Argosy full year 2019 annual result

FY19
Annual Results
Presentation
Argosy Property Limited
23 May 2019
www.argosy.co.nz

AGENDA
2
HighlightsPage 4
Strategy / PortfolioPage 6
FinancialsPage 15
Leasing UpdatePage 24
Looking AheadPage 28
PRESENTED BY:
Peter Mence CEODave Fraser CFO
Note: This result should be read in conjunction with the NZX release dated 23
May 2019. 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.

Our strength lies in the diversity of our
portfolio by sector, location and tenant
mix, providing flexibility to support our
tenants changing needs, ensuring a
resilient business model through various
economic cycles.”
Peter Mence
CEO
3

HIGHLIGHTS
4
Change image
23 Customs Street, Snickel Lane

FY19 Full Year Highlights
5
35.1%
Total shareholder
return for 12 months
$70.5m
6.1yr
Annual revaluation gain,
4.3% above bookvalue
Weighted average
lease term(WALT)
$100m
6.275c
Successful Green Bond
Issue
Full year dividend
5.0%
Net Distributable
Income increase
4 Henderson Place, Compaq

Strategy / Portfolio
6
23 Customs Street, Level 2 –Predict HQ

Investment Strategy / Policy
7
Investment Strategy
Investment Policy
Framework
Consists primarily of Core and Value Add properties.
Core properties to be between 75-90% of the portfolio by value.
Value add properties to be between 10-15% of the portfolio by value.
Target sector bands (Industrial 40-50%, Office 30-40%, Retail 15-25%).
Preference for acquisitions > $10m.
Undertake developments with partners/tenants.
Enter JV’s only where counterparty of sufficient standing.
No international or leasehold properties.
Management of external portfolios where complementary.

Create. Manage. Own.
8
Proactive delivery of sustainable
growth.
Manage all elements of the
business to deliver the right
outcomes for all our
stakeholders.
Own the right assets, with the
right attributes in the right
locations.

Portfolio at a Glance
9
Data as at 31 March 2019
TOTAL PORTFOLIO VALUE
BY SECTOR
TOTAL PORTFOLIO VALUE
BY REGION
PORTFOLIO MIX
BY VALUE
72%
25%
3%
Auckland
Wellington
Regional North Island
& South Island
82%
10%
8%
Core properties
Value Add properties
non Core
44%
38%
18%
Industrial
Office
Retail
Divestment of non Core assets continued through FY19.

Sector Summary
10
NUMBER OF BUILDINGS
37
MARKET VALUE OF ASSETS ($M)
$737.7
OCCUPANCY (BY INCOME)
97.8%
WALT (YEARS)
7.2
CONTRACT YIELD
6.15%
NUMBER OF BUILDINGS
16
MARKET VALUE OF ASSETS ($M)
$626.6
OCCUPANCY (BY INCOME)
96.8%
WALT (YEARS)
4.9
CONTRACT YIELD
6.88%
NUMBER OF BUILDINGS
7
MARKET VALUE OF ASSETS ($M)
$302.8
OCCUPANCY (BY INCOME)
100%
WALT (YEARS)
6.0
CONTRACT YIELD
6.22%
Data as at 31 March 2019. Contract yields exclude 7 Waterloo Quay, Stewart DawsonsCorner and 8-14 Willis Street.
INDUSTRIAL
OFFICE
RETAIL

Value Add
11
The following properties have been designated as Value Add
and make up ~10% of the total portfolio:
As at 31 March 2019
8-14 Willis Street (yellow) and Stewart DawsonsCorner
(red).
Stewart DawsonsCorner – internal framework
PropertySectorLocationValuation $m
90 -104 Springs Road, East TamakiIndustrialAuckland5.7
80 Springs Road, East TamakiIndustrialAuckland13.2
211 Albany Highway, AlbanyIndustrialAuckland26.2
960 Great South Road, PenroseIndustrialAuckland6.9
133 Roscommon Road, WiriIndustrialAuckland8.7
180-202 Hutt Road, KaiwharawharaIndustrialWellington12.9
99-107 Khyber Pass Road, GraftonOfficeAuckland11.6
107 Carlton Gore Road, NewmarketOfficeAuckland29.0
8- 14 Willis StreetOfficeWellington22.8
Stewart DawsonsCornerRetailWellington18.3
252 Dairy Flat, AlbanyRetailAuckland7.9
TOTAL $m (excl. land)163.2
56 Jamaica Drive, Grenada NorthLandWellington1.1
15 Unity Drive, AlbanyLandAuckland4.5
TOTAL $m168.8

Development Pipeline
12
180-202 Hutt Road: Progressing well. Stage 1 comprising 1,300m2 of showroom and office was completed recently.
Stage 2 works, comprising the drive through warehouse and hardstand area, will be complete by December 2019.
Stewart DawsonsCorner: In final discussions with an international retailer to occupy the entire building of 3,400m2.
Carlton Gore Road: 12 year lease with Housing New Zealand Corporation commencing 1 March 2020 for the entire
6,100m2 of net lettable area will commence following a $12.0m building upgrade expected to take approximately
six months. Targeting Green Star and NABERSNZ ratings. On completion the building will be an A Grade building
valued at $44.6m.
8-14 Willis Street: The development will create a substantially new 11 level, 11,800m2 building that will target a 6
Green Star Built rating and 5 Star NABERSNZ energy efficiency rating. New 15 year lease with the Crown (Statistics
New Zealand) to occupy the entire building, other than the 500m2 ground floor retail component. On completion
8-14 Willis Street will have an independent valuation of $94m. The development is projected to deliver an internal
rate of return of 8.2% and a 7.2% initial yield.
DevelopmentMajor Tenant
TypeLocation
Total Cost
$m
Spent to
31-Mar
$m
Forecast
completion
Sep-19Mar-20Sep-20Mar-21
Underway / commenced
180-202 Hut t RoadPlacemakers
INDWT N
10.36.1
Dec-19
St ewart Dawsons Corner
I n final discussionsRET
WT N20.0
12.0Jul-20
Planned
107 Cart lon Gore Road
Housing New Zealand
OFFA KL
12.0
0.6
M ar-20
8-14 Willis St reet
St at ist ics New Zealand
OFF
WT N
64.0
0.5Apr-21
TOTAL
106.3
19.2
Green buildings
FY 2020FY 2021

7 Waterloo Quay Update
13
Damage Assessment
Interim damage assessment reports and reinstatement scope reports with insurers.
Cost assessment estimate has recently been completed and submitted to insurers.
Currently reconciling reinstatement costs incurred with the cost estimate submitted to insurers.
Insurance Claim
Claims have been submitted for loss of rents for the two-year period from the date of the earthquake to mid-
November 2018, totalling $14.2m. No further claims in respect of loss of rents are expected.
Total cash amount received to 31 March 2019 is $20.9m (after $4.9m deductible). Of this amount, $10.8m has
been allocated to material damage reinstatement, $1.6m to expense recoveries and $8.5m to loss of rents.
For the period to 31 March 2019, $11.1m has been recognised in progress payments from insurers. Of this
amount, $8.5m has been allocated to reinstatement, and $2.6m to loss of rents.
Leasing
Changes in the method of measurement for seismic resilience has meant an upgrade is required to bring the
building up to required standard for long term government occupation.
Cost is not final but estimated at $27m to complete this work by November 2019.
Office leasing environment in Wellington is favourable and Argosy is currently in advanced negotiations with
Crown organisations.

Valuations
14
Second half revaluation gain
of $35.8m or 2.2% above book
value resulting in a full year
gain of $70.5m or 4.3% above
book value.
Regionally, Auckland biggest
contributor again. Big
increases for Albany Mega
($16m or 15%) and 211 Albany
Highway ($3.8m or 17%).
Wellington market results
mixed.
Portfolio market yield¹ firmed
33bps with Auckland firming
32bps and Retail 53bps.
1
Yields exclude Waterloo Quay, 8-14 Willis Street and Stewart DawsonsCorner.
Due to rounding, numbers presented in this presentation may not add up exactly to the totals provided and percentages may notexactly reflect absolute figures.
31 Mar 19
31 Mar 18
A uckland
1,161.5 1,206.8 45.3 3.9%6.43%6.75%
Wellingt on 422.9
412.8 (10.1)-2.4%7.48%7.60%
Nort h I sland Regional & Sout h I sland 46.8 47.4 0.6
1.3%7.45%7.96%
Total 1,631.2
1,666.9
35.8
2.2%6.65%6.98%
31 Mar 19
31 Mar 18
I ndust rial 713.4
737.7 24.3 3.4%6.46%6.74%
Office 627.8
626.6 (1.2)
-0.2%7.14%7.37%
Ret ail 290.0 302.7 12.7 4.4%6.27%6.80%
Total 1,631.1 1,666.9 35.8 2.2%6.65%6.98%
31 March 19
Book Value
$m
31 Mar 19
Valuat ion
$m
Δ
$m
31 March 19
Book Value
$m
31 Mar 19
Valuat ion
$m
Market Y ield
Market Y ield
Δ
%
Δ
%
Δ
$m

FINANCIALS
15
Change image
Albany Mega Centre

Income Reconciliation
16
Like for like rent growth of 3.2%

Financial Performance
17
Like-for-like gross rental
growth of 3.2% driving
increase in net income
Expenses up due to one-off
restructuring and additional
resourcing costs across the
business
Annual revaluation gains
driven by a mix of cap rate
firming and rental growth
Solid realised gains due to
favourable vendor market
Lower tax expense driven by
movement in deferred tax,
higher capitalisedinterest,
non assessible insurance
proceeds and losses on
disposal.
FY19FY18
$m$m
Net property income102.5101.0
Administration expenses(10.9)(9.9)
Profit before financial income/(expenses), other
gains/(losses) and tax
91.591.1
Interest expense(24.2)(25.5)
Gain/(loss) on derivatives(7.4)(4.1)
Revaluation gains70.5 47.3
Realised gains/(losses) on disposal6.1 0.3
Net: Insurance proceeds & earthquake expense6.8 0.2
Profit before tax143.3109.3
Taxation expense(9.6)(11.1)
Profit after tax133.798.2
Basic and diluted earnings per share (cents)16.1611.90
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.

Distributable Income
18
Net distributable income per
share up by 4.8%
FY19FY18
$m$m
Profit before income tax143.3109.3
Adjusted for:
Revaluations gains(70.5)(47.3)
Realised losses/(gains) on disposal(6.1)(0.3)
Derivative fair value loss/(gain)7.4 4.1
Earthquake expense net of recoveries(6.8)(0.2)
Gross distributable income67.365.6
Depreciation recovered1.7 0.6
Current tax expense(11.7)(11.6)
Net distributable income57.454.6
Weighted average number of ordinary shares (m)827.0825.1
Gross distributable income per share (cents)8.147.95
Net distributable income per share (cents)6.946.62
Net distributable income up by
5.0%
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.

Investment Properties
19
Portfolio growth (+10%) driven by a combination of capital projects, acquisitions and revaluation
gains.

Movement in NTA per share
20
Full year revaluation gain key driver of ~9% NTA uplift to $1.22.

Gearing
21
The sale of non Core assets
totalled~$45m.
The asset held for sale last year
was Wagener Place, settled in
Q2 of FY19.
During the period Argosy
diversified its long term debt
funding and issued $100m of 7
year senior secured fixed rate
green bonds.
Target policy gearing range
remains between 30-40%.
FY19FY18
$m$m
Investment properties1,667.01,513.1
Assets held for sale0.027.4
Other assets8.04.3
Total assets1,675.11,544.8
Fixed rate green bonds100.00.0
Bank debt (excl. capitalised borrowing costs)496.2554.2
Debt-to-total-assets ratio35.6%35.9%
35.6%
Debt-to-total-assets ratio

Funding & Interest Rate
Management
22
Argosy maintains strong relationships with its banking partners ANZ Bank New Zealand Limited, Bank
of New Zealand and The Hongkong and Shanghai Banking Corporation Limited, and remains well
within its banking covenants.
In October 2018, Argosy added a further tranche of $25m, expiring October 2020 (Tranche E).
In March Argosy issued $100m of 7 year senior secured fixed rate bonds. The coupon was set at
4.00% per annum.
FY19FY18
Weighted average duration of debt facilities2.7 years3.1 years
Weighted average interest rate
1
4.75%4.98%
Interest Cover Ratio3.2x3.3x
% of fixed rate borrowings53%62%
Average fixed interest rate
2
4.49%4.56%
¹ Including margin and line fees
2
Excluding margin and line fees
2.7yrs
Weighted average facility term

Dividends
23
6.275c
FY20 dividend guidance
A fourth quarter cash dividend of 1.5875 cents per share has been declared, with imputation
credits of 0.3026 cents per share attached, and will be paid on 26 June 2019.
The Board has signalled FY20 dividend guidance of 6.275 cents per share.
The FY20 dividend reflects the Board’s wish for shareholders to share in the continued strong results
whilst allowing Argosy to maintain its momentum towards an AFFO based dividend policy.
26 June
4
th
quarter dividend paid

Leasing Update
24
Change image
Albany Mega Centre

Leasing Success
25
Strong leasing results for the year have continued, delivering a WALT of 6.1 years.
44 lease transactions were completed on 81,274m2 of net lettable area, including 21 new leases, 12
renewals and 11 extensions.
Notable leasing successes include;
Some larger FY20 lease expiries to address include;
PropertyTenantNLA (m2)Status
147 Lambton Quay, WellingtonMBIE8,139In discussions with tenant
23 Customs Street, AucklandUS Embassy1,308Renewed for further 10 years
Albany Mega Centre, AucklandNorth Beach1,085Renewed for further 6 years
PropertyTenantNLA (m2)Lease Term
107 CartlonGore Road, AucklandHousing New Zealand6,10012 years
320 Ti RakauDrive, AucklandBunnings Limited12,37410 years
252 Dairy Flat, AucklandAlbany Toyota2,26110 years
147 Gracefield Road, WellingtonWinstone Wallboards8,0189 years
Albany Lifestyle Centre, AucklandE Road Limited1,6909 years

Lease Maturity
26
Normalised lease maturity profile relatively stable over the medium term.
Strong Crown interest in 7 Waterloo Quay space.

NZ Market Update
27
Office
Flexible working environments continue to drive a disconnect between employment growth and net absorption. This is
expected to continue with recent transactions demonstrating a move to agile work environments.
Rental growth impacted by new supply – softer in Auckland, reflected in higher incentives, and firmer in Wellington.
The Wellington market continues to show strong demand, with low vacancy for good quality seismically sound space
that is well located. There is a shortage of large floor plate/high quality stock with upward rental growth pressure as a
result. Premium and Grade A vacancy is minimal.
Industrial
Steady economic growth driving occupier demand. Lower interest rates and offshore capital flows driving yields/cap
rates lower.
Continued low supply forecast with challenges around land supply and congestion in Auckland market.
Land values are at historic highs.
New rental benchmarks being set with each new phase as costs of supply increase ($130-140m2 for prime warehouse).
Vacancy at historic lows for both prime and secondary (< 2%).
Retail
Continued increase in online retailing is impacting discretionary retail.
Generally a more negative retail spending outlook. Waning migration, increasing fuel prices and flat housing prices are
providing headwinds.
Support from increasing tourism has ebbed as this growth plateaus.
Approximately 200,000m2 of retail space to be added by 2022.
Large format retail expected to be most secure.

Looking Ahead
28
Change image

2020 Focus
29
Create
Proactive delivery of
sustainable growth.
Manage
Manage all elements of our
business to deliver the right
outcomes for all our
stakeholders.
Own
Own the right assets, with
the right attributes in the
right locations.
Continue to invest in a diverse range of properties across sectors, locations and
sizes.
Maximise current attractive vendor market conditions.
Investment activity focused on existing portfolio.
Maintain high tenant retention rates and address key expiries / vacancies.
Leasing up of 7 Waterloo Quay.
Ensure diversity of debt funding and increase tenor.
Maintain transition towards AFFO based dividend policy.
Continue transitioning Value Add properties to drive earnings and capital growth.
Ensure projects are completed on time and on budget.
Keep investigating strategic acquisitions (off market or contiguous).

Appendices
30

Adjusted Funds from Operations (AFFO)
31
Note: AFFO is an alternative performance measure used to assist investors in assessing the Company’s underlying performance and to determine income available for distribution. This
reconciliation is based on guidelines for disclosing AFFO as provided by the Property Council of Australia. 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.
FY19FY18
$m
$m
Profit before income t ax143.3
109.3
Rev aluat ion gains(70.5)
(47.3)
Deriv at iv e fair v alue (gain)/loss
7.4 4.1
Realised losses/(gains) on disposal(6.1)
(0.3)
Eart hquake expense net of recov eries(6.8)
(0.2)
Gross distributable income67.3
65.6
Depreciat ion recov ered 1.7 0.6
Current t ax expense(11.7)(11.6)
Net distributable income57.454.6
A mort isat ion of t enant incent iv es and leasing cost s
3.93.1
Funds from operations (FFO)
61.357.7
Capit alisat ion of t enant incent iv es and leasing cost s(6.5)(2.8)
Maint enance capit al expendit ure(4.6)(5.3)
T ax effect ed maint enance capit al expendit ure recov ered 1.50.2
Adjusted funds from operations (AFFO)51.749.7
Weight ed av erage number of shares on issue ( m)
827.0825.1
AFFO per share (cents)
6.256.03
Div idends paid in period6.286.20
Div idend payout rat io ( t o A FFO)100%103%

Rent Reviews
32
Note: Due to rounding, numbers presented in this presentation may not add up exactly to the
totals provided and percentages may not exactly reflect the absolute figures.
Type#
Previous Rent
($000's)
New rent
($000's)
Increase
($000's)% Increase
Annualised
Increase
($000's)
Annualised %
Increase
% of rent
reviewed
Total10339,37840,9591,5814.0%1,1192.8%100.0%
By review type
Fixed4916,63717,1485113.1%5113.1%42.2%
Market2411,46212,2057436.5%3723.2%29.1%
CPI3011,27911,6063272.9%2362.1%28.6%
By sector
Industrial3019,63420,3847503.8%6123.1%49.9%
Office4310,42510,9104854.7%2792.7%26.5%
Retail309,3199,6653463.7%2282.4%23.7%
By location
Auckland8831,97133,2811,3104.1%8962.8%81.2%
Wellington113,7363,8961604.3%1123.0%9.5%
Other43,6713,7821113.0%1113.0%9.3%

Rent Reviews
33
Note: Due to rounding, numbers presented in this presentation may not add up exactly to the totals provided and
percentages may not exactly reflect the absolute figures.
Location#
Previous Rent
($000's)
New rent
($000's)
Increase
($000's)% Increase
Annualised
Increase
($000's)
Annualised %
Increase
% of rent
reviewed
Auckland
Office38
9,83510,295460
4.7%
267
2.7%30.8%
Industrial21
13,55414,074520
3.8%
417
3.1%42.4%
Retail29
8,5838,913331
3.9%
213
2.5%26.8%
88
31,97133,2821,311
4.9%
896
2.7%93.3%
Wellington
Office5
59161625
4.3%
13
2.1%15.8%
Industrial6
3,1463,281135
4.3%
99
3.2%84.2%
Retail0
000
0.0%
0
0.0%0.0%
11
3,7373,897160
4.3%
112
3.0%100.0%

Portfolio Metrics
34
Note: Data as at 31 March 2019
The strength of our diversified portfolio is in the breadth and depth of our tenant base and sectors
they represent.

Portfolio Snapshot
35
Our focus is delivering improved portfolio quality and is reflected in our strong portfolio metrics
4.60
4.80
5.00
5.20
5.40
5.60
5.80
6.00
6.20
6.40
FY15FY16FY17FY18FY19
WA LT (y ears)
0.0%
5.0%
1 0. 0%
1 5. 0%
2 0. 0%
2 5. 0%
3 0. 0%
3 5. 0%
4 0. 0%
4 5. 0%
FY15FY16FY17FY18
FY19
Debt-to-total-assets
0.0%
2 0. 0%
4 0. 0%
6 0. 0%
8 0. 0%
100.0%
FY15FY16FY17FY18FY19
Occupancy
$ 0. 80
$ 0. 85
$ 0. 90
$ 0. 95
$ 1. 00
$ 1. 05
$ 1. 10
$ 1. 15
$ 1. 20
$ 1. 25
FY15FY16FY17FY18FY19
Net Tangible Assets

Disclaimer
36
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.
23 May 2019

---

Annual Report 2019

create
own
manage
Argosy Property Limited
Annual Report 2019

create
own
manage
create opportunities to ensure
sustainable growth
manage all elements of our
business to deliver the right
outcomes for all our stakeholders
own the right assets,
with the right attributes
in the right locations.
Our Strategy at Work2
Our Investment Policy4
Financial Summary6
Chairman's Review7
Chief Executive Officer's
Review
10
Create. Manage. Own.
Create.16
Manage.22
Own.34
Our Portfolio40
Consolidated Financial
Statements
47
Corporate Governance79
Investor Statistics87
Directory89
1
Argosy Property Limited
Annual Report 2019

C
R
E
A
T
E





M
A
N
A
G
E
O
W
N
Target off market
opportunities
or contiguous properties
with potential
An environmentally focused
& sustainable business
A diversified portfolio of
high quality, well located
assets with growth potential
Strong and valued relationships
across all key stakeholders
Transition value add properties
to drive earnings and
capital growth
Real estate with a primary
focus on Auckland &
Wellington markets
Safe working environments
for Argosy’s people and
its partners
Streamlined tenant led
development process
and execution
A commitment to
management
excellence
Our Strategy at Work
2
Argosy Property Limited
Annual Report 2019

createmanageown
$106.3m
of Value Add developments
announced or underway,
over 80% of these are
Green developments
6 Green Star
Built rating
targeted on a new
$64m Wellington office
development for new Crown
tenant, Statistics New Zealand
$35.3m
of strategic acquisitions
$100m
of Green Bonds issued to support
our focus on sustainability and
development of high quality
green assets
15.9%
compound annual total return
to investors over 10 years
Our family of
171
tenants across
our portfolio
7
Strategic
Health & Safety
Goals

to provide safer environments for
Argosy staff and its partners
92%
of all contractors
pre-qualified by Argosy
before starting work
$1.67b
of high quality commercial
real estate
Diversified
portfolio of
60
buildings
Industrial 37
Office 16
Retail 7
AKL
WLG
Portfolio weighting
Auckland 72%
Wellington 25%
$16 9m
of the portfolio classified
as Value Add, providing attractive
long term organic growth potential
3
Argosy Property Limited
Annual Report 2019

Industrial 40-50%
Office 30-40%
Retail 15-25%
Focus on good quality
Office, Industrial and
Large Format Retail
No international properties
No Leasehold
Concentrate on
Auckland (65%-75%) and
Wellington (20%-30%).
Regional North Island
or South Island
tenant-driven
only (<10%)
Target “off-market”
acquisitions and avoid
competitive processes
Target Value Add properties
where we can leverage internal
expertise within overall
Core/Value Add targets
Target contiguous
properties with potential
Value parameters
$10m+
Greater than $10 million
unless strategically imperative
($6 million for Industrial)
10%
No acquisition more than
10% of overall portfolio value
Due diligence
Structural integrity ≥ 70%
of New Building Standard
(unless this represents
a Value Add opportunity)
Argosy strives to deliver
reliable and attractive
returns to shareholders.
Where will we buy?
Development

Developments only for
tenants who provide
strategic value to Argosy
Joint ventures will be
undertaken only where the
counterparty is of sufficient
financial standing to carry
their share of risk
Apply Argosy’s
due diligence
checklist
>70%
Our Investment Policy
4
Argosy Property Limited
Annual Report 2019

Argosy has a clearly defined
investment strategy and
acquisition policy which
guides our commercial
decision making.
We are, and will remain, invested in a portfolio that is
diversified by sector, location and tenant mix. Our
Investment Strategy and Investment Policy is unchanged
(apart from allowing for the management of third-party
portfolios) and Argosy’s portfolio will continue to consist
primarily of Core and Value Add properties.
In some cases, a portfolio of assets may be considered for
acquisition. The strategy for a potential portfolio
acquisition must be consistent with the overall Argosy
Portfolio Investment Strategy (i.e. the majority by value of
the properties either are Core or offer potential to move to
Core in the medium-term).
In certain circumstances, exceptions to the Investment
Policy may be considered where an acquisition is made to
meet the requirements of a valued tenant.
Our Investment Policy targets an industrial band of
40-50% of the total portfolio by value, office 30-40% and
retail 15-25%.
As at 31 March 2019, Argosy was operating within the
parameters of its Investment Policy.
Our diversified portfolio of quality properties has an average
value of $27.8 million. This allows the Company to react
quickly to changing economic or property market conditions.
Liquid properties, which are properties that could potentially
be under contract within a short period currently represent
approximately 25% of the portfolio or $410 million.
Capital Management
The optimal capital structure for Argosy is one that enables
the Company to maximise its earnings yield through the
property cycle within the following parameters:
• properties can be acquired when they meet the
approved Investment Policy criteria, or sold when they
are non Core;
• there are no forced sales of properties or a requirement
to issue equity at a price that is dilutive to shareholders;
• measured dividend growth is maintained.
Argosy’s debt-to-total assets ratio target band remains at
30-40%. This band allows Argosy flexibility to react to
changing financial and property market conditions. Any
movement beyond pre-set parameters requires an action
plan and timeframe to move debt levels to within the
prescribed range.
Risk Management
Argosy strives to deliver reliable and attractive returns to
shareholders. We take a considered approach to
development, acquisition, divestment, leasing and capital
management decisions, reflecting our proposition to
shareholders as a yield based investment.
Argosy has a robust risk assessment process. Risk
assessment reviews are carried out by a representative
cross-section of Argosy’s management team at least twice
a year in accordance with Argosy’s risk management
framework. A risk assessment review has three phases:
identification of material risks arising from Argosy’s
operation; assessment of the probability and consequences
of the risk; and development of controls to achieve a level
of residual risk that is within Argosy’s risk appetite.
Argosy generally operates within a medium/low overall
risk range. Argosy has a low risk appetite for risks
associated with managing developments and Value Add
projects and compliance matters.
Core properties are well constructed, well located assets
which are intended to be long-term investments (>10 years).
The Core properties target is between 75% to 90% of the
portfolio by value. Core properties enjoy strong long-term
demand (well located and generic), a leasing profile that
provides for rental growth of at least CPI and good
structural integrity with minimal maintenance capital
expenditure required.
Value Add properties are assets which, through skilled asset
management, can increase future earnings and provide
capital growth. Value Add properties will already be well
located with the potential for strong long-term tenant
demand. These properties are available for near to medium-
term repositioning or development with the view to moving
into the Core category.
Investment Policy
Our Investment Policy clearly defines what properties we
will seek to own by setting the boundaries within which we
will operate and invest. It delivers a clear acquisition
checklist and every potential acquisition (and portfolio asset)
can be measured against that checklist.
VALUE ADD
CORE
5
Argosy Property Limited
Annual Report 2019

Financial Summary
Net Property Income
$M
90.990.9
98.498.4
100.8100.8
101.0101.0
102.5102.5
FY15FY16FY17FY18FY19
0
30
60
90
120
Gross Distributable Income
CENTS PER SHARE
7.077.07
7.607.60
8.038.03
7.957.95
8.148.14
FY15FY16FY17FY18FY19
0
2.5
5
7.5
10
Debt-to-total-assets Ratio

37.8%37.8%
36.7%36.7%
36.3%36.3%
35.9%35.9%
35.6%35.6%
FY15FY16FY17FY18FY19
0
10
20
30
40
FINANCIAL SUMMARY
Unit of
measure
FY2015FY2016FY2017FY2018FY2019
Net property income$m90.998.4100.8101.0102.5
Profit before financial income/(expenses) and
other gains/(losses) and tax$m83.089.491.491.191.5
Revaluation gains on investment property$m38.642.242.347.370.5
Profit for the year (before taxation)$m68.683.6120.4109.3143.3
Profit for the year (after taxation)$m64.478.9103.698.2133.7
Earnings per sharecents8.089.7912.6911.9016.16
Gross distributable income per sharecents7.077.608.037.958.14
Net distributable income per sharecents5.976.356.556.626.94
Total assets$m1,313.21,374.91,458.61,544.81,675.1
Debt-to-total-assets ratio%37.836.736.335.935.6
Net assets backing per sharecents96100106112122
Cash dividend per sharecents6.006.036.106.206.28
Shares on issue at year endm802.6812.6822.9827.0827.0
Total equity$m768.7810.4875.2926.91,009.0
PROPERTY METRICS
Unit of
measure
FY2015FY2016FY2017FY2018FY2019
Number of tenants#192193185176171
Number of properties
1
#6866646160
Average property value$m19.2120.7222.5324.8127.80
Net lettable areasqm607,799601,045606,324587,766587,125
Total book value$m1,306.41,367.61,442.21,513.11,667.0
Weighted average lease termyears5.545.245.596.086.14
Occupancy factor by rental%99.299.498.698.897.7
Occupancy factor by area%99.399.697.499.497.8
1. Certain titles have been consolidated and treated as one. The total number of buildings excludes properties held for sale.
6
Argosy Property Limited
Annual Report 2019

Chairman's Review
A clear way
forward
The Board is pleased to have finished the 2019
financial year with excellent results. We continue
to focus on the sustainability of our business and
delivering high quality green developments.”
Michael Smith
CHAIRMAN
7
Argosy Property Limited
Annual Report 2019

Chairman's Review
On behalf of the Board of Directors, it is my pleasure
to present Argosy’s 2019 Annual Report.
For the financial year Argosy delivered a total shareholder return
of 35.1%, outperforming the property sector by 11.1%. We have
continued our focus of greening the portfolio to deliver high
quality buildings and have complemented this with the inaugural
green bond for the property sector. Our successful $100 million 7
year green bond offer was very well received by investors.
Management has continued to reposition the portfolio extremely
well through the combination of strategic acquisitions, strategic
developments and the ongoing divestment of non Core assets
above their book value. Operationally, the team has achieved some
great leasing outcomes through the year and continued to address
key portfolio vacancies. Management’s focus on organic growth
opportunities will continue and we have recently announced
some green developments which are underway or planned. These
will position Argosy very well for the long term.
We will continue to focus on our existing
portfolio to create long term value for
Argosy and its shareholders.”
Michael Smith
CHAIRMAN
With a strong finish to the FY19 year, we are pleased to be able to
announce a full year dividend of 6.275 cents per share for this
financial year. The increase above guidance reflects our ongoing
belief that investors should share in the continued strength of the
business. However, we are also cognisant that we must maintain
our momentum towards an Adjusted Funds from Operations
(AFFO
1
) based dividend policy over the medium term. The
dividend for FY20 is therefore expected to be maintained at 6.275
cents per share.
STRATEGY
Our Create, Manage, Own framework, which complements our
overall Investment Strategy and Investment Policy, articulates
what we do in a transparent way for all our stakeholders to
understand. Ultimately, Argosy is about Creating a sustainable
business and incremental value, Managing the business for all our
stakeholders and Owning the right assets in the right locations.
It’s a simple message and very clear way forward.
DIVIDENDS
A fourth quarter dividend of 1.5875 cents per share has been
declared for the March quarter with imputation credits of 0.3026
cents per share attached. This brings the full year cash dividend
to 6.275 cents per share. The fourth quarter dividend will be paid
to shareholders on 26 June 2019 and the record date will be
12 June 2019.
The Company remains absolutely focused on delivering
sustainable dividends to shareholders. Based on current
projections for the portfolio, the Board expects a full year 2020
cash dividend of 6.275 cents per share, consistent with this year.
This reflects our wish for shareholders to continue to share in the
positive results to date but allows us to maintain our momentum
towards an AFFO based dividend policy in the medium term.
Argosy’s dividend reinvestment plan remains suspended.
Consistent with our full year result, our accompanying annual
result presentation provides details of AFFO.
GOVERNANCE
As you have come to expect, Argosy’s Board remains committed
to the highest standards of corporate behaviour and
accountability. We advocate adherence to corporate best practice
in terms of ethical behaviour and disclosure. Argosy’s website
remains the best place to find all our key policies including Code
of Conduct and Ethics, Diversity and Continuous Disclosure
Policy. We continue to encourage investors to read these for
themselves.
We have maintained our Environmental, Social and Governance
reporting disclosures. 2019 is the second year of reporting on our
ethnic diversity within our business to illustrate the diverse
cultures we embrace and whom we benefit from on a daily basis.
The Board changes signalled in 2018 continued throughout 2019
with the appointment of three new Directors, the retirement of
one Director and the resignation of two Directors. Chris Hunter
retired as an independent director and subsequently Stuart
McLauchlan was appointed as an independent Director. Mark
Cross and Andrew Evans both resigned during the year with Chris
Gudgeon and Mike Pohio being appointed as independent
Directors of the Company.
1
AFFO (Adjusted Funds From Operations) is considered by some investors to represent a measure of dividend sustainability. The annual results presentation
released today provides a reconciliation between net distributable income and AFFO.
FY19 Total Shareholder Return
35.1%
An excellent result and materially outperforming
the sector
7 year Green Bonds
$100m
The first listed property vehicle in New Zealand to
issue
8
Argosy Property Limited
Annual Report 2019

Looking ahead, the upcoming Annual Meeting of shareholders is
scheduled to be held at 2pm on 7 August 2019 at the Royal New
Zealand Yacht Squadron, 101 Curran Street, Westhaven Marina,
Auckland. Stuart McLauchlan, Chris Gudgeon and Mike Pohio
will all retire in accordance with the Company’s constitution and
the NZX Listing Rules and will be eligible for re-election. In
addition, Mike Smith and Peter Brook will also retire and be
eligible for re-election.
OUTLOOK
It is expected the next 12-24 months will see the continuation of
low interest rates and a lower inflation outlook, along with a
positive environment for real estate pricing. Economic growth is
forecast to be in the 2.0% to 2.5% range over the medium term,
which is lower than previously forecast but still positive. Lower
migration, weaker business confidence and changing bank capital
requirements, together with a weakening residential housing
market are all economic headwinds which need to be carefully
navigated.
Annual Meeting
7 Aug
2.00pm at the RNZYS
Argosy is very well placed to weather the changing economic
landscape over the medium term. It has a strong balance sheet
and a growing, high quality portfolio of diversified properties with
an increasing focus on sustainability and green assets. Our Value
Add development pipeline will deliver further property, sector
and tenant diversification to Argosy and its shareholders. The
long-term nature of the leases entered into adds certainty and
stability to our cashflows and earnings. Argosy will remain
focused on addressing near term lease expiries within the
portfolio and ensuring that our tenant retention rate remains
high. We will focus on delivering on our strategy to support the
creation of long term value for shareholders.
To all our investors, both shareholders and bondholders, thank
you all for your continued support over the year and I look
forward to updating you further at the Annual Meeting.
MICHAEL SMITH
Chairman
Citibank Level 2 - Predict HQ Boardroom
FY19 Dividend
6.275¢
An increase on the prior year
9
Argosy Property Limited
Annual Report 2019

Chief Executive Officer's Review
Staying on course
It’s really pleasing to deliver another strong
performance for our shareholders. Argosy’s
financial and portfolio position is very sound and
we are well positioned to benefit from the
opportunities we see ahead. ”
Peter Mence
CHIEF EXECUTIVE OFFICER
10
Argosy Property Limited
Annual Report 2019

Rental income, earnings and distributable profit all
improved on the back of strong leasing and rent
review outcomes during the year. Our portfolio
metrics have been maintained or improved and the
quality of our buildings is high.
We are pleased to report year end occupancy at 97.7% and a
weighted average lease term (WALT) of 6.1 years. Furthermore,
our revaluation gain of $70.5 million or 4.3% for the year to
31 March reflects the strong operational results delivered by the
management team during the year. We also continued to make
solid progress at 7 Waterloo Quay. Looking ahead to FY20 and
beyond we are excited about the opportunities we see to ensure
the sustainability of the business and we will continue to deliver
on our strategy.
HIGHLIGHTS
•
Net distributable income
2
up 5.0%;
•
Net distributable income per share up 4.8%;
•
A full year revaluation gain of $70.5 million, an increase of 4.3%
on book value;
•
Portfolio metrics in excellent shape with WALT at 6.1 years;
•
Divestment of $45.4 million of non Core assets significantly
above book values;
•
Continued solid progress at 7 Waterloo Quay;
•
Strategic acquisitions of $35.3 million, adding value to adjacent
sites and underpinning longer term strategic growth
opportunities;
•
Diversified term debt with a successful $100 million 7 year
green bond offer;
•
Full year dividend of 6.275 cents per share delivered, an
increase on previous guidance;
•
Lift in net tangible assets (NTA) to $1.22 from $1.12 at the end
of the prior period.
FINANCIAL RESULTS
Statement of Comprehensive Income
For the year to 31 March, Argosy reported net property income of
$102.5 million for the period, which includes rental loss
recoveries from insurers, and is 1.5% higher than the previous
period.
Administration expenses were up on the previous
period primarily due to additional resourcing/restructuring costs
across the business.
Interest expense of $24.3 million was down 4.9% on the previous
period as the interest on higher average debt was offset by interest
rate savings and higher capitalised interest on developments.
The divestment of non Core assets such as Wagener Place
(Auckland), 626 Great South Road (Auckland) and 31 El Prado
Drive (Palmerston North) resulted in a total net gain of
$6.1 million over book values.
Net profit after tax was $133.7 million compared to $98.2 million
in the previous year.
Annual Valuations
The valuations for the period to 31 March were performed by
Colliers International, Jones Lang Lasalle and CBRE. The
valuations showed further evidence of improved market
conditions since the last desktop valuation performed at the half
year. The total revaluation gain for the 12 months to 31 March 2019
was $70.5 million, or 4.3% above book value. The portfolio is 1.3%
under-rented excluding market rentals on vacant space.
As a result of the revaluation gain, Argosy’s NTA has increased to
$1.22, 9% up from $1.12 at 31 March 2018. Following the
revaluation, Argosy’s portfolio shows a contract yield on values
of 6.41% and a yield on fully let market rentals of 6.65%.
Our strong revaluation gains continue to
reflect the quality of our assets and long
leases we have in place.”
Peter Mence
CHIEF EXECUTIVE OFFICER
Distributable income
For the year ending 31 March gross distributable income was
$67.3 million which was 2.6% higher than the previous year. Gross
distributable income per share was 8.14 cents per share compared
to 7.95 cents per share in the previous year, up 2.4%.
Net distributable income increased by 5.0% to $57.4 million
compared to the previous year. Net distributable income per share
increased 4.8% to 6.94 cents per share from 6.62 cents per share
in the previous year.
2
Profit before tax and distributable income are alternative performance measures used to assist investors in assessing the Company’s underlying operating
performance and to determine income available for distribution to shareholders. Note 23 of the financial statements provides a full reconciliation between profit
before tax and distributable income.
Full year revaluation uplift
$70.5m
contributing 8.5c of NTA uplift
11
Argosy Property Limited
Annual Report 2019

Chief Executive Officer's Review
PORTFOLIO ACTIVITY
Leasing and rent reviews
Argosy’s strong leasing and rent review results for the 12 month
period have continued to be underpinned by robust Auckland and
Wellington property market fundamentals. For the year to
31 March 2019, Argosy completed 44 lease transactions on
81,274m2 of net lettable area, including 21 new leases, 12 renewals
and 11 extensions. Significant leasing transaction successes over
the financial year include:
•
107 Carlton Gore Road, Auckland, Housing New Zealand, 12
years
•
320 Ti Rakau Drive, Auckland, Bunnings Limited, 10 years
•
252 Dairy Flat, Auckland, Albany Toyota, 10 years
•
147 Gracefield Road, Wellington, Winstone Wallboards, 9
years
•
Albany Lifestyle Centre, Auckland, E Road Limited, 9 years
•
Albany Lifestyle Centre, Auckland, Peterken Enterprises
Limited, 6 years
•
302 Great South Road, Auckland, McDonalds Restaurants NZ
Limited, 6 years
•
320 Ti Rakau Drive, Auckland, Super Cheap Autos, 5 years
Following an extremely busy year of leasing activity, Argosy
maintained a high occupancy level and at 31 March 2019
occupancy was 97.7% versus 98.8% at 31 March 2018.
We are pleased to announce a new 12-year lease to Housing New
Zealand at 107 Carlton Gore Road, Newmarket. The lease for the
entire 6,100m2 building is on the back of a $12.0 million
redevelopment and refurbishment project which will see the
building target both Green Star and NABERSNZ ratings. I talk
about this further under Value Add developments in this report.
We have continued to progress leasing at 23 Customs Street,
Auckland. We have halved vacancy to 1,500m2. Only levels 6 & 7
and part of level 13 remain vacant and we continue to see interest
for this space.
With the successful completion of a number of longer leases with
larger tenants, Argosy’s WALT at 31 March 2019 was 6.1 years (6.1
years at 31 March 2018). As a management team its very satisfying
to deliver a portfolio WALT for the second consecutive year above
six years.
FY19FY18
Net property income ($000's)102,468100,990
Administration expenses ($000's)10,9389,938
Operating profit before tax ($000's)91,53091,052
Gross distributable income ($000's)67,31365,589
Net distributable income ($000's)57,35854,603
Net distributable income (cents per share)6.946.62
Dividends (cents per share)6.286.20
Net distributable income payout ratio90%94%
For the financial period, we completed a total of 103 rent reviews
on $39.4 million of existing rental income. Rental growth of 4.0%
was achieved or 2.8% on an annualised basis on all rents reviewed.
The industrial portfolio accounted for 48% of the total rental
uplift on 50% of the rent reviewed (30 reviews). The balance was
split between office (30%) and retail (22%). The combination of
ongoing favourable market fundamentals and sound asset
management has helped deliver strong rental growth results. This
has been a key contributor to the improvement in net property
income for the year.
For the 12 months to 31 March 2019, approximately 42% of all
rents reviewed (by income) were fixed reviews, 29% were market
reviews and 29% were CPI based.
Acquisitions and value add developments
Ongoing tightness across the New Zealand commercial property
markets continued over the second half of the financial year.
Despite this, several strategic acquisition and Value Add
development opportunities have arisen. In particular, the
Wellington office market is delivering some attractive long term
opportunities for Argosy.
Over the year, Argosy acquired two properties totalling
$35.3 million, being 11 Coliseum Drive in Albany (The
Warehouse), for $26.7 million and 133 Roscommon Road, Wiri,
for $8.6 million. The Warehouse acquisition allows us to consider
several long-term organic growth options across the entire
Albany Mega Centre site. The Roscommon Road acquisition is a
freehold 15,838m2 industrial yard. The site is leased to NZX listed
Turners Automotive Group on a 15 year lease, providing a holding
return of 5% with fixed reviews of 2.5% per annum, with a market
review in year six.
Subsequent to year end, Argosy acquired 54 Jamaica Drive,
Grenada, Wellington, for $3.5 million. This property is adjacent
to existing Argosy owned development land at 56 Jamaica Drive
and is currently leased to Big Chill with 4.5 years remaining on
the lease. With Big Chill’s current facilities at capacity, Argosy is
progressing discussions and is planning a development on the
vacant land to support Big Chill’s growing business.
The initial acquisition coupled with the development opportunity
delivers upside value to three contiguous sites owned by Argosy.
These three transactions are good examples of our strategy in
action and how we take a long term approach to creating value
for Argosy and its shareholders.
Weighted Average Lease Term (WALT)
6.1yrs
excellent result to maintain at same level year on
year
12
Argosy Property Limited
Annual Report 2019

Value Add developments
180 Hutt Road, Wellington - Placemakers
Argosy’s $10.3 million development and upgrade of the
Placemakers property in Hutt Road, Kaiwharawhara is
progressing well. Stage 1 comprising 1,300m2 of showroom and
office was completed recently. Stage 2 works, comprising the
drive through warehouse and hardstand area, will be complete by
December 2019. Once these stages are completed, and subject to
market demand, works will commence for additional bulk retail
space on the vacant site of approximately 2,000m2. This project
will be another green development for Argosy, targeting a 4 Green
Star Industrial Built rating.
107 Carlton Gore Road, Auckland - Housing New Zealand
Argosy is pleased to announce that Housing New Zealand
Corporation (HNZC) will enter into a new 12 year lease
commencing 1 March 2020. The lease for the entire 6,100m2 of
net lettable area will commence following a $12.0 million dollar
building upgrade expected to take approximately six months. The
scope of works is similar to the 82 Wyndham Street (5 Green Star
Rating) building upgrade completed in 2018, and includes new
lighting, air conditioning systems, seismic restraints, foyer
refurbishment, end of trip facilities (showers, changing facilities
and bike parks), new bathrooms and lift replacement. Upon
completion, 107 Carlton Gore Road will be an A Grade building.
We will target a Green Star Office Built rating and a NABERSNZ
Base Building Rating for this property with a seismic rating of
100% NBS. The end value of the development is expected to be
$44.6 million.
8-14 Willis Street, Wellington - Statistics New Zealand
Argosy recently announced it is undertaking a $64 million
development at its 8-14 Willis Street property in Wellington’s
CBD. The development will create a substantially new 11 level,
11,800m2 building that will target a 6 Green Star Built rating and
5 Star NABERSNZ energy efficiency rating. In addition, Argosy
has entered into a new 15 year lease with the Crown (Statistics
New Zealand) to occupy the entire building, other than the 500m2
ground floor retail component. Construction is expected to take
24 months and be completed by April 2021. On completion 8-14
Willis Street will have an independent valuation of $94 million.
The development is projected to deliver an internal rate of return
of 8.2% and a 7.2% initial yield.
Stewart Dawsons Corner , Wellington
Argosy is very close to finalising a lease with a major international
retailer for this development.
Argosy Chief Executive Officer Peter Mence said “When we look
at all of these opportunities, we are very excited about working
with all of our new partners. These developments are consistent
with our strategy of creating value through the execution of Value
Add opportunities. These green developments will see Crown
employees benefit from refurbished buildings delivering modern,
functional and appealing workspace environments. Argosy
investors will benefit from new, high quality tenants and modern
buildings in the portfolio together with long leases and the
cashflow certainty they bring.”
Argosy will continue to pursue these green focused Value Add
opportunities to improve overall portfolio quality and add value
to shareholders.
The growing range of financial and non-
financial benefits that green buildings
deliver for the environment, tenants,
landlords and investors is well known.”
Saatyesh Bhana
ASSET MANAGER / SUSTAINABILITY CHAMPION
Divestment of non Core Assets
Strong property market fundamentals through the year made it
favourable for Argosy to divest non Core assets across Auckland,
Wellington and regional markets. Property market conditions
remain attractive for vendors allowing us to divest;
•
Wagener Place in Auckland for $31.0 million, 13% above book
value;
•
626 Great South Road, Greenlane for $10.6 million, 8% above
book value; and
•
31 El Prado Drive in Palmerston North for $35.5 million, 25%
above book value.
The unconditional sale of 1478 Omahu Road in Hastings did not
settle as expected and this property has been reclassified back to
non Core from held for sale.
The continued divestment of regional assets means that Argosy
has only four properties outside its core Auckland and Wellington
markets. At year end, Argosy has categorised approximately 8%
or $136.8 million of the portfolio as non Core, which includes the
Albany Lifestyle Centre. Argosy will continue its divestment
programme over the next 12-18 months to take advantage of
current market conditions.
Value Add pipeline
$106.3m
Over 80% of our developments are green projects
13
Argosy Property Limited
Annual Report 2019

Chief Executive Officer's Review
7 WATERLOO QUAY UPDATE
Earthquake Damage and Insurance Claim
Argosy’s 14 level property at 7 Waterloo Quay in Wellington
sustained damage in the 7.5 magnitude Kaikoura earthquake on
14 November 2016. Soon after the earthquake independent
engineers confirmed that the building remained structurally
sound, but it suffered damage to fit out and services. Argosy is
working with its insurers to progress a significant insurance claim
in respect of the earthquake damage and loss of rents.
As with many significant insurance claims for earthquake
damage, there will be debate with insurers over the extent of
damage, the scope of repair works, the repair methodology and
the extent of insurance cover. To support its claim, Argosy
commissioned a comprehensive damage survey of 7 Waterloo
Quay, detailed damage assessment reports, corresponding
reinstatement scopes and a comprehensive reinstatement cost
estimate. Argosy recently submitted its cost estimate to insurers
and is waiting for a response.
Argosy has also submitted interim claims in respect of
reinstatement costs it has incurred and for loss of rents;
•
Claims for the cost of reinstatement works undertaken have
been submitted based on costs actually incurred. The total
claimed from inception of the claim to 31 March 2019 is
$39.6 million. These costs relate primarily to limited
reinstatement works required to make damaged levels of the
building available for reoccupation, and were not able to be
agreed with insurers in advance. Further claims will be made
in respect of reinstatement works as costs are incurred. We are
currently reconciling the above reinstatement costs incurred
with the cost estimate submitted to insurers which is based on
damage to the building and our insurance policy.
•
Claims have been submitted for loss of rents for the two-year
period from the date of the earthquake to mid-November 2018,
totalling $14.2 million. No further claims in respect of loss of
rents are expected.
•
From inception of its claim to 31 March 2019 Argosy has
received progress payments from insurers of $20.9 million
(after a $4.9 million deductible) in relation to its interim
claims. Of these, $10.8 million has been allocated to
reinstatement of earthquake damage, $1.6 million to expense
recoveries and $8.5 million to loss of rents.
•
In the period to 31 March 2019 Argosy has recognised progress
payments from insurers of $11.1 million. Of these $8.5 million
have been allocated to reinstatement of earthquake damage
and $2.6 million to loss of rents.
Restructure of New Zealand Post Leases
Damaged levels 1-4 and 7 had been leased to New Zealand Post
(Post) until December 2025. As part of a lease termination
agreement, Post paid a termination fee of $2.9 million to Argosy
on 30 November 2018 and relinquished these floors. This amount,
although calculated based on the previous rent from levels 2-4
and 7 through to 31 August 2019, is required by accounting
standards to be fully recognised in the year to 31 March 2019.
Reinstatement and seismic works to meet occupancy
requirements of prospective tenants
Demand for space at 7 Waterloo Quay from late calendar 2019 has
dictated the reinstatement timeframe. To meet demand, Argosy
has carried out limited reinstatement works, necessary for
reoccupation of the building, without agreement from its
insurers. With the exception of level 12, these works were
substantially completed by March 2019. Level 12 is expected to be
completed by March 2020.
The extent and timing of any further reinstatement works
contemplated in the comprehensive repair scopes submitted to
insurers will be dependent on reaching agreement with insurers.
As with many significant insurance claims, it is uncertain when
agreement with insurers will be reached.
With recent changes to the assessment of seismic resilience,
seismic strengthening of the building is also considered necessary
to maximise the potential from the current strong leasing
environment. It is expected that these works will cost
approximately $27 million and be complete by November 2019.
Leasing
The office leasing environment in Wellington remains very
favourable and Argosy is currently in lease negotiations with a
number of Crown organisations. These negotiations are at an
advanced stage.
14
Argosy Property Limited
Annual Report 2019

CAPITAL MANAGEMENT
Current Leverage
At 31 March 2019, Argosy’s debt-to-total-assets ratio, excluding
capitalised borrowing costs, was 35.6% versus 35.9% at 31 March
2018. The ratio reflects the net impact of acquisitions and
developments during the period, offset by divestments and
revaluation gains.
In October 2018, Argosy added $25 million to its banking facilities
with ANZ Bank New Zealand Limited, Bank of New Zealand
Limited and The Hongkong and Shanghai Banking Corporation.
In March 2019, Argosy successfully completed a $100 million 7
year Green Bond offer just prior to its financial year end. As a
result, Argosy cancelled $100 million of bank facilities that were
due to expire in October 2021. Following this cancellation, the
company’s total bank debt facility was $550 million ($625 million
at 31 March 2018).
Argosy’s target gearing band is unchanged at 30% to 40% and
continues to provide flexibility depending on financial and
property market conditions. Argosy remains well within all bank
covenants and currently sits in the middle of the target band. At
year end, Argosy’s weighted average interest rate was 4.75%
versus 4.98% at 31 March 2018.
SUSTAINABILITY
Argosy has an Environmental, Social and Governance Framework
(ESG) which recognises the importance sustainable business
practices have on the environment and the long-term value it can
create for shareholders. Argosy’s environmental policy reflects its
ambition to create vibrant and sustainable workplaces for its
tenants.
Argosy’s ESG framework and environmental policy have been
further enhanced following the $100 million green bond issue
with the establishment of the Green Bond Framework
(Framework). The Framework promotes the transition to a
sustainable future and aligns with the Green Bond Principles
3
.
Argosy believes green buildings have potential to provide both
business and environmental benefits including increased
marketability, lower operating costs, higher occupancy, higher
valuations and improved occupier productivity and well-being.
The collective impact and influence of all these policies and
frameworks is to support the delivery of our strategy and greening
of Argosy’s portfolio over time.
OUTLOOK
After a strong finish to 2019, we have started the 2020 financial
year with good momentum. As always, I would like to thank the
Board for its continued sound governance and stewardship of the
Company. To our management team, thank you all for your
ongoing dedication and hard work to deliver excellent results for
Argosy and our investors for the 2019 financial year. You continue
to exemplify our values and culture on a daily basis.
I look forward to updating all shareholders and bondholders
further at the Annual Meeting in August.
PETER MENCE
Chief Executive Officer
3
Voluntary guidelines that are internationally accepted as the basis for capital markets issuances of green bonds globally.
Balance sheet well managed
35.6%
Debt-to-total-assets ratio
Low Gearing Band
30-40%
Targeting the bottom end of the range
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Create. Manage. Own.
1. Environmentally focused and sustainable business.
We are taking a green or sustainable approach to
everything we do in our existing business and also
when identifying new opportunities.
2. Streamlined development process and execution.
This is about managing risk by ensuring projects are
pre-committed (wherever possible) and well
managed to ensure they contribute to Argosy’s
performance early.
3. Execution of acquisition opportunities.
This is about ensuring we have the right relationships
to secure opportunities. This also requires us to have
the right people (competence and experience) in the
business.
THE ENVIRONMENT
Our focus on the environment and the long-term sustainability of
our business has strengthened further over this financial year. Our
ESG Framework, which recognises the importance sustainable
business practices have on the environment and for long-term
value creation to shareholders is now well established. Our
Environmental Policy reflects our ambition to create vibrant and
sustainable workplaces for our tenants and Argosy believes green
buildings have potential to provide both business and
environmental benefits. Through this financial year we have used
these tools to support delivery on our ESG Framework and we
aim to make further progress over the coming year. Our strategy
towards greening our portfolio over time remains a high priority
and we expect to deliver on this further in the years ahead.
What we do
Argosy has continued to provide working environments to its
tenants that deliver increased productivity levels whilst
minimising the impact on the environment. We encourage
innovation across all our partnerships whether it be our tenants,
shareholders or the community – to deliver sustainable outcomes
as quickly as possible.
Looking at how we use energy to reduce carbon emissions and
finding smarter and more efficient ways of doing things is still top
of mind. This year we investigated various ESG reporting
software and are implementing a new system which you can read
about more below under Argosy’s ESG aspirational goals.
First Green Bond issue by a listed property vehicle
Argosy became the first New Zealand listed property vehicle to
issue a Green Bond. In March, it completed its offer for
$100 million of senior secured fixed rate 7 year green bonds to
New Zealand retail and institutional investors. The green bond
issue does three key things. First, it helps diversify Argosy’s debt
funding sources away from pure bank debt. Second, it delivers
longer tenor providing greater certainty of funding. Third, it helps
reinforce our view on sustainability.
The proceeds of the Green Bonds have been used to refinance
existing bank debt that supports Green Assets. Argosy has always
been conscious of the impact its business has on the environment
and recognises that this is also a consideration for investors and
other stakeholders. The bond issue is only the second corporate
green bond in the New Zealand market. The bonds were issued
on 27 March 2019 and began trading on the NZX debt market the
following day.
Create.
"Proactive actions to ensure
sustainable growth."
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We were pleased to be the first listed
property vehicle to issue Green Bonds. We
firmly believe Green is the way forward for
Argosy.”
Mike Smith
CHAIRMAN, ARGOSY PROPERTY LIMITED
The green bonds have been issued under green bond principles
(GBP) and will be monitored within the Green Bond Framework
(GBF) which manages and reports on eligible Green Assets. You
can find a copy of the Framework on our website at
www.argosy.co.nz.
Investors both in New Zealand and overseas are becoming more
sustainability focused (or ‘green minded’) from an environmental
investment perspective. They are demanding more disclosure
from organisations around their plans, policies, goals and
objectives with respect to sustainability. Our environmental
strategy supports this disclosure along with the GBF. Argosy
remains a member of the New Zealand Green Building Council
(NZGBC), the organisation responsible for issuing independent
ratings under the NABERSNZ and GreenStar standards.
What does the market think about sustainability and
greening of buildings?
Chief Executive of the NZGBC, Andrew Eagles says "Green
buildings are lower carbon emitting and more sustainable. It's
fantastic to see the first Green Bond issue by a listed property
vehicle. This is leadership and it's great to see NABERSNZ and
Green Star as the methodologies for verifying that sustainability
standards will be met."
The progress aligns with the zero carbon bill and the increasing
importance investors, tenants and owners are placing on
sustainability and transparency in New Zealand. It is very much
needed. The New Climate Economy, an international initiative
comprising former heads of government, estimates that $93
trillion in green bonds is required globally by 2030 to help mitigate
climate change. More and more green bonds need to be issued,
and more green buildings are needed, in order to change our
economy to be lower carbon and more resilient to our changing
climate."
What is NABERSNZ?
NABERSNZ is an independent system for rating the energy
efficiency of office buildings, which is backed by the New Zealand
Government. NABERSNZ is a useful tool for an owner to
understand how energy is used in a building and to be able to
improve its performance. By using this information, energy
management strategies can be instigated to make operational
improvements and reduce energy consumption.
What does Green Star mean?
Green Star rating tools have been developed by the NZGBC as a
way of predicting the energy use and environmental impact of a
building from the design phase to completion. To rate a building’s
overall environmental impact, the tool awards points across nine
categories: energy, water, materials, indoor environment quality,
transport, ecology, management, emissions, and innovation. A 5
Green Star rating indicates New Zealand excellence.
Argosy's projects such as 82 Wyndham
Street and the development at 107 Carlton
Gore Road, are showing the way for New
Zealand developers.”
ANDREW EAGLES
CHIEF EXECUTIVE OFFICER, NEW ZEALAND GREEN BUILDING COUNCIL
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Create.
82 Wyndham Street, Auckland
The makeover of 82 Wyndham Street in Auckland’s CBD
was completed in 2018. Argosy took the opportunity to
undertake a complete refurbishment of all the building’s
base services and targeted an upgrade to a minimum 4
Green Star built rating, and a 4 Star NABERSNZ energy
efficiency rating.
Through a mixture of innovation and additional
specification of services, Argosy achieved a 5 Green Star
built rating compared with the target rating of 4. The
difference between the targeted rating and the actual
rating was achieved through initiatives such as the
installation of CO2 sensors to control the amount of fresh
air that enters the building. This means the fresh air will
be increased when you have more people in the space to
reduce the carbon dioxide levels. Argosy also scored
innovation points through the re-use of the existing
building, marketing excellence and high use of products
with environmental product declarations.
The four-level 6,200m2 building, with three levels of
offices and basement parking was constructed in the
1990’s as part of the redevelopment that included the old
Farmers Department store building, now the Heritage
Hotel.
Overall, new services at the property include;
- end of trip facilities to encourage cycling to work with
bike racks and showers;
- a variable refrigerant flow air conditioning system with
heat recovery allowing for substantial energy savings in
partial-load conditions;
- an increase in the building’s cooling and fresh air supply
so it can cater for a density of one person per eight square
metres;
- highly efficient water fixtures and electricity metering
to enable usage to be measured for NABERSNZ.
Our aspirational goals
Our ESG Framework sets out the following aspirational
environmental goals;
1. We will strive to obtain NABERSNZ Energy Ratings on
all of our office buildings by 2022
We currently have a 4 Star NABERSNZ rating on 143 Lambton
Quay, Wellington and 5 star rating at 15-21 Stout Street in
Wellington. 82 Wyndham Street is targeting a NABERSNZ Base
Build rating of 4 Stars, once we have 12 months of data. On our
new developments we are targeting minimum 4 Star NABERSNZ
ratings.
2. We will collect energy consumption data (electricity,
water and gas) on all buildings
This goal remains in place and has progressed through the year.
We continue to identify and source the most appropriate
technology to allow us to implement this. We have reviewed
various environmental reporting software platforms in terms of
reporting, reliability, accuracy, price and value. We are
progressing forward with a new data collection system and expect
installation across the office portfolio to commence from
September 2019.
3. We will develop a Waste Management Plan which will be
incorporated into all major projects
This has been successfully used in completed projects and
continues to be considered on all future major projects. On the
project at Highgate Parkway, Albany, for Mighty Ape we achieved
an 87% recycle rate for the project. We are also in the process of
developing plans for developments including 8-14 Willis Street
and 107 Carlton Gore Road.
107 Cartlon Gore Raod - Newmarket
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8-14 Willis Street
This address is located at the centre of Wellington CBD,
adjacent to Stewart Dawson Corner. The area is
predominantly characterised by office and high street
speciality retail.
Argosy recently announced it is undertaking a $64 million
development. The development will create a substantially
new 11 level, 11,800m2 building that will target a 6 Green
Star Built rating and 5 Star NABERSNZ energy efficiency
rating. In addition, Argosy has entered into a new 15 year
lease with the Crown (Statistics New Zealand) to occupy
the entire building, other than the 500m2 ground floor
retail component. Construction is expected to take 24
months and be completed by April 2021.
Like many Crown departments, Statistics New Zealand
are focused on sustainability and agile working
environments. This means creating flexible, adaptable
and productive work spaces for employees. The building
will be designed to attract and retain staff and encourage
creativity and collaboration to deliver a more effective
public service. 8-14 Willis Street will incorporate
innovative and sustainable features including; rainwater
harvesting, chilled beams to deliver heating & cooling,
new HVAC system to comply with Green Star
requirements and modern end of trip services.
During construction the building will be strengthened to
130% of National Building Standard. On completion, 8-14
Willis Street will have an independent valuation of
$94 million. The development is projected to deliver an
internal rate of return of 8.1% and a 7.3% initial yield.
Argosy continues to have a strong social
responsibility and commitment to actively engage
with the communities in which we operate.
Shareholders retain high expectations for Argosy to
deliver a wider range of outcomes over and above
financial returns to them.
SOCIAL & COMMUNITY
Our Community
Argosy continues to deliver through its support of four surf life
saving clubs, youth development organisations (Spirit of
Adventure Trust) and children with one or more parent in prison
(Pillars).
Surf Life Saving
Our four surf lifesaving partners: Red Beach Surf Life Saving Club
(SLSC), Hot Water Beach SLSC (Coromandel), Lyall Bay SLSC
(Wellington) and Taylors Mistake SLSC (Christchurch), remain
fantastic organisations to partner with given the huge value they
contribute in keeping communities safe in the water each year.
For the year to 31 March 2019, Argosy donated a total of $45,000
to these organisations.
Argosy continues to value these partnerships and looks forward
to working with these clubs and supports the fantastic work that
they do in their communities.
Spirit of Adventure Trust
This programme has been building generations of young Kiwis
with confidence, resilience and self-esteem since 1972 and over
1,000 Kiwi teenagers get the opportunity to participate in this
potentially life changing voyage every year. This year was no
different.
Argosy proudly supports the Spirit of Adventure Trust, based in
Auckland and contributed a total of $6,100 in FY19 for this
initiative. The sponsorship contributed towards the cost of two
teenagers, aged 16-18, to participate in the 10-day development
voyage on the Spirit of New Zealand.
The Trust identifies worthy recipients who would benefit from
the experience but who do not have the means to be able to fund
it.
Research studies have been completed on the outcomes of
students aboard the ship showing they display increased self-
esteem and initiative to take opportunities that life presents to
them. Argosy remains very happy to be supporting this
programme that delivers such positive outcomes for young
people.
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Annual Report 2019

Create.
2019 recipients - voyage #766 and #767
The two recipients for FY19 came via the INZONE Education
Foundation (INZONE). INZONE is a New Zealand registered
charitable trust that aims to inspire and support Māori and
Pasifika youth to take their place in the cultural, economic and
civic leadership of Aotearoa New Zealand. It does this by
providing kāinga (hostels) which are “InZone” for high
performing schools and they partner with the schools to ensure
students achieve top educational outcomes. This year, one
participant came from Epsom Girls Grammar and one from
Auckland Boys Grammar.
Further information about the Spirit of Adventure Trust can be
found at www.spiritofadventure.org.nz.
Spirit of Adventure - Voyage #766
Thank you for your continued dedication
and support because this trust is changing
the lives of many for the better.”
Participant on voyage #766
HIGH SCHOOL STUDENT
Snickel Lane - student awarded dream opportunity
Elam School of Fine Arts student Naawie Tutugoro recently won
the Snickel Lane Urban Art Award, which provides the
opportunity for a student to create and display a public work of
art, while developing essential industry skills.
The $10,000 award was established in 2016 by Argosy Property.
It is awarded to Creative Arts and Industries students at the
University of Auckland, who are in their final year, or undertaking
postgraduate studies. Naawie’s artwork Level 1, installed at
Snickel Lane, explores her interpretation of the word snickel as a
“cheeky younger brother” and incorporates vintage and retro
elements.
To bring her concept to life she used a combination of clippings
from the centenary of the New Zealand Herald and crafted warm,
animated characters with a grungy feel.
“There’s a sense with Snickel Lane that it’s almost a 24/7 kind of
place, where corporates come in for coffee in the morning,
commuters come in for their snacks and then you’ve got the
evening where people come here after work. It seems like every
day is different and it’s very social.”
Naawie Tutugoro
The project saw Naawie in charge of everything from budgeting
to self-promotion. It was also a great chance to network, with
members of the public asking her about her art while she was
working.
“I’m sincerely humbled to be supported.
To be given space to do something and to
make it a reality, it was a really surreal
opportunity.”
Naawie Tutugoro
CREATIVE STUDENT
Argosy is delighted with the new 2019 art wall. Naawie has
introduced a colourful energy and sense of fun to our commercial
space.
Pillars
Pillars is one of Argosy’s newest community partners. Established
30 years ago, Pillars is a charity dedicated to supporting children
of prisoners. In December 2018, Argosy supported Pillars with
$5,000. Pillars held a Christmas Party for mentors and mentees
at Camp Adair and over 40 mentors and mentees attended.
Mentees got to choose between a high ropes course and a mud
adventure course, where they could finish up with a huge mud
slide. The Argosy team looks forward to a long and prosperous
partnership with Pillars and the fantastic work they do for
children and young people.
Staff Volunteer Days
Argosy encourages its staff to do volunteer work for a charity of
their choice. During the period Argosy staff undertook
fundraising to support a variety of well deserving organisations
during the year including Pillars, SPCA and The Mankind Project.
The total collected by the SPCA Auckland in total over a three day
period was $122,000. The volunteer group our staff supported
raised $4,307, accounting for almost 3.5% of the total over the 3
days and they did this in just over 4.5 hours.
The Mankind Project, New Zealand works with men and families
to build and support the emotionally mature, accountable, and
compassionate male role models that our communities need.
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Create. Manage. Own.
1. Strong and valued relationships across all key
stakeholders.
We want to be regarded as a good corporate to work
with/for by everyone we interact with.
2. Safe working environments for Argosy's people and
its partners.
Zero-harm philosophy. Keeping everyone safe inside
the business and outside it.
3. A commitment to management excellence and
innovation.
Constantly looking for improvements across the
business, from technology to people and processes.
Always trying to think ahead of the game and be
positioned for the next opportunity.
TENANTS
We proactively manage our tenant partnerships. We
aspire to provide modern, high quality and safe
properties that our tenants enjoy and are expertly
managed by our experienced team.
Our Tenant Philosophy
The foundation of this philosophy is unchanged. Our tenant’s
success is our success. Our buildings need to be modern,
comfortable environments which help support our tenant’s
strategic growth aspirations.
Over the last twelve months we have continued to evolve our
thinking from a landlord perspective. We want to ensure the
buildings don’t just work for our tenants now, but for the next 20
years. Our focus on greening the portfolio continues and we have
$86 million in green developments in the pipeline.
Making it easy for our tenants to work with us remains a focus
area. We have dedicated staff as primary points of contact. They
get to know our tenants' businesses and their specific needs. We
aim to provide regular communication that is clear, timely and
relevant, and we pride ourselves on being responsive to tenant
needs. We deal with any issues quickly and appropriately to make
sure they don’t become big problems for the tenant, or us.
Strategic Partnerships
A key part of our strategy is to work with our tenants to add value
to the portfolio.
Argosy completed $49 million in developments in FY18. In FY19
we continued to work with both existing tenants and some
potential new tenants, to understand their business and growth
aspirations. By doing so we identified a range of potential long
term and environmentally sustainable solutions for them.
FY19 sees us with some exciting work ahead including;
•
Completion of the $10.3m redevelopment at 180 Hutt Road in
Kaiwharawhara, Wellington for Placemakers. Targeting 4
Green Star rating;
•
Commencement of the $20.0m development at Stewart
Dawsons Corner in Wellington;
•
Commencement of the $64m 6 Green Star Built rating
development in Wellington, for Statistics New Zealand (15
year lease);
•
Commencement of the $12.0m greening of 107 Carlton Gore
Road in Auckland, for Housing New Zealand (12 year lease).
Targeting minimum 4 Green Star rating;
Manage.
"Manage all elements of our
business to deliver the right
outcomes for all our key
stakeholders."
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We continue to work closely with all our tenants to improve the
quality of our portfolio which will ultimately deliver more
modern and efficient buildings for our tenants to grow their
businesses.
Tenant Communications
With an experienced and enthusiastic property team on hand, we
pride ourselves on our tenant communication. Every property has
both a dedicated asset and property manager providing our
tenants with a dual line of communication. We aim to address
tenant issues swiftly in order to ensure their working
environment remains safe and fit for purpose to conduct their
daily business.
Our after-hours phone line allows us to respond to any tenant
issues arising outside of normal business hours. Twice a year we
provide tenant newsletters to keep our tenant family updated on
what's happening within the portfolio as well as other areas of
interest.
We periodically survey our tenants allowing us to address any
concerns they may have. Our online tenant survey results showed
we are doing a lot of things very well. Whilst we received great
feedback we won’t rest on our laurels and are focusing on seeing
these results improve further next time.
All issues relating to health and safety are resolved by working
closely with our tenants. We actively encourage our tenants to
strive to achieve excellence in their own health and safety
performance as we do at Argosy.
Tenant Diversity
Every tenant is important. Our current family has 171 members
across a diverse range of industries. By income the top 10 tenants
account for 41.3% of income while the top 30 account for over
67.1%. The diversity of our tenant and income streams provides a
high degree of certainty and stability of our earnings and
cashflows. We have low exposure to one sector or one large tenant
and our diverse portfolio of properties are highly sought after
through various economic cycles.
Importantly, when we have leases expiring we generally have
existing or new tenants keen to backfill any space. We have seen
good examples of this, with the most recent being Housing New
Zealand, an existing tenant in Argosy’s family backfilling into 107
Carlton Gore Road, Newmarket. Argosy’s largest tenant in the
portfolio is currently the Ministry of Business, Innovation and
Employment accounting for 12.1% of gross property rental
income.
Strong and valued partnerships are
founded on integrity. Being transparent in
our dealings allows us to understand how
we can deliver real estate solutions for our
tenants.”
Peter Mence
CHIEF EXECUTIVE OFFICER
Top 10 Tenants
Percentage
of
income
Ministry of Business, Innovation and Employment12.1%
General Distributors Limited6.1%
The Warehouse Limited4.9%
Cardinal Logistics Limited4.5%
New Zealand Post Limited3.0%
Housing New Zealand Corporation2.7%
Tonkin & Taylor Limited2.1%
Mitre 10 (New Zealand) Limited2.0%
Te Puni Kokiri2.0%
Halls Logistics Limited1.9%
STAFF
Argosy is committed to creating and maintaining an
inclusive and supportive workplace for all its staff.
Diverse & Vibrant Culture
The diversity of our people will always be a key focus. Our
Diversity Policy (which is available on our website) sets out our
position and includes measurable objectives to achieve our
diversity goals.
We have provided updated ethnic diversity information on our
business to illustrate the diverse cultures we embrace and whom
we benefit from in our business.
We retain our zero tolerance policy for discrimination and
recognise that a talented and diverse workforce, where each
employee brings their own unique capabilities, experiences and
characteristics to their role, is a key competitive advantage.
We have continued to recruit and retain talented people to
support the delivery of our strategy.
Targeting 6 Green Star Built Rating on
$64m
development for Statistics New Zealand at 8-14
Willis Street
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Manage.
Our Values include treating all people with respect. We want to
create a supportive and understanding environment where
everyone can realise their potential within the company,
regardless of their different backgrounds or beliefs. We are
committed to employing the best people to do the best job possible
for Argosy and its shareholders.
Ethnic Diversity
64%European
23%Asian
8%Maori
5%Pacific people
International and local research shows
that a diverse and inclusive workplace is
more likely to attract high quality
applicants, retain staff, and boost
productivity.”
RAINBOW TICK FOUNDATION
The Rainbow Tick programme allows businesses and
organisations to understand what they are doing well in regard to
their Rainbow personnel, what they need to improve, and how to
do this. Through the help of the Rainbow Tick a manager can
derive the best from an employee by being a good employer.
The Rainbow Tick is a quality improvement cycle designed to
make an organisation a safe, welcoming and inclusive place for
people of diverse gender identity and sexual orientation.
Argosy is currently undergoing its accreditation process and aims
to be certified in FY20. Receiving the Rainbow Tick allows Argosy
to demonstrate to current and prospective employees, customers
and the wider world that it is a progressive, inclusive and dynamic
organisation that reflects the community it operates within.
Staff Wellbeing
Argosy remains committed to providing a healthy and safe
workplace for all its employees and established a workplace
Health and Safety Committee. The purpose of the Committee is
to support the health and wellbeing of Argosy staff and encourage
the safe and early return to work of ill or injured employees. The
Committee is also responsible for establishing initiatives that
support this purpose such as the provision of subsidised gym
memberships (physical health) and access to independent
employee assistance programs. As well as this, permanent
employees are provided with health, life and disability insurance
cover as part of their employment.
Mental Health Initiatives
Poor mental health leads to more sick days and poor performance.
This also extends to families of staff who may be suffering from
poor mental health.
All staff have an obligation to themselves and to their workmates
to be aware of mental health issues. One in four people suffer from
poor mental health and some do not recognise they have a
problem. Awareness/early intervention leads to higher
productivity from staff. As part of the ongoing commitment to
staff wellbeing Argosy introduced compulsory mental health
workshops run by St Johns.
The workshops were designed to;
•
increase awareness of mental health issues;
•
help identify the signs of mental health issues in the
workplace;
•
give direction and options for dealing with poor mental health;
and
•
bring mental health into the forefront of workplace wellbeing.
Following the workshops all of Argosy’s staff are now better
informed around mental health and the potential signs to be
aware of, not just with their work colleagues but also their family
and friends.
Developing Our Talent
We invest resources into upskilling our people to ensure we have
the necessary skills and experience to perform our roles expertly
and professionally. Each employee has a personal development
plan as part of their Employee Performance Plan. The plan is
developed with the employee's line manager and reviewed as part
of the annual review process.
Over the last 12 months, Argosy staff attended the NZ Green
Building Councils Green Star Practitioner course. The course is
designed to keep industry professionals up-to-date with green
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Annual Report 2019

building practice, and/or be able to work successfully on a Green
Star project.
Argosy also had a staff member train and become certified as a
NABERSNZ
TM
Accredited Assessor. This allows Argosy to
perform Certified Ratings on office buildings.
This staff development not only upskills our internal talent and
knowledge base but allows Argosy to reduce costs by bringing
NABERSNZ building certification requirements “in house”
instead of needing to engage external consultants.
•
NABERSNZ is an energy efficiency rating system used for
office buildings.
•
Energy usage data is collected over a period and used to
perform a Certified Rating.
•
By benchmarking energy efficiency, Argosy and Argosy’s
tenants can aim for buildings which provide maximum
comfort at minimum cost.
•
NABERSNZ data will be used to measure and rate the energy
performance of office buildings under Green Star
Performance.
Future Directors Program
As a listed issuer, Argosy has participated in the Institute of
Directors Future Directors program. This program aims to give
talented people the opportunity to observe and participate on a
company board for a year. The program creates a variety of
benefits for Argosy including a fresh perspective over the
business, a different professional skill set, diversity and assistance
in developing talent for future boards.
Our Values
Our values guide our internal conduct as well as our relationships
with external parties. In striving for outstanding performance, we
do not compromise our ethics or principles. We place great
importance on honesty, integrity, quality and trust.
Our Values
Ethics
Doing the right thing and doing things right
Culture
Creating a fun environment that encourages
inclusiveness and teamwork
Respect
Treating all stakeholders with courtesy and
understanding
Accountability
Taking ownership and responsibility
Communication
Promoting honest, timely and appropriate
communication with all stakeholders
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Manage.
Michael Smith
CHAIRMAN
Director since December 2002
4
Mr Smith was employed by Lion Nathan Limited for 29 years.
During that time, he held a number of senior executive positions
with the Lion Nathan Group and was a director of the parent
company for 16 years. Mr Smith is a director of a number of
companies, including Greymouth Petroleum Limited, Maui
Capital Indigo Fund Limited and Maui Capital Aqua Fund
Limited. His previous directorships/trusteeships include Lion
Nathan Limited, The Lion Foundation, Fonterra Co-operative
Group Limited, Auckland International Airport Limited,
OnePath Holdings (NZ) Limited and Fisher & Paykel Healthcare
Corporation Limited.
Mr Smith holds a Master of Commerce degree from The
University of Auckland and is a Graduate of the Programme for
Management Development, at Harvard Business School. He is
also a member of the Institute of Directors in New Zealand.
Peter Brook
DIRECTOR
Director since December 2002
4
Mr Brook has 21 years experience in the investment banking
industry, retiring in 2000 to pursue his own business and
consultancy activities. He is presently Chairman of Burger Fuel
Worldwide Limited, Trust Investments Management Limited
and Generate Investment Management Limited. Mr Brook is also
a trustee of the Melanesian Mission Trust Board, a member of the
Institute of Finance Professionals New Zealand Inc. and a
director of several private companies.
Mr Brook holds a Bachelor of Commerce degree from The
University of Auckland and is a member of Chartered
Accountants Australia and New Zealand.
Chris Gudgeon
DIRECTOR
Director since November 2018
Mr Gudgeon has been involved in property investment,
development and construction in New Zealand for more than 25
years. He was previously Chief Executive of Kiwi Property Group
and Capital Properties NZ Ltd. Mr Gudgeon holds an MBA from
the Wharton School, University of Pennsylvania and a Bachelor
of Engineering degree from The University of Canterbury. He is
a Fellow of the Royal Institute of Chartered Surveyors and is a
past President of Property Council New Zealand.
Stuart McLauchlan
DIRECTOR
Director since August 2018
Mr McLauchlan is a Senior Partner of GS McLauchlan & Co
Business Advisors and Accountants, a prominent businessman
and company director. He is a Director of Scenic Hotels Limited,
Dunedin Casinos Limited, Ngai Tahu Tourism Limited, UDC
Finance Limited and several other companies. He has been
appointed to the EBOS Group Limited board effective 1 July 2019.
Mr McLauchlan is also Chairman of the NZ Sports Hall of Fame,
Chairman of AD Instruments Pty Limited and Chairman of Scott
Technology Limited. He is also a past President of the New
Zealand Institute of Directors.
Mr McLauchlan is a qualified accountant with a Bachelor of
Commerce degree from the University of Otago, an FCA from
Chartered Accountants Australia and New Zealand and is a
Chartered Fellow of the New Zealand Institute of Directors.
Jeff Morrison
DIRECTOR
Director since July 2013
Mr Morrison has 40 years of experience as a property lawyer, 29
of them as a commercial property partner at Russell McVeagh,
and now practises on his own account. Mr Morrison is a trustee
of the Spirit of Adventure and other charitable trusts and holds a
number of private company directorships.
Mr Morrison is a qualified lawyer with a Bachelor of Laws degree
from The University of Auckland. He is also a member of the
Institute of Directors in New Zealand.
Mike Pohio
DIRECTOR
Director since February 2019
Mr Pohio has 25 years of senior executive experience across a
range of industries including property, investment, port/logistics
and dairy. He currently holds directorships on the boards of
NIWA, OSPRI, Panuku Development Auckland, Te Atiawa Iwi
Holdings, The Rees Management. He is also Chairman of BNZ
Partners, Waikato Region.
Mr Pohio holds an MBA from IMD, Lausanne, an FCA from
Chartered Accountants Australia and New Zealand and is a
Chartered Member of the New Zealand Institute of Directors.
4
On 1 March 2012, Argosy Property Trust converted from a unit trust into a company, Argosy Property Limited, through a corporatisation process. On
incorporatisation, the Board of Argosy Property Limited comprised the same directors as the Board of Argosy Property Management Limited, the manager of
Argosy Property Trust. Prior to 1 March 2012, Michael Smith and Peter Brook were directors of the manager of the former Trust and began their tenures in
December 2002.
26
Argosy Property Limited
Annual Report 2019

27
Argosy Property Limited
Annual Report 2019

Manage.
28
Argosy Property Limited
Annual Report 2019

29
Argosy Property Limited
Annual Report 2019

Manage.
SHAREHOLDERS
We are committed to fostering open and transparent
communications with investors, ensuring we deliver
to the highest standards and comply with the NZX
listing rules. We meet all continuous disclosure
obligations to ensure that all investors are fully
informed of all information necessary to assess the
Company’s performance.
Each year we strive to improve our relationship with all investors.
We pride ourselves on our ability to release timely, accurate and
appropriate information to everyone. Our senior management
and Board of Directors make themselves available to investors
through one-on-one meetings, property tours, investor
roadshows, conference calls and result webcasts.
Our Communication Strategy
Our communication strategy includes;
•
Periodic and continuous disclosure to NZX in accordance with
the NZX listing rules and Argosy’s Continuous Disclosure
Policy;
•
Information and briefings provided to investors, analysts and
media;
•
Annual and interim reports, distributed to shareholders and
bondholders and made available on the Company’s website;
•
Annual and interim use of proceeds reports in relation to green
bonds in accordance with the prospective disclosure
statement;
•
Bi-annual Investor Update newsletters;
•
The annual shareholders’ meeting and any other meetings
called to obtain approval for Company actions as appropriate;
•
Notices and explanatory memoranda for annual and special
meetings;
•
Annual Retail investor roadshows;
•
The Company’s website containing investor related
information, including portfolio information, market releases,
annual and interim reports, investor presentations and
webcasts, share price information, dividend details, notices of
shareholder meetings and Argosy’s governance policies and
charters; and
•
Market announcements sent to persons in the investor
relations contacts list and published on our website at
www.argosy.co.nz.
Governance
We are committed to operating to the highest standards of
corporate behaviour and accountability. Our corporate
governance practices comply with the NZX Corporate
Governance Best Practice Code and the Financial Markets
Authority’s Principles of Corporate Governance and Guidelines.
You can refer to a full report on our compliance or otherwise with
the NZX code on our website www.argosy.co.nz.
We aim to uphold the highest ethical standards, acting in good
faith and in the best interests of shareholders at all times. The
ethical and behavioural standards we expect of Directors, officers
and employees are set out in our Code of Conduct and Ethics. This
Code includes policies about conflicts of interest, fair dealing,
compliance with applicable laws and regulations, maintaining
confidentiality of information, dealing with company assets and
use of company information.
Our focus is on having a Board whose members can act
independently and have the combined skills to improve our
financial performance and returns to shareholders. The
Constitution provides for no fewer than three directors. All Board
members are non-executive directors. The Board does not impose
a restriction on the tenure of any director as such a restriction
may lead to the loss of experience and expertise.
The purpose of independent directors is to reassure shareholders
that the Board is undertaking its role properly and is diligent in
holding management accountable for its performance. By
“independent director” we mean independent of management
and free of any business or other relationship that could
materially interfere with, or could reasonably be perceived to
materially interfere with, the exercise of their unfettered and
independent judgement.
As required under Listing Rule 3.3.2, the Board has determined
that Peter Brook, Michael Smith, Mike Pohio, Chris Gudgeon,
Stuart McLauchlan and Jeff Morrison are considered to be
independent directors under the NZX Listing Rules.
Further information on the Board of Directors can be found on
page 26 of this report. Our corporate governance policies have
been made public and can be viewed on our website.
Annual Meeting
The Board changes signalled in 2018 continued throughout 2019
with the appointment of three new Directors, the retirement of
one Director and the resignation of two Directors. Chris Hunter
retired as an independent director and subsequently Stuart
McLauchlan was appointed as an independent Director. Mark
Cross and Andrew Evans both resigned during the year with Chris
Gudgeon and Mike Pohio being appointed as independent
Directors of the Company.
The 2019 Annual Meeting will be held at the Royal New Zealand
Yacht Squadron, 101 Curran Street, Westhaven Marina, Auckland
on Wednesday, 7
th
August 2019, commencing at 2pm.
Stuart McLauchlan, Chris Gudgeon and Mike Pohio will all retire
in accordance with the Company’s constitution and the NZX
Listing Rules and will be eligible for re-election. In addition, Mike
Smith and Peter Brook will also retire and be eligible for re-
election.
We encourage you to attend the meeting where you will have the
opportunity to listen to and meet the Board of Directors in person.
Our Website
Argosy’s website at www.argosy.co.nz. provides all relevant
public information to Investors. The website:
•
Reflects any information released to the NZX as soon as
practicable after the event;
•
Is a repository for relevant documents, including annual
reports, interim reports, newsletters, information releases,
Company policies, Committee charters, corporate governance
related material and similar documents; and
•
Provides information including registry forms and full texts of
notices of meetings and explanatory notes.
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Argosy Property Limited
Annual Report 2019

Website information is reviewed regularly to ensure it is current,
and where required, archived. Investors who have provided
Argosy with an email address will be sent annual and interim
reports and other investor communications electronically, unless
they opt to receive hard copies of these reports. We continue to
encourage the receipt of information online to receive
information faster and minimise the impact on the environment
and reduce costs for the company.
RETAIL ROADSHOW
As usual, we hold our annual retail investor roadshow each year
following the release of our annual results. The 2019 roadshow
will be held between 4-21
st
of June and senior management will
visit 13 locations across the country to present the financial results
to 31 March 2019 and provide an update on our strategy and
portfolio activities.
Some of our new Directors will also be in attendance on the
roadshow, making themselves available to mingle with
shareholders and answer questions. We encourage you to take the
opportunity to attend and catch up with members of the
management team and Board. Further information about the
roadshow can be found under the Investor’s section of our
website.
DIVIDEND PAYMENTS
A fourth quarter dividend of 1.5875 cents per share has been
declared for the March quarter with imputation credits of 0.3026
cents per share attached. This brings the full year cash dividend
to 6.275 cents per share. The fourth quarter dividend will be paid
to shareholders on 26 June 2019 and the record date will be
12 June 2019. Argosy’s dividend reinvestment plan remains
suspended for the time being.
The Company remains absolutely focused on delivering
sustainable dividends to shareholders. Based on current
projections for the portfolio, the Board expects a full year 2020
cash dividend of 6.275 cents per share, consistent with this year.
This reflects our wish for shareholders to continue to share in the
positive results to date but allows us to maintain our momentum
towards an AFFO
5
based dividend policy in the medium term.
Key Dates
(indicative only and are subject to change)
26 June 2019
Final quarter FY19 dividend payment
7 August
Annual Shareholders Meeting
September 2019
FY20 1
st
Quarter Dividend Payment
November 2019
FY20 Interim results release
December 2019
FY20 2
nd
Quarter Dividend Payment
5
AFFO (Adjusted Funds From Operations) is considered by some investors to represent a measure of dividend sustainability. The full year results presentation
released today provides a reconciliation between net distributable income and AFFO.
Cities across New Zealand
13
Will be visited over the 3 week roadshow
Accredited contractors
92%
Loaded into the Sitesoft system
31
Argosy Property Limited
Annual Report 2019

Manage.
HEALTH & SAFETY
The focus around health & safety remains paramount
and the provision of a healthy and safe workplace for
our employees, tenants and contractors is
unchanged.
We continue to have accurate recording and reporting of
workplace incidents, support for worker participation through
health and safety representatives and we support the safe and
early return to work of injured employees.
Underpinning this commitment is our continued innovation and
adoption of technology to improve our systems – particularly
around recording and reporting of workplace incidents. We
acknowledge our responsibilities to tenants, other workers and
the public.
The introduction of a new contractor management system in 2017
(Sitesoft) has been a large contributor to our improved systems
and processes. Sitesoft ensures all work carried out on a building
is completed to the highest standards and in the safest way
possible. It allows real time notifications of risks, emergency
procedures and building information to be passed on to a
contractor visiting a building through smart phone technology.
Contractors undergo a pre-qualification and induction before
work can start. We have 107 contractors and 1,107 contractor staff
loaded onto this system, which represents 92% of all contractors.
Work place incidents continue to reduce due to a number of
health and safety initiatives introduced, including high risk pre-
start meetings and joint interactions between contractors, tenants
and Argosy. Argosy continues to meet regularly with its key
contractors to discuss new ways of creating a safe working
environment for its tenants, contractors and staff. We have also
recently started regular meetings with tenants to discuss joint
initiatives regarding safe work places for tenant staff and
contractors.
Health and Safety Strategic Goals
We want to create a positive safety culture. Therefore, it’s critical
that we manage health and safety risks, provide adequate training
and resources and ensure that managers and individuals are
accountable for their actions or inaction. Our seven key strategic
goals to provide a safer work environment are;
1.
We will proactively identify risks and implement actions to
eliminate, isolate or minimise the risk of harm;
2.
We will consult and actively engage with employees and
contractors to ensure they have the training, skills, knowledge
and resources to maintain a healthy and safe workplace;
All Argosy staff completed a Mental Health Workshop across
two days designed to promote preparedness, awareness, and
understanding early triggers. The program gives participants
the tools and directions to deal with stress and other forms of
mental health;
3.
We will maintain and continually improve our health and
safety system;
4.
We will actively encourage our contractors and tenants to
demonstrate the same commitment to achieving excellence in
health and safety performance as we do;
5.
We will support the health and wellbeing of staff and
encourage the safe and early return to work of injured or ill
employees;
6.
We will comply with relevant legislation and regulations; and
7.
We will accurately report our incidents and investigate root
causes, in a timely manner.
Progress
Below we note health and safety initiatives operating during the
year;
•
Extending the pre-start project meetings to include any high
risk work based on our risk matrix;
•
Regularly monitoring risk mitigation controls;
•
Providing ongoing training and appropriate equipment to
staff;
•
Reducing the number of contractors by introducing a ‘pre-
qualification’ process;
•
Maintaining a robust health and safety system; and
•
Conducting monthly contractor meetings to discuss key
health and safety points.
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Argosy Property Limited
Annual Report 2019

Highgate Parkway, Silverdale, Mighty Ape Head Office / Distribution Warehouse
33
Argosy Property Limited
Annual Report 2019

Create. Manage. Own.
1. A diversified portfolio of high quality, well located
assets with growth potential.
Owning the right assets, with the right attributes in the
right locations.
2. Real estate with a primary focus on Auckland &
Wellington markets.
Remain focused in these two major metro areas
unless there is a strong strategic rationale to consider
other locations.
3. Target off market opportunities.
This includes contiguous properties with potential.
PORTFOLIO POSITIONING
Argosy has delivered a higher quality portfolio year on
year underpinned by continued high occupancy and
solid rent review outcomes. The long WALT remains
underpinned by strong leasing results in the industrial
portfolio and complemented by long leases with new
Crown tenants on green developments.
The last 12 months has seen the property market continue
approaching its cyclical peak. As we did in the prior year, we have
taken opportunities to divest non Core properties given the
attractive market conditions for vendors. We have redeployed the
capital to our balance sheet and progressed developments. Our
Investment Strategy hasn’t changed.
Acquisitions And Value Add Developments
Ongoing tightness across the New Zealand commercial property
markets continued over the second half of the financial year.
Despite this, several strategic acquisition and Value Add
development opportunities have arisen. In particular, the
Wellington office market is delivering some attractive long term
opportunities for Argosy.
Over the year, Argosy acquired two properties totalling
$35.3 million, being 11 Coliseum Drive in Albany (The
Warehouse), for $26.7 million and 133 Roscommon Road, Wiri,
for $8.6 million. The Warehouse acquisition allows us to consider
several long-term organic growth options across the entire
Albany Mega Centre site. The Roscommon Road acquisition is a
freehold 15,838m2 industrial yard. The site is leased to NZX listed
Turners Automotive Group on a 15-year lease, providing a holding
return of 5% with fixed reviews of 2.5% per annum, with a market
review in year six.
Subsequent to year end, Argosy acquired 54 Jamaica Drive,
Grenada, Wellington, for $3.5 million. This property is adjacent
to existing Argosy owned development land at 56 Jamaica Drive
and is currently leased to Big Chill with 4.5 years remaining on
the lease. With Big Chill’s current facilities at capacity, Argosy is
progressing discussions and is planning a development on the
vacant land to support Big Chill’s growing business.
The initial acquisition coupled with the development opportunity
delivers upside value to three contiguous sites owned by Argosy.
These three transactions are good examples of our strategy in
action and how we take a long term approach to creating value
for Argosy and its shareholders.
Own.
"This includes our Investment
Strategy and Investment Policy.
Owning the right assets in the right
location (either now or in the
future) with growth potential.
Divesting what we don’t need and
use that capital elsewhere in the
business, including green
developments."
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Argosy Property Limited
Annual Report 2019

DEVELOPMENTS IN PROGRESS
180 Hutt Road, Wellington - Placemakers
Argosy’s $10.3 million development and upgrade of the
Placemakers property in Hutt Road, Wellington, is progressing
well. Stage 1 comprising 1,300m2 of showroom and office was
completed recently. Stage 2 works, comprising the drive through
warehouse and hardstand area, will be complete by December
2019. Once these stages are completed and subject to market
demand, works will commence for additional bulk retail space on
the vacant site of approximately 2,000m2. This project will be
another green development for Argosy, targeting a 4 Green Star
Industrial Built rating.
107 Carlton Gore Road, Auckland - Housing New
Zealand
Argosy is pleased to announce that Housing New Zealand
Corporation (HNZC) will enter into a new 12 year lease
commencing 1 March 2020. The lease for the entire 6,100m2 of
net lettable area will commence following a $12.0 million dollar
building upgrade expected to take approximately six months. The
scope of works is similar to the 82 Wyndham Street (5 Green Star
Rating) building upgrade completed in 2018, and includes new
lighting, air conditioning systems, seismic restraints, foyer
refurbishment, end of trip facilities (showers, changing facilities
and bike parks), new bathrooms and lift replacement. Upon
completion, 107 Carlton Gore Road will be an A Grade building.
We will target a Green Star Office Built rating and a NabersNZ
Base Building Rating for this property with a seismic rating of
100% NBS. The end value of the development is expected to be
$44.6 million.
8-14 Willis Street, Wellington - Statistics New Zealand
Argosy recently announced it is undertaking a $64 million
development at its 8-14 Willis Street property in Wellington’s
CBD. The development will create a substantially new 11 level,
11,800m2 building that will target a 6 Green Star Built rating and
5 Star NABERSNZ energy efficiency rating. In addition, Argosy
has entered into a new 15 year lease with the Crown (Statistics
New Zealand) to occupy the entire building, other than the 500m2
ground floor retail component. Construction is expected to take
24 months and be completed by April 2021. On completion 8-14
Willis Street is expected to have an independent valuation of
$94 million. The development is projected to deliver an internal
rate of return of 8.2% and a 7.2% initial yield.
Stewart Dawsons Corner, Wellington
Argosy is very close to finalising a leasewith a major international
retailer for this $20 million development.
Argosy Chief Executive Officer Peter Mence said “When we look
at all of these opportunities, we are very excited about working
with all of our new partners. These developments are consistent
with our strategy of creating value through the execution of Value
Add opportunities. These green developments will see Crown
employees benefit from refurbished buildings delivering modern,
functional and appealing workspace environments.”
Argosy investors will benefit from new,
high quality tenants and modern buildings
in the portfolio together with long leases
and the cashflow certainty they bring.”
Peter Mence
CHIEF EXECUTIVE OFFICER
ASSET ALLOCATION
Divestments
Strong property market fundamentals through the year made it
favourable for Argosy to divest non Core assets across Auckland,
Wellington and regional markets. Property market conditions
remain attractive for vendors allowing us to divest;
•
Wagener Place in Auckland for $31.0 million, 13% above book
value;
•
626 Great South Road, Greenlane for $10.6 million, 8% above
book value;
•
31 El Prado Drive in Palmerston North for $35.5 million, 25%
above book value.
The unconditional sale of 1478 Omahu Road in Hastings did not
settle as expected and this property has been reclassified back to
non Core from held for sale.
The continued divestment of regional assets means that Argosy
has only four properties outside its core Auckland and Wellington
markets. At year end, Argosy has categorised approximately 8%
or $136.8 million of the portfolio as non Core, which includes the
Albany Lifestyle Centre. Argosy will continue its divestment
programme over the next 12-18 months to take advantage of
current market conditions.
Developments underway or planned
$106.3m
With over 80% of these being green projects
35
Argosy Property Limited
Annual Report 2019

Own.
7 Waterloo Quay
Update
Argosy’s 14 level property at 7 Waterloo Quay in
Wellington sustained damage in the 7.5 magnitude
Kaikoura earthquake on 14 November 2016. Soon after the
earthquake independent engineers confirmed that the
building remained structurally sound, but it suffered
damage to fit out and services. Argosy is working with its
insurers to progress a significant insurance claim in
respect of the earthquake damage and loss of rents.
As with many significant insurance claims for earthquake
damage, there will be debate with insurers over the extent
of damage, the scope of repair works, the repair
methodology and the extent of insurance cover. To
support its claim, Argosy commissioned a comprehensive
damage survey of 7 Waterloo Quay, detailed damage
assessment reports, corresponding reinstatement scopes
and a comprehensive reinstatement cost estimate. Argosy
recently submitted its cost estimate to insurers and is
waiting for a response.
Argosy has also submitted interim claims in respect of
reinstatement costs it has incurred and for loss of rents:
•
Claims for the cost of reinstatement works undertaken
have been submitted based on costs actually incurred.
The total claimed from inception of the claim to
31 March 2019 is $39.6 million. These costs relate
primarily to limited reinstatement works required to
make damaged levels of the building available for re-
occupation, and were not able to be agreed with
insurers in advance. Further claims will be made in
respect of reinstatement works as costs are incurred.
We are currently reconciling the above reinstatement
costs incurred with the cost estimate submitted to
insurers which is based on damage to the building and
our insurance policy.
•
Claims have been submitted for loss of rents for the
two-year period from the date of the earthquake to
mid-November 2018, totalling $14.2 million. No
further claims in respect of loss of rents are expected.
From inception of its claim to 31 March 2019, Argosy has
received progress payments from insurers of
$20.9 million (after a $4.9 million deductible) in relation
to its interim claims. Of these, $10.8 million has been
allocated to reinstatement of earthquake damage,
$1.6 million to expense recoveries and $8.5 million to loss
of rents.
In the period to 31 March 2019, Argosy has recognised
progress payments from insurers of $11.1 million. Of these
$8.5 million have been allocated to reinstatement of
earthquake damage and $2.6 million to loss of rents.
____
Argosy is working with its
insurers to progress a significant
insurance claim in respect of the
earthquake damage and loss
of rents.
Restructure of New Zealand Post leases
Damaged levels 1-4 and 7 had been leased to New Zealand
Post (Post) until December 2025. As part of a lease
termination agreement, Post paid a termination fee of
$2.9 million to Argosy on 30 November 2018 and
relinquished these floors. This amount, although
calculated based on the previous rent from levels 2-4 and
7 through to 31 August 2019, is required by accounting
standards to be fully recognised in the year to 31 March
2019.
Reinstatement and seismic works to meet
occupancy requirements of prospective tenants
Demand for space at 7 Waterloo Quay from late calendar
2019 has dictated the reinstatement timeframe. To meet
demand, Argosy has carried out limited reinstatement
works, necessary for reoccupation of the building,
without agreement from its insurers. With the exception
of level 12, these works were substantially completed by
March 2019. Level 12 is expected to be completed by
March 2020.
The extent and timing of any further reinstatement works
contemplated in the comprehensive repair scopes
submitted to insurers will be dependent on reaching
agreement with insurers. As with many significant
insurance claims, it is uncertain when agreement with
insurers will be reached.
With recent changes to the assessment of seismic
resilience, seismic strengthening of the building is also
considered necessary to maximise the potential from the
current strong leasing environment. It is expected that
these works will cost approximately $27 million and be
complete by November 2019.
Leasing
The office leasing environment in Wellington remains
very favourable and Argosy is currently in lease
negotiations with a number of Crown organisations.
These negotiations are at an advanced stage.
36
Argosy Property Limited
Annual Report 2019

MARKET UPDATE
After another strong year of market activity, we believe that we
are now very close to the peak of the property cycle. We don’t
believe all investors are pricing risk appropriately. As a result, we
have continued to take the opportunity to divest assets due to the
continued property market strength through the year.
In the Auckland office market rental growth is being impacted by
new supply. We see this market as being softer and is reflected in
higher incentives. Rental growth is certainly firmer in Wellington.
The Wellington market continues to show strong demand with
low vacancy for good quality seismically sound space that is well
located. There is a shortage of large floor plate / high quality stock
with upward rental growth pressure as a result. Prime vacancy is
minimal.
Auckland industrial;
•
Steady economic growth driving occupier demand. Lower
interest rates and offshore capital flows driving yields / cap
rates lower;
•
Continued low supply forecast with challenges around land
supply and congestion in Auckland market;
•
Land values are at historic highs;
•
New rental benchmarks being set with each new phase as costs
of supply increase; and
•
Vacancy at historic lows for both prime and secondary (< 2%).
Tenant demand overall remains healthy. Our retail (100%
occupancy) and industrial portfolios are full / highly occupied. As
in the prior year, we continue to field interest from both existing
and potential new tenants about accommodation solutions for
their growing businesses. With rising land values continuing to
put pressure on the financial viability of certain acquisitions, we
will continue to manage this risk very carefully.
Overall, our office and industrial portfolio remains well located
and in good shape.
VALUATIONS
The independent work performed and subsequent revaluation
resulted in an uplift of $70.5 million, or a 4.3% increase on book
values. As a result of the revaluation gain, Argosy’s NTA has
increased to $1.22, 9% up from $1.12 at 31 March 2018. Following
the revaluation, Argosy’s portfolio shows a contract yield on
values of 6.41% and a yield on fully let market rentals of 6.65%.
LEASING ACTIVITY
Argosy’s strong leasing and rent review results for the 12 month
period have continued to be underpinned by robust Auckland and
Wellington property market fundamentals. For the year to
31 March 2019, Argosy completed 44 lease transactions on
81,274m2 of net lettable area, including 21 new leases, 12 renewals
and 11 extensions. Significant leasing transaction successes over
the financial year include:
•
107 Carlton Gore Road, Auckland, Housing New Zealand, 12
years
•
320 Ti Rakau Drive, Auckland, Bunnings Limited, 10 years
•
252 Dairy Flat, Auckland, Albany Toyota, 10 years
•
147 Gracefield Road, Wellington, Winstone Wallboards, 9 years
•
Albany Lifestyle Centre, Auckland, E Road Limited, 9 years
•
Albany Lifestyle Centre, Auckland, Peterken Enterprises
Limited, 6 years
•
302 Great South Road, Auckland, McDonalds Restaurants NZ
Limited, 6 years
•
320 Ti Rakau Drive, Auckland, Super Cheap Autos, 5 years
Following an extremely busy year of leasing activity, Argosy
maintained a high occupancy level. At 31 March 2019 occupancy
was 97.7% versus 98.8% at 31 March 2018.
We are very pleased to announce a new 12-year lease to Housing
New Zealand at 107 Carlton Gore Road, Newmarket. The lease
for the entire 6,100m2 building is on the back of a $12.0 million
redevelopment and refurbishment project which will see the
building target both Green Star and NABERSNZ ratings.
We have continued to progress leasing at 23 Customs Street,
Auckland. We have halved vacancy to 1,500m2. Only levels 6 & 7
and part of level 13 remain vacant and we continue to see interest
for this space.
With the successful completion of a number of longer leases with
larger tenants, Argosy’s weighted average lease term (WALT) at
31 March 2019 remained at 6.1 years (6.1 years at 31 March 2018).
As a management team its very satisfying to deliver a portfolio
WALT at the same level on a year on year basis.
RENT REVIEWS
For the financial period, we completed a total of 103 rent reviews
on $39.4 million of existing rental income. Rental growth of 4.0%
was achieved or 2.8% on an annualised basis on all rents reviewed.
The industrial portfolio accounted for 48% of the total rental
uplift on 50% of the rent reviewed (30 reviews). The balance was
split between office (30%) and retail (22%). The combination of
ongoing favourable market fundamentals and sound asset
management has helped deliver strong rental growth results. This
has been a key contributor to the improvement in net property
income for the year.
For the 12 months to 31 March 2019, approximately 42% of all
rents reviewed (by income) were fixed reviews, 29% were market
reviews and 29% were CPI based.
Net Tangible Assets up 9%
$1.22
On $70.5m revaluation gain, 4.3% above book
value
37
Argosy Property Limited
Annual Report 2019

Own.
Lease Expiry Profile
BY RENT
Percentage of Portfolio (by income)
2.32.3
8.58.5
10.310.3
10.410.4
5.15.1
2.82.8
13.713.7
9.09.0
12.512.5
4.24.2
3.53.5
17.717.7
VacantMar-20Mar-21Mar-22Mar-23Mar-24Mar-25Mar-26Mar-27Mar-28Mar-29Mar-30 +
0
3
6
9
12
15
18
Portfolio Statistics
AS AT 31 MARCH 2019
Unit of measureIndustrialOfficeRetailTOTAL
Number of buildings#3716760
Market value of assets$m7386273031,667
Net lettable aream2388,357123,61575,153587,125
Occupancy factor by rent%97.8%96.8%100.0%97.7%
Weighted average lease termyears7.24.96.06.1
Average value$m19.939.243.327.8
Passing yield
1
%6.15%6.88%6.22%6.41%
1. 7 Waterloo Quay, 8-14 Willis Street and Stewart Dawsons Corner have been excluded from these yield metrics
Annualised rent growth
2.8%
On 103 rent reviews on $39.4 million of existing
rental income
Industrial sector contributed
48%
of rental income increase
38
Argosy Property Limited
Annual Report 2019

Rent Reviews
BY SECTOR
No. of
Reviews
Annualised
Rent
Increase
Increase over
Contract ($)
Office432.7%485,160
Industrial303.1%750,512
Retail302.4%345,614
TOTAL1032.8%1,581,286
New Leases completed in FY19
BY SECTOR
Floor
Area
(sqm)
Average
Lease
Term
(years)
No. of
Leases
Industrial49,0385.713
Office22,6594.719
Retail9,5776.612
TOTAL81,2745.344
New Leases completed in FY19
BY TYPE
Floor
Area
(sqm)
Average
Lease
Term
(years)
No. of
Leases
New lease48,2446.921
Right of renewal14,8674.312
Extension18,1632.111
TOTAL81,2745.344
Total Portfolio Value
BY SECTOR
44%Industrial
38%Office
18%Retail
Total Portfolio Value
BY REGION
72%Auckland
25%Wellington
3%Regional
Portfolio Mix
BY TYPE
82%Core
10%Value Add
8%Non Core
Additional annual rent
$1.58m
On rents reviewed during FY19
Industrial annualised rent growth
increase
3.1%
On 30 rent reviews during the year
39
Argosy Property Limited
Annual Report 2019

Number of buildings
60
Net lettable area (sqm)
587,125
Passing Yield
6.41%
Market Value
of buildings $M
1,667.0
Occupancy By Rent
97.7%
Portfolio WALT (years)
6.1
Our Portfolio
40
Argosy Property Limited
Annual Report 2019

Industrial
AUCKLAND
A
90 - 104 Springs Road, East Tamaki
VALUATION
$ 5,700,000
WALT
7.9
NET LETTABLE AREA (SQM)
3,885
VACANT SPACE (SQM)
–
PASSING YIELD
6.32%
8 Forge Way, Panmure
VALUATION
$ 29,500,000
WALT
11.7
NET LETTABLE AREA (SQM)
4,231
VACANT SPACE (SQM)
–
PASSING YIELD
5.08%
10 Transport Place, East Tamaki
VALUATION
$ 28,900,000
WALT
5.1
NET LETTABLE AREA (SQM)
10,641
VACANT SPACE (SQM)
–
PASSING YIELD
6.80%
1 Rothwell Avenue, Albany
VALUATION
$ 28,400,000
WALT
11.3
NET LETTABLE AREA (SQM)
12,683
VACANT SPACE (SQM)
–
PASSING YIELD
5.67%
4 Henderson Place, Onehunga
VALUATION
$ 26,000,000
WALT
12.3
NET LETTABLE AREA (SQM)
10,841
VACANT SPACE (SQM)
–
PASSING YIELD
5.89%
320 Ti Rakau Drive, East Tamaki
VALUATION
$ 59,000,000
WALT
7.9
NET LETTABLE AREA (SQM)
28,353
VACANT SPACE (SQM)
–
PASSING YIELD
6.45%
1-3 Unity Drive, Albany
VALUATION
$ 10,750,000
WALT
2.5
NET LETTABLE AREA (SQM)
6,204
VACANT SPACE (SQM)
–
PASSING YIELD
6.98%
5 Unity Drive, Albany
VALUATION
$ 7,375,000
WALT
2.0
NET LETTABLE AREA (SQM)
3,046
VACANT SPACE (SQM)
–
PASSING YIELD
4.95%
80 Springs Road, East Tamaki
VALUATION
$ 13,200,000
WALT
0.0
NET LETTABLE AREA (SQM)
9,675
VACANT SPACE (SQM)
9,675
PASSING YIELD
0.00%
211 Albany Highway, Albany
VALUATION
$ 26,200,000
WALT
3.8
NET LETTABLE AREA (SQM)
14,589
VACANT SPACE (SQM)
–
PASSING YIELD
5.57%
80-120 Favona Road, Mangere
VALUATION
$ 90,000,000
WALT
5.4
NET LETTABLE AREA (SQM)
59,386
VACANT SPACE (SQM)
–
PASSING YIELD
7.16%
19 Nesdale Avenue, Wiri
VALUATION
$ 53,500,000
WALT
12.7
NET LETTABLE AREA (SQM)
20,677
VACANT SPACE (SQM)
–
PASSING YIELD
5.55%
15 Unity Drive, Albany
VALUATION
$ 4,525,000
WALT
1.1
NET LETTABLE AREA (SQM)
7,002
VACANT SPACE (SQM)
–
PASSING YIELD
5.55%
12-16 Bell Avenue, Mt Wellington
VALUATION
$ 24,500,000
WALT
1.8
NET LETTABLE AREA (SQM)
14,809
VACANT SPACE (SQM)
–
PASSING YIELD
5.94%
18-20 Bell Avenue, Mt Wellington
VALUATION
$ 15,050,000
WALT
2.2
NET LETTABLE AREA (SQM)
8,941
VACANT SPACE (SQM)
–
PASSING YIELD
5.87%
32 Bell Avenue, Mt Wellington
VALUATION
$ 11,950,000
WALT
1.1
NET LETTABLE AREA (SQM)
8,139
VACANT SPACE (SQM)
–
PASSING YIELD
6.30%
9 Ride Way, Albany
VALUATION
$ 25,400,000
WALT
13.5
NET LETTABLE AREA (SQM)
9,178
VACANT SPACE (SQM)
–
PASSING YIELD
5.67%
2 Allens Road, East Tamaki
VALUATION
$ 5,095,000
WALT
5.5
NET LETTABLE AREA (SQM)
2,920
VACANT SPACE (SQM)
–
PASSING YIELD
6.28%
12 Allens Road, East Tamaki
VALUATION
$ 4,261,000
WALT
2.6
NET LETTABLE AREA (SQM)
2,333
VACANT SPACE (SQM)
–
PASSING YIELD
6.52%
41
Argosy Property Limited
Annual Report 2019

Industrial
106 Springs Road, East Tamaki
VALUATION
$ 6,544,000
WALT
5.5
NET LETTABLE AREA (SQM)
3,846
VACANT SPACE (SQM)
–
PASSING YIELD
6.30%
5 Allens Road, East Tamaki
VALUATION
$ 5,250,000
WALT
2.7
NET LETTABLE AREA (SQM)
2,663
VACANT SPACE (SQM)
–
PASSING YIELD
5.31%
960 Great South Road, Penrose
VALUATION
$ 6,900,000
WALT
0.9
NET LETTABLE AREA (SQM)
3,676
VACANT SPACE (SQM)
–
PASSING YIELD
6.11%
17 Mayo Road, Wiri
VALUATION
$ 27,100,000
WALT
7.8
NET LETTABLE AREA (SQM)
13,351
VACANT SPACE (SQM)
–
PASSING YIELD
5.69%
Cnr William Pickering Drive &
Rothwell Avenue, Albany
VALUATION
$ 14,850,000
WALT
1.5
NET LETTABLE AREA (SQM)
7,074
VACANT SPACE (SQM)
–
PASSING YIELD
5.78%
240 Puhinui Road, Manukau
VALUATION
$ 33,400,000
WALT
12.7
NET LETTABLE AREA (SQM)
17,735
VACANT SPACE (SQM)
–
PASSING YIELD
5.49%
Highgate Parkway, Silverdale
VALUATION
$ 29,500,000
WALT
8.9
NET LETTABLE AREA (SQM)
10,581
VACANT SPACE (SQM)
–
PASSING YIELD
5.55%
133 Roscommon Road, Wiri
VALUATION
$ 8,700,000
WALT
14.5
NET LETTABLE AREA (SQM)
15,862
VACANT SPACE (SQM)
–
PASSING YIELD
4.94%
42
Argosy Property Limited
Annual Report 2019

WELLINGTON
W
180-202 Hutt Road, Kaiwharawhara
VALUATION
$ 12,930,000
WALT
9.43
NET LETTABLE AREA (SQM)
6,019
VACANT SPACE (SQM)
–
PASSING YIELD
7.35%
Cnr Wakefield, Taranaki & Cable
Streets
VALUATION
$ 22,000,000
WALT
4.49
NET LETTABLE AREA (SQM)
3,307
VACANT SPACE (SQM)
–
PASSING YIELD
4.12%
147 Gracefield Road, Seaview
VALUATION
$ 15,000,000
WALT
9.01
NET LETTABLE AREA (SQM)
8,018
VACANT SPACE (SQM)
–
PASSING YIELD
6.79%
19 Barnes Street, Seaview
VALUATION
$ 13,250,000
WALT
9.43
NET LETTABLE AREA (SQM)
6,857
VACANT SPACE (SQM)
–
PASSING YIELD
7.74%
39 Randwick Road, Seaview
VALUATION
$ 18,550,000
WALT
2.84
NET LETTABLE AREA (SQM)
16,249
VACANT SPACE (SQM)
–
PASSING YIELD
8.91%
68 Jamaica Drive, Grenada North
VALUATION
$ 16,390,000
WALT
2.34
NET LETTABLE AREA (SQM)
9,609
VACANT SPACE (SQM)
–
PASSING YIELD
7.47%
56 Jamaica Drive, Grenada North
VALUATION
$ 1,100,000
WALT
–
NET LETTABLE AREA (SQM)
–
VACANT SPACE (SQM)
–
PASSING YIELD
–
OTHER
O
8 Foundry Drive, Woolston,
Christchurch
VALUATION
$ 14,850,000
WALT
10.83
NET LETTABLE AREA (SQM)
7,668
VACANT SPACE (SQM)
–
PASSING YIELD
7.40%
1478 Omahu Road, Hastings
VALUATION
$ 10,050,000
WALT
8.34
NET LETTABLE AREA (SQM)
8,514
VACANT SPACE (SQM)
–
PASSING YIELD
7.49%
223 Kioreroa Road, Whangarei
VALUATION
$ 12,000,000
WALT
2.94
NET LETTABLE AREA (SQM)
9,797
VACANT SPACE (SQM)
–
PASSING YIELD
9.82%
43
Argosy Property Limited
Annual Report 2019

Office
AUCKLAND
A
99-107 Khyber Pass Road, Grafton
VALUATION
$ 11,560,000
WALT
3.68
NET LETTABLE AREA (SQM)
2,442
VACANT SPACE (SQM)
1,533
PASSING YIELD
2.04%
101 Carlton Gore Road, Newmarket
VALUATION
$ 26,700,000
WALT
1.59
NET LETTABLE AREA (SQM)
4,821
VACANT SPACE (SQM)
–
PASSING YIELD
6.76%
8 Nugent Street, Grafton
VALUATION
$ 50,700,000
WALT
3.87
NET LETTABLE AREA (SQM)
8,125
VACANT SPACE (SQM)
325
PASSING YIELD
6.13%
39 Market Place, Viaduct Harbour
VALUATION
$ 36,800,000
WALT
3.31
NET LETTABLE AREA (SQM)
10,365
VACANT SPACE (SQM)
–
PASSING YIELD
10.02%
105 Carlton Gore Road, Newmarket
VALUATION
$ 30,900,000
WALT
2.11
NET LETTABLE AREA (SQM)
5,312
VACANT SPACE (SQM)
–
PASSING YIELD
7.26%
302 Great South Road, Greenlane
VALUATION
$ 8,700,000
WALT
3.12
NET LETTABLE AREA (SQM)
1,890
VACANT SPACE (SQM)
–
PASSING YIELD
7.04%
308 Great South Road, Greenlane
VALUATION
$ 7,200,000
WALT
1.28
NET LETTABLE AREA (SQM)
1,568
VACANT SPACE (SQM)
–
PASSING YIELD
7.05%
25 Nugent Street, Grafton
VALUATION
$ 13,600,000
WALT
3.64
NET LETTABLE AREA (SQM)
3,028
VACANT SPACE (SQM)
–
PASSING YIELD
6.02%
107 Carlton Gore Road, Newmarket
VALUATION
$ 29,000,000
WALT
12.92
NET LETTABLE AREA (SQM)
6,061
VACANT SPACE (SQM)
–
PASSING YIELD
8.80%
Citibank Centre, 23 Customs Street
East
VALUATION
$ 71,500,000
WALT
3.71
NET LETTABLE AREA (SQM)
9,633
VACANT SPACE (SQM)
1,538
PASSING YIELD
5.81%
82 Wyndham Street
VALUATION
$ 44,700,000
WALT
6.67
NET LETTABLE AREA (SQM)
6,012
VACANT SPACE (SQM)
–
PASSING YIELD
5.97%
WELLINGTON
W
143 Lambton Quay
VALUATION
$ 29,250,000
WALT
6.25
NET LETTABLE AREA (SQM)
6,216
VACANT SPACE (SQM)
–
PASSING YIELD
7.33%
147 Lambton Quay
VALUATION
$ 35,400,000
WALT
1.55
NET LETTABLE AREA (SQM)
8,539
VACANT SPACE (SQM)
134
PASSING YIELD
9.04%
8-14 Willis Street
VALUATION
$ 22,800,000
WALT
0.07
NET LETTABLE AREA (SQM)
5,055
VACANT SPACE (SQM)
–
PASSING YIELD
–
7 Waterloo Quay
VALUATION
$ 96,800,000
WALT
6.72
NET LETTABLE AREA (SQM)
23,841
VACANT SPACE (SQM)
–
PASSING YIELD
–
15-21 Stout Street
VALUATION
$ 111,000,000
WALT
7.32
NET LETTABLE AREA (SQM)
20,709
VACANT SPACE (SQM)
–
PASSING YIELD
6.45%
44
Argosy Property Limited
Annual Report 2019

Retail
AUCKLAND
A
Albany Mega Centre, Albany
VALUATION
$ 123,000,000
WALT
4.52
NET LETTABLE AREA (SQM)
25,155
VACANT SPACE (SQM)
–
PASSING YIELD
6.08%
11 Coliseum Drive, Albany
VALUATION
$ 27,300,000
WALT
6.01
NET LETTABLE AREA (SQM)
8,637
VACANT SPACE (SQM)
–
PASSING YIELD
4.83%
Albany Lifestyle Centre, Albany
VALUATION
$ 87,500,000
WALT
7.65
NET LETTABLE AREA (SQM)
24,955
VACANT SPACE (SQM)
–
PASSING YIELD
6.79%
50 & 54-62 Cavendish Drive,
Manukau
VALUATION
$ 28,250,000
WALT
6.02
NET LETTABLE AREA (SQM)
9,939
VACANT SPACE (SQM)
–
PASSING YIELD
6.04%
252 Dairy Flat Highway, Albany
VALUATION
$ 7,900,000
WALT
10.85
NET LETTABLE AREA (SQM)
2,255
VACANT SPACE (SQM)
–
PASSING YIELD
6.26%
WELLINGTON
W
Stewart Dawsons Corner
VALUATION
$ 18,300,000
WALT
–
NET LETTABLE AREA (SQM)
–
VACANT SPACE (SQM)
–
PASSING YIELD
–
OTHER
O
Cnr Taniwha & Paora Hapi Streets,
Taupo
VALUATION
$ 10,500,000
WALT
3.50
NET LETTABLE AREA (SQM)
4,212
VACANT SPACE (SQM)
–
PASSING YIELD
7.15%
45
Argosy Property Limited
Annual Report 2019

211 Albany Highway - Visy
46
Argosy Property Limited
Annual Report 2019

* excluding 7 Waterloo Quay and
Stewart Dawson Corner, Wellington
CONSOLIDATED FINANCIAL
STATEMENTS
Contents
Consolidated Statement of Financial Position48
Consolidated Statement of Comprehensive Income49
Consolidated Statement of Changes in Equity50
Consolidated Statement of Cash Flows51
Notes to the Consolidated Financial Statements52
Independent Auditor's Report77
47
Argosy Property Limited
Annual Report 2019

CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2019
Note
Group
2019
$000s
Group
2018
$000s
Non-current assets
Investment properties
5
1,667,0301,513,120
Derivative financial instruments
6
1,857–
Other non-current assets
7
1,605469
Total non-current assets
1,670,4921,513,589
Current assets
Cash and cash equivalents2,1901,274
Trade and other receivables
8
1,4741,681
Other current assets
9
905885
4,5693,840
Non-current assets classified as held for sale
10
–27,400
Total current assets
4,56931,240
Total assets
1,675,0611,544,829
Shareholders' funds
Share capital
11
792,620792,620
Share based payments reserve
12
389389
Retained earnings
13
215,966133,884
Total shareholders' funds
1,008,975926,893
Non-current liabilities
Interest bearing liabilities
14
593,536552,800
Derivative financial instruments
6
42,22532,306
Deferred tax
20
10,11412,183
Total non-current liabilities
645,875597,289
Current liabilities
Trade and other payables
15
15,41212,240
Derivative financial instruments
6
–697
Other current liabilities
16
2,5954,896
Deposit received for non-current assets classified as held for sale–1,550
Taxation payable2,2041,264
Total current liabilities
20,21120,647
Total liabilities
666,086617,936
Total shareholders' funds and liabilities
1,675,0611,544,829
For and on behalf of the Board
P Michael Smith
Director
Stuart McLauchlan
Director
Date: 22 May 2019
The notes to the accounts form part of and are to be read in conjunction with these consolidated financial statements.
48
Argosy Property Limited
Annual Report 2019