Investor Newsletter

September 2020
P.
1
Green is great
PCNZ Awards
P.
2
CEO Comment
Peter Mence gives a brief
business update
P.
3
ESG update
Supporting community
organisations
P.
4
Portfolio Update
Key stats as at
31 August 2020
Investor
Update
Argosy has submitted its property 82 Wyndham
Street for consideration in the 2020 Property
Council New Zealand Awards to be held Friday
25
th
September. This building has already been
awarded two Green Star Certifications from the
New Zealand Green Building Council. They are
a 5 Star Green Star Office Built rating and a 4
Star Green Star Interiors rating awarded to the
major tenant, Panuku Developments.
Nominations in The Resene
Green Building and RCP
Commercial Property categories
The building is being considered under the
Resene Green Building Award category against
four other nominees and the RCP Commercial
Property Award category against six other
nominees.
It’s great to be able to work
closely with our tenant
partners to deliver them a
modern, energy efficient
building to work in that is an
exemplar for functionality and
sustainability.”
Saatyesh Bhana, Head of Sustainability
The project turned a previously low grade
building with short term leases into an
attractive A grade building with longer leases to
high quality tenants. The property had a
valuation of $29.0m prior to the project
commencement. The revaluation upon
completion of the project has increased the
property valuation to $42.3m.

Only one in New Zealand
Currently, 82 Wyndham is the only building in
New Zealand to have three NabersNZ ratings:
— 5.5 Stars NabersNZ Energy Base Build rating
— 5 Stars NabersNZ Energy Whole Build
rating; and
— 5 Stars NabersNZ Tenancy (Panuku) rating.
Green Office Built Rating
5.0 Stars
NabersNZ Base Build rating
5.5 Stars
NabersNZ Whole Build rating
5.0 Stars
NabersNZ Tenancy (Panuku) rating
5.0 Stars
Green is great!

CEO comment
Business update
With the emergence of Covid-19, the calendar
2020 year has certainly been a challenging for
all New Zealanders. The virus continues to
impact on the global and domestic economy and
the looming election will prove very interesting
for whichever political parties end up forming
a Government. Despite the hurdles presented
by the virus, we have continued to work closely
with our tenants.
Rent reviews and leasing
There was plenty of activity across the business
since 31 March year end and the team have
remained actively engaged on delivering on
strategy and our FY21 focus areas. We are
pleased to report our progress across a range of
key operational areas.
For the 5-month period to 31 August we
completed 42 rent reviews achieving
annualised rental growth of 3.93%. These
reviews were achieved on rental income
totalling $30.3m. On rents subject to review by
sector, we achieved annualised rental growth of
3.0% on industrial rent reviews, 5.6% for office
rent reviews and 2.3% for retail rent reviews.
Auckland accounted for 60% of all reviews and
achieved a 2.9% annualised increase and
Wellington a 5.5% increase.
During the first four months of FY21 we
completed 20 leasing transactions including 10
renewals, 4 new leases and 6 extensions. We
continue to focus on our remaining expiries
where, by income, Argosy has only 4.3% of
income expiring in FY21 across 15 leases. We’ve
achieved some excellent leasing outcomes over
the first five months including;
— Parliamentary Services, 147 Lambton Quay,
8,139m
2
, new 3 year lease;
— Citibank, 23 Customs Street, 545m
2
, 5 year
renewal;
— CNZ (Auckland) at 23 Customs Street,
657m
2
, 3 year renewal;
— Machine Part Welding, 960 Great South
Road 865m
2
, 6 year renewal;
— Fergs Beds at Albany Lifestyle Centre;
608m
2
of space renewed for a further 2 years
from 2024.
Peter Mence Chief Executive Officer
Divestments and acquisitions
Since 31 March year end Argosy announced
investment property divestments totalling just
under $75 million on a weighted average
premium to book value of 6.3%.
Chief Executive Officer, Peter Mence said "With
a portfolio of Argosy’s size, some properties
eventually no longer meet our investment
criteria. Several properties fell into this
category and were divested above book value.
The premiums received demonstrate that the
vendor market remains robust. With a
challenging operating environment ahead we
remain very focused on progressing Argosy’s
capital management plan.”
Argosy continues to review the long term
strategic ownership of all its properties.
Development update
8-14 Willis Street, Wellington, Statistics New
Zealand. Following the return to Alert Level 1,
Argosy recommenced work on its development
at the property. Productivity is back at pre
Covid-19 levels although there remains some
supply chain challenges for imported materials.
As noted previously, there have been delays
caused by Covid-19 which Argosy is working on
with Statistics New Zealand and will update the
market at its interim results to be announced in
November. Project completion is still expected
in late 2021.
54-56 Jamaica Drive, Wellington, Big Chill.
This project for Big Chill completed in
September and new rents have commenced.
7 Waterloo Quay. Reinstatement of all office
floors is now complete. Residual makegood
works around the interchange are nearing
completion.
I look forward to updating you all further at our
interim results to be announced on
26 November.
Snapshot
People
In August, several Argosy staff completed a
St Johns First Aid refresher course including
Level 2 certification. Haley Jones (Manager
Property Services), Saatyesh Bhana (Head of
Sustainability) and Stephen Freundlich (Head
of Investor Relations) all attended the 1 ½ day
course. The course covered a range of
medical emergencies including fractures,
burns, soft tissue injuries, seizures, asthma,
anaphylaxis chest pains, strokes and even
possible spinal injuries. Environmental
conditions were also reviewed around
hypothermia and heat exhaustion / stroke.
One key focus across both days was CPR.
This is something that almost anyone can do
and was a great thing to get a refresher on.
Haley Jones said ‘the best takeaway was
the ’30 to 2 no matter who’ mantra in terms
of compressions to breaths, regardless of
adult, child or infant.”
Saatyesh Bhana liked the refresher training
on CPR and use of the AED (automatic
external defibrillator). “It was good taking the
training and simulating emergency
scenarios. Everyone had to take turns being
the first responder to an accident scene and
doing two continuous minutes of CPR. It’s a
lot harder than you think!”

Other portfolio news
Through the early part of FY21 Argosy has
continued to engage and grow its social
responsibility commitments in local
communities. Below we provide an update of an
exciting new partnership for Argosy.
Variety - the children's charity
Variety has been providing basic essentials and
life-changing opportunities to Kiwi kids for 30
years.
Through its Beds for Kids programme, the
charity has been supporting children and
families who are living in financial hardship,
providing them with essential items - bedding
and winter blankets and has given more than
1,000 new beds and warm bedding to Kiwi kids
who need them most.
In August, Argosy entered into a partnership
valued at $7,500 with Variety to support its Beds
for Kids programme. On top of this, Argosy staff
topped up the corporate sponsorship to achieve
an overall sponsorship package of around
$9,500.
Argosy looks forward to working closely with
Variety to support their fantastic work in
communities and for families in need.
It's fantastic to have Argosy
onboard to support our
programme and families most
in need. The funds will make a
real difference to people's
lives.”
Jess Raymond, Events & Corporate Affairs Manager
Environmental – Property
Council New Zealand (PCNZ)
Awards
As noted in this Update, Argosy has submitted
82 Wyndham Street for consideration in the
2020 Property Council New Zealand Awards.
The building is being considered under the
Resene Green Building Award category against
four other nominees and the RCP Commercial
Property Award category against six other
nominees.
Peter Mence, Chief Executive Officer said ‘The
rating continues to endorse the quality of our
properties and our focus on greening the
portfolio. Next year we hope to have both 107
Carlton Gore Road and Highgate Parkway,
Silverdale, available for award submissions.
2020 Retail Roadshow - Covid
affected
The emergence of Covid-19 saw Argosy initially
look to reschedule its Retail Roadshow to
October. However, after review and with FY21
interim results to be announced in November,
the 2020 Retail Roadshow has now been
cancelled.
The benefit of catching up with investors across
the country provides Management and
Directors the opportunity to present to
investors and the local broker community in the
regions face to face. However, the current
Covid-19 environment requires a significantly
greater focus on health & safety and the need to
manage this effectively.
Following a case of community transmission in
Auckland in early August it was disappointing
to return to Alert Level 3. We are hoping that
our Retail Roadshow can happen in 2021 as per
normal and shareholders will be advised in due
course next year.
Annual Shareholders Meeting
(ASM) - first hybrid
On 28 July, Argosy held its first ever hybrid
ASM at the Royal New Zealand Yacht Squadron,
in Westhaven, Auckland. While New Zealand
was in Alert Level 1, the hybrid functionality of
the ASM allowed investors to attend ‘virtually’
and participate in all elements of the AGM
including being able to ask questions and
complete all voting.
As usual, Argosy’s Chairman Mike Smith and
Chief Executive Officer Peter Mence, both gave
addresses on Argosy’s performance during the
2020 financial year.
The ASM saw Rachel Winder and Martin
Stearne both elected as directors by
shareholders. The ASM was however most
notable as being the last for Chairman Mike
Smith and Peter Brook, after 18 years of loyal
and valued service to Argosy.
A director since 2013, Jeff Morrison was
appointed as Argosy's new Chairman which
took effect following the ASM closing.

Portfolio update AS AT 31 AUGUST 2020
Properties
55
Tenants
170
WALT
5.8yrs
Weighted average lease term
Portfolio
$1.83b
Total portfolio value
Occupancy
99.4%
Occupancy (by rent)
Total portfolio update
By sector
43%Industrial
43%Office
14%Retail
Portfolio mix
by asset type
82%Core
12%Value Add properties
6%Properties and land to divest
Total portfolio value
by region
71%Auckland
27%Wellington
2%Nth Island regional & Sth
Island
Dividend
The 1ST QUARTER DIVIDEND for the
2021 financial year of 1.5875 cents per share,
with imputation credits of 0.151267 cents
per share attached, will be paid on
30 September 2020. Jeff Morrison,
Chairman of Argosy Property Limited said
“The Company remains focused on
delivering sustainable dividends to
shareholders. Based on current projections
for the portfolio and stable market
conditions, including Covid-19 impacts, the
Board can reaffirm its full year 2021 cash
dividend guidance of 6.35 cents per share,
consistent with the previous year.
The stable, year on year dividend is
consistent with our view that shareholders
continue to share in the positive outlook for
Argosy. It also allows us to maintain positive
momentum towards an AFFO based
dividend policy in the medium term.”
Important dates
FY21 Q1 DIVIDEND PAYMENT
30 SEP 2020
FY21 INTERIM RESULTS
ANNOUNCEMENT
26 NOV 2020
FY21 Q2 DIVIDEND PAYMENT
DEC 2020
FY21 Q3 DIVIDEND PAYMENT
MAR 2021