Argosy Retail Roadshow Presentation

2019
Retail Roadshow
Presentation
Argosy Property Limited
4 – 21
st
June 2019
www.argosy.co.nz

AGENDA
2
HighlightsPage 4
Strategy / PortfolioPage 6
FinancialsPage 13
Leasing UpdatePage 25
Looking AheadPage 29
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 book value
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
7WQ
Solid progress

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

Create. Manage. Own.
7
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
8
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.
Subsequent to year end Argosy sold Albany Lifestyle Centre for $89.0m, a 2% premium to its book
value. Settlement is expected to occur on or around 27 March 2020.

Portfolio Metrics
9
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.

Value Add
10
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
11
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 building upgrade expected to take approximately six
months. Targeting Green Star and NABERSNZ ratings. On completion the building will be an A Grade building with
an expected valued of $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 is expected to 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
Type
Location
Expected
value on
completion
$m
Forecast
completion
Sep-19Mar-20Sep-20Mar-21
Underway / commenced
180-202 Hut t RoadPlacemakersINDWT N
18.8Dec-19
St ewart Dawsons CornerI n final discussionsRETWT N30.2
Jul-20
Planned
107 Cart lon Gore RoadHousing New ZealandOFFA KL
44.6M ar-20
8-14 Willis St reetSt at ist ics New Zealand
OFFWT N94.0Apr-21
TOTAL
187.6
Green buildingsStandard
FY 2020
FY 2021

Valuations
12
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
13
Change image
Albany Mega Centre

Income Reconciliation
14
Like for like rent growth of 3.2%

Financial Performance
15
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
16
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
17
Portfolio growth (+10%) driven by a combination of capital projects, acquisitions and revaluation
gains.

Movement in NTA per share
18
Full year revaluation gain key driver of ~9% NTA uplift to $1.22.

Funding & Interest Rate
Management
19
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
35.6%
Debt-to-total-assets ratio

Dividends
20
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

Portfolio Snapshot
21
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

Environmental Strategy
22
The impact of Argosy’s property investment business on the natural environment is
an increasingly important consideration for investors, tenants and other
stakeholders.
Our environmental strategy reflects our long-term ambition to create vibrant
sustainable workplaces for our tenants. We believe that green buildings have the
potential to provide a number of key business benefits including:
increased marketability;
higher rental rates;
lower operating costs;
higher occupancy;
improved worker productivity and occupant health and well-being;
lower regulatory risk.
We believe that an integrated design approach, where experts and tenants are
involved from the pre-design stage through to occupancy can greatly assist in the
reduction of green development costs.
We are a member of the New Zealand Green Building Council which is dedicated
to accelerating the development and adoption of market based green building
practices.

Green Projects Completed
23
Completion: 201420182018
NLA / WALT
1
: 20,709m2 / 7.3yrs6,012m2 / 6.7yrs10,581m2 / 8.9yrs
Green Star rating: 5 Star Built 5 Star Built Targeting 4 Star Built
NABERSNZ rating: 5 StarTargeting 5 Stars n/a
Current value
1
:$111.0m$44.7m$29.5m
HighgateParkway, Auckland
82 Wyndham Street,
Auckland
15-21 Stout Street,
Wellington
1. 31 March 2019 full year valuation.

Green Assets
24
Assets with Green Star Ratings and their NABERSNZ Ratings shown below.
Value of Existing Green Assets
AddressUseCurrent NABERSNZ RatingGreen Star Rating
Asset Value
(NZDm)
1
143 Lambton QuayOffice4 Stars Energy Whole Building5 Star Office Built$29.3
15-21 Stout StreetOffice5 Stars Energy Whole Building5 Star Office Built$111.0
82 Wyndham StOfficeTargeting 5 Stars (in progress)5 Star Office Built $44.7
Total Existing Green Asset Value$185.0
Value of Green Assets Awaiting Certification
AddressUseCurrent NABERSNZ RatingTargeted Green Star Rating
Asset Value
(NZD m)
Highgate ParkwayIndustrialn/a4 Star Industrial Built (in progress)$29.5
Sub-total$29.5
Total Green Asset Value
(Existing + Awaiting Certification)$214.5
$157.4m
Expected end value of other
green projects underway
1. 31 March 2019 full year valuation.

Leasing Update
25
Change image
Albany Mega Centre

Leasing Success
26
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
27
Normalised lease maturity profile relatively stable over the medium term.
Strong Crown interest in 7 Waterloo Quay space.

NZ Market Update
28
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
29
Change image

2020 Focus
30
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).

Thank you.
31

Disclaimer
32
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.
4 June 2019