Investor Update September 2018

September 2018
P.
1
The Warehouse
New Concept Store
P.
2
CEO Comment
Peter Mence gives
a brief update
P.
3
ESG update
Argosy continues
supporting good causes
P.
4
Portfolio Update
Key stats as at
31 July 2018
Investor
Update
Argosy recently announced the strategic
acquisition of 11 Coliseum Drive in Albany (The
Warehouse), for $26.4m.
The acquisition allows Argosy to secure a
strategically important property and
strengthen its relationship with a long standing
and valued partner in The Warehouse Group.
Most importantly, the purchase allows Argosy
to now consider a range of organic growth
options across the entire Albany Mega Centre
site. "Longer term, this is where the real value
lies and we are excited about the opportunity
and value this acquisition can deliver for our
shareholders" Argosy CEO, Peter Mence says.
New concept store
The Warehouse Group is using a revamped
Albany as a concept store to test shopper
preferences and the retail market. The Albany
store was chosen because of its large volumes of
returning customers. If all goes well, the NZX-
listed company will install similar new-look
interiors in its network of 92 stores. Some of the
new key features of the proposed new concept
stores include things like digital price tags, more
open spaces, IKEA-esque furniture displays
and artificial intelligence-enabled technology.
It also features self-serve checkouts and click-
and-collect pickup boxes.
WALT
6.5yrs
Warehouse NLA (sqm)
7,600
Office NLA (sqm)
760
No. of carparks
413
The Warehouse – a long term partner

CEO comment
Business update
Since the full year result there has been a bit of
activity. The team have been working hard over
the first half of the FY19 financial year to deliver
on our focus areas. It's pleasing to be able to
report some solid results to date including
dealing with some key expiries.
Rent reviews and leasing
For the 4 month period to 31 July we completed
27 rent reviews achieving annualised rental
growth of 3.0%. These reviews were achieved
on rental income totalling $10.2m. By sector, we
achieved annualised rental growth of 3.8% on
industrial rent reviews, 1.7% for office rent
reviews and 2.5% for retail rent reviews.
Auckland accounted for 91% of all reviews and
achieved a 3.0% annualised increase and
Wellington a 2.4% increase.
On the leasing front, we completed 25 leasing
transactions including 6 renewals and 19 new
leases. By income, we now have 7.0% of income
expiring in FY19 across 17 leases as at 31 July.
As you’d expect, we continue to focus on our
remaining expiries. Argosy has achieved some
excellent leasing outcomes over the first 4
months including;
— New leases with E Road Limited (9 years)
and Peterken Enterprises Limited (6 years)
both at the Albany Lifestyle Centre;
— New leases with Storage Box (8 years) and
the Chemist Warehouse (6 years) at the
Albany Mega Centre;
— A new 6 year lease with McDonalds
Restaurants (New Zealand) Limited at 302
Gt South Road;
— Two 6 year leases at 23 Customs Street (both
on Level 14), one with Hampton Jones
Property Consultancy Limited (345sqm)
and the other with Resonant Consulting
Limited (255sqm); and
— A new 5 year lease with Super Cheap Autos
at 320 Ti Rakau Drive, East Tamaki.
Peter Mence Chief Executive Officer
Divestments and acquisitions
Since the full year results announcement,
Argosy settled the sale of 7 and 7A Wagener
Place, St Lukes in Auckland for $31.0m at a 13%
premium to its book value. We noted at the time
that the sale presented an opportunity to reduce
our retail exposure in an area where there will
be increasing competition. The funds have
initially been applied to reducing bank debt and
at 31 July Argosy’s debt to total assets ratio sat
at 35.6%.
The property at 626 Great South Road,
Greenlane, has been sold at a price of $10.6m,
8.2% over the current book value of $9.8m. The
agreement is unconditional with settlement
scheduled for 30 November 2018. The property
was in Argosy’s pool of non Core assets with the
funds to initially be applied to reducing bank
debt.
We recently announced the strategic
acquisition of 11 Coliseum Drive in Albany (The
Warehouse), for $26.4m. You can read more
about this important acquisition in this Update.
Development update
Placemakers, 180-202 Hutt Road – Stage 1 (of
3) demolition has been completed and
construction of the showroom has commenced.
After all 3 stages are finished, the 3,700sqm
development is expected to be completed by
Mid-2019.
I look forward to updating investors further at
our interim results to be announced in
November.
Snapshot
People
Joanne Sharpe Asset Manager
Argosy Asset Manager Joanne Sharpe
recently attended the UCI Gran Fondo World
Championships in Varese, Italy. She
competed in the 22.5km individual time trial
and 130km road race which included
2,000m of elevation. “The individual time trial
was a real test of endurance and mental
toughness particularly with a climb to
contend with which is highly unusual. I was
beyond happy to finish 16
th
with a time of
38.18mins which was the 3
rd
best NZ
performer including the men.” Joanne's
weekly training sessions leading up to the
event included gruelling hours on the bike,
yoga and recovery sessions. She managed
to work and train by having very long days,
typically starting at 4 or 5am. Great result
Joanne!

New staff
The Argosy team has undergone a few
changes since year end. One of our team is
on maternity leave and we have taken on
some additional resource to help manage the
workloads across the business. We have
also reorganised a few roles internally to
deliver more efficiency. One of our new staff
is Jeremy Koh (Property Manager). Jeremy
has joined Argosy from Residential Property
Management where he worked for three
years. Jeremy went to St Peters College and
completed a Bachelor of Commerce and
Property (conjoint) at the University of
Auckland. His interests include swimming,
soccer, martial arts and athletics. Welcome
aboard Jeremy!
Development
LocationTotal CostSpend to dateForecast Completion
PlacemakersWellington$10.3m$1.72mMid 2019
Total$10.3m$1.72m

Other portfolio news
Through FY18 Argosy has continued to engage
on its environmental and social responsibilities.
We update some of these below.
Environmental update
We're pleased to see that 15 Stout St (MBIE) has
again been certified with a 5 star NABERSNZ
whole building rating, which represents
Market Leading performance. NABERSNZ
ratings must be certified each year and this
result sees 15 Stout Street as the only holder of
a current 5 star whole building rating in
Wellington.
Pillars New Zealand Partnership
Pillars New Zealand assists the children of
parents who are in prison with a variety of
programmes including mentoring,
programmes within prison and general
assistance to families and whanau.
On any given day more than 20,000 children are
affected by having a parent in prison. Without
the right support these children are over nine
times more likely than other Kiwi kids to end
up in prison as adults.
Children of prisoners are among some of the
most vulnerable children in our community.
Argosy is extremely happy to have partnered
with Pillars and for the 2019 financial year it has
donated $5,000 towards supporting this very
worthy organisation and its programmes. We
hope this contribution can help make a
difference to some very needy children in our
community.
We hope to work with Pillars more in the future.
Spirit of Adventure Trust
Investors will know of Argosy’s commitment to
the Auckland based Spirit of Adventure Trust.
Argosy sponsors teenagers aged 16-18 to
participate in the 10-day development voyage
on the Spirit of New Zealand.
For the FY19 financial year Argosy has
sponsored two students. For the September and
October voyages, the students (one girl and one
boy) will come from the Inzone Education
Foundation.
The philosophy behind Inzone has been to
identify and partner with top academic
performing state schools, building the
necessary support and pastoral care for Māori
and Pacific Island students to attend these
schools and succeed academically, extra-
curricularly and as leaders.
These students come from families that
wouldn’t be able afford to join the Spirit of
Adventure Youth Programme so this is a great
opportunity to develop these students further
and set them up for success. We look forward to
reporting back to you in our March update.

Governance update
Argosy held its Annual Meeting on 6 August at
the Royal NZ Yacht Squadron in Auckland’s
Westhaven Marina. Argosy’s Chairman Mike
Smith and Chief Executive Officer Peter Mence
both gave addresses on Argosy’s performance
during the 2018 financial year.
At the meeting, Jeff Morrison was re-elected as
an independent director onto the Argosy Board.
Subsequently, Stuart McLauchlan was
appointed to the Board to replace Chris Hunter
who did not stand for re-election. This new
appointment will need shareholder approval at
next years’ Annual Meeting. Stuart is a Director
of several companies including Dunedin
International Airport Ltd. He is also Chairman
of the NZ Sports Hall of Fame, Chairman of
Pharmac Ltd, Chairman of Scott Technology
Ltd, Chairman of UDC Finance Ltd and a
member of the Otago Southland Branch of the
Institute of Directors. A full biography on Stuart
can be found on our website.
In addition, Amanda Smith completed her 12-
month secondment at Argosy as part of the New
Zealand Institute of Directors, Future
Director’s programme. We wish her well in her
next endeavours.
Retail Roadshow and Annual Meeting recap
Through May and June 2018, the Retail
Roadshow was held across 13 cities and was very
successful. With over 600 RSVP’s received for
the roadshow, we had an excellent 90%
attendance rate despite some locations being
weather affected (Wellington and Auckland
particularly). We had a 100% turnout where
there was no bad weather. Retail investors
remained very well engaged asking CEO Peter
Mence plenty of questions. Importantly, we had
directors present in 8 of 13 locations to support
Peter and provide additional access to the Board
for investors. The benefit of catching up with
retail investors across the country is that it also
provides Argosy the opportunity to present to
the local broker community in the regions.
These included: First NZ Capital (Wellington,
Christchurch and Nelson); Forsyth Barr in New
Plymouth, Tauranga, Napier and Whangarei;
and Craigs Investment Partners in Dunedin and
Invercargill. All of these meetings were well
attended and we thank those firms for their
continued support.

Portfolio update AS AT 31 JULY 2018
Properties
60
Tenants
172
WALT
6.0yrs
Weighted average lease term
Portfolio
$1.53b
Total portfolio value
Occupancy
98.3%
Occupancy (by rent)
Total portfolio update
By sector
42%Industrial
38%Office
20%Retail
Portfolio mix
by asset type
86%Core
7%Value Add properties
7%Properties and land to divest
Total portfolio value
by region
71%Auckland
24%Wellington
5%Nth Island regional & Sth
Island
Dividend
The FIRST QUARTER DIVIDEND for the
2019 financial year of 1.5625 cents per share,
with imputation credits of 0.3015 cents per
share attached, will be paid on 26 September
2018.
Important dates
FY19 Q1 DIVIDEND PAYMENT
26 September 2018
INTERIM RESULTS ANNOUNCEMENT
20 November 2018
FY19 Q2 DIVIDEND PAYMENT
December 2018
FY19 Q3 DIVIDEND PAYMENT
March 2019
Contact
t/ 0800 653 653 t/ +64 9 304 3400
f/ +64 9 302 0996
39 Market Place, Auckland 1010,
PO Box 90214, Victoria Street West,
Auckland 1142, New Zealand
www.argosy.co.nz
Registrar
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