NZ Post House Earthquake Damage Update

MARKET RELEASE


New Zealand Post House, at 7-27 Waterloo Quay, Wellington sustained damage to building
services in the 7.5 magnitude Kaikoura earthquake on 14 November 2016. Independent
engineers have confirmed that the building remains structurally sound, but significant
replacement of fit out and services is required. The ground floor, and four other levels, have
been re-occupied by NZ Post.

It is expected that the damage to the building services and fit -out to levels 1-4 and 7 will be
repaired during the next financial year. Argosy has obtained an indicative estimate that the
reinstatement cost will be approximately $50 million, based on a preliminary scope of works.
Argosy has lodged a claim for the reinstatement cost and associated loss of rents under its
material damage and business interruption insurance policy (less a $4.8 million deductible).
The claim is presently being assessed by Argosy’s insurers. Argosy is working closely with its
insurers, and NZ Post, to ensure that repairs are completed expeditiously and to minimise
disruption to NZ Post.

Under New Zealand accounting standards, Argosy cannot include expected insurance
proceeds in its financial results until the amount of the insurance proceeds are quantified
and agreed, based on communications from insurers. It is anticipated that Argosy’s claim
may not be quantified before the financial statements are signed and therefore the
expected insurance proceeds may not be included in Argosy’s year-end financial results.

If the expected insurance proceeds are not included in Argosy’s year-end financial results,
the loss of rents for the current year would have a net after tax impact of approximately
$1.85m, or 0.23 cents per share in the period to 31 March 2017. This will have no impact
on the March 2017 full year dividend, which as previously announced is expected to be
6.1cps and be fully paid from net distributable income for the year.

-ENDS-


Enquiries
Peter Mence
Chief Executive Officer
Argosy Property Limited
Telephone: 09 304 3411
Email: pmence@argosy.co.nz

Dave Fraser
Chief Financial Officer
Argosy Property Limited
Telephone: 09 304 3469
Email: dfraser@argosy.co.nz

Scott Lunny
Investor Relations Manager
Argosy Property Limited

Telephone: 09 304 3426
Email: slunny@argosy.co.nz


3 March 2017


NZ POST HOUSE EARTHQUAKE DAMAGE UPDATE