Argosy Property Limited · NZX:ARG
Argosy Property — Shareholder Meeting (June 2023)
32 slides from Argosy Property's shareholder meeting presentation, Jun 20, 2023
Slide 1: 2023 Annual Meeting: Building a Better Future
2023 Annual Meeting: Building a Better Future 20.06.23 Argosy Property Limited
Slide 2: Hybrid AGM: Voting and Q&A
HYBRID AGM VOTING Q&A We will open the poll now, to give Any shareholder or appointed proxy / you plenty of time to vote. representative attending is eligible to ask questions. The ability to vote will appear on your screen as a bar chart icon, If you wish to ask a question, select and from
Slide 3: The Board
THE BOARD Jeff Morrison Chairman Stuart McLauchlan Director Chris Gudgeon Director Mike Pohio Director Rachel Winder Director Martin Stearne Director .3
Slide 4: The Executive Team
THE EXECUTIVE TEAM Peter Mence Chief Executive Officer Dave Fraser Chief Financial Officer .4
Slide 5: Agenda
Agenda Chairman’s Review 6 CEO’s Review 11 Questions 25 Resolutions 26 General Business 30 Close of Meeting 31 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. .5
Slide 6: Chairman's Review
Chairmans Review Argosy
Slide 7: 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 .7
Slide 8: Vision: Better Future
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 9: Share Price vs 10yr Government Bonds
Share Price vs 10yr Government Bonds Correlation: Last 10 years -0.649 Source: Jarden .9
Slide 10: 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 11: CEO's Review
CEO’s Review .11
Slide 12: 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 .12
Slide 13: 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 $40.1 million .13
Slide 14: Sector Summary
Sector Summary INDUSTRIAL OFFICE LARGE FORMAT RETAIL Number of buildings 35 Number of buildings 15 Number of buildings 4 Market value of assets ($m) $1,127.8 Market value of assets ($m) $811.1 Market value of assets ($m) $206.0 Occupancy (by income) 100% Occupancy (by income) 98.5% Occupancy (by inc
Slide 15: Portfolio at a glance @ 31 March
Portfolio at a glance @ 31 March Sector by value % Region by value % Asset Mix by value % 2 1 1. Large Format Retail. 2. Regional North Island and South Island. This weighting also includes up to 5% allocation to the Golden Triangle area between Auckland, Tauranga and Hamilton. .15
Slide 16: Argosy Portfolio vs MSCI Benchmark
Argosy Portfolio vs MSCI Benchmark .16
Slide 17: Revaluations
Revaluations Cap rate headwinds but rental growth delivers 31 Mar 23 31 Mar 23 Book Value Valuation ($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 18: 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 19: 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 20: 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 21: Debt Profile
Debt Profile Green bonds provide diversification and tenor During the year Argosy extended its 450 existing syndicated bank facilities with its 400 banking group. 350 100 Industrial and Commercial Bank of China Limited (ICBC) has joined the syndicate. 300 285 100 The total amount of the bank f
Slide 22: 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 23: 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 24: 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 25: Questions
Questions Argosy
Slide 26: Resolutions
Resolutions Argosy
Slide 27: Resolution 1: Elect Martin Stearne
RESOLUTION 1 That Martin Stearne be elected as a Director. .27
Slide 28: Resolution 2: Elect Rachel Winder
RESOLUTION 2 That Rachel Winder be elected as a Director. .28
Slide 29: Resolution 3: Auditor's Fees and Expenses
RESOLUTION 3 That the Board be authorised to fix the Auditor’s Fees and Expenses. .29
Slide 30: General Business
General Business Argosy
Slide 31: Close of Meeting. Thank you.
Close of Meeting. Thank you. .31
Slide 32: 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