Property's roadshow presentation, May 23, 2025
Slide 1: FY25 Retail Roadshow: 23 May - 16 June 2025
FY25 Retail Roadshow: 23 May - 16 June 2025
Slide 2: Agenda
Agenda Results Summary 4 Portfolio 5 Development Update 10 Financials 15 Leasing & Sector Commentary 23 Focus and Outlook 29 Appendices 34 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 figu
Slide 3: CEO quote on green properties
“We continue to receive good enquiry for green properties, with their vibrant and engaging environments, which reinforces our overall strategic direction.” Peter Mence, CEO Argosy Property Limited Ltd. 3
Slide 4: Results Summary
Results Summary $116.9m Net property income up 0.4% $72.7m Revaluation gain to 31 March 6.65cps Dividend for FY25 $1.53 $55.8m 35.7% NTA per share, up 5.6% Net Distributable Income Gearing within the target 30-40% band Argosy Property Limited 4
Slide 5: Portfolio Highlights
Portfolio Highlights 96.5% 5.1yrs 3.5% Occupancy Weighted Average Lease Term Annualised growth on rent reviews 86% Tenant retention rate 33.2% Government sector rental income 46.7% Weighting to Auckland Industrial Argosy Property Limited 5
Slide 6: Portfolio at a glance
Portfolio at a glance Sector by value % Region by value % Asset mix by value % 10 3 7 13 26 53 37 71 80 1 Targets: Industrial (60-70%) Office (20-30%) LFR (5-15%) Auckland (70-80%) Wellington (15-25%) Regional (0-10%) Core (75-90%) Value Add Divest 1. Large format retail. Argosy Property Limited 6
Slide 7: Portfolio snapshot
Portfolio snapshot Occupancy (%) WALT (years) 100 6.0 99.0 98.7 99.3 96.7 96.5 5.5 5.7 80 5.0 5.4 5.2 5.1 4.0 60 3.0 40 2.0 20 1.0 0 0.0 FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 Net Tangible Assets ($ per share) Debt-to-total-assets (%) 2.00 40 35.9 36.5 35.7 1.74 35.1 1.50 30 1.53 1.58 1.5
Slide 8: Revaluations
Revaluations MARKET RENTALS UP 31 Mar 25 31 Mar 25 Mar 25 Mar 24 • Independent valuations as at 31 March Book Value Valuation $m % Cap rate Cap rate ($m) ($m) % % were completed on all properties. Auckland 1,429.3 1,494.1 64.8 4.5% 6.27% 6.31% • $72.7m gain reported, or 3.6% revaluation Wellin
Slide 9: Award winning green developments
Award winning green developments 8 Willis Street & Steward Dawsons Corner, Wellington Owner/developer: Argosy Property 8 Willis Street & Steward Dawsons Corner, Wellington Owner/developer: Argosy Property 8 Willis Street & Steward Dawsons Corner, Wellington Owner/developer: Argosy Property Stantec B
Slide 10: Neilson Street Development
224 Neilson Street Development 6,557m2 6 Star 15,300m2 of warehouse/office/canopy Green Built Design rating on track for completion in leased to Bascik Transport achieved on completed space September 2025 (Warehouse B) 5 Star $110m NABERSNZ energy rating value on completion $11.1m development margin
Slide 11: 8-14 Mt Richmond Drive Development (3 stages)
8-14 Mt Richmond Drive Development (3 stages) 6,633m2 Stage 1 leased to Viatris Limited on 9,500m2 will be added across two buildings 39,000m2 will be added across two buildings a 10-year lease, completion in Stage 2 in Stage 3 expected April 2026 9.4% forecast IRR on completion $13m profit on land
Slide 12: 291 East Tamaki Road
291 East Tamaki Road LOCATION AND SITE AREA • This prime industrial site at 291 East Tamaki Road, East Tamaki is situated at the southern end of the East Tamaki Industrial Precinct, approximately 2 kms from the SH1 motorway. It boasts a North Westerly aspect and is a prime redevelopment opportunity.
Slide 13: East Tamaki Road
29 East Tamaki Road 4.6 $56m September 2025 hectares site area purchase price plus $4 million expected settlement date in further capex 4 potential buildings 5% initial holding return Strong interest in the site on site Argosy Property Limited 13
Slide 14: Value Add & Green Developments
Value Add & Green Developments GREEN ASSETS FILL DEVELOPMENT PIPELINE Property Sector Location Valuation @ • Value Add properties are a key strategic pillar and will 31 Mar 25 transform the portfolio over the next decade. 224 Neilson Street, Onehunga Underway Industrial Auckland 89.2 • 224 Neilson S
Slide 15: Financials
Financials Argosy Property Limited 15
Slide 16: Gross Property Income Waterfall
Gross Property Income Waterfall RENT REVIEWS UP ANNUALISED 3.5% Like for like rental growth of 1.8% 160.0 140.0 3.4 2.3 132.7 131.0 (1.1) (2.9) 120.0 Rental income $m 100.0 80.0 60.0 40.0 20.0 - Gross Property Income Rent Reviews Vacancy/ Developments Disposals Gross Property Income 31 March 2024 Le
Slide 17: Financial Performance
Financial Performance PERFORMANCE SLIGHTY UP ON PRIOR FY25 FY24 COMPARABLE PERIOD (Restated) $m $m • Net property income and EBIT were slightly up on the prior comparable period. Net property income 116.9 116.5 Administration expenses (11.4) (11.6) • Interest expense was lower, mainly due to lower r
Slide 18: Distributable Income
Distributable Income SOUND RESULT FY25 FY24 $m $m • Gross distributable income for the year was $64.1m, up 4.7% on the prior comparable Profit before income tax 138.1 (50.8) period. Adjustments: • Net distributable income was flat on the Revaluation (gains)/losses on investment property (72.7) 111.7
Slide 19: Adjusted Funds From Operations (AFFO)
Adjusted Funds From Operations (AFFO) FY25 FY24 HIGHER TAXATION AND MAINTENANCE $m $m CAPEX IMPACTS AFFO Net distributable income 55.8 55.8 • AFFO 6.43cps compared to 6.90 in prior Amortisation of tenant incentives and leasing costs 2.1 3.5 comparable period, mainly due to higher Share based payment
Slide 20: Investment Property Waterfall
Investment Property Waterfall POSITIVE REVALUATION GAIN 2,400 2,200 73 2,149 2,109 63 Investment Properties ($m) 2,014 (1) (40) 2,000 1,800 1,600 1,400 Balance at Capitalised costs Change in fair value Change in capitalised Balance 31 March Right of use asset Balance 31 March 1 April 2024 leasing co
Slide 21: Balance Sheet Management
Balance Sheet Management GEARING AT THE MID-RANGE OF FY25 FY24 TARGET BAND $m $m • The balance sheet is in good shape. Investment properties 2,148.9 2,013.8 Asset held for sale - 35.2 • 8 Forge Way settled in March 2025 for $35m. Other assets 13.3 20.0 Total assets 2,162.2 2,069.0 • At 31 March a fu
Slide 22: Dividends
Dividends STEADY DIVIDEND 6.80 • A 4th quarter dividend of 1.6625 cents per share has been declared with 0.2180 cents 6.60 6.65 6.65 6.65 6.65 per share imputation credits attached. 6.55 6.40 6.45 • Overseas investors will receive an additional 6.35 6.20 6.28 supplementary dividend of 0.0989 cents p
Slide 23: Leasing & sector commentary
Leasing & sector commentary Argosy Property Limited 23
Slide 24: Leasing Outcomes
Leasing Outcomes 57,100 m2 12yr 54 of NLA leased to 31 March New lease to Steel E.D. & Patton Limited Leases executed, 22 new leases, at 39 Randwick Road, Wellington 24 renewals and 8 extensions 8,790m2 New lease to Booths Logistics for 7yr New lease to JD Sports Fashions NZ 105 Rent reviews over th
Slide 25: Lease Expiry & Rent Review Profile
Lease Expiry & Rent Review Profile LEASE EXPIRY PROFILE IS WELL MANAGED 20% • Largest single expiry remains MBIE in 2027. 18% 18.0% Percentage of portfolio (by income) • Average annual expiry over the next two 16% 14.9% years (FY26 and FY27) is ~10.1%. 14% 12% 11.2% 10.5% 9.9% 10% 8.1% 8% 7.3% 6.0%
Slide 26: Market Insights
Market Insights INDUSTRIAL OFFICE LARGE FORMAT RETAIL • As economic conditions improve, the imbalance between supply • Flexible working environments continue but working from home • National retail sales are decreased over the past year. and net absorption (demand) will correct. and full-time remote
Slide 27: Argosy Historical Dividend Yield
Argosy Historical Dividend Yield Gross yield spread vs 10 year bond Price to NTA spread Source: Forsyth Barr Argosy Property Limited 27
Slide 28: Argosy Historical Dividend Yield
Argosy Historical Dividend Yield Dividend yield 1.60 12% 10% 1.20 Share price and volatility Gross dividend yield 8% 0.80 6% 4% 0.40 2% 0.00 0% FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Share price volatility Share price at the end of the year Gross dividend yield (33% taxpayer) Sh
Slide 29: Focus and outlook
Focus and outlook Argosy Property Limited 29
Slide 30: Outlook
Outlook STAYING FOCUSED ON ACHIEVING STRONG OPERATIONAL RESULTS AND EXECUTING ON STRATEGIC GOALS • The domestic economy is expected to gradually improve, although there is some volatility at present. • Highly restrictive interest rates are easing. • Lower supply and improving demand across the marke
Slide 31: Sustainable Office Buildings Demand and Supply
Sustainable Office Buildings Demand and Supply (Jones Lang LaSalle April 2025) THE SUPPLY-DEMAND IMBALANCE OF SUSTAINABLE OFFICE BUILDINGS IN NEW ZEALAND Demand and Supply Analysis • Demand: High demand for sustainable office spaces, especially among professional and financial services firms. • Supp
Slide 32: Sustainable Office Buildings Demand and Supply
Sustainable Office Buildings Demand and Supply THE SUPPLY-DEMAND IMBALANCE OF SUSTAINABLE OFFICE BUILDINGS IN NEW ZEALAND Market Positioning • Brand Image: Landlords who prioritize sustainability can enhance their brand image and reputation in the market. • Tenant Retention: Sustainable buildings ca
Slide 33: Questions
Questions Argosy Property Limited 33
Slide 34: Appendices
Appendices Argosy Property Limited 34
Slide 35: Net Tangible Assets
Net Tangible Assets 1.70 0.08 1.60 1.53 0.06 NTA per share ($) 1.50 (0.06) 1.45 1.40 1.30 1.20 1.10 1.00 NTA at Profit for the year Revaluations/ Dividends paid NTA at 31 March 2024 Others 31 March 2025 Argosy Property Limited Note: Due to rounding, numbers presented in this presentation may not add
Slide 36: Interest Rate Management
Interest Rate Management FIXED RATE COVER OF 63% FY25 FY24 $m $m • Weighted average interest rate reduced to 5.1% from 5.6% at 31 March 2024. Weighted average interest rate1 5.1% 5.6% Interest Cover Ratio 2.5x 2.4x • Fixed rate cover at 63% of debt. % of fixed rate borrowings 63% 71% • $170m in forw
Slide 37: Debt Profile
Debt Profile GREEN BOND DIVERSIFICATION 38% • The total amount of the bank facility is $525m with the nearest tranche expiring in 400 October 2027 (FY28). 350 • Argosy’s $325m of green bonds continue to provide important diversification. 125 300 • Facilities ($m) The first bond matures in March 2026
Slide 38: Balance Sheet Management
Balance Sheet Management GEARING REMAINS COMFORTABLY WITHIN THE MID-RANGE OF THE BAND 50 Target Range 30-40% 40 Debt to total assets (%) 35.9 36.5 35.7 35.1 30 31.1 20 10 0 FY21 FY22 FY23 FY24 FY25 Argosy Property Limited 38
Slide 39: Hedges, Interest Rates & Debt Maturity
Hedges, Interest Rates & Debt Maturity HEDGES & WEIGHTED AVERAGE DEBT MATURITY PROFILE (FACILITY) & INTEREST RATES (MARCH Y/E) WEIGHTED AVERAGE MARGIN AND LINE FEE 500 6.00% 400 2.00% Weighted Average Margin & Line Fee (%) 350 5.00% Weighted Average Interest Rate (%) 400 1.79% 1.80% 1.77% 125 300 Fa
Slide 40: Rent review summary – by type, sector and location
Rent review summary – by type, sector and location Annualised $ % of Total Type # Previous Rent % of rent New Rent $ Increase Increase Annualised Annualised % ($000's) reviewed ($000's) (000's) % Increase (000's) Increase Increase Total 105 76,452 100% 79,167 2,715 3.6% 2,655 100% 3.5% By review typ
Slide 41: Portfolio metrics
Portfolio metrics RENT ROLL BY INDUSTRY TOP 10 CUSTOMERS BY RENT All other 3% Government administration 3% MBIE 8% 5% Transport and storage General Distributors Limited 5% 9% 33% Manufacturing Cardinal Logistics Limited 6% Statistics New Zealand Retail trade 6% 54% Kainga Ora Property and business s
Slide 42: Sector Summary
Sector Summary Industrial Office Large format retail Number of buildings Number of buildings Number of buildings 33 13 4 Market value of assets ($m) Market value of assets ($m) Market value of assets ($m) $1,128.9 $775.5 $204.7 Occupancy (by income) Occupancy (by income) Occupancy (by income) 100% 8
Slide 43: Thank you
DISCLAIMER Thank you 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