Annual Shareholders Meeting 2021

29.06.2021
Annual Meeting
2021
Building a better
future

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—
Chris Gudgeon Director
Stuart McLauchlan Director
Jeff Morrison Chairman
Mike Pohio Director
Martin Stearne DirectorRachel Winder Director

THE EXECUTIVE TEAM
4—
Dave Fraser Chief Financial Officer
Peter Mence Chief Executive Officer

PRESENTED BY
AGENDA
5—
Chairman’s Review
6
Chief Executive Officer’s Review
11
Questions
25
Resolutions
26
General Business
32
Closing of Meeting
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 absolute figures.

CHAIRMAN’S REVIEW
6—

FY21 ACHIEVEMENTS
7—
Carefully managed our way through Covid-19, minimising the financial
impact on Argosy
Resilient operating results reflecting a high quality portfolio of diversified real
estate
Continued to progress green developments despite the Covid-19 impact
on construction
Strong leasing progress at 7WQ, now 89% leased
Capital management initiatives delivered, with divestment capital recycled
into green developments
Executed on strategic industrial Auckland opportunities in line with strategy







VISION -BUILDING A BETTER FUTURE

DIVIDENDS
9—
A 4
th
quarter cash dividend of 1.6125
cents per share has been declared (nil
imputation credits) and paid on 23
June 2021.
The Dividend Reinvestment Plan will be
available for participation in the 4
th
quarter dividend with a 2% discount.
FY22 dividend guidance is 6.55 cents,
an increase of 1.6% on FY21.
6.55cps
FY22 full year dividend guidance is
based on current projections for
the business
RESILIENT AND SUSTAINABLE DIVIDENDS

NEW DIVIDEND POLICY
10—
In 2017, Argosy’s Board advised of its
intention to move (in the medium term) to
an amended dividend policy, based on
AFFO earnings.
Commensurate with this commitment,
commencing 1 April 2022, Argosy’s policy
will be to pay dividends between 85-100%
of AFFO.
In formulating the dividend policy, the
Board was focused on Argosy’s ability to
grow sustainable dividends to
shareholders.
TRANSITIONING INTO AFFO DIVIDEND POLICY FRAMEWORK FROM FY23
AFFO dividend payoutratio from 1
April 2022
85-100%
* Adjusted for forfeited deposit at Albany Lifestyle Centre and 7WQ façade works (net of tax)
6.45
6.55
5.00
5.50
6.00
6.50
7.00
7.50
FY18FY19FY20FY21FY22FY23
A rgosy Div idend
Transition Period
Dividend cpsAFFO cps*Audited AFFO
NewPolicy
Commences

CHIEF EXECUTIVE OFFICERS REVIEW
11—

KEY FY21 RESULT HIGHLIGHTS
12—
13.7%
Net distributable income
increase
$1.53
NTA up 17.7% from $1.30 driven by a
$157.7m revaluation gain
6.45ps
Full year FY21 dividend
increased by 1.6%
$125m
A 3
rd
successful 7 year green bond
issue
3.3%
Annualised rent increase on rents
reviewed

BIG CORPORATE GOALS - 2031
13—
>50%
Of the portfolio to be green
assets
>50%
Of total debt finance being green
non-bank funding
CO
2
Target carbon neutral
>$3bn
Portfolio activity will result in
increased scale through
acquisitions and green
developments
-30%
Reduction in carbon emissions by
2031
Greater engagement and bigger
contribution to social initiatives.
“Changing lives, saving lives.”

PORTFOLIO HIGHLIGHTS
14—
99.0%
Occupancy
6.3%
Like for like rental growth
5.5yrs
Weighted average lease term
(WALT)
$157.7m
Annual revaluation gain 8.5% above
31 March book values

PORTFOLIO AT A GLANCE
15—
$2.01 BILLION
1
@ 31 MARCH 2021
TOTAL PORTFOLIO VALUE
BY SECTOR
49%
40%
11%
Industrial
Office
Large Format
Retail
TOTAL PORTFOLIO VALUE
BY REGION
72%
26%
2%
Auckland
Wellington
Regional North Island
& South Island
TOTAL PORTFOLIO VALUE
BY ASSET MIX
83%
17%
0%
Core
Value Add
Non Core
Target
Bands
45-55%
30-40%
10-20%
Target
Bands
65-75%
20-30%
<10%
Target
Band
75-90%
-
-
1. Metrics exclude Held for Sale assets.
2. Includes up to 5% allocation to the Golden Triangle area between Auckland, Tauranga and Hamilton.
2

VALUE ADD PROPERTIES
16—
GREEN OPPORTUNITIES WILL DRIVE EARNINGS AND CAPITAL GROWTH
In Value Add properties with
potential to deliver earnings and
capital growth
+$337m
Value Add properties total ~17% of the
portfolio.
Some Covid-19 deferred projects are
likely to be re-initiated in the next 6-9
months.
Transforming Value Add assets into
green developments remains a key
focus and aligns with our vision and
strategy.
Value Add Auckland industrial estates
will drive earnings and capital growth
over the medium to longer term.
1. Valuations as at 31 March 2021.
Property - Value AddSectorLocation
Valuation
1
$m
5 A llens Road, East T amakiI ndust rialA uckland
5.6
1-3 Unit y Driv e, A lbanyI ndust rialA uckland14.9
5 Unit y Driv e, A lbanyI ndust rialA uckland7.8
15 Unit y Driv e, A lbanyI ndust rialA uckland5.8
133 Roscommon Road, WiriI ndust rialA uckland
11.5
25 Nugent Street, Grafton (office portion)OfficeA uckland
15.8
224 Neilson Street, Onehunga (planned)
IndustrialAuckland
32.8
8-14 Mt Richmond Drive, Mt Wellington (planned)
IndustrialAuckland
78.0
101 Carlton Gore Road, Newmarket (deferred)
OfficeAuckland
29.5
105 Carlton Gore Road, Newmarket (deferred)
OfficeAuckland
29.0
8-14 Willis Street/ 360 Lambton Quay (underway)
OfficeWellington
106.6
TOTAL $m 337.3

CURRENT DEVELOPMENT PROJECT
17—
FOCUS ON COMPLETING 6 STAR GREEN DEVELOPMENT
8-14 Willis Street/360 Lambton Quay:Argosy continues to progress with an
expected completion date in February 2022. As noted at the interim
result, the addition of an 11th floor to the initial plans will cost $6.8 million
and deliver incremental income of $0.7 million. 360 Lambton Quay is in
the process of being repurposed into a combination of retail and office
space. This, along with increased costs caused by delays to the project
have increased the expected total spend (including land) to $140.1
million. The net rental for the combined building is now expected to be
$7.4 million. The IRR on the combined development is expected to be
7.2%, with an initial yield on cost of 5.3%. The development margin is 7.6%.
Other green developments: The 101 Carlton Gore Road and 105 Carlton
Gore Road green projects have been deferred.
Expected IRR on 8-14 Willis
Street/360 Lambton Quay
development
7.2%
DevelopmentMajor TenantTypeLocation
Cost to
complete
Forecast
completion
Sep-20Mar-21Sep-21Mar-22
Underway
8-14 Willis St reetSt at ist ics New ZealandOFF/RETWT N37.9Feb-22
TOTAL37.9
FY 2021FY 2022

ANNUAL REVALUATIONS
18—
CAP RATE FIRMING AND RENTAL GROWTH KEY DRIVERS OF INCREASE
For the year to 31 March, the
portfolio recorded a revaluation
gain of $157.7m or 8.5%. The
portfolio market yield firmed
63bps.
By location, Auckland was the
largest contributor to the
revaluation gain with $150.2m of
the total portfolio gain.
By sector, Industrial experienced
solid cap rate firming and market
rental growth in the period, and
provided the greatest
contribution at $129.9 million, up
15.2%.
The Office portfolio revaluation
was weighed down by additional
capital required for the façade
repairs at 7 Waterloo Quay and
increased development costs at
8- 14 Willis Street/360 Lambton
Quay.
1.Market Yield 31 March 2021 excludes7 Waterloo Quay, 8-14 Willis Street/360 Lambton Quay.
Market Yield 31March 2020 excludes 7 Waterloo Quay and 8-14 Willis Street/360 Lambton
Quay & 54-56 Jamaica Drive.
Note: Due to rounding, numbers presented in this presentation may not add up exactly to
the totals provided and percentages may not reflect exactly absolute figures.
31 Mar 2131 Mar 20
A uckland 1,296.3 1,446.5 150.2 11.6%5.59%6.22%
Wellingt on 519.8 523.4 3.50.7%6.62%7.19%
Nort h I sland Regional & Sout h I sland 37.0 41.0 3.9 10.7%6.41%6.98%
Total 1,853.1 2,010.8 157.7 8.5%5.78%6.41%
31 Mar 2131 Mar 20
I ndust rial 855.0 985.0 129.9 15.2%5.42%6.17%
Office 814.2 812.7 (1.5)-0.2%6.43%6.83%
Large Format Ret ail 183.9 213.2 29.3 15.9%5.65%6.23%
Total 1,853.1 2,010.8 157.7 8.5%5.78%6.41%
Mar ket Yi el d
1
31 Mar 21
Book Val ue
($m)
1
31 Mar 21
Valuation
($m)

$m

%
Mar ket Yi el d
1
31 Mar 21
Book Val ue
($m)
31 Mar 21
Valuation
($m)

$m

%

DISTRIBUTABLE INCOME
19—
STRONG PERFORMANCE ON PER SHARE BASIS
After non-cash adjustments and
current tax, net distributable
income increased by $8.2 million
or 13.7%.
Tax expense was lower due to
increased depreciation on
buildings, additional 7WQ
depreciation and the non-
assessable forfeited deposit for
Albany Lifestyle Centre.
Increase in net distributable
income cents per share to 8.14 vs.
7.20
+13.1%
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.
FY21FY20
$m$m
Profit before income tax248.4123.9
Adjust ed for:
Rev aluat ions gains(157.7)(59.9)
I mpairment loss on held for sale - 3.0
Realised losses/(gains) on disposal(2.0) 0.1
Deriv at iv e fair v alue (gain)/loss 4.2 (2.1)
I nsurance proceeds - reinst at ement(19.9) -
Eart hquake expense net of recov eries(1.4) 0.5
Gross distributable income71.665.4
Depreciat ion recov ered(0.0) 0.0
Current t ax expense(3.9)(5.9)
Net distributable income67.759.6
Weight ed av erage number of ordinary shares ( m)832.3827.2
Gross dist ribut able income per share (cent s)8.617.91
Net dist ribut able income per share (cent s)8.147.20

ADJUSTED FUNDS FROM OPERATIONS (AFFO)
20—
A FOCUS ON SUSTAINABLE DISTRIBUTIONS
Higher capitalisedincentives
reflects large leasing deals with
government departments ($3.6m
at 7WQ)
Lower maintenance capex
reflects impact of Covid-19.
AFFO dividend payout ratio for
FY21
89%
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.
FY21FY20
$m$m
Net distributable income67.759.6
A mort isat ion of t enant incent iv es and leasing cost s 5.1 3.5
Funds from operations (FFO)72.963.0
Capit alisat ion of t enant incent iv es and leasing cost s(8.2)(5.5)
Maint enance capit al expendit ure(3.9)(6.0)
7 Wat erloo Quay façade repairs (1.0)(0.0)
Maint enance capit al expendit ure recov ered t hrough sale 0.7 0.3
Adjusted funds from operations (AFFO)
1
60.451.8
Weight ed av erage number of ordinary shares ( m)832.3827.2
FFO per share (cents)
8.757.62
AFFO per share (cents)
7.266.27
Div idends paid/payable in relat ion t o period6.456.35
Div idend payout rat io ( t o FFO)74%83%
Div idend payout rat io ( t o A FFO)89%101%
Div idend payout rat io ( t o A FFO)
2
95%101%
1. Audited 2. Excluding ALC deposit and 7WQ façade works net of tax

CAPITAL MANAGEMENT
21—
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 2021 Argosy’s debt to total
assets remained within the target range.
Green bonds support Argosy’s overall debt
capital funding programme diversifying its
bond-to-bank debt funding mix to 40:60.
Weighted average debt tenor at 31
March 2021
4.2yrs
GREEN BONDS ATTRACTIVE DIVERSIFICATION TOOL

LEASE EXPIRY PROFILE
22—
RELATIVELY STABLE PROFILE OVER THE MEDIUM TERM
Low year end portfolio vacancy.
5yr average income percentage
expiring in any year ~10%.
Largest single expiry over the next
10 years is Ministry for Business,
Innovation and Employment, in
15-21 Stout Street, 9.4% in Mar-27.
Very low portfolio vacancy at
31 March
1.0%

MARKET UPDATE
23—
INDUSTRIALOFFICELARGE FORMAT RETAIL
►Net absorption continues to drive
additional supply.
►Limited land supply in Auckland
and Wellington puts pressure on
land values and encourages non-
traditional locations.
►Rental growth continues.
►Vacancy remains very low, with
limited speculative supply.
►Effects of Covid-19 recession have
been muted.
►Flexible working environments
continue to drive a disconnect
between employment growth and
net absorption.
►Net absorption effect of Covid-19 has
resulted in a significant increase in
space available for sub-lease in A
grade and prime buildings in the
Auckland market
►Rental growth impacted by new
supply – softer in Auckland, and firmer
in Wellington.
►The Wellington market continues to
show solid 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.
►Many retailers’ systems have been
shown to be inadequate to cope
with higher online sales volumes.
►Structural change in retail property
will show increased focus on
showroom and semi-industrial
facilities.
►Impact of additional development
will be felt particularly in secondary
locations.
►Large format, and entertainment
retail expected to be most secure
►Rental growth has been negative
over the last 6 months.

2022 OUTLOOK
24—
The current domestic and global economic outlook still remains challenging. Vaccination rollouts globally
are accelerating. Countries will open up again for tourism in the near term.
However, central banks globally are dealing with the conflicting forces of transitory inflationary pressures
driven by Covid supply chain issues rather than economic growth. NZ is not immune. Our low monetary
policy settings could rise in the medium term which could create an unintended headwind for business
confidence and growth.
Key focus areas for FY22 include an operational focus on addressing key expiries, leasing up remaining
vacancies and continuation of the green development programme.
New Zealand monetary policy settings should remain stimulatory for the economy over the short term but
the medium term could see risk of tightening policy settings.
Property fundamentals in key metropolitan markets are still robust and some segments (e.g. Wellington
office, Auckland industrial) continue to present attractive dynamics of low supply, high demand and
steady rental growth.

QUESTIONS
25—

RESOLUTIONS
26—

HYBRID AGM
27—
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
28—
That Jeff Morrison be elected as a Director.

RESOLUTION 2
29—
That Stuart McLauchlan be elected as a Director.

RESOLUTION 3
30—
That, for the purposes of NZX Listing Rule 2.11.1, the
maximum aggregate amount of remuneration payable by
the Company to Directors (in their capacity as Directors)
be increased by $49,500 per annum, from $778,500 per
annum to $828,000 per annum, with effect on and from 29
June 2021.

RESOLUTION 4
31—
That the Board be authorisedto fix the Auditor’s Fees and
Expenses.

GENERAL BUSINESS
32—

CLOSE OF MEETING
33—

THANK YOU
34—

DISCLAIMER
35—
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.
29 June 2021

---

1 ⸺

[SLIDE 1 – ANNUAL MEETING]
Good afternoon everyone. My name is Jeff Morrison 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 2021 annual meeting
of shareholders of Argosy. It is my privilege to be able to chair this meeting 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.
This years’ annual meeting is Argosy’s second 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.
For our hybrid meeting to run smoothly there are a few procedural differences we
need to run through.

2021 ANNUAL MEETING
29 June 2021
CHAIRMAN’S REVIEW (PART 1)

2 ⸺

[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.
For those attending in person, and did not bring your voting form with you, you should
have been given a voting form at the registration desk on arrival. However, I will go
through the voting process again later on in this meeting.

3 ⸺

[SLIDE 3]
With those new procedural matters explained, lets get things underway.
I’d like to record that the Notice of the Meeting was duly given on 28 May 2021 and
as there are at least 5 shareholders here today, there is a quorum present.
Accordingly, I declare the 2021 annual meeting of Argosy Property Limited open.
Shareholders are entitled to a high standard of corporate governance – to that end,
the Board is focused on ensuring it retains the right composition of skills and
experience to be able to deliver for all shareholders. We believe the Board has a
sound balance of practical commercial experience and technical expertise to take
it forward.
There is detailed information about the Board in the 2021 Annual Report, however I
will briefly introduce them to you.
To my right is 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 and Scott Technology Limited and a director of EBOS Group
Limited and several other companies.
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 and is currently a director of Crown Infrastructure Partners and
Ngāti Whātua Ōrākei Whai Rawa. Most recently he was Chief Executive of Kiwi
Property Group.

4 ⸺

Next to Chris, 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 to Mike, 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.
Finally, I have been a director since July 2013 and have over 40 years of experience
as a property lawyer, 29 of them as a commercial property partner at Russell
McVeagh. As well as my new role as Chairman of Argosy, I also chair the
Remuneration Committee and sit on the Company’s Audit and Risk Committee.
[SLIDE 4]
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.

5 ⸺

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.
AGENDA [SLIDE 5]
The agenda for this afternoon’s meeting will be as follows:
• As Chairman, I will deliver a brief review of Argosy’s results and strategy;
• 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.
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 322,755,573 shares and these have been
audited by Deloitte. There are 842,569,498 shares on issue.

6 ⸺

CHAIRMAN’S INTRODUCTION [SLIDE 6]
I am pleased to now present to you a summary of the Company’s performance for
the year ended 31 March 2021. You will have received the 2021 Annual Report and
financial statements, either by post or electronically, depending on your preference.
FY21 ACHIEVEMENTS [SLIDE 7]
The 2021 financial year certainly proved to be an incredibly challenging one and
we’re very pleased with the way management has navigated Argosy through those
challenges.
The management team did a great job supporting those tenants that really needed
it over the last year. They did this whilst still growing the top line and managing costs.
The results reflect a combination of Argosy’s high quality, diversified portfolio but also
a management team that did very well with tenant retention, achieved strong rent
reviews and leasing outcomes and continued the diversification of our funding base
with our 3
rd
green bond issue - Peter will speak more to the financial and portfolio
details shortly in his presentation.
I would like to take this opportunity to personally say thank you to our investors for
their continued support of our green bond programme which now totals $325 million
or around 40% of our total debt capital funding.
During the 2021 financial year we continued to progress our green developments as
well as executing on strategic acquisitions like the $76 million acquisition of the Mt
Richmond Properties.

7 ⸺

While the 2022 financial year could still bring further headwinds, we believe Argosy’s
sound financial and portfolio position provides the resilience to manage any near
term economic volatility.
VISION – BUILDING A BETTER FUTURE [SLIDE 8]
Argosy has always sought to do the right thing by tenants and the environment. Our
vision of building a better future aims to achieve this by:
• reducing our impact on the environment, focusing on our carbon reduction
aspirations, developing more greening buildings and providing better spaces
for tenants and their staff;
• engaging more deeply and making a bigger difference in our communities
and maintaining our focus on zero harm from a health & safety perspective;
and
• by maintaining the highest levels of business behaviour and accountability.

We have some big long term goals for the company over the next ten years, primarily
with an environmental focus, and Peter will detail these a bit more shortly.
Our strategy of creating a green, resilient and diversified business is all about
maintaining and growing our dividends and we believe our dividend policy and debt
management strategies are all directed to ensure that we can maintain those returns
to shareholders.

8 ⸺

FULL-YEAR DIVIDEND AND FIRST QUARTER ANNOUNCEMENT [SLIDE 9]
The Board was pleased to announce a 2021 full-year cash dividend of 6.45 cents per
share, an increase of 1.6% on the prior year. Argosy’s business remains 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 6.55 cents per share for the 2022 financial year.

NEW DIVIDEND POLICY [SLIDE 10]
Just a bit of history here, in 2017 we made a commitment to transition to an AFFO
based dividend policy in the medium term, or 3-5 years. The medium term time frame
allowed us time to grow into AFFO coverage.
In the intervening period we have done fairly well in terms of our AFFO payout
percentages as you can see on this slide. Key criteria raised from investors were that
the dividend be cash covered, volatility minimised and that we keep the policy
simple. We have now drawn a line in the sand and have committed to a new policy
– so from 1 April 2022 the new policy is to pay dividends between 85% and 100% of
AFFO – which we believe achieves the key criteria outlined by investors. We have a
real focus to deliver measured dividend growth over the long term.
I will now hand over to Peter, who will provide more details on our performance to 31
March 2021 and a general outlook for the 2022 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 25)
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 26)
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 322,755,573 shares and these have been
audited by Deloitte. There are 842,569,498 shares on issue.


2021 ANNUAL MEETING
29 June 2021
CHAIRMAN’S REVIEW (PART 2)

2 ⸺


HYBRID AGM [SLIDE 27]
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 ⸺

HAND OVER TO MIKE POHIO FOR READING OF RESOLUTIONS 1 & 2
RESOLUTION 1 (SLIDE 28)
Resolution 1 proposes that Jeff Morrison be elected as a Director.
Pursuant to Clause 24.6 of the Company’s constitution and NZX Main Board Listing Rule
3.3.11, Jeff retires by rotation. The Board confirms that Jeff is an independent director
and Jeff has confirmed that he is available for election.
The Board supports Jeff’s election and believes Argosy benefits from his extensive legal
and property expertise and experience he brings to the Company.
Are there any questions on this resolution?
I now put to vote the resolution that Jeff Morrison 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 29)
Resolution 2 proposes that Stuart McLauchlan 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, Stuart retires by rotation. The Board confirms that Stuart is an independent
director and Stuart has confirmed that he is available for election.
The Board supports Stuart’s selection and believes the Company will benefit greatly
from his extensive financial expertise and the balance his experience brings to Argosy
board.
Are there any questions on this resolution?
I now put to vote the resolution that Stuart McLauchlan 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.

4 ⸺

Thank you, we will now move to the next resolution.
JEFF RETURNS TO LECTURN FOR RESOLUTIONS 3 & 4
RESOLUTION 3 [SLIDE 30]
Resolution 3 seeks to for the purposes of NZX Listing Rule 2.11.1, the maximum
aggregate amount of remuneration payable by the Company to Directors (in their
capacity as Directors) be increased by $49,500 per annum, from $778,500 per annum to
$828,000 per annum, with effect on and from 29 June 2021.
Of the increase, $30,500 is attributable to additional Board committee responsibility
taken on during the year, notably the establishment of a new ESG Committee to focus
on sustainability issues.
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.
Note: Pause for people to complete voting papers.
RESOLUTION 4 [SLIDE 31]
Resolution 4 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.

5 ⸺

GENERAL BUSINESS (SLIDE 32)
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.
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.

CHAIRMAN’S CLOSING [SLIDE 33]
That completes the formal business of the meeting.
Thank you everyone for your attendance and participation this afternoon.
I formally declare this meeting closed.
Please join us for some refreshments.

THANK YOU [SLIDE 34]
− 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 11] CHIEF EXECUTIVE OFFICERS REVIEW.
Thankyou Mr Chairman. As noted earlier, I’ll be taking you through a few more
elements of the FY21 results in a little more detail before rounding out with an update of
the NZ market as we see things.
[SLIDE 12] KEY FY21 RESULT HIGHLIGHTS
We’re really pleased to have delivered such a soldi result in what we would describe as
a very abnormal year.
The increase in distributable income was really solid and the annualised rent review
outcomes was something that we probably wouldn’t have expected 12 months ago.
Our NTA was up solidly driven by annual revaluation gains of around $158 million and of
course we successfully completed our 3
rd
green bond issue and we now have $325
million in green bond funding.
And finally, our we maintained our FY21 dividend of 6.45cps.
[SLIDE 13] BIG CORPORATE GOALS
We have some big goals over the next 10 years and we’ve outlined some of them here.
We are targeting over 50% of the portfolio as green working off our green framework.
We’ve also got a carbon neutral target and we’re very pleased to have received New
Zealand’s first building to be certified as carbon zero - at 82 Wyndham Street.
2021 ANNUAL MEETING
29 June 2021
CEO’s REVIEW

2 ⸺

We’re also targeting more than 50% of our debt finance being green and non-bank
funding..
We will see our scale be dominated by a combination of our organic portfolio activity
and strategic acquisitions. We recognise this requires us to develop further expertise in
specialist development knowledge. We have established a specialised development
department with clear deliverables encompassing cost, quality, scope and time.
Our target to reduce carbon emissions by 2031 and greater stakeholder engagement
and bigger contribution to social initiatives focused around ‘changing lives, saving
lives’.
[SLIDE 14] PORTFOLIO HIGHLIGHTS
We finished the FY21 year with really strong metrics. Our portfolio occupancy was 99%
and our WALT was 5.5 years.
Solid like for like rental growth underpinned by strong rent reviews and leasing activity.
And good cap rate compression driven by our industrial portfolio saw a revaluation
uplift of around $158 million.
[SLIDE 15] PORTFOLIO AT A GLANCE
The portfolio stats shows us within all our bands – and of course we settled the Albany
Lifestyle Centre sale back in April.
The small regional asset in Napier, Omahu Road is due to settle in September this year.
[SLIDE 16] VALUE ADD OPPORTUNITIES
Currently around 17% of the portfolio by value.
We did defer some projects due to Covid but these are now looking more positive in
terms of timing in the next 6-9 months.
5 and 1-3 Unity Drive is a smaller $2.1m development with Alto Packaging moving into
the joined building in June.

3 ⸺

224 Nielson Street is a large industrial site in Onehunga and is a medium term
development opportunity.
8-14 Mt Richmond is a longer term opportunity and we’re well advanced with our
planning for that site. Fielding good inquiry from prospective tenants and this will be a
carbon neutral development and help us deliver on some of our big corporate
environmental goals.
101 and 105 Carlton Gore Road are two of the projects which were deferred due to
Covid but the timing for these is looking clearer and we hope to be able to update the
market on those at our interim results.
Whilst some developments 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 17] DEVELOPMENT PIPELINE
We are currently focusing on completion of our Willis Street development. We’ve
experienced some increased costs for this project – some relating to an additional floor
but others related to additional procurement, council, holding costs and Covid-19
delays.
Most importantly, the overall returns have remained attractive and we still expect to
make an IRR above 7%.
We have repositioned the retail space so what was Stewart Dawsons Corner and three
levels of retail will now only have ground floor retail and the other floors will be
repositioned as office.
[SLIDE 18] REVALUATIONS
Cap rate firming a big driver of overall revaluations for the year. By region, Auckland
contributed 95% of the uplift and by sector, Industrial was around 82% of the total
overall gain.
Pleasingly we saw some positive uplift from our large format retail exposure although
office was weighed down a little due to additional capital costs in development and
façade costs for 7WQ.

4 ⸺

[SLIDE 19] DISTRIBUTABLE INCOME
Gross distributable income grew to $71.6 million or around 9% to 8.61 cents per share
from the prior year – and on a net basis – increased by $8.2 million to $67.7 million - or
13.7%.
On a per share basis net distributable income was 8.14 cents per share or 13.1% higher
than the prior year. And adjusting for the forfeited ALC deposit – net distributable
income would still be 7.59 cents per share, still 5.4% higher than the prior year.
[SLIDE 20] AFFO
Here AFFO was $60.4 million for the year up around 17% on the prior year. Some of the
key moving parts to this include higher tenant incentives due to leasing up of 7WQ and
Carlton Gore Rd. Maintenance is down wholly due to Covid-19 and associated
lockdowns.
Our audited payout ratio for the year was 89% but if you adjust for the forfeited ALC
deposit and 7WQ façade works AFFO was 95%.
[SLIDE 21] CAPITAL MANAGEMENT
As I noted earlier, we issued our 3
rd
green bond during the financial year which allowed
us to increase tenor and cancel some bank facilities. Since the settlement of the Albany
Lifestyle Centre post balance date our gearing has dropped to 32%, near the bottom
end of our 30-40% target gearing range. Our current percentage of bonds to total debt
is 40% - and one of our big goals is to get this above 50% over the medium term.
[SLIDE 22] LEASE EXPIRY
We did have a solid leasing year despite the Covid environment – leasing 15% of the
portfolio by NLA. Leasing activity is certainly nearing back to pre Covid levels.
The lease expiry profile as you can see is relatively stable over the medium term.
Looking at current negotiations underway, FY22 should demonstrate some resilience
across the portfolio.
Our largest single expiry is March-27 at Stout Street with MBIE and we don’t believe they
have any intentions on moving from this 5 Green Star rated building.

5 ⸺

[SLIDE 23] MARKET UPDATE
Industrial sector net absorption continues to drive additional supply. Limited land supply
placing upward pressure on values. Good rental growth surprised a little on the upside
based on where things were looking last year. Covid-19 impacts have been muted.
Wellington office sector still experiencing solid demand – although some additional
supply coming on stream. Rental growth softer in Auckland due to oversupply but firmer
in Wellington where supply is tighter.
Large format retail has been a strong performer for us delivering solid rental growth and
revaluation gains. Structural changes in the sector are afoot in terms of more grey and
dark stores materialising as a result of Covid-19 which will have a greater impact on the
retail sector as a whole.
[SLIDE 24] LOOKING AHEAD
So, the 2022 year will have its own challenges.
The domestic and international economic outlook still looks tough and vaccination
rollouts whilst initially looking strong, are looking a bit more mixed of late.
Monetary policy settings could change in the near to medium term but there is still
some uncertainty around this coming to fruition.
Discussions with tenants suggests their biggest concern is the quality of their landlord
they partner with. So we will continue to focus on managing these strong and valued
relationships over the next 12 months.
Our focus is as always - maximising portfolio performance, retaining tenants, resolving
vacancies and addressing key lease expiries.
The property market fundamentals are still robust and we will be focused on delivering
on completing our remaining developments.
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