Annual Meeting 2020

1 ⸺

Good afternoon everyone. My name is Mike Smith and I am the Chairman of Argosy
Property Limited. On behalf of my fellow directors and members of the management
team, it is my pleasure to welcome you all to the 2020 annual meeting of
shareholders of Argosy. It is my privilege to be able to chair this meeting again and
also to have the meeting here again at the Royal New Zealand Yacht Squadron.

Before we get things underway, we have a couple of housekeeping matters. In the
unlikely event of an emergency, please evacuate the building using the blue doors
at the eastern exit behind you and assemble in the carpark. The bathrooms are
located behind me next to the main reception area.

Given the fallout from the Covid-19 pandemic, we have to do things a little
differently. This years’ annual meeting is Argosy’s first hybrid annual meeting.
Shareholders who are not attending in person can attend virtually and still ask
questions and vote, through the Lumi online virtual meeting platform. Shareholders
can also follow proceedings via the live webcast, similar to what we do for our interim
and annual result webcasts.

2020 ANNUAL MEETING
28 July 2020
CHAIRMAN’S REVIEW (PART 1)

2 ⸺

For our hybrid meeting to run smoothly there are a few procedural differences we
need to run through.
[SLIDE 2]
First, I will cover the procedure around questions and answers: any shareholder or
appointed proxy / representative attending is eligible to ask questions. If you wish to
ask a question, select the question icon button on your computer, tablet or mobile
phone, at the bottom of the screen simply type into the question box and then
submit your question by clicking the arrow symbol on the right. The question will then
be sent to the Board to answer. We will try to get to as many of the questions as
possible, but not all questions may be able to be answered during the meeting. In this
case, questions will be followed up via email after the meeting.
The second change is on how voting works. We will open the poll now, to give you
plenty of time to vote. The ability to vote will appear near the top of your screen as a
bar chart icon, and from here, the resolution and voting choices will be displayed on
your device. To vote, simply select from the options shown on screen. To change your
vote, simply select another option—you can cancel your vote by clicking ‘Cancel’.
Prior to the poll closing, simply select another voting choice to change your vote.
There is no need to hit a submit or enter button as the vote is automatically recorded.
You can change your vote at any time up until when the poll is closed.
[SLIDE 3]
With those new procedural matters explained, let’s get things underway.

3 ⸺

I’d like to record that the Notice of the Meeting was duly given on 24 June 2020 and
as there are at least 5 shareholders here today, there is a quorum present.
Accordingly, I declare the 2020 annual meeting of Argosy Property Limited open.
As you know, your Board considers a high standard of corporate governance is
essential for supporting the long-term performance of a company such as Argosy.
Our role as directors is to ensure the company is delivering on its strategy and
creating incremental value for our shareholders while also having regard to the
interests of other stakeholders.
We are focused on ensuring that the Board retains the right composition of skills and
experience to be able to deliver on performance for all stakeholders. The Board
changes over the last 18 months have ensured your Board will retain a suitable
balance of practical commercial experience and technical expertise going forward.
While there is detailed information about the Board in the 2020 Annual Report, I
would briefly like to introduce them to you. To my right is Peter Brook.
Peter joined the Argosy Board in 2002. Peter is presently the Chairman of Burger Fuel
Group Limited, Trust Investments Management Limited and Generate Investment
Management Limited. Peter is a member of both the Remuneration and Audit and
Risk Committees.
Next to Peter is Jeff Morrison, a director since July 2013 and with 40 years of
experience as a property lawyer, 29 of them as a commercial property partner at
Russell McVeagh. Jeff is also on Argosy’s Remuneration Committee.

4 ⸺

Next, we have Stuart McLauchlan. Stuart was appointed to the Board in August 2018
and is a prominent businessman and company director. He is Chairman of the NZ
Sports Hall of Fame, Scott Technology Limited and UDC Finance and a director of
EBOS Group Limited.
Next, we have Chris Gudgeon who joined the Board in November 2018. He has been
involved in property investment, development and construction in New Zealand for
more than 25 years. Most recently he was Chief Executive of Kiwi Property Group.
Next, we have Mike Pohio. Mike was appointed in February 2019 and has over 25
years of corporate experience across a range of industries including property,
investment, ports/logistics and dairy. Mike holds a number of directorships and is
currently the Chief Executive of Ngāi Tahu Holdings Corporation.
Next, we have Rachel Winder. Rachel was first appointed to the Board in August
2019. Rachel has been involved in the property sector for over 20 years in a variety of
roles including strategy, portfolio management, facilities management and
development. Rachel is currently Head of Property Services for Westpac New
Zealand.
Next, we have Martin Stearne. Martin has over 20 years commercial and capital
markets experience, and currently holds appointments to the NZX Listing
Subcommittee, the Takeovers Panel and the Investment Committee of the Impact
Enterprise Fund. He is a member of INFINZ and ICEAngels.
You will hear directly from those directors seeking election later in today’s
proceedings.

5 ⸺

Finally, I was appointed to the Argosy Board in 2002 and have held the role of
Chairman since 2005. For a large part of my career I was employed by Lion Nathan
where I held a number of senior executive positions with the Lion Nathan Group and
was a director of the parent company for 16 years. I am also a director of several
non-public companies. As well as my role as Chairman, I continue to chair the
Remuneration Committee and sit on the Company’s Audit and Risk Committee.
Seated next to the Board of directors is the Chief Executive, Peter Mence and the
Chief Financial Officer, Dave Fraser. We also have several other members of the
management team here today.
I would also like to welcome our auditors, Deloitte, our solicitors, Harmos Horton Lusk,
our Registrar, Computershare and our tax advisors, KPMG, to the meeting.
[SLIDE 6]
The agenda for this afternoon’s meeting will be as follows:
• As Chairman, I will deliver a brief review of Argosy’s results, governance and risk
management;
• This will be followed by a more detailed review of Argosy’s performance by our
Chief Executive, Peter Mence;
• Following Peter’s review, we will take questions from Shareholders;
• We will then move to the formal resolutions of the Meeting;
• And finally, we will then attend to any general business.

6 ⸺

After the meeting has been formally closed, please join us for refreshments where the
Directors and Executives of Argosy will be available to discuss any queries you may
have.
PROXIES
Proxies have been received in respect of 317,272,753 shares and these have been
audited by Deloitte. There are 830,588,232 shares on issue.
CHAIRMAN’S INTRODUCTION [slide 7]
I am pleased to now present to you a summary of the Company’s performance for
the year ended 31 March 2020. You will have received the 2020 Annual Report and
financial statements, either by post or electronically, depending on your preference.
HIGHLIGHTS FOR THE YEAR ENDED 31 MARCH 2020 [slide 8]
The Board is pleased with the results achieved for the 2020 financial year and
Argosy’s management team did an excellent job. The end of the financial year
coincided with the world facing an unprecedented event with the emergence of
Covid-19. The virus’s impact has been severe on global economies and financial
markets. While we are now several months into Alert Level 1, we expect to see
economic weakness and volatility over the next 12-18 months as the world and New
Zealand navigates through a Covid-19 environment.
In the year ended 31 March 2020, Argosy delivered net distributable income growth
of 3.8% over the prior year. The NTA increase by 6.5% to $1.30 per share was driven by
a full year revaluation gain of $60 million, an increase of 3.5% on book value.

7 ⸺

Many portfolio measures such as WALT and occupancy across the business improved
over the prior year underpinned by strong leasing and rent review successes during
the year.
Management continued to reposition the portfolio through the combination of
strategic acquisitions, strategic developments and the ongoing divestment of non
Core assets above their book value. Operationally, the team has again achieved
some great leasing outcomes through the year (particularly in Wellington) and Peter
will cover these elements and our financial performance in more detail in his
presentation.
We remained focused on greening the portfolio to deliver high quality buildings and
complemented this with our second successful $100 million 7 year green bond issue in
October, and I would like to take this opportunity to personally say thank you to our
investors for their support of our green bond programme.
FULL-YEAR DIVIDEND AND FIRST QUARTER ANNOUNCEMENT [slide 9]
The Board was pleased to announce a 2020 full-year cash dividend of 6.35 cents per
share, an increase of 1.2% on the prior year.
Argosy’s business is resilient and supported by a sound capital and portfolio position.
Accordingly, based on current projections for the portfolio, the Board is pleased to
reaffirm our expectations of a full year dividend of 6.35 cents per share for the 2021
financial year. This guidance affirmation reflects the Boards view that shareholders
should continue to share in the continuing strength of the business.

8 ⸺

Today I can also confirm that the directors have approved today a first quarter
dividend for the 2021 financial year of 1.5875 cents per share with imputation credits
of 0.151267 cents per share attached. This will be paid on 30 September 2020 with a
record date of 16 September 2020.

GOVERNANCE [SLIDE 10]
Sound corporate governance and stewardship remain fundamental elements to
Argosy’s performance. As a Board, we are committed to operating to the highest
standards of corporate behaviour, accountability and corporate governance best
practice. We aim to uphold the highest ethical standards, acting in good
faith and in the best interests of shareholders at all times. We remain guided by our
Code of Conduct and Ethics which is publicly available on our website, along with
Argosy’s other policies and charters.

RISK MANAGEMENT
The Board continues to take a cautious approach to risk for Argosy, whether those
risks are financial, operational, regulatory or health & safety. We have a low
tolerance for risk where it may result in adverse consequences for Argosy, its
shareholders or other stakeholders. As a business Argosy encounters a diverse range
of risks on a daily basis, however, we will always focus on managing or mitigating risk
to the fullest practical extent possible.

9 ⸺

CAPITAL MANAGEMENT [slide 11]
The board regularly reviews the company’s capital management strategy. The
Board’s policy is unchanged and targets debt to total assets to be between 30% to
40%. With low interest rates globally, Argosy is focusing on divesting non Core assets
by taking advantage of continued interest from both domestic and international
property investors.
At 31 March 2020, Argosy had $141 million of non Core assets targeted for divestment
in the 2021 financial year. Investors will be aware that we have recently sold two non
Core assets in the period since Balance Date. This has realised $40 million, which will
be redeployed to pay down debt or complete current green developments.
Argosy’s gearing level remains within the target band and well within all bank
covenants.
I will now hand over to Peter, who will provide more details on our performance to 31
March and an update on the 2021 financial year.

− END −
ENQUIRIES
Peter Mence
Chief Executive Officer
Argosy Property Limited
Telephone: 09 304 3411
Email: pmence@argosy.co.nz
Dave Fraser
Chief Financial Officer
Argosy Property Limited
Telephone: 09 304 3469
Email: dfraser@argosy.co.nz
Stephen Freundlich
Head of Investor Relations
Argosy Property Limited
Telephone: 09 304 3426
Email: sfreundlich@argosy.co.nz

1 ⸺

Thank you Peter. (slide 23)
I will now open the meeting for questions about the Company’s performance
generally. Other issues can be addressed as General Business later in the meeting.
I would like to remind you that only Shareholders, proxy holders or Shareholder
company representatives have a right to speak.
In addressing the Chair with questions would you please clearly state your name and
advise whether you are a Shareholder, a proxy holder or a Shareholder company
representative.
If you have a question, there are people here with cordless microphones in the aisles,
please use these so we can all hear your question.
Do I have any questions from the floor or virtual audience?

QUESTIONS
........................
As there are no further questions at this time, we will now consider the formal resolutions
for the Meeting.

RESOLUTIONS (Slide 24)
The resolutions for consideration today may only be voted on by Shareholders, either in
person or virtually or by proxy, and proxy holders and Shareholder company
representatives present.

As noted earlier I have been provided with a record of the valid proxies received.
Proxies have been received in respect of 317,272,753 shares and these have been
audited by Deloitte. There are 830,588,232 shares on issue.


2020 ANNUAL MEETING
28 JULY 2020
CHAIRMAN’S REVIEW (PART 2)

2 ⸺

Q&A AND VOTING [slide 25]
Voting on all resolutions will be by poll. As I outlined earlier in the meeting: the poll is
open to vote now, to give you plenty of time.
For those shareholders or proxies attending this meeting online through the Lumi
platform, the resolutions and voting choices are displayed on your screens, and to vote
you simply select your voting choice from the options shown on screen.
You can change your vote at any time up until the poll is closed. To change your vote,
simply select another voting choice.
On a poll, each person voting at the meeting today and each Shareholder who has
cast a vote by proxy, has one vote for each share held. We will consider each
Resolution in turn and vote on that Resolution after any discussion. There will be
opportunities to ask questions on each of the resolutions prior to the vote being called
for.
For those shareholders or proxies attending here today, to vote, you should tick the
relevant box on your voting form in respect of the resolution being voted on. Please
remember to sign your voting form once you have voted. If you did not bring your
voting form with you, you should have been given a voting form at the registration desk
on arrival. If you are a proxy holder and the shareholder has given directions as to
voting on every resolution, you will not have been issued with voting papers. If you have
been overlooked, please let one of the Computershare representatives know
immediately.
Company representatives have pens available if you require one to complete your
forms. On completion of the voting, your forms will be collected. When all voting forms
have been collected, they will be taken to be counted by Computershare and will be
scrutinised by Deloitte.
If you are both a Shareholder and a proxy holder or Shareholder company
representative, please complete a separate voting paper for yourself and each other
Shareholder you represent.
All resolutions will be voted on in the form proposed in the Notice of Meeting given to
Shareholders. Each of the resolutions is taken as having been moved and no seconder
is required. The resolutions will be binding on the Board and Company if passed.

The results of the poll will be announced via NZX as soon as they are available.
Please note that the Board recommends that you vote in favour of each of the three
ordinary resolutions.
If you would like to ask a question, press the question button on your computer, tablet
or mobile, and then type and submit your question.

3 ⸺


RESOLUTION 1 (slide 26)
Resolution 1 proposes that Rachel Winder be elected as a director of the Company.
Pursuant to Clause 24.6 of the Company’s constitution and NZX Main Board Listing Rule
3.3.11, Rachel retires by rotation. Rachel was first appointed to the Board in August
2019. The Board confirms that Rachel is an independent director and Rachel has
confirmed that she is available for election.
The Board supports Rachel’s election and believes the Company benefits from her
extensive property expertise and the balance her experience brings to Argosy Board.
I would now like to invite Rachel to address the meeting on her proposed election.
Note: Allowance for Rachel to present
Thank you Rachel - is there any discussion on this resolution?
I now put to vote the resolution that Rachel Winder is elected as a director of the
Company.
Voting on this resolution will be by poll. For those shareholders and proxy holders
physically in attendance here, please tick the relevant box on your voting form. For
those shareholders and proxy holders attending virtually, please simply select your
voting choice from the options shown on your screen.
Note: Pause for people to complete voting papers.
Thank you, we will now move to the next resolution.

RESOLUTION 2 (slide 27)
Resolution 2 proposes that Martin Stearne be elected as a director of the Company.
Pursuant to Clause 24.6 of the Company’s constitution and NZX Main Board Listing Rule
3.3.11, Martin retires by rotation. Martin was first appointed to the Board in March 2020.
The Board confirms that Martin is an independent director and Martin has confirmed
that he is available for election.
The Board supports Martin’s election and believes the Company will benefit greatly
from his extensive capital markets expertise and the balance his experience brings to
Argosy board.
I would now like to invite Martin to address the meeting on his proposed re-election.
Note: Allowance for Martin to present
Thank you Martin - is there any discussion on this resolution?

4 ⸺

I now put to vote the resolution that Martin Stearne is elected as a director of the
Company.
Voting on this resolution will be by poll. Again, for those shareholders and proxy holders
physically in attendance here, please tick the relevant box on your voting form. For
those shareholders and proxy holders attending virtually, please simply select your
voting choice from the options shown on your screen.
Note: Pause for people to complete voting papers.
Thank you, we will now move to the next resolution.

RESOLUTION 3 [slide 28]
Resolution 3 seeks to authorise the Board to fix the auditor’s fees and expenses.
Is there any discussion on this resolution?
Voting on this resolution will be by poll. For those shareholders and proxy holders
physically in attendance here, please tick the relevant box on your voting form. For
those shareholders and proxy holders attending virtually, please simply select your
voting choice from the options shown on your screen.
As this is the final resolution, the online voting system will close in approximately 30
seconds. Please ensure that you have cast a vote on all resolutions.
Note: Pause for people to complete voting papers.
That completes voting on all resolutions, online voting will now be closed, and I will now
ask for the voting papers to be collected in the boxes being circulated.
Note: Pause for voting papers to be collected.
Due to the number of votes to be counted, the votes collected at this meeting and
online will be added to the proxies already received and the results will be compiled by
the registrar and scrutinised by the auditor. The results, once available, will be published
on the Argosy website and provided to the NZX.

GENERAL BUSINESS (slide 29)
I now move on to the general business of the meeting and open the floor for questions
or comments.
Again, I ask that in addressing the Chair with questions would you please clearly state
your name and advise whether you are a Shareholder, a proxy holder or a Shareholder
company representative.

5 ⸺

For those shareholders online, if you wish to ask a question, select the question icon
button on your computer, tablet or mobile phone, and then type and submit your
question.
The question will then be sent to the Board to answer.
As I noted at the beginning of this meeting, we will try to get to as many of the
questions as possible, but not all questions may be able to be answered during the
meeting.
In this case, questions will be followed up via email after the meeting.
I would like to remind you that only Shareholders, proxy holders or Shareholder
company representatives have a right to speak or ask questions.

Note: General business discussion - if any.
I will now hand over to Peter.

CEO’s FAREWELL REMARKS FOR MIKE SMITH AND PETER BROOK [slide 30]

CHAIRMAN’S CLOSING [slide 31]
Thank you Peter.
That completes the formal business of the meeting.
Thank you everyone for your attendance and participation this afternoon.
Before formally closing the meeting, I would like to conclude by saying it has been a
pleasure being a director for 18 years and Chairman of Argosy for 15 years.
We have been through some very interesting times including the GFC internalisation,
corporatisation, various equity and debt raisings, the ongoing execution of our green
development strategy and most recently, the global pandemic known as Covid-19.
All of these experiences have seen Argosy emerging stronger as a result.

6 ⸺

The Board refresh process signalled 18 months ago is now complete and sees Argosy
commence the 2021 financial year with a solid governance foundation to take the
company forward.
I wish Argosy’s new Board and shareholders all the best for the future.
I formally declare this meeting closed.
Please join us for refreshments.

THANK YOU [slide 32]
− END −
ENQUIRIES
Peter Mence
Chief Executive Officer
Argosy Property Limited
Telephone: 09 304 3411
Email: pmence@argosy.co.nz
Dave Fraser
Chief Financial Officer
Argosy Property Limited
Telephone: 09 304 3469
Email: dfraser@argosy.co.nz
Stephen Freundlich
Head of Investor Relations
Argosy Property Limited
Telephone: 09 304 3426
Email: sfreundlich@argosy.co.nz

---

1 ⸺

[SLIDE 12] CHIEF EXECUTIVE OFFICERS REVIEW.
Thankyou Mr Chairman. As noted earlier, I’ll be covering off a market update, strategy,
taking you through a few more elements of the FY20 results in a little more detail before
rounding out with an update of the NZ market as we see things.
[SLIDE 13] COVID-19 UPDATE
We have continued to adapt in a post Covid-19 environment. Our agile working
environment and business continuity plan was always based on working from home
and we have continued to provide the flexibility since Alert level 2 was introduced in
May. It remains very successful for our business.
We have continued to see our tenants gradually returning to business as normal.
Anecdotally we believe activity levels have returned to somewhere between 75-100%
of pre-Covid levels, noting seasonal factors that affect some tenants. To the end of
June, Argosy has agreed or provided for $3.3 million in rental abatements for tenants
most in need.
Our development projects have recommenced and we have a little more visibility on
the delays for Covid-19 which we estimate at around three months.
[SLIDE 14] CREATE. MANAGE. OWN
There has been no change to our Create, Manage, Own strategy. The strategy
continues to complement our overall Investment Framework.


2020 ANNUAL MEETING
28 July 2020
CEO’s REVIEW

2 ⸺


[SLIDE 15] DELIVERY ON STRATEGY
We’ve continued to green the portfolio and transition value add properties over the
year. We have a big pipeline of organic opportunities to execute on over time.
We have low vacancy at present and had strong leasing successes during the year,
particularly at 7 Waterloo Quay in our Wellington portfolio. We also have a low lease
expiry profile over the medium term.
We continued to diversify our capital mix and tenor with a second successful $100
million green bond issue – where we continue to fund the business the way the grow
the business.
We remain focused on steady dividend growth with the gradual transition to an AFFO
based dividend policy over the medium term.
On the portfolio activity side of things, we’ve continued to make strategic acquisitions
and divestments as required to enhance overall portfolio quality and asset mix.
As Mike mentioned, since Balance Date we have sold two properties that were
designated as non Core, with a total sale value of $40 million.
While the non-settlement of the Albany Lifestyle Centre was disappointing, we’ve got a
marketing campaign underway and we have interest from a number of interested
parties.
[SLIDE 16] PORTFOLIO SNAPSHOT
Onto our portfolio highlights and things are in really good shape. At 31 March,
occupancy was at almost 99% and our weighted average lease term was over six years
for the third consecutive year.
We continue to have heavy weightings into both the industrial sector and Auckland
market.

3 ⸺


[SLIDE 17] PORTFOLIO AT A GLANCE
There have been no material changes to the charts here other than to note there is a
slight change to the sector weightings. The industrial band has been increased five
percent to 45% - 55% from 40% - 50% and the large format retail band has been
reduced five percent to 10% - 20% from 15% - 25%.
[SLIDE 18] DISTRIBUTABLE INCOME
Here we have our distributable income slide. After adjusting for non-cash items
including revaluations, realised gains and derivative losses, net distributable income
was up by $2.2 million or 3.8 percent on the prior year. On a per share basis, net
distributable income was up 3.7 percent – which was really pleasing.
[SLIDE 19] VALUE ADD
We have $219 million in value add opportunities which are generating a 5.8% yield with
two already well underway. The big trend we’ve seen is that tenants are likely to remain
in place over the short to medium term and we expect to see renewals feature strongly
in our leasing outcomes over the next 6-12 months. Development levels may slow down
for a short period as tenants take stock in the post Covid-19 environment. The focus on
green developments however remains a priority.
[SLIDE 20] DEVELOPMENT PIPELINE
Looking at the development pipeline, we completed 107 Carlton Gore Road and 180
Hutt Road developments.
7WQ is nearing completion as we get the tenants in place. 54-56 Jamaica drive will be
completed next month.
8-14 Willis Street and 360 Lambton Quay will run into late 2021. The delays in that
development are not just Covid delays but are also related to agile working
environment considerations - these are more around how the tenant wants to use the
space that they have - so there are some design changes filtering through.

4 ⸺

The potential green developments at 101 and 105 Carlton Gore Road which were early
in the design phase with tenants are likely to be pushed out by 12 months.
[SLIDE 21] LEASE EXPIRY
We have retained our weighted average lease expiry above 6 years for the 3rd
consecutive year – underpinned by strong leasing outcomes in 2020.
As you know, we like to keep the lease expiry profile under 10 percent each year on
average.
Our largest single expiry over next 5 years is 5.5% in March-25 being General Distributors
at 80-120 Favona Road, Mangere. Over the first quarter of the FY21 financial year we
have achieved some good leasing outcomes and we have continued to field solid
interest at 7 Waterloo Quay for the remaining three levels.
[SLIDE 22] 2021 FOCUS
Looking ahead to 2021 we have a number of focus areas under our Create, Manage,
Own strategic framework.
We’ll continue to green the portfolio at every opportunity and transition the Value Add
properties in the portfolio – particularly green developments as you’ve already seen via
the successful 107 Carlton Gore Road project. We do expect to see the timing of some
potential development opportunities to be deferred by 12 months.
We will be keeping even closer tabs on the portfolio in this post Covid-19 environment
to monitor, manage and mitigate its impact wherever we can. We’ll keep tailoring our
support and working with our tenants.
Leasing up of the remaining floors at 7WQ is a particular focus as is our transition
towards that AFFO based dividend policy over the medium term.
We’ve been focused on getting our developments back underway and 8-14 Willis
Street is the most notable one there.

5 ⸺

We have good interest in non Core assets and, as already mentioned, we have made
several divestments and are progressing through our capital management plan very
nicely.
The team is concentrated on maximising portfolio performance, retaining tenants,
resolving vacancies and addressing key lease expiries.
We remain focused on owning the right properties, with the right attributes in the right
locations, diversified by sector, location and tenant.
Now, I will hand you back to the Chairman.
− END −
ENQUIRIES
Peter Mence
Chief Executive Officer
Argosy Property Limited
Telephone: 09 304 3411
Email: pmence@argosy.co.nz
Dave Fraser
Chief Financial Officer
Argosy Property Limited
Telephone: 09 304 3469
Email: dfraser@argosy.co.nz
Stephen Freundlich
Head of Investor Relations
Argosy Property Limited
Telephone: 09 304 3426
Email: sfreundlich@argosy.co.nz

---

28.07.2020
Annual Meeting
2020
Looking through

Hybrid AGM
2—
Any shareholder or appointed proxy /
representative attending is eligible to
ask questions.
If you wish to ask a question, select
the question icon button on your
computer, tablet or mobile phone,
and then type and submit your
question.
The question will then be sent to the
Board to answer.
We will try to get to as many of the
questions as possible, but not all
questions may be able to be
answered during the meeting.
In this case, questions will be followed
up via email after the meeting.
Q&A
We will open the poll now, to give
you plenty of time to vote.
The ability to vote will appear on your
screen as a bar chart icon, and from
here, the resolution and voting
choices will be displayed on your
device.
To vote, simply select your voting
direction from the options shown on
screen.
To change your vote, simply select
another direction—you can cancel
your vote by clicking ‘Cancel’.
You can change your vote at any
time up until when the poll is closed.
Prior to the poll closing, simply select
another voting choice to change
your vote.
VOTING

The Board
3—
Mike Smith Chairman
Peter Brook Director
Stuart McLauchlan Director
Jeff Morrison Director

The Board
4—
Mike Pohio Director
Martin Stearne DirectorRachel Winder Director
Chris Gudgeon Director

The Executive Team
5—
Dave Fraser Chief Financial Officer
Peter Mence Chief Executive Officer

PRESENTED BY
Agenda
6—
Chairman’s Review
7
Chief Executive Officer’s Review
12
Questions
23
Resolutions
24
General Business
29
Closing of Meeting
31
Note: Due to rounding, numbers presented in this presentation may not add up exactly to the totals provided and percentages may not exactly reflect absolute figures.

Chairman’s Review
7—

FY20 Annual Result
8—
3.8%
Net distributable income
increase
$1.30
A 6.5% increase driven by a $60m
revaluation gain
6.35¢
Full year FY20 dividend, an increase
of 1.2% on the prior year
100m
2
nd
successful 7 year green bond
2.7%
Annualised rent increase on rents
reviewed

Dividends
9—
The FY20 dividend was increased 1.2%
on the prior year.
A 1
st
quarter cash dividend of 1.5875
cents per share has been declared,
with imputation credits of 0.151267
cents per share attached, and will be
paid on 30 September 2020.
The Dividend Reinvestment Plan
remains open and will be available for
the 1
st
quarter dividend with a 3%
discount applied.
The reaffirmed FY21 dividend guidance
of 6.35 cents per share reflects the
Board’s wish for shareholders to share in
the continued solid operating results
whilst allowing Argosy to maintain its
momentum towards an AFFO based
dividend policy over the medium term.
6.35cps
Reaffirmed FY21 full year dividend
guidance based on current
projections for the portfolio
RESILIENT AND SUSTAINABLE DIVIDENDS

Governance / Risk Management
10—
Your Board is committed to the highest standards of corporate behaviour, accountability and corporate
governance best practice;
We are guided by our Code of Conduct and Ethics; and
We have a well developed risk management policy & framework which manages Argosy’s risks within the
overall risk appetite set by the Board.
COMMITMENT TO THE HIGHEST STANDARDS

Capital Management
11—
Argosy operates within its Capital Management Framework
The Board’s policy is for debt to total assets to be between 30% to 40%
As at 31 March 2020 Argosy’s debt to total assets remained within the target range.
We aim to maximiseearnings through the property cycle within the following parameters:
Properties are acquired when they meet approved Investment Policy criteria, or sold when they are non Core;
Argosy is not forced to issue equity at a price that is dilutive to shareholders; and
Measured dividend growth is maintained.
DIVERSIFIED CAPITAL STRUCTURE, GEARING WELL BELOW COVENANT
$141m
Of non Core assets at 31 March
2020

Chief Executive Officer’s Review
12—

Covid-19 Update
13—
WORKING CLOSELY WITH ALL STAKEHOLDERS
Staff
Ensuring safe working conditions at work and at home.
Greater use of technology.
Tenants
Working together to find short term solutions.
Those tenants that need assistance have received it primarily via deferral and rental abatement.
Argosy has provided for approximately $3.3 million in rent abatements (including the Albany Lifestyle Centre) to 30
June, for tenants most in need.
Construction activity/projects
Projects potentially delayed by 3-4 months for Covid-19.
Greater health & safety focus given social distancing requirements.

Create.Manage.Own.
14—
Proactive delivery of sustainable growth
Own the right assets, with the
right attributes in the right
New Zealand locations.
Manage all elements of the business
to deliver the right outcomes
for all our stakeholders.

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.
2020 Results
15—
STRONG DELIVERY OF STRATEGY
Strategic acquisition opportunities with long term capital growth upside achieved
during the year (54 Jamaica Drive and 224 Neilson Street). Other opportunities under
consideration.
Settled strategic acquisition of 244 Puhinui Road, contiguous to an existing site.
Strategic divestments executed (223 Kioreroa Road, Whangarei) and two additional
sales announced since balance date.
Argosy now fielding interest from several potential new buyers for the Albany Lifestyle
Centre.
Solid leasing outcomes over FY20 finishing with only 1.2% vacancy. Average
expiry over the next 5 years of only 9% p.a.
Excellent leasing results announced with the Crown for 7WQ space, and the
building is now 82% leased. Strong inquiry for remaining floors. Citibank and
Khyber Pass vacancies also addressed.
2
nd
successful 7 year Green Bond issue of $100m completed improving debt
funding diversification and tenor.
Transition towards AFFO based dividend policy continues.
Successfully transitioned Value Add properties to drive earnings and capital growth
(107 Carlton Gore Road).
Current organic value add development pipeline of over $200m will add more
quality and resilience to the business.
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Portfolio Snapshot
16—
98.8%
71%
Auckland portfolio weighting
Occupancy
6.1 yr
Weighted average lease term
45%
Industrial portfolio weighting
Figures are as at 31 March 2020

Portfolio at a glance
17—
$1.87 BILLION
1
@ 31 MARCH 2020
TOTAL PORTFOLIO VALUE
BY SECTOR
45%
40%
15%
Industrial
Office
Large Format
Retail
TOTAL PORTFOLIO VALUE
BY REGION
71%
27%
2%
Auckland
Wellington
Regional North Island
& South Island
TOTAL PORTFOLIO VALUE
BY ASSET MIX
80%
12%
8%
Core
Value Add
Non Core
Bands
45-55% (was 40-50%)
30-40%
10-20% (was 15-25%)
Bands
65-75%
20-30%
<10%
Bands
75-90%
-
-
1. Metrics include asset held for sale – Albany Lifestyle Centre
2. Includes up to 5% allocation to the Golden Triangle area between Auckland, Tauranga and Hamilton.
2

Distributable Income
18—
INCREASE IN NET DISTRIBUTABLE INCOME PER SHARE
After non-cash adjustments and
current tax, net distributable
income increased by $2.2 million
or 3.8%.
FY20 Net Distributable Income per
share, a 3.7% increase on the prior
period
7.2cps
NOTE: Due to rounding, numbers presented in this presentation may not add up exactly to the totals provided and percentages may not exactly reflect absolute figures.
FY20FY19
$m$m
Profit before income tax
123.9143.3
Adjust ed for:
Rev aluat ions gains
(59.9)(70.5)
I mpairment (loss) on held for sale 3.0 -
Realised losses/(gains) on disposal
0.1 (6.1)
Deriv at iv e fair v alue (gain)/loss(2.1) 7.4
Eart hquake expense net of recov eries 0.5 (6.8)
Gross distributable income65.467.3
Depreciat ion recov ered 0.0 1.7
Current t ax expense(5.9)(11.7)
Net distributable income59.657.4
Weight ed av erage number of ordinary shares ( m)827.2827.0
Gross dist ribut able income per share (cent s)7.918.14
Net dist ribut able income per share (cent s)7.206.94

Value Add
19—
OPPORTUNITIES TO DRIVE CAPITAL GROWTH AND EARNINGS
In Value Add properties with
potential to deliver earnings and
capital growth
+$200m
Value Add properties total 12% of the
portfolio.
Several major development projects
underway within the group to
transition them to Core properties,
driving long term capital growth and
earnings.
The focus remains on transforming
Value Add assets into green
developments where possible.
Some Value Add opportunities which
were due to commence shortly have
been deferred for the time being due
to Covid-19.
1. Independent valuations as at 31 March 2020.
PropertySectorLocation
Valuation
1
$m
5 Unit y Driv e, A lbanyI ndust rialA uckland7.4
960 Great Sout h Road, Penrose I ndust rialA uckland
7.3
15 Unit y Driv e, A lbanyI ndust rialA uckland5.2
133 Roscommon Road, WiriI ndust rialA uckland9.5
224 Neilson St reet , OnehungaI ndust rialA uckland
32.0
101 Carlton Gore Road, N ewmarket (deferred)OfficeAuckland28.1
105 Carlton Gore Road, N ewmarket (deferred)OfficeAuckland
32.8
54-56 Jamaica Drive, Wellington (underway)IndustrialWellington7.2
8-14 Willis Street/360 Lambton Quay (underway)OfficeWellington89.8
TOTAL $m 219.3

Development Pipeline
20—
GREEN DEVELOPMENTS REMAIN THE KEY FOCUS
107 Carlton Gore Road:
completed December-19.
180-202 Hutt Road:
completed March-20.
7WQ:Residual seismic and
reinstatement works nearing
completion.
54-56 Jamaica Drive:On
track pre Covid-19 but now
expected to complete
August-20.
8-14 Willis Street/360 Lambton
Quay: Construction progress
suspended due to Covid-19.
Was due for completion in
April-21 but now delayed to
Late-21.
1. Expected value on completion based on ‘as if complete’ (less cost to complete) valuations performed by independent valuersasat 31 March 2020.
2. Acquired by Freightways 1 April 2020
3. Includes 360 Lambton Quay (formerly Stewart Dawson Corner).
Green developments at 101
Carlton Gore Road and 105
Carlton Gore Road have
been deferred due to Covid-
19.
Expected value on completion of
development projects
$276m
DevelopmentMajor TenantTypeLocation
Cost to
complete$m
1
Forecast
completion
Sep-20Mar-21
Sep-21Mar-22
Underway / commenced
7WQVarious Crown t enant sOFFWT N10.2128.0A ug-20
54-56 Jamaica Drive
Big Chill
2
INDWT N3.010.3A ug-20
8-14 Willis St reet
3
St at ist ics New Zealand
OFF/RETWT N48.2138.0Lat e-21
TOTAL61.4276.3
Green Dev elopmentsStandard Dev elopments
FY 2021FY 2022

2021 Focus
21—
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.
Ensure all existing developments in progress recommence swiftly and safely.
Divest all non Core assets to reduce gearing and provide more flexibility for other
opportunities.
Continue to invest in a diverse range of properties across sectors, locations and
tenants.
Investment activity focused on existing portfolio – with an emphasis on green
developments.
Carefully manage our way through Covid-19 to minimise the financial impact.
Work closely with our tenants to ensure high retention rates and that key
expiries/vacancies are addressed early.
Lease up the balance of 7 Waterloo Quay.
Maintain our green / sustainable focus on all acquisition and development
opportunities.
Continue transitioning Value Add opportunities to drive earnings and capital growth.
Make appropriate risk / reward decisions, with pre-commitments preferred on all
developments.

Questions
22—

Resolutions
23—

Hybrid AGM
24—
Any shareholder or appointed proxy /
representative attending is eligible to
ask questions.
If you wish to ask a question, select
the question icon button on your
computer, tablet or mobile phone,
and then type and submit your
question.
The question will then be sent to the
Board to answer.
We will try to get to as many of the
questions as possible, but not all
questions may be able to be
answered during the meeting.
In this case, questions will be followed
up via email after the meeting.
Q&A
We will open the poll now, to give
you plenty of time to vote.
The ability to vote will appear on your
screen as a bar chart icon, and from
here, the resolution and voting
choices will be displayed on your
device.
To vote, simply select your voting
direction from the options shown on
screen.
To change your vote, simply select
another direction—you can cancel
your vote by clicking ‘Cancel’.
You can change your vote at any
time up until when the poll is closed.
Prior to the poll closing, simply select
another voting choice to change
your vote.
VOTING

Resolution 1
25—
That Rachel Winder be elected as a Director.

Resolution 2
26—
That Martin Stearne be elected as a Director.

Resolution 3
27—
That the Board be authorisedto fix the Auditor’s Fees and
Expenses.

General Business
28—

CEO additional comments
29—

Close of Meeting
30—

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.
28 July 2020