Argosy Annual Meeting Address and Presentation

2018
Annual Meeting
Strength in diversity
Argosy Property Limited
6
th
August 2018
www.argosy.co.nz

The Board
2
Mike Smith -Chairman
Peter Brook -Director
Mark Cross -Director
Andy Evans -Director
Jeff Morrison -Director
Chris Hunter -Director

Executive Team
3
Dave Fraser –Chief Financial Officer
Peter Mence –Chief Executive Officer

Agenda
4
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.

Chairman’s Introduction
5

Strategy
6
Diversified
approach
Investment Strategy
underpinned by
Core and Value
Add properties
Shareholder return
focus
Ongoing
commitment to
corporate
governance best
practice
Continue to invest in a diverse range of properties across sectors, grades, sizes
and locations
Core properties between 75-90% of the portfolio by value
Investment Policy sector bands well established. Industrial 40-50%, Office 30-40%,
Retail 15-25%
Experienced Board with a proven track record
Argosy strives to deliver reliable and sustainable returns to shareholders
Focus on AFFO based dividend policy by 2021

2018 Highlights
7
$101m
Net property income
6.62c
$1.12
NDI per share +1.1%
NTA +5.5% on prior year
98.8%
6.1 years
Occupancy (by rental)
WALT
$33.8m of
green
projects
Value Add Activities

Dividends
8
6.25c
FY19 dividend guidance
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 FY19 cash distribution of 1.5625 cps
5.85
5.90
5.95
6.00
6.05
6.10
6.15
6.20
6.25
6.30
FY15FY16FY17FY18FY19
Dividend (cps)
26 Sept
Q1 dividend payment date

Governance / Risk Management
9
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 well developed risk management policy & framework which manages Argosy’s risks
within the overall risk appetite set by the Board

Capital Management
10
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 are acquired when they meet approved Investment Policy criteria, or sold when they are non Core;
Argosy is not forced to issue equity at a price that is dilutive to shareholders; and
measured dividend growth is maintained
35.9%
Debt-to-total assets ratio
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
FY14FY15FY16FY17FY18
Debt-to-total-assets

Looking ahead
11
Income and
earnings
sustainability
Sound capital
position
Improve portfolio
metrics and quality
Corporate
governance
Earnings per share growth
AFFO based dividend policy in medium term
Liquid, flexible and diverse capital base
Maintain appropriate Board composition to deliver strategy
Ongoing commitment to corporate governance best practice
Reduce key vacancies and proactive management of expiry profile
Undertake Value Add projects to enhance portfolio quality

Chief Executive Officer’s Review
12
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Focus Areas
13

Portfolio at a Glance
TOTAL PORTFOLIO VALUE
BY SECTOR
TOTAL PORTFOLIO VALUE
BY REGION
PORTFOLIO MIX
BY VALUE
71%
24%
5%
Auckland
Wellington
Regional North Island &
South Island
87%
7%
6%
Core properties
Properties and land to divest
Value Add properties
14
42%
38%
20%
Industrial
Office
Retail
Focus on continuing the divestment programmeof non Core assets
Expect to move towards the higher end of the industrial band and lower end of the retail band
over the medium term

Sector Summary
15
NUMBER OF BUILDINGS
36
MARKET VALUE OF ASSETS ($M)
$637.6
OCCUPANCY (BY INCOME)
99.9%
WALT (YEARS)
7.4
PASSING YIELD
6.7%
NUMBER OF BUILDINGS
17
MARKET VALUE OF ASSETS ($M)
$577.3
OCCUPANCY (BY INCOME)
97.3%
WALT (YEARS)
5.0
PASSING YIELD
7.0%
NUMBER OF BUILDINGS
8
MARKET VALUE OF ASSETS ($M)
$298.3
OCCUPANCY (BY INCOME)
100%
WALT (YEARS)
5.7
PASSING YIELD
7.1%

Completed Developments
16
Argosy completed two green developments totalling $33.8m during the period. Highgate
Business Park (targeting a 4 Green Star Industrial Built Rating) and 82 Wyndham Street (targeting
a 5 Green Star Office Built Rating).
82 Wyndham will also be targeting a 4 Star NabersNZ energy efficient rating now the building is
fully occupied.
DevelopmentMajor TenantTypeLocation
Total Cost
$m
Highgate Business ParkMighty ApeINDAKL24.7
82 WyndhamPanukuOFFAKL9.1
Foundry DrivePolarcold Stores LtdINDCHC7.5
Snickel LaneVariousOFFAKL7.5
TOTAL48.8

9.9%
10.0%
8.6%
9.7%
4.2%
4.7%
10.0%
12.8%
11.3%
2.6%
15.0%
1.2%
29
23
28
21
17
12
9
12
8
4
13
0
5
10
15
20
25
30
35
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
Percentage of portfolio (by income)
Total ExpiryVacancyLargest Expiry
The number above each bar denotes the total tenant expires per year (excluding monthly carparks and tenants with multiple leaseswithin one property)
Yearending
Lease Maturity
17
Lease maturity profile relatively stable over the medium term, no material single tenant exposure

Financial Summary
18
FY18FY17
$m$m
Net property income
101.0100.8
Distributable Income
FY18FY17
$m$m
Profit before income tax109.3120.4
Adjusted for:
Revaluations gains(47.3)(42.3)
Realised losses/(gains) on disposal(0.3)(2.7)
Derivative fair value loss/(gain)4.1 (11.0)
Earthquake expense net of recoveries-0.21.2
Gross distributable income65.665.6
Depreciation recovered0.6 1.0
Current tax expense(11.6)(13.1)
Net distributable income54.653.5
Weighted average number of ordinary shares (m)825.1816.7
Gross distributable income per share (cents)7.958.03
Net distributable income per share (cents)6.626.55
NDI per share increased 1.1% on FY17

Market Update
19
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 are unchanged
Wellington office vacancy continues to reduce with rental growth resulting
Tougher funding environment will continue to impact developers. This will create potential
opportunities for Argosy
Increasing construction costs and slowing of cap rate compression positives for rental growth if net
absorption continues
Land values easing
Focus on green assets, seismic performance and hazard management

Outlook
20
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 most of
market conditions
Argosy will continue to focus on resolving near term expiries, maintaining high tenant retention
rates and ensuring core portfolio metrics remain strong
Given the market appears to be firmly valued, divesting non Core assets to reinvest elsewhere or to
the balance sheet is more attractive versus acquiring
We will continue to focus on our existing portfolio of value add properties in the context of
sustainability given the environmental and business benefits they can bring
We remain focused on creating value and delivering sustainable and attractive risk adjusted
returns to shareholders
Rental growth to continue
Green assets will continue to see increase in demand

Questions
21
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Resolutions
22
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Resolution 1
23
That Jeff Morrison be re-elected
as a Director

Resolution 2
24
That the Board be authorisedto fix the Auditor’s Fees and
Expenses

General Business
25
Change image

Close of Meeting
26
Change image

Thank you
27

Disclaimer
28
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
any decision relating to your investment or financial needs. This presentation is not an offer or
invitation for subscription or purchase of securities or other financial products. Past performance
is no indication of future performance.
All values are expressed in New Zealand currency unless otherwise stated.
6 August 2018

---

2018 ANNUAL MEETING

Good afternoon Ladies and Gentlemen. My name is Mike Smith and I am the Chairman of Argosy
Property Limited. On behalf of my fellow directors and members of the management team, it is my
pleasure to welcome you all to the 2018 annual meeting of shareholders of Argosy. It is my privilege to be
able to chair this meeting again and also to have the meeting here at the Royal New Zealand Yacht
Squadron.
Just a couple of housekeeping matters before we get things underway. In the unlikely event of an
emergency, please evacuate the building using the blue doors at the eastern exit behind you and
assemble in the carpark. The bathrooms are located behind me next to the main reception area.
I’d like to record that the Notice of the Meeting was duly given on 6 July 2018 and as there are at least 5
shareholders here today, there is a quorum present. Accordingly, I declare the 2018 annual meeting of
Argosy Property Limited open.
Your Board considers a high standard of corporate governance is essential for sustaining the long-term
performance of a company such as Argosy. Our role as directors is to ensure the company is heading in
the right direction and creating value for our shareholders while also having regard to the interests of
other stakeholders. We are focused on ensuring that the board has the right composition of skills and
experience to be able to deliver these performance goals for all stakeholders, and I will cover shortly
what we will be doing in this area.
While there is detailed information about the Board in the 2018 Annual Report, I would briefly like to
introduce them to you. To my right is Mark Cross.
Mark joined the Argosy Board in 2012 and has over 20 years’ experience in investment banking, holding
senior positions in the United Kingdom, Australia and New Zealand. Mark is currently the Chairman of
Milford Asset Management Limited and MFL Mutual Fund Limited, and is a director of Genesis Energy, Z
Energy and Chorus Limited. Mark is the chair of Argosy’s Audit and Risk Committee.
6 August
2018

CHAIRMAN’S SPEECH (PART 1)

Next to Mark is Peter Brook who joined the Argosy Board in 2002. Peter is presently the Chairman of
BurgerFuel Worldwide Limited, Trust Investments Management Limited and Generate Investment
Management Limited. Peter is a member of both the Remuneration and Audit and Risk Committees.
Next, we have Andy Evans. Andy has been a director since August 2003 and has more than 25 years’
experience in commercial real estate and asset management, previously holding executive positions in
listed and unlisted real estate investment businesses. Andy has a number of other directorships including
sitting on the Board of NorthWest Healthcare Properties Management Limited. He is also a past national
president of the Property Council of New Zealand.
Next, we have Chris Hunter who joined the Board in June 2013 and has extensive commercial property
experience including more than 25 years’ in New Zealand’s construction industry. He previously held the
role of Chief Executive Officer of Hawkins Construction and has more recently become a shareholder
and Managing Director of NZ Strong Group Ltd. Chris retires today under the Company’s Constitution
and is not seeking re-election. Chris, on behalf of the Board and Argosy Shareholders I would like to take
this opportunity to thank you for your valuable contribution during your tenure and we wish you all the
best for the future.
Next to Chris is Jeff Morrison, a director since July 2013 and with 40 years of experience as a property
lawyer, 29 of them as a commercial property partner at Russell McVeagh. Jeff is a member of Argosy’s
Remuneration Committee. Today, Jeff retires under the Company’s Constitution and is seeking your
support for his re-election. You will hear from Jeff later in today’s proceedings.
Finally, I was appointed to the Argosy Board in 2002 and have held the role of Chairman since 2005. For a
large part of my career I was employed by Lion Nathan where I held a number of senior executive
positions with the Lion Nathan Group and was a director of the parent company for 16 years. I am also a
director of several non-public companies. As well as my role as Chairman, I also chair the Remuneration
Committee and sit on the Company’s Audit and Risk Committee.
I would also like to mention Amanda Smith who has completed her 12-month tenure under the Institute of
Directors Future Directors programme. On behalf of the Board, I would like to extend our sincerest
appreciation for Amanda’s insight and input into the Board over the last year and we wish her well for
the future.

Seated next to the Board of directors is the Chief Executive, Peter Mence and the Chief Financial Officer,
Dave Fraser. We also have several other members of the management team here today.
I would also like to welcome our auditors, Deloitte, our solicitors, Harmos Horton Lusk, our Registrar,
Computershare and our tax advisors, KPMG, to the meeting.
The agenda for this afternoon’s meeting will be as follows:
• As Chairman, I will deliver a brief summary of the Company’s strategy and performance.
• This will be followed by a more detailed review of Argosy’s performance by our Chief Executive,
Peter Mence.
• Following the presentations, we will take questions from Shareholders.
• We will then move to the formal resolutions of the Meeting.
• And finally, we will then attend to any general business.
After the meeting has been formally closed, please join us for refreshments where the Directors and
Executives of Argosy will be available to discuss any queries you may have.
PROXIES
Proxies have been received in respect of 325,837,791 shares and these have been audited by Deloitte.
There are 827,030,390 shares on issue.
CHAIRMANS INTRODUCTION
I am delighted to now present to you an overview of the Company’s strategy and performance for the
year ended 31 March 2018. I note that you will have received the 2018 Annual Report and financial
statements, either by post or electronically, depending on your preference.
STRATEGY
Argosy’s strategy remains unchanged. The company is, and will continue to be, invested in real estate
that is diversified by sector, grade, location and tenant mix. The portfolio is focused primarily in the
Auckland and Wellington markets with modest tenant-driven exposure to provincial markets where there
is strategic rationale. We believe our diversified investment approach brings real strength and balance to
our business.

Our Investment Strategy remains underpinned by our Core properties, which account for between 75 to
90% of the portfolio by value. As some of you may recall, we made small adjustments to our Investment
Policy sector band weightings last year with our Industrial band increased to 40 to 50% of the total
portfolio by value and our Office band was reduced to 30 to 40%. Our retail band remained unchanged
at 15 to 25%. As at 31 March 2018, Argosy was operating within the parameters of its revised Investment
Policy.
Over the next 12 to 18 months however, we will continue to divest non Core assets in what we consider to
be an attractive vendors market. After this period, we expect that Argosy will be positioned towards the
lower end of its retail band and at the higher end of the industrial band.
We remain very focused on delivering reliable and sustainable returns to shareholders. Argosy’s
outperformance versus the listed property sector over the 2018 financial year was very pleasing in this
respect. We want shareholders to share in Argosy’s continued strong results but we need to maintain our
momentum towards an Adjusted Funds From Operations or AFFO based dividend policy over the
medium term.
The Argosy Board is experienced with a history of delivering on its strategy. The business is now in a very
sound financial and portfolio position and well placed for the challenges and opportunities ahead. From
a corporate governance perspective, the Board is very much committed to continued improvement
and best practice in this area.
HIGHLIGHTS FOR THE YEAR ENDED 31 MARCH 2018
After a strong start the Board is very pleased to have finished the 2018 financial year well.
The management team worked hard over the year to resolve key lease expiries and vacancies. They
also repositioned the portfolio sensibly, through the combination of completed developments,
revaluations and selected divestments over the year.
Operating results have continued to improve year on year, with increases in net distributable income and
net tangible assets per share. Peter will cover our financial performance in more detail in his
presentation.

Overall, the portfolio metrics have improved further with a high occupancy rate at almost 99% and a
Weighted Average Lease Term that increased to 6.1 years – our highest ever. We also completed two

green development projects which delivered good returns, and these properties will further enhance
Argosy’s portfolio quality.
FULL-YEAR DIVIDEND AND FIRST QUARTER ANNOUNCEMENT
The Board was pleased to announce a 2018 full-year cash dividend of 6.20 cents per share, a 1.6%
increase on the prior year. We were also pleased to confirm that, based on current projections for the
portfolio, a dividend of 6.25 cents per share is expected for the year to 31 March 2019 – an increase of
~1% on the 2018 year.
The Board believes shareholders should share in the continued strong progress we are making across the
business. However, for some investors Adjusted Funds from Operations or AFFO represents a measure of
dividend sustainability. The New Zealand listed property sector appears to be shifting towards this
methodology. Whilst we have lifted the dividend slightly for FY19 we remain focused on moving to an
AFFO based dividend policy over the medium term. The Board expects, based on current projections,
that the cash dividend will be at least maintained over the transition period.
Today I can also confirm that the directors have approved today a first quarter dividend for the 2019
financial year of 1.5625 cents per share with imputation credits attached of 0.301500 cents per share. This
will be paid on 26 September 2018 with a record date of 12 September 2018. The dividend reinvestment
plan continues to be suspended for the time being.
GOVERNANCE
Strong corporate governance and stewardship are fundamental to the strong performance of Argosy.
We as a Board are committed to the highest standards of business behaviour, accountability and
corporate governance best practice.
We remain guided by our Code of Conduct and Ethics which is publicly available on our website, along
with Argosy’s other policies and charters. During the year Argosy released its Environmental Policy which
recognises that the impact our business has on the natural environment is an increasingly important
consideration for investors, tenants and other stakeholders.

RISK MANAGEMENT
At Argosy, the Board takes a cautious approach to risk, whether it be financial, operational, regulatory or
health & safety. We have a low tolerance for risk where it may result in undesirable consequences for
Argosy, its shareholders or other stakeholders. As a business Argosy does encounter many types of risk on
a daily basis. We will always focus on managing or mitigating risk to the fullest practical extent possible.
CAPITAL MANAGEMENT
The board regularly reviews the company’s capital management strategy. The Board’s current policy is
for debt to total assets to now be between 30% to 40% in the medium term compared to 35% to 40%
previously. This widening of the target gearing band provides more flexibility for Argosy, depending on
financial and property market conditions. As we continue to divest non Core assets to take advantage
of strong investor demand, the proceeds will be used to continue our tenant-led development program
and/or reduce gearing. Currently our gearing sits in the middle of the new target band and remains well
within all bank covenants. The board is also aware of capital management tools such as share buybacks
and may initiate options such as this as and when necessary to maximise value for shareholders.
LOOKING AHEAD
Argosy started the 2019 financial year in great shape. We are focused on delivering income and earnings
sustainability whilst ensuring our capital position remains very strong.
We will be focused on continuing to improve our portfolio, with particular attention to managing
upcoming lease expiries and value add opportunities to create long term value for shareholders.
We will ensure our Board composition can continue to deliver results for shareholders and maintain our
focus on corporate governance best practice across all areas of the business.
After the conclusion of this meeting, the Directors will meet to appoint a new Non-Executive Director,
Stuart McLauchlan, as a replacement for Chris Hunter. Stuart is a chartered accountant and is currently
Chairman of UDC, Pharmac and Scott Technology Limited. His directorships include Dunedin
International Airport Limited and Ngai Tahu Tourism Limited.
Stuart is also a past President of the NZ Institute of Directors. The necessary formal external checks on
Stuart could not be completed in time for the notice of meeting.

As a result of the timing of Stuart’s appointment, he will come up for re-election at the 2019 Annual
General Meeting.
In going through the process of selecting Stuart, we should signal to you that this is the first part of a
board renewal process and you can expect to see future board changes over the next 12 months.
The process will include the board considering every aspect of diversity from functional skills, gender,
ethnicity and geography.
While ensuring that we give due consideration to diversity, we are conscious of our duty as directors to
act in the best interests of the company. That focus will dominate all decisions in the selection process.

Now, I will hand over to Peter, who will comment on our performance for the year.
-END-

---

2018 ANNUAL MEETING

Thank you Peter.
I will now open the meeting for questions about the Company’s performance generally. Other issues can
be addressed as General Business later in the meeting.
I would like to remind you that only Shareholders, proxy holders or Shareholder company representatives
have a right to speak.
In addressing the Chair with questions would you please clearly state your name and advise whether you
are a Shareholder, a proxy holder or a Shareholder company representative.
If you have a question, there are people here with cordless microphones in the aisles, please use these so
we can all hear your question.
Do I have any questions from the floor?
QUESTIONS
........................
As there are no further questions at this time, we will now consider the formal resolutions for the Meeting.
RESOLUTIONS
The resolutions for consideration today may only be voted on by Shareholders, either in person or by
proxy, and proxy holders and Shareholder company representatives present.
As noted earlier I have been provided with a record of the valid proxies received. Proxies have been
received in respect of 325,837,791 shares and these have been audited by Deloitte. There are
827,030,390 shares on issue.

2018

CHAIRMAN’S SPEECH (PART 2)


6 August

Voting on all resolutions will be by poll. On a poll, each person voting at the meeting and each
Shareholder who has cast a vote by proxy, has one vote for each share held. We will consider each
Resolution in turn and vote on that Resolution after any discussion. There will be opportunities to ask
questions on each of the resolutions prior to the vote being called for.
To vote, you should tick the relevant box on your voting form in respect of the resolution being voted on.
Please remember to sign your voting form once you have voted. If you did not bring your voting form
with you, you should have been given a voting form at the registration desk on arrival. If you are a proxy
holder and the shareholder has given directions as to voting on every resolution, you will not have been
issued with voting papers. If you have been overlooked, please let one of the Computershare
representatives know immediately.
Company representatives have pens available if you require one to complete your forms. On completion
of the voting, your forms will be collected. When all voting forms have been collected, they will be taken
to be counted by Computershare and will be scrutinised by Deloitte.
If you are both a Shareholder and a proxy holder or Shareholder company representative, please
complete a separate voting paper for yourself and each other Shareholder you represent. All resolutions
will be voted on in the form proposed in the Notice of Meeting given to Shareholders. Each of the
resolutions is taken as having been moved and no seconder is required. The resolutions will be binding on
the Board and Company if passed.
RESOLUTION 1
Resolution 1 proposes that Jeff Morrison be re-elected as a director of the Company.
Pursuant to Clause 24.6 of the Company’s constitution and NZX Main Board Listing Rule 3.3.11, Jeff retires
by rotation. Jeff was first appointed to the Board in July 2013. The Board confirms that Jeff is an
independent director and Jeff has confirmed that he is available for re-election.
The Board supports Jeff’s re-election and believes the Company benefits greatly from his extensive legal
property expertise and the balance his experience brings to Argosy board.
I would now like to invite Jeff to address the meeting on his proposed re-election.
Note: Allowance for Jeff to present

Thank you Jeff - is there any discussion on this resolution?
I now put to vote the resolution that Jeff Morrison is re-elected as a director of the Company.
Voting on this resolution will be by poll. Please tick the relevant box on your voting form.
Note: Pause for people to complete voting papers.
Voting on this resolution will be by poll. Please tick the relevant box on your voting form.
Note: Pause for people to complete voting papers.
Thank you, we will now move to the next resolution
RESOLUTION 2
Resolution 2 seeks to authorise the Board to fix the auditor’s fees and expenses.
Is there any discussion on this resolution?
Thank you. Voting on this resolution will be by poll. Please tick the relevant box on your voting form.
Note: Pause for people to complete voting papers.
That completes voting on all resolutions. I will now ask for the voting papers to be collected in the boxes
being circulated.
Note: Pause for voting papers to be collected.
Due to the number of votes to be counted, the votes collected at this meeting will be added to the
proxies already received and the results will be compiled by the registrar and scrutinised by the auditor.
The results, once available, will be published on the Argosy website and provided to the NZX.
GENERAL BUSINESS
I now move on to the general business of the meeting and open the floor for questions or comments.
Again, I ask that in addressing the Chair with questions would you please clearly state your name and
advise whether you are a Shareholder, a proxy holder or a Shareholder company representative. I would
like to remind you that only Shareholders, proxy holders or Shareholder company representatives have a
right to speak.
Note: General business discussion - if any.
CHAIRMAN’S CLOSING
That completes the formal business of the meeting.

Thank you everyone for your attendance and participation this afternoon.
I formally declare this meeting closed.
Please join us for refreshments.
THANK YOU
-END-