FY22 Annual Result

Results announcement




Results for announcement to the market
Name of issuer Argosy Property Limited
Reporting Period 12 months to 31 March 2022
Previous Reporting Period 12 months to 31 March 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$105,145 (1.3)%
Total Revenue $105,145 (1.3)%
Net profit/(loss) from
continuing operations
$236,150 (2.3)%
Total net profit/(loss) $236,150 (2.3)%
Q4 Dividend
Amount per Quoted Equity
Security
$ 0.01637500
Imputed amount per Quoted
Equity Security
$0.00127572
Record Date Close of trading 8 June 2022
Dividend Payment Date 22 June 2022
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.74
$1.53
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
The financial information for this announcement has been
extracted from the audited financial statements of Argosy
Property Limited which has been released to NZX in conjunction
with this announcement.
Authority for this Announcement
Name of person

authorised
to make this announcement
Steve Freundlich
Contact person for this
announcement
Steve Freundlich
Contact phone number (09) 304 3426
Contact email address sfreundlich@argosy.co.nz
Date of release through MAP

18/05/21

Audited financial statements accompany this announcement.

---

.1
18.5.2022
Market Release
FY22 Annual Result – Building a better future
Argosy will present the FY22 annual result via a teleconference and webcast at 10am
today. Please visit https://s1.c-conf.com/diamondpass/10020943-uEqL7N.html or dial 0800
453 055 and quote the conference ID 10020943. It is recommended that you dial in or log
in a few minutes before the start time. A copy of the webcast will be available on
Argosy’s website later in the day.
Argosy Property Limited (‘Argosy’ or the ‘Company’) has reported its results for the 12
months to 31 March 2022.
Key highlights for the period include:
• Net profit after tax of $236.2 million;
• $163.7 million annual revaluation gain, an increase of 8% on book value;
• Increase in NTA per share to $1.74 from $1.53 at 31 March 2021, a 13.7% increase;
• Net property income for the period of $105.1 million;
• High occupancy (~98.7%) and WALT (5.7 years);
• Strong portfolio leasing and rent review outcomes, including 3% annualised rental
growth on rents reviewed;
• 7WQ in Wellington is now 100% leased;
• Our continued focus on sustainability and progressive green developments with 8-14
Willis Street now substantially complete and 105 Carlton Gore Road, and 12-20 Bell Ave
underway;
• A full year dividend of 6.55 cents per share, a 1.6% increase over FY21; and
• FY23 dividend guidance of 6.65 cents per share, a 1.5% increase on the prior year;
Chairman Jeff Morrison said, “the Board is very pleased with the way the business has
delivered through yet another Covid-19 impacted year. This has laid a strong foundation for
FY23 and beyond. The business continues to demonstrate the resilience offered by a
portfolio diversified by sector, tenant and location.

.2
Over the last 24 months the company’s exposure to the Auckland Industrial sector has been
a positive influence, underpinning the Company’s ability to deliver dividend and
revaluation growth through difficult economic conditions.
The Company’s focus is on driving our sustainability strategy by providing environmentally
sensitive, high quality, vibrant spaces for its tenants and their staff. We’ll continue building
and maintaining strong relationships with those tenants and other stakeholders to drive
sustainable returns for shareholders. The recent completion of large office and mixed use
refurbishment projects in Wellington is a good example of this.
Argosy is able to effectively redevelop existing buildings into green buildings to help the
reduction of its carbon footprint. Argosy has a significant pipeline of green opportunities
ahead of it, particularly in Auckland’s Industrial market.
The business is well positioned to deliver sustainable returns despite the headwinds of higher
inflation, rising interest rates and geopolitical volatility. Based on current projections for the
portfolio and subject to market and interest rate conditions, the FY23 dividend is expected
to be 6.65 cents per share, a 1.5% increase on the prior year.”
Argosy’s Chief Executive Officer, Peter Mence said, “After another challenging year
affected by lockdowns and restrictions, its pleasing to have delivered what we consider to
be a very solid full year result to shareholders.
We delivered on our operational focus areas around vacancies, key expiries and
developments. We also divested our non Core asset at 25 Nugent Street at a healthy
premium to book value. Our core portfolio metrics have remained sound despite the
operational environment being so difficult for everyone.
8-14 Willis Street is now substantially complete and has been handed over to Statistics New
Zealand for fitout. The handover sees Argosy complete the largest green development
project in its history. We are targeting a 6 Green Star rating for this high quality Core asset.
The Wellington office market continues to exhibit strong fundamentals and our ongoing
exposure to Government rental streams provides resilience during uncertain times.
Master planning at Argosy’s two key Auckland industrial estates at Mt Richmond Road and
Neilson Street is well progressed and we are fielding strong market enquiry for these sites,
which will be redeveloped into green industrial estates. We’re excited about the potential
these sustainably focused properties bring to the portfolio and the cross section of new
industrial tenants showing interest. Strong industrial fundamentals means this sector is
forecast to be the best performer over the next five years.

.3
We are focusing on our organic Value Add development pipeline due to scarcity of land
driving very high bare land pricing. Given the pipeline of work ahead, we’ve resourced our
development team accordingly.
With the economy facing a range of headwinds, the next 12 months will be challenging for
the domestic economy, but the business is well positioned for it.
We will continue to work hard on the things we can control. On the operational side, this is
leasing up vacancies and renewing expiring leases. On the strategic side, we’ll keep
working closely with our tenants and supporting their growth aspirations, completing our
existing green projects and master planning and developing our Value Add opportunities.
All of these support the delivery of our strategic plan and sustainable distributions to
shareholders.”
Financial Results
Statement of Comprehensive Income
For the 12 months to 31 March, Argosy reported net property income of $105.1 million for the
period, marginally down compared with the prior comparable period.
Net property income was bolstered by steady rental growth, a full year contribution from Mt
Richmond and lower Covid-19 rent rebates over the period, offset by disposals, particularly
the Albany Lifestyle Centre.
For the year to 31 March, Argosy provided $1.6 million in rental abatements to tenants and
no deferrals.
Net interest expense of $25.6 million was down by $2.9 million on the prior comparable
period, primarily due to higher capitalised interest on developments and lower debt levels.
Annual valuations for the year to 31 March were performed by CBRE Limited, Colliers
International New Zealand Limited, Bayleys Valuation Limited and Jones Lang Lasalle. The
total unrealised revaluation gain for the year to 31 March was $163.7 million or an 8%
increase above book value. Of the annual gain 56% was recognised in the interim desktop
valuation assessments at 30 September 2021. The portfolio is 3.3% under-rented, excluding
market rent on vacant space.
Distributable Income
Net distributable income for the year was $64.7 million compared to $67.7 million in the prior
comparable period. The prior comparable period included a forfeited deposit of $4.5 million
from the original sale of the Albany Lifestyle Centre, which was not settled.

.4
Valuations
By location, Auckland was the largest contributor to the total year end valuation result with
an unrealised revaluation increase of $142.1 million or 87% of the total portfolio uplift. By
sector, and at 51% of Argosy’s portfolio by value Industrial was the key driver of the overall
gain at $144.7 million, up 14.7% on book value. The Office portfolio increased $9.1 million,
and Large Format Retail increased by $9.8 million.
As a result of the FY22 revaluation gain, Argosy’s NTA increased to $1.74, or 13.7% from $1.53
at 31 March 2021. Following the revaluation, Argosy’s portfolio shows a contract yield on
values of 5.23% and a yield on fully let market rentals of 5.43%.
Portfolio Activity
Portfolio Metrics, Rent Reviews and Leasing
As at 31 March, Argosy’s WALT was 5.7 years and portfolio occupancy was 98.7%.
For the year to 31 March, Argosy completed 99 rent reviews achieving annualised rental
growth of 3.0%. These reviews were achieved on rents totalling $60.1 million. On rents subject
to review by sector, Argosy achieved annualised rental growth of 2.8% for Industrial rent
reviews, 3.2% for Office rent reviews and 3.2% for Large Format Retail rent reviews.
Peter Mence said “The second half of the year was challenging as we operated under red
traffic light settings. However, we were very pleased to have delivered solid results around
key operating metrics of occupancy, rental growth and leasing.”
For the year to 31 March, 76% of rents reviewed were subject to fixed reviews, 8% were
market reviews and 16% were CPI based. Fixed reviews accounted for 72% of the total
annualised rental uplift and Auckland and Wellington contributed 76% and 19% of the total
annualised rental uplift respectively.
Argosy completed 31 leasing transactions across 74,376m
2
of NLA over the year to 31
March. Lease transactions were made up of new leases (23), extensions (3), renewals (5).
Key leasing highlights over the financial year include;
• Thermo Fisher Scientific NZ Limited, 5 Allens Road, East Tamaki, 6yr renewal
• Commercial Fisheries Services Limited, Level 12 at 7WQ, new 9yr lease
• Mobil Oil NZ Limited, 8 Nugent Street, 3yr extension
• Macpac Limited, Albany Mega Centre, new 6yr lease
• Ministry of Housing and Urban Development, 7WQ, new 7yr lease
• The Baby Factory, Albany Mega Centre, new 6yr lease
• PBT Transport, 18-20 Bell Ave, new 10yr lease
• PBT Transport, 12-16 Bell Ave, new 10yr lease
• Tax Management New Zealand Limited, 23 Customs Street, new 5yr lease

.5
”It is very pleasing to have 7WQ now 100% leased, with 94% of space occupied by
government tenants. Coupled with the substantially completed façade works, the building
is now well positioned to deliver resilient, long term income given its weighting to highly
defensive Government rental streams.
The Auckland Industrial sector continues to be very attractive with strong bottom-up
fundamentals, including low vacancy and strong rental growth. It’s a resilient sector and has
the best forecast returns over the next five years. With half of Argosy’s portfolio weighted to
Industrial, the pipeline of green Value-Add development industrial sites will enhance our
portfolio quality and resilience over the longer term” said Peter Mence.
Acquisitions
After Balance Date, Argosy acquired 100 Maui Street (Maui Street), located in Pukete,
Hamilton for $33.1 million. Maui Street has excellent connectivity to motorway arterials and
State Highway One. Peter Mence said “By location, the property is consistent with our
strategy and enhances our exposure to the attractive Industrial sector. Prolife Foods are a
well-established local food manufacturer. They are a high quality partner and an essential
service, which aligns with our strategy of being a diversified business with resilient earnings
and cashflows. There is also 8,100m
2
of vacant land for development in the future which
provides additional attraction to this acquisition. We’re pleased to welcome Prolife Foods
into the Argosy family.”
The purchase price was the mid-point of a Colliers International initial valuation range and
gives an IRR of 6.7% and an initial yield of 4.5%.
The acquisition sees Argosy with a portfolio weighting to the Golden Triangle of 1.5% versus
our 5% target and increases our overall Industrial exposure to 52%. The acquisition
environment remains strong despite rising interest rates. As highlighted above, Argosy
remains open to strategic acquisitions that meet its investment criteria, preferably industrial
sites within a prime industrial precinct with the capacity to support tenant growth
aspirations.
Divestment of non Core Assets
Argosy sold the Albany Lifestyle Centre in April 2021 and Omahu Road, Hastings in
September 2021. In the second half of FY22, the Company announced it had
unconditionally sold 25 Nugent Street in Auckland, for $22.0 million. The sale to a local
investor, reflected a 28% premium above book value and settlement is expected to occur
in September 2022. These sales reflect the back end of Argosy’s capital management
initiatives over the last 24 months, where assets no longer meet Argosy’s investment criteria.

.6
Investment Policy Bands
The Board made a strategic decision to adjust Argosy’s Investment Policy target bands to
increase the portfolios weighting towards the strongly performing Industrial sector.
Accordingly, by portfolio value, the Industrial target is now 55-65% (was 45-55%), Office is
now 25-35% (was 30-40%) and the Large Format Retail target is now 5-15% (was 10-20%).
Peter Mence said “We have done a lot of work assessing the organic Value Add
opportunities within the portfolio coupled with analysis of forecast sector returns. Auckland
Industrial is forecast to be the best performing sector over the medium term and by
delivering on our current pipeline of Value Add opportunities, we expect to be within our
new target bands over the medium term. We’re excited about what the future holds for
Argosy and the development team are going to be extremely busy delivering a pipeline of
well-designed, vibrant and sustainable spaces for tenants and their staff to work and
flourish.”
Developments
8-14 Willis Street and 360 Lambton Quay, Wellington
The development at 8-14 Willis Street is now substantially complete with the building to be
formally handed over to Statistics New Zealand. The tenant has access to nine floors and
soft fit out is being undertaken by the tenant as well as audio visual installation works. The
building is targeting a 6 Green Star Built rating.
Leasing on the office space at 360 Lambton Quay continues and there is strong interest for
the space. Management is progressing documentation of a lease on the property.
The retail area in both buildings is now fully leased.
7 Waterloo Quay, Wellington (7WQ) – leasing and façade works
The building is now 100% leased and the façade works have largely been completed.
12-16 & 18-20 Bell Ave, Mt Wellington, Peter Baker Transport Limited (PBT)
This $8.8 million redevelopment targeting 4 Green Star continues to progress well. PBT has
entered into a new 10 year lease with two rights of renewal of six years. On completion, the
project is forecast to have a yield on development cost of 5.2% and IRR of 8.3%. The
forecast valuation on completion is expected to be $69 million.
Argosy Chief Executive Officer Peter Mence said ”This type of project really embodies our
vision of building a better future for our tenants, their staff, the environment and of course
our stakeholders. Argosy has built a market leading position over the last decade in
redeveloping existing buildings into green assets, and we have more of these industrial
opportunities in the pipeline.

.7
Extending PBT’s lease at the location for ten years was fundamental to the project and
exemplifies the benefits of having valuable relationships with our tenants to support their
long-term strategic growth aspirations.
The development is clearly on strategy and demonstrates that tenants are increasingly
collaborative around environmental & sustainability issues and keen to support our
commitment to reduce carbon emissions. The recent expansion of our development team
enhances our capability to deliver on the growing development pipeline across the
business.”
The development is expected to be completed by September 2022.
105 Carlton Gore Road, Newmarket
Argosy has commenced another capital project with this $35 million green redevelopment
with an expected completion date in May 2023. The building is now targeting 6 Green Star
certification (previously 5 Star) and is forecast to be valued at $65 million on completion,
generating an IRR of 7.2% and a yield on cost of 5.3%. Leasing enquiry for the redeveloped
building is strong, and it is expected that it will be leased prior to completion.
“The green redevelopment at 105 Carlton Gore Road will certainly offer something different,
bringing a fresh and vibrant look to the area” said Peter Mence.
Capital Management
As at 31 March, Argosy’s debt to total assets ratio, excluding capitalised borrowing costs,
was 31.1% compared to 35.9% at 31 March 2021. The ratio continues to reflect the net
impact of divestments and revaluation gains, offset by development activity during the
period
1
.
Argosy’s year end gearing sits towards the bottom end of its target gearing band of 30-40%,
and well below its bank covenant of 50%. The Board considers there is sufficient capacity to
accommodate known, medium term funding requirements.
As noted in the first half of the year, Argosy extended $215 million of its existing syndicated
bank facilities with ANZ Bank of New Zealand Limited, Bank of New Zealand Limited,
Hongkong and Shanghai Banking Corporation, Commonwealth Bank of Australia and
Westpac New Zealand Limited. The total amount of the bank facilities has reduced by $35
million and is now $455 million, down from $490 million previously.

1
The ratio excludes the right of use asset at 39 Market Place of $40.2 million, recorded in the period under NZ IFRS 16.

.8
Argosy’s weighted average debt tenor, including bonds, was 3.5 years (4.2 years at 31
March 2021) and its weighted average interest rate was 4.14%, compared to 3.69% at 31
March 2021.
Strategy and Governance
“Argosy’s future will be driven by maintaining our leading market position of redeveloping
existing buildings into green and driving growth into the attractive Auckland Industrial
sector, especially over the medium term. We’ll continue to develop strong relationships with
the Government sector. Our FY23 key deliverables will be focused on completing existing
developments, commencing our new green projects, leasing new developments and
residual portfolio vacancies and addressing key expiries. Our big strategic goals coupled
with our current year objectives, support the delivery of resilient and sustainable dividend
growth over the long term” said Jeff Morrison.
Argosy’s Annual Shareholders Meeting (ASM) will be held as a hybrid meeting on 21 June at
2pm at the Royal New Zealand Yacht Squadron in Auckland. The hybrid functionality of the
ASM allows shareholders to attend virtually and participate in all elements of the meeting
including questions and answers and completing all voting.
Mike Pohio and Chris Gudgeon will retire in accordance with the Company’s constitution
and the NZX Listing Rules and will be eligible for re-election.
Dividends and Outlook
A fourth quarter dividend of 1.6375 cents per share has been declared for the March
quarter with 0.1276 cents per share imputation credits attached. This brings the full year
dividend to 6.55 cents per share in line with guidance. The dividend will be paid to
shareholders on 22 June 2022 and the record date will be 8 June 2022. The Dividend
Reinvestment Plan has been suspended by the Board until further notice.
Jeff Morrison said “We remain very focused on delivering measured dividend growth to
shareholders. Based on current projections for the portfolio and subject to market conditions
(including interest rate increases), the forecast FY23 dividend guidance is 6.65 cents per
share, a 1.5% increase on the prior year.”
Argosy starts FY23 with a portfolio in good shape and the business with a very sound capital
position with strong foundations for this year and beyond. The company remains driven to
ensure it remains a sustainably focused (green), resilient and diversified business that delivers
measured sustainable dividend growth to shareholders.
-END-
.8

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 Corporate Communications &
Investor Relations
Argosy Property Limited
Telephone: 09 304 3426
Email: sfreundlich@argosy.co.nz

---

Argosy Property Limited
Annual Results:
Building a
Better Future
FY22
18.5.22

“Our strength lies in the
diversity of our portfolio
by sector, location and
tenant mix, providing
flexibility to support our
tenants changing
needs, ensuring a
resilient business
through various
economic cycles.”
.2
Peter Mence
CEO

Agenda
.3
Peter Mence
CEO
Dave Fraser
CFO
Vision & Strategy4
Result Highlights6
Portfolio Highlights7
Financials19
Leasing Update31
Focus and Outlook35
Appendices37
Note: This results presentation should be read in conjunction with the NZX release dated 18 May 2022. 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.

Vision and
Strategy
.4

.5

.6
$105.1
$m in net property income
$163.7
$m annual revaluation increase, or 8%
above book value
$1.74
NTA up ~14% from $1.53 @ 31 March 21
6.55ps
FY22 dividend delivered
$236.2
$m net profit after tax
Key result highlights

.7
98.7%
Occupancy
5.7yrs
Weighted average lease term
Portfolio highlights
3.0%
Annualised rent review increase on rents
reviewed

.8
Portfolio valuation @ 31 March

Sector Summary
.9
Number of
buildings
INDUSTRIAL
Number of
buildings
OFFICE
Number of
buildings
LARGE FORMAT RETAIL
34154
Market value
of assets ($m)
Market value
of assets ($m)
Market value
of assets ($m)
$1,127.0$857.4 $223.2
Occupancy
(by income)
Occupancy
(by income)
Occupancy
(by income)
100%97.4%98.9%
Weighted average
lease term (WALT)
Weighted average
lease term (WALT)
Weighted average
lease term (WALT)
6.0yr6.0yr3.1yr
Contract
yield
Contract
yield
Contract
yield
4.67%6.04%5.61%
1. Excludes 25 Nugent Street which was held for sale at 31 March 2022
1

Portfolio at a glance @ 31 March
.10
Sectorby value %Regionby value %Asset Mix by value %
1.Large Format Retail.
2.2. Regional North Island and South Island. This weighting also includes up to 5% allocation to the Golden Triangle area between Auckland, Tauranga and Hamilton.
1
2
51
39
10
Industrial
Office
LFR
New Previous
Band Band
55-65% (45-55%)
25-35% (30-40%)
5-15% (10-20%)

.11
CBRE Dec-21 Property Market Monitor (AKL)
Market forecasts help inform investment policy
1st
Ranking of secondary industrial property
by total forecast return 2021-2025
11.2%
Average annual total return forecast for
secondary industrial property 2021-2025
2nd
Ranking of Large Format Retail sector by
total forecast returns 2021-2025
3
rd
Ranking of prime industrial property by
total forecast return 2021-2025
9.9%
Average annual total return forecast for
prime industrial property 2021-2025
10.7%
Average annual total return forecast for
LFR 2021-2025
9%
Argosy portfolio weighting to this
Auckland subsector @ 31 March
9%
Argosy portfolio weighting to this
Auckland subsector @ 31 March
36%
Argosy portfolio weighting to this
Auckland subsector @ 31 March

.12
Auckland
Industrial
Portfolio
Number of properties
28
Occupancy by rent
100%
WALT*
6.0 years
Market value of buildings ($)
$1,004M
Onehunga
2
Albany
7
Silverdale
1
Panmure
1
Mangere
1
Mt Wellington
4
East Tamaki
7
Wiri
3
Manukau
2
* Excludes Neilson Street and Mt Richmond.

Value Add Properties
.13
Transformation of Value Add properties
remains key to delivering Strategy 2031
Strong industrial sector fundamentals
supportive of outlook
Master Planning for Mt Richmond and
Neilson Street industrial estates
progressing – strong market interest
Bell Ave and Unity Drive green projects
underway
101 & 105 Carlton Gore Rd properties are
in planning and development phase.
Green assets driving
organic growth
+$480m
Of properties with potential to
deliver earnings and capital growth
Property SectorLocation
Valuation @
31 Mar 22
12-16 Bell Avenue, Mt Wellington (underway)IndustrialAuckland38.9
18-20 Bell Avenue, Mt Wellington (underway)IndustrialAuckland22.0
5 Allens Road, East Tamaki (planning)IndustrialAuckland6.4
1-3 Unity Drive, Albany (underway)IndustrialAuckland18.9
5 Unity Drive, Albany
(underway)
IndustrialAuckland10.4
224 Neilson Street, Onehunga (planning)IndustrialAuckland36.9
8-14 Mt Richmond Drive, Mt Wellington
(planning)
IndustrialAuckland90.0
101 Carlton Gore Road, Newmarket (planning)OfficeAuckland29.5
105 Carlton Gore Road, Newmarket
(commenced)OfficeAuckland27.0
8-14 Willis Street/ 360 Lambton Quay
(completing)OfficeWellington146.1
2 Allens Road, East Tamaki (currently leased)IndustrialAuckland8.4
12 Allens Road, East Tamaki (currently leased)Industrial
Auckland7.3
106 Springs Road, East Tamaki (currently leased)IndustrialAuckland11.0
90-104 Springs Road, East Tamaki (currently leased)IndustrialAuckland9.7
15 Unity Drive, Albany (currently leased)IndustrialAuckland8.9
133 Roscommon Road, Wiri (currently leased)IndustrialAuckland13.7
TOTAL $m 484.9
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.

.14
15km
From the CBD
40,000
m2 of new warehouse space
4,000
m2 of new office space
~7%
Internal rate of return
Value Add Case Study: Mt Richmond Estate
1
+$250m
Project end value over quarter of a billion
dollars
1. Potential development strategy

.15
8.3%
Internal rate of return
$69m
Forecast valuation on completion
Value Add Case Study: 12-16 & 18-20 Bell Ave
10yrs
Length of new lease entered into by PBT
as part of the development
~26%
Forecast development margin
4 Star
Green Built rating being targeted
$8.8m
Refurbishment and redevelopment

.16
$65m
Forecast valuation on completion
Value add case study: 105 Carlton Gore Road
7.2%
Internal rate of return
5.3%
Forecast yield on cost
6 Star
Green Built rating now being targeted
(was 5 Star)
$35m
Refurbishment and redevelopment
5%
Forecast development margin

Development Projects
.17
8-14 Willis Street/360 Lambton Quay
Now complete with soft fit-out underway (nine floors). 1,300m
2
retail space now 100% leased and the 2,350m
2
office space at 360
Lambton Quay has progressed to documentation with a potential Crown tenant.
18-20 and 12-16 Bell Ave, Mt Wellington
$8.8 million redevelopment targeting 4 Green Star continues to progress well. PBT has committed to a new 10-year lease. On
completion, the project is forecast to have a yield on development cost of 5.2% with an IRR of 8.3%. The forecast valuation on
completion is expected to be $69 million.
105 Carlton Gore Road
Argosy has commenced another repurposing project with this $35 million green redevelopment. Expected completion date in Q2
2023. The building is now targeting 6 Green Star certification (previously 5 Star) and is forecast to be valued at $65 million on
completion, generating an IRR of 7.2% and a yield on cost of 5.3%. Leasing enquiry for the redeveloped building is strong, and it is
expected that it will be leased prior to completion.
Organic growth underpinning development pipeline
DevelopmentMajor Tenant
Target Green Star
Built Rating
TypeLocation
Cost to
complete
Forecast
completion
8-14 Willis St reet /360 Lambt on Quay
St at ist ics New Zealand6 St arOFF/RETWT N9.1May-22
12-16 & 18-20 Bell AvePet er Baker Transport (PBT)4 St arINDA KL7.7Sep-22
105 Carlt on Gore RoadT BC6 St arOFFA KL32.6May-23
TOTAL49.4

Annual Revaluations
.18
$163.7m gain reported, or 8% increase
over book value. Portfolio market yield
firms 15bps. On a cap rate basis, the
portfolio firmed 39bps to 5.16%.
Auckland was again the largest
contributor by location with 87% of the
total gain or $142.1m.
By sector, Industrial delivered the biggest
gain at $144.7m (or 88% of the total)
driven by cap rate firming and market
rental growth over the year.
Auckland industrial stars
$163.7m
Annual revaluation gain above book
value @ 31 March
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.
1. Market Yield 31 March 2022 is excluding 360 Lambton Quay & 105 Carlton Gore Road and Market Yield 31 March 2021 is
excluding 7 Waterloo Quay, 8-14 Willis Street and 360 Lambton Quay.
31 Mar 2231 Mar 21
Auck land 1,436.3 1,578.4 142.1 9.9%5.20%5.59%
Wellington 577.2 596.6 19.43.4%6.21%6.62%
Regional 30.3 32.5 2.2 7.3%5.82%6.41%
Total 2,043.9 2,207.5 163.7 8.0%5.43%5.78%
31 Mar 2231 Mar 21
Industrial 982.2 1,127.0 144.7 14.7%4.87%5.42%
Office 848.3 857.4 9.11.1%6.29%6.43%
Large Format Retail 213.4 223.2 9.8 4.6%5.62%5.65%
Total 2,043.9 2,207.5 163.7 8.0%5.43%5.78%

$m

%
Mar ket Yi el d
1
31 Mar 22
Book Val ue
($m)
31 Mar 22
Valuation
($m)

$m

%
Mar ket Yi el d
1
31 Mar 22
Book Val ue
($m)
31 Mar 22
Valuation
($m)

Financials
.19

Gross Property Income Waterfall
.20
Acquisition income offset by disposals of low growth assets

Financial Performance
.21
Net property income was bolstered by
steady rental growth, a full year
contribution from Mt Richmond, lower
Covid-19 rent rebates over the period,
offset by disposals, particularly the Albany
Lifestyle Centre.
Rental rebates of $1.6m were provided
for over the period, with no deferrals.
Interest expense was lower primarily due
to higher capitalisedinterest and lower
overall debt levels.
The solid revaluation gain was driven by a
combination of cap rate firming and
rental growth.
Another solid result despite
COVID impact
$236.2m
Reported net profit after tax
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.
FY22
FY21
$m
$m
Net property incom e
105.1106.5
Adm inistration expenses
(11.8)(10.9)
Pr ofi t befor e fi nanci al i ncome/(expenses), other
gains/(losses) and tax
93.395.6
Net interest expense
(25.6)(28.6)
Gain/(loss) on derivatives 12.4 (4.1)
Other gains/(losses)
Revaluation gains 163.7 157.7
Realised gains/(losses) on disposal
(2.6) 2.0
Forfeited deposit on sale of property 4.5
Insurance proceeds 22.0
Earthquake expenses(0.7)
Pr ofi t befor e tax241.2248.4
Taxation expense(5.0)(6.7)
Profit after tax236.2241.7
Earnings per share (cents)28.0129.04

Distributable Income
.22
Net distributable income was $64.7 million
compared to $67.7 million in the prior
comparable period. The prior
comparable period included a forfeited
non-refundable ALC deposit of $4.5
million.
Current tax expense broadly flat with the
prior comparable period.
Prior period comparison
affected by one offs
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.
FY22
FY21
$m$m
Pr ofi t befor e i ncome tax241.2248.4
Adjustments:
Revaluations gains(163.7)(157.7)
Realised losses/(gains) on disposal 2.6 (2.0)
Derivative fair value (gain)/loss(12.4) 4.2
Insurance proceeds(22.0)
Earthquake expense net of recov eries - 0.7
Gr oss di str i butabl e i ncome
67.771.6
Depreciation recov ered 1.2 (0.0)
Current tax expense(4.2)(3.9)
Net di str i butabl e i ncome64.767.7
Weighted average number of ordinary shares (m)843.2832.3
Gr oss di str i butabl e i ncome per shar e (cents)8.038.61
Net di str i butabl e i ncome per shar e (cents)
7.688.14

Adjusted Funds From Operations (AFFO)
.23
Capitalisation of leasing incentives was
lower overall due to large incentives on
developments (7WQ and 107 Carlton
Gore Rd) in the prior comparable period.
Maintenance capex relates to a range of
smaller projects with the largest being
$1.7m for roof & gutter replacement at 17
Mayo Road
Adjusted for 7WQ façade maintenance
capex net of tax, the FY22 AFFO payout is
94%.
AFFO affected by one-offs
$48m
AFFO for the year to 31 March
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.
FY22FY21
$m$m
Net distributable income64.767.7
Amortisation of tenant incentiv es and leasing costs 4.6 5.1
Funds from operations (FFO)69.472.9
Capitalisation of tenant incentiv es and leasing costs(1.1)(8.2)
Maintenance capital expenditure(5.8)(3.9)
7 Waterloo Quay façade repairs (14.5)(1.0)
Maintenance capital expenditure recov ered through sale 0.4 0.7
Adjusted funds from operations (AFFO)48.360.4
Weighted av erage number of ordinary shares (m)843.2832.3
FFO cents per share 8.238.75
AFFO cents per share 5.737.26
Div idends paid/payabl e in rel ation to period6.556.45
Dividend payout ratio to FFO80%74%
Dividend payout ratio to AFFO114%89%

Investment Properties
.24
Capitalisedcosts and revaluations continue to drive investment portfolio higher
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.

NTA Per Share
.25
Revaluations drive 14% increase for year to 31 March
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.

Balance Sheet Management
.26
The balance sheet is in good shape.
There is sufficient facility headroom to
accommodate existing developments
and any near-term opportunities.
Investment portfolio growth has been
driven by a combination of green
developments and revaluation gains.
Revaluation gains and
disposals drive gearing
lower
31.1%
Debt to total assets ratio at the
bottom end of the target 30-40%
range
1. Excludes capitalised borrowing costs. 2. Excludes Right of Use Asset at 39 Market Place of $40.2 million
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.
FY22FY21
$m$m
Investment properties2,247.7 2,052.5
Asset held for sale22.0 87.5
Right of Use Asset--
Other assets21.8 16.8
Total assets2,291.5 2,156.8
Right of Use Asset(40.2)(41.7)
Total assets (net of Right of Use Asset)2,251.4 2,115.1
Fixed Rate Green Bonds325.0 325.0
Bank debt
1
375.1 433.9
Total Debt & Bond Funding700.1 758.9
Debt-to -total-assets ratio
2
31.1%35.9%

35.9
35.6
38.8
35.9
31.1
0
10
20
30
40
50
FY18FY19FY20FY21FY22
Debt to total assets (%)
Balance Sheet Management continued
.27
Low gearing provides flexibility to fund green developments and strategic opportunities
Target Range 30-40%

Interest Rate Management
.28
Weighted average interest rate has
increased slightly over the period driven
by higher fixed rate borrowings
percentage and floating rate increases.
The interest cover ratio remains sound.
Strong interest cover ratio
maintained
FY22FY21
Weighted average interest rate
1
4.14%3.69%
Interest Cover Ratio3.1x3.3x
% of fixed rate borrowings57%51%
Weighted average duration of active payer swaps2.8 years3.8 years
Average rate of active payer swaps3.71%3.85%
1. Including line and margin fees
3.1x
Strong interest cover ratio vs.
banking covenant of 2.0x

Debt Profile including Bonds
.29
During the year Argosy extended $215
million of its existing syndicated bank
facilities with its banking group.
The total amount of the bank facility has
also reduced by $35 million and is now
$455 million, down from $490 million
previously.
Argosy’s $325m of green bonds continue
to provide diversification and tenor
benefits to the business.
Green bonds provide
diversification and tenor
3.5yrs
Weighted average duration of
Argosy’s debt

Dividends
.30
A 4
th
quarter dividend of 1.6375cps has
been declared with 0.1276 cents per
share imputation credits attached.
The record date is 8
th
June and the
payment date is 22
nd
June.
The Dividend Reinvestment Plan has
been suspended until further notice.
FY23 dividend guidance of 6.65cps.
Steady and sustainable
6.65cps
FY23 dividend is 1.5% increase on
prior year
6.20
6.28
6.35
6.45
6.55
6.65
5.00
5.20
5.40
5.60
5.80
6.00
6.20
6.40
6.60
6.80
FY18FY19FY20FY21FY22FY23f
Dividend cps

Leasing
.31

.32
15km from CBD
Prime industrial location
Green development
40,000m2 of warehouse
4,000m2 of office
End value +$250m
IRR ~8%
Value Add Case Study: Mt Richmond Estate
Leasing
23,750
Of NLA leased to PBT on a new 10 year
lease at 18-20 and 12-16 Bell Ave
properties
7.4yr
New lease signed by Ministry of Housing
and Urban Development for 1,228m
2
at 7
Waterloo Quay
31
Leasing transactions including 23 new
leases, 5 renewals and 3 extensions
~12%
Equivalent of total portfolio by NLA
74,376
Of NLA leased over the year

Lease Expiry & Rent Review profile
.33
Overall vacancy remains very low at year
end and strategic lease extensions are
included as part of new developments
and leasing deals.
The largest single expiry remains the 9.4%
expiry in Mar-27 to Ministry for Business,
Innovation and Employment, at 15-21
Stout Street.
Portfolio under renting 3.3%.
FY23 sees 65% of portfolio income subject
to rent reviews. Of these, $50.9m is
subject to fixed reviews and $19.5m
market review.
Expiry profile remains well
managed
3.3%
Under renting across portfolio

Market Insights
.34
Strong demand continues to drive
additional supply.
Limited land supply in Auckland and
Wellington puts pressure on land values,
rentals and encourages non-traditional
locations.
Return of domestic manufacturing as a
result of the supply chain issues and
carbon footprint of distribution from
offshore
Rental growth continues.
Vacancy remains very low, with limited
speculative supply.
Covid-19 pandemic and supply chain
constraints have seen average size
demand increase.
INDUSTRIAL
Flexible working environments continue.
Changes in the way space is used,
focusing on the environment, becoming
a reason to be in the office.
Increased focus from tenants on
sustainability/green as an appeal to
younger staff.
Impact 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
Auckland rental growth impacted by
sublease vacancy and new supply.
Wellington continues to see solid
demand, with low vacancy for good
quality, well located space.
OFFICE
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 retail expected to be most
secure.
LARGE FORMAT RETAIL

Focus &
Outlook
.35

FY23 has challenges ahead, but we’re well placed
.36
Local and global economy experiencing rising interest rates (tightening) and inflation headwinds. This is creating construction cost tension
together with ongoing global supply chain pressure.
Globally, many countries are accelerating their re-opening and New Zealand has started to follow.
Geopolitically there are challenges, particularly in Europe, which is adding to global economic and market volatility.
Key focus areas for FY23 are simple: delivering strong operational results, addressing key expiries, leasing up remaining vacancies, completion
of key green developments and commencing new ones as planned.
Master planning across key green Value Add developments at Mt Richmond and Neilson Street continues and there is healthy market interest.
Attractive property fundamentals in key markets (Auckland industrial and Wellington office) continue to present attractive dynamics of low
supply, high demand and steady rental growth.
Structural changes in the way property is used will provide opportunities and challenges. We are keeping a watching brief.
We will stay focused on delivering on Strategy

Appendices
.37

Rent Review Summary
.38
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.
Type
#
Pr evi ous Rent
($000's)
% of r ent
r evi ewed
New Rent
($000's)
$ Incr ease
(000's)
% Incr ease
Annualised $
Incr ease (000's)
% of Total
Annualised
Incr ease
Annualised %
Incr ease
Total99
60,143100%
62,0571,915
3.2%1,774100%3.0%
By review type
Fixed6945,76076%47,0411,2812.8%
1,28172%2.8%
M arket94,6688%4,7871192.6%
402%0.9%
CPI21
9,71416%10,2295145.3%45426%4.7%
By sector
I ndustrial3233,23955%34,161
9232.8%91652%2.8%
Office4921,39036%22,151761
3.6%68138%3.2%
LFR185,5149%5,7452314.2%17810%
3.2%
By location
Auckland8446,95178%
48,4261,4753.1%1,34176%2.9%
Wellington1210,46417%10,8073433.3%33619%3.2%
Other32,7285%2,824973.5%975%3.5%

Rent Review Summary – Auckland & Wellington
.39
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.
Locati on
#
Pr evi ous Rent
($000's)
% of r ent
r evi ewed
New Rent
($000's)
$ Incr ease
(000's)% Incr ease
Annualised $
Incr ease (000's)
% of Total
Annualised
Incr ease
Annualised %
Incr ease
Auckland
I ndustrial
2427,11258%27,861
749
2.8%74942.2%
2.8%
Office4315,10632%
15,6175113.4%43024.3%2.8%
Retail
174,733
10%
4,9482154.5%1629.1%
3.4%
8446,951100%48,4261,4753.1%
1,34175.6%2.9%
Wellington
I ndustrial64,18140%4,273932.2%
864.8%2.1%
Office66,28360%6,5342504.0%
25014.1%4.0%
Retail000%
000.0%00.0%
0.0%
1210,464100%10,807
3433.3%33618.9%3.2%
Regional North Island & South Island
I ndustrial21,94671%
2,027814.2%814.6%4.2%
Office000%000.0%00.0%0.0%
Retail178229%797162.0%160.9%2.0%
32,728100%2,824973.5%975.4%3.5%

Portfolio Summary -Industrial
.40
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.
Pr oper ty Addr ess
Valuation
$000s
WALT
(year s)
Net l ettabl e
area (m
2
)
Vacant
Space (m
2
)
Contr act
Yield
Auckland
19 Nesdale Av enue, Wiri$83,00012.6 20,677 - 3.92%
240 Puhinui Road, Manukau $53,10012.6 17,715 - 3.77%
244 Puhinui Road, Manukau $18,40012.6 5,504 - 3.63%
Highgate Parkway, Silverdale$41,2005.9 10,581 - 4.34%
32 Bell Avenue, Mt Wellington$16,2501.1 8,139 - 5.23%
12-16 Bell Avenue, Mt Wellington$38,90010.8 14,809 - 4.46%
18-20 Bell Avenue, Mt Wellington$22,00010.8 8,941 - 4.73%
2 Allens Road, East Tamaki$8,3802.5 2,920 - 4.05%
12 Allens Road, East Tamaki$7,2802.5 2,325 - 4.60%
106 Springs Road, East Tamaki$10,9902.5 3,846 - 3.98%
5 Allens Road, East Tamaki$6,4256.3 2,663 - 5.29%
1 Rothwell Avenue, Albany$41,6008.3 12,683 - 4.19%
4 Henderson Place, Onehunga$37,5009.3 10,841 - 4.46%
211 Albany Highway, Albany$38,9500.8 14,589 - 4.09%
9 Ride Way, Albany$36,35010.5 9,178 - 4.26%
90-104 Springs Road, East Tamaki$9,6754.9 3,885 - 4.07%
8 Forge Way, Panmure$41,9008.7 4,231 - 3.85%
10 Transport Place, East Tamaki$37,1502.2 10,641 - 5.55%
1-3 Unity Drive, Albany$18,8509.2 6,116 - 4.37%
5 Unity Drive, Albany$10,4009.2 3,196 - 4.07%
Cnr William Pickering Drive & Rothwell Avenue, Albany$23,9002.1 7,074 - 4.00%
17 Mayo Road, Wiri$38,4004.8 13,351 - 4.40%
320 Ti Rakau Drive, East Tamaki$90,6005.9 28,353 - 4.79%
80-120 Favona Road, Mangere$123,2502.4 59,386 - 6.11%
224 Neilson Street, Onehunga$36,9000.4 7,002 - 3.74%
8-14 Mt Richmond Drive, Mt Wellington$90,0001.3 88,980 - 4.73%
15 Unity Drive, Albany$8,8752.1 7,002 - 2.91%
133 Roscommon Road, Wiri$13,65011.5 15,862 - 3.39%
Wellington
54-56 Jamaica Drive, Wellington$13,25013.5 1,825 - 4.98%
147 Gracefield Road, Seav iew$22,5006.0 8,018 - 4.71%
19 Barnes Street, Seav iew$19,0009.4 6,857 - 5.73%
39 Randwick Road, Seaview$23,5002.4 16,249 - 7.46%
68 Jamaica Drive, Grenada North$25,2506.3 9,609 - 5.15%
Other
8 Foundry Drive, Woolston, Christchurch
$19,6007.8 7,668 - 6.13%
TOTAL - INDUSTRIAL$1,126,9756.0 450,714 - 4.67%

Portfolio Summary -Office
.41
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.
Pr oper ty Addr ess
Valuation
$000s
WALT
(year s)
Net l ettabl e
area (m
2
)
Vacant
Space (m
2
)
Contr act
Yield
Auckland
99-107 Khyber Pass Road, Grafton
$20,2002.6
2,509

-
5.15%
8 Nugent Street, Grafton
$58,800
4.1
8,125
-

5.71%
39 Market Place, Viaduct Harbour
$21,5003.3
10,365
1,881 14.17%
302 Great South Road, Greenlane$12,2503.2
1,890
-
5.53%
308 Great South Road, Greenlane$10,5004.0

1,568 -
5.50%
82 Wyndham Street$53,5003.8

6,012 -
5.24%
101 Carlton Gore Road, New market$29,5001.6
4,821 -
6.49%
105 Carlton Gore Road, New market
$27,000- 5,312 -
0.00%
107 Carlton Gore Road, New market
$48,0009.9
6,093
-
5.53%
Citibank Centre, 23 Customs Street East
$83,0003.1
9,629
1,389

5.00%
Wellington
7-27 Waterloo Quay
$135,0007.3 23,107
-
5.55%
15-21 Stout Street$156,000
4.3 20,709 -
5.25%
143 Lambton Quay
$13,0003.3
6,216 -
16.49%
147 Lambton Quay$43,0000.9
8,539 134
7.62%
8-14 Willis Street/ 360 Lambton Quay$146,10014.2

13,636
- 0.00%
TOTAL - OFFICE
$857,3506.0 128,531
3,405
6.04%

Portfolio Summary –Large Format Retail
.42
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.
Pr oper ty Addr ess
Valuation
$000s
WALT
(year s)
Net l ettabl e
area (m
2
)
Vacant
Space (m
2
)
Contr act
Yield
Auckland
Albany Mega Centre and 11 Coliseum Drive, Albany$161,5003.0 33,792 509 5.82%
50 & 54-62 Cavendish Drive, Manukau$37,0003.2 9,939 - 4.86%
252 Dairy Flat Highway, Albany$11,8007.8 2,262 - 4.45%
Other
Cnr Taniwha & Paora Hapi Streets, Taupo$12,9000.5 4,212 - 6.18%
TOTAL - LARGE FORMAT RETAIL$223,2003.1 50,204 509 5.61%
TOTALS (excl pr oper ti es hel d for sal e)$2,207,5255.7 629,449 3,914 5.23%

Portfolio Metrics
.43
Defensive & resilient tenant, high essential service exposure

Portfolio Snapshot
.44
Portfolio quality and resilience reflected in key metrics
98.8
97.7
98.8
99.0
98.7
0
20
40
60
80
100
FY18FY19FY20FY211H22
Occupancy (%)
6.1
6.1
6.1
5.5
5.7
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
FY18FY19FY20FY21FY22
WALT (years)
1.12
1.22
1.30
1.53
1.74
0.00
0.50
1.00
1.50
2.00
FY18FY19FY20FY21FY22
Net Tangible Assets ($ per share)
35.9
35.6
38.8
35.9
31.1
0
10
20
30
40
50
FY18FY19FY20FY21FY22
Debt-to-total-assets (%)

Portfolio Valuations – Cap Rate Summary
.45
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.
Mar 2022
cap rate %
Mar 2021
cap rate %
cap rate
change
Auckland
4.99%5.43%-0.44%
Wellington
5.57%5.82%-0.25%
Regional
5.75%6.06%-0.30%
Total
5.16%5.54%-0.39%
Industrial
4.75%5.33%-0.57%
Office
5.61%5.81%-0.20%
Large Format Retail
5.49%5.53%-0.04%
Total
5.16%5.54%-0.39%

Disclaimer
.46
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.
18 May 2022

---

Building a
better future
Annual Report 2022

We are focused on three things.
Our ability to deliver vibrant
commercial spaces that reflect
the strength of our relationships
and the future needs of our
tenants. Our determination to
achieve the lowest impact possible
on the environment. And our
commitment to do everything we
can to deliver sustainable earnings
for our stakeholders.
Auckland continues to dominate
our plans. We’re increasing
our presence in the industrial
sector, progressing master
planning at our Mt Richmond
and Neilson Street development
sites and maintaining our presence
in the Government sector.
At the same time, we continue
to lead the market in repurposing
existing buildings to make them
greener and better for tenants
and their people.
We have progressed in many
areas – from developments on
our Value Add properties to leasing
residual vacancies and addressing
key expiries – ensuring we leave
no stone unturned in doing right
by our investors.
Building a better future is never
about one thing. For us, it’s
absolutely about doing everything
we can to improve on today
for our tenants, our people, our
investors, communities and the
environments we are part of.
Annual Report 2022Argosy Property Limited

Chairman's Review6
Management Report8
Building a Better Future10
Portfolio Overview12
Our ESG Approach20
Sustainability20
Our Environment24
Our People & Community28
Our Leadership & Governance34
Our Portfolio40
Consolidated Financial Statements49
Corporate Governance80
Investor Statistics92
GRI Index96
Financial Summary98
Directory99
01
Annual Report 2022Argosy Property Limited

$236.2m
98.7%
5.7yrs
$163.7m
$1.7 4
Occupancy
Weighted
average lease
te r m ( WA LT )
Revaluation
gain
8%
on book
values
Net profit
after tax
Net
Tangible
Assets
14%
2022 at a glance
2
Annual Report 2022Argosy Property Limited

51%
31.1%
72%
34%
Industrial weighting
Gearing
Auckland weighting
Government sector
rental income
5.5 Star
6 Star
>
90%
Toitū
26.1%
Sustainability
NABERSNZ energy ratings
achieved on three buildings
Green Built certification target
for 8-14 Willis Street
Landfill diversion tracking
for 8-14 Willis Street
Net Carbonzero Certification
(for 2021)
Green assets, % of portfolio
3
Annual Report 2022Argosy Property Limited

19 Nesdale Avenue, Auckland.
4
Annual Report 2022Argosy Property Limited

5
Annual Report 2022Argosy Property Limited

Chairman's Review
Chairman's Review
Building a Better
Future
“The board is very pleased with the way the
management team has managed the business through
yet another covid impacted year This has laid a strong
foundation for 2023 and beyond. The FY23 dividend
guidance of 6.65 cents per share reflects our
philosophy of delivering sustainable dividend growth
to shareholders.”
Jeff Morrison
CHAIRMAN
6
Annual Report 2022Argosy Property Limited
On behalf of the Board of Directors, it
is my pleasure to present Argosy’s
2022 Annual Report.
The business continues to demonstrate the resilience offered by
a portfolio diversified by tenant and location. Over the last 24
months the company’s exposure to the Government sector
through the Wellington office market has been a stabilising
influence, underpinning the company’s ability to deliver earnings
and dividend growth through difficult economic conditions.
The company’s focus is on positioning the portfolio for the future
by providing environmentally sensitive quality, vibrant spaces for
its tenants and their staff. We’ll continue building and maintaining
strong relationships with those tenants and other stakeholders to
drive sustainable returns for shareholders. The recent completion
of larger office and mixed use refurbishment projects particularly
in Wellington is a good example.
Argosy’s policy is to bring a light touch to the environment, and
it is in the enviable position of being able to use the repurposing
of existing buildings into green buildings to help the reduction of
its carbon footprint. Argosy has a significant pipeline of
opportunities ahead of it, particularly in Auckland’s industrial
market.
Strategy
Looking ahead, the FY23 year looks to continue to bring
challenges, some old and some new as we look to a world re-
opening with high inflation, rising interest rates and geopolitical
volatility and the ongoing overhang of the pandemic. However,
the business is well positioned to withstand these headwinds.
Governance
Argosy’s Annual Shareholders Meeting (ASM) will be held in
June as a hybrid meeting on 21 June at 2pm at the Royal New
Zealand Yacht Squadron in Auckland. The hybrid functionality of
ASM’s allows shareholders to attend virtually and participate in
all elements of the meeting including questions and answers and
completing all voting.
Mike Pohio and Chris Gudgeon will retire in accordance with the
Company’s constitution and the NZX Listing Rules and will be
eligible for re-election.
Dividends
A fourth quarter dividend of 1.6375 cents per share has been
declared for the March quarter with imputation credits of 0.0xxx
cents per share attached. The dividend will be paid to
shareholders on xx June 2022 and the record date will be xx June
2022. The Dividend Reinvestment Plan (DRP) will be available
for shareholders to participate in but no discount will apply.
Based on current projections for the portfolio and subject to
market conditions, the forecast FY23 dividend has been
confirmed at 6.65 cents per share.
Outlook
Argosy starts FY23 with a portfolio in good shape and the business
with a very sound capital position. It has strong foundations for
this year and beyond. There is financial capacity to fund near term
developments and any strategic opportunities that might arise.
But there are challenges ahead. There has been structural changes
in some sectors which present opportunities and will drive our
long term portfolio composition. New Zealand is in a rising
interest rate environment coupled with high inflation and
weaking business and consumer confidence. We will have to
ensure we can execute on delivering key operational areas
including leasing up residual vacancies, addressing key expiries
and commencing and completing our organic development
opportunities as planned.
Ultimately, the company remains driven to ensure it remains a
sustainably focused (green), resilient and diversified business
that delivers sustainable dividends to shareholders.
JEFF MORRISON
Chairman
FY22 full year dividend
6.55cps
A 1.6% increase on the prior period
FY23 dividend guidance
6.65cps
A 1.5% increase
7
Annual Report 2022Argosy Property Limited
Building a
B
etter Future
“The Board is very pleased with the way the team has
managed the business through yet another Covid-19
impacted year. This has laid a strong foundation for
2023 and beyond. The FY23 dividend guidance of 6.65
cents per share reflects our philosophy of delivering
sustainable dividend growth to shareholders.”
Jeff Morrison
CHAIRMAN
6
Annual Report 2022Argosy Property Limited

On behalf of the Board of Directors, it
is my pleasure to present Argosy’s
2022 Annual Report.
The business continues to demonstrate the resilience offered by
a portfolio diversified by sector, tenant and location.
Over the last 24 months the company’s exposure to the Auckland
Industrial sector has been a positive influence, underpinning the
Company’s ability to deliver dividend and revaluation growth
through difficult economic conditions.
The Company’s focus is on driving our sustainability strategy by
providing environmentally sensitive, high quality, vibrant spaces
for its tenants and their staff. We’ll continue building and
maintaining strong relationships with those tenants and other
stakeholders to drive sustainable returns for shareholders. The
recent completion of large office and mixed use refurbishment
projects in Wellington is a good example of this.
Argosy is able to effectively redevelop existing buildings into
green buildings to help the reduction of its carbon footprint.
Argosy has a significant pipeline of green opportunities ahead of
it, particularly in Auckland’s Industrial market.
Investment Policy Bands
The Board made a strategic decision to adjust Argosy’s
Investment Policy target bands to increase the portfolios
weighting towards the strongly performing Industrial sector.
Accordingly, by portfolio value, the Industrial target is now
55-65% (was 45-55%), Office is now 25-35% (was 30-40%) and
the Large Format Retail target is now 5-15% (was 10-20%).
Strategy
Argosy is progressing well with its strategic plan. A key driver is
the redevelopment of existing properties into modern, high
quality and sustainable buildings. We are steadily expanding and
improving the portfolio with spaces designed to meet tenants
evolving requirements. Over the long term, this will underpin the
sustainability and growth in earnings to shareholders.
Governance
Ar
gosy’s Annual Shareholders Meeting (ASM) will be held as a
hybrid meeting on 21 June at 2pm at the Royal New Zealand Yacht
Squadron in Auckland. The hybrid functionality of the ASM
allows shareholders to attend virtually and participate in all
elements of the meeting including questions and answers and
completing all voting.
Mike Pohio and Chris Gudgeon will retire in accordance with the
Company’s constitution and the NZX Listing Rules and will be
eligible for re-election.
Dividends
A fourth quarter dividend of 1.6375 cents per share has been
declared for the March quarter with 0.1276 cents per share
imputation credits attached. This brings the full year dividend to
6.55 cents per share in line with guidance. The dividend will be
paid to shareholders on 22 June 2022 and the record date will be
8 June 2022. The Dividend Reinvestment Plan has been
suspended by the Board until further notice.
Based on current projections for the portfolio and subject to
market and interest rate conditions, the FY23 dividend is
expected to be 6.65 cents per share.
Outlook
Argosy’s future will be driven by maintaining our leading market
position of redeveloping existing buildings into green and driving
growth into the attractive Auckland Industrial sector, especially
over the medium term. We’ll continue to develop strong
relationships with the Government sector. Our FY23 key
deliverables will be focused on completing existing
developments, commencing our new green projects, leasing new
developments and residual portfolio vacancies and addressing
key expiries. Our big strategic goals coupled with our current year
objectives, support the delivery of resilient and sustainable
dividend growth over the long term.
JEFF MORRISON
Chairman
FY22 full year dividend
6.55cps
A 1.6% increase on the prior period
FY23 dividend guidance
6.65cps
7
Annual Report 2022Argosy Property Limited

Management Report
10Annual Report 2022Argosy Property Limited
Diversification pays
d
ividends
“After another challenging year affected by lockdowns
and red traffic light settings, it's pleasing to have
delivered what we consider to be a very solid full year
result to shareholders.”
Peter Mence
CHIEF EXECUTIVE OFFICER
Dave Fraser
CHIEF FINANCIAL OFFICER
8
Annual Report 2022Argosy Property Limited

We delivered on our operational focus areas around vacancies,
k
ey expiries and developments. We also divested our non Core
asset at 25 Nugent Street at a healthy premium to book value. Our
core portfolio metrics have remained sound despite the
operational environment being so difficult for everyone.
8-14 Willis Street is now substantially complete and has been
handed over to Statistics New Zealand for fitout. The handover
sees Argosy complete the largest green development project in its
history. We are targeting a 6 Green Star rating for this high quality
Core asset. The Wellington office market continues to exhibit
strong fundamentals and our ongoing exposure to Government
rental streams provides resilience during uncertain times.
Master planning at Argosy’s two key Auckland industrial estates
at Mt Richmond Road and Neilson Street is well progressed and
we are fielding strong market enquiry for these sites, which will
be redeveloped into green industrial estates. We’re excited about
the potential these sustainably focused properties bring to the
portfolio and the cross section of new industrial tenants showing
interest. Strong industrial fundamentals means this sector is
forecast to be the best performer over the next five years.
We are focusing on our organic Value Add development pipeline
due to scarcity of land driving very high bare land pricing. Given
the pipeline of work ahead, we’ve resourced our development
team accordingly.
Highlights
Key highlights for the period include:
•
Net profit after tax of $236.2 million;
•
$163.7 million annual revaluation gain, an increase of 8% on
book value;
•
Increase in NTA per share to $1.74 from $1.53 at 31 March 2021,
a 13.7% increase;
•
Net property income for the period of $105.1 million;
•
High occupancy (~98.7%) and WALT (5.7 years);
•
Strong portfolio leasing and rent review outcomes, including
3% annualised rental growth on rents reviewed;
•
7WQ in Wellington is now 100% leased;
•
Our continued focus on sustainability and progressive green
developments with 8-14 Willis Street now substantially
complete and 105 Carlton Gore Road, and 12-20 Bell Ave
underway;
•
A full year dividend of 6.55 cents per share, a 1.6% increase over
FY21; and
•
FY23 dividend guidance of 6.65 cents per share, a 1.5% increase
on the prior year.
Financial Results
Statement of Comprehensive Income
For the 12 months to 31 March, Argosy reported net property
income of $105.1 million for the period, marginally down
compared with the prior comparable period.
Net property income was bolstered by steady rental growth, a full
year contribution from Mt Richmond and lower Covid-19 rent
rebates over the period, offset by disposals, particularly the
Albany Lifestyle Centre.
For the year to 31 March, Argosy provided $1.6 million in rental
abatements to tenants and no deferrals.
Net inter
est expense of $25.6 million was down by $2.9 million on
the prior comparable period, primarily due to higher capitalised
interest on developments and lower debt levels.
Annual valuations for the year to 31 March were performed by
CBRE Limited, Colliers International New Zealand Limited,
Bayleys Valuation Limited and Jones Lang Lasalle. The total
unrealised revaluation gain for the year to 31 March was
$163.7 million or an 8% increase above book value. Of the annual
gain 56% was recognised in the interim desktop valuation
assessments at 30 September 2021. The portfolio is 3.3% under-
rented, excluding market rent on vacant space.
Distributable Income
Net distributable income for the year was $64.7 million compared
to $67.7 million in the prior comparable period. The prior
comparable period included a forfeited deposit of $4.5 million
from the original sale of the Albany Lifestyle Centre, which was
not settled.
Valuations
By location, Auckland was the largest contributor to the total year
end valuation result with an unrealised revaluation increase of
$142.1 million or 87% of the total portfolio uplift. By sector, and at
51% of Argosy’s portfolio by value Industrial was the key driver of
the overall gain at $144.7 million, up 14.7% on book value. The
Office portfolio increased $9.1 million, and Large Format Retail
increased by $9.8 million.
As a result of the FY22 revaluation gain, Argosy’s NTA increased
to $1.74, or 13.7% from $1.53 at 31 March 2021. Following the
revaluation, Argosy’s portfolio shows a contract yield on values of
5.23% and a yield on fully let market rentals of 5.43%.
Outlook
With the economy facing a range of headwinds, the next 12
months will be challenging for the domestic economy, but the
business is well positioned for it. We will continue to work hard
on the things we can control. On the operational side, this is
leasing up vacancies and renewing expiring leases. On the
strategic side, we’ll keep working closely with our tenants and
supporting their growth aspirations, completing our existing
green projects and master planning and developing our Value Add
opportunities. All of these support the delivery of our strategic
plan and sustainable distributions to shareholders.
We look forward to updating all our stakeholders at our Annual
Meeting in June.
PETER MENCE
Chief E
xecutive Officer
Management Report
Diversification pays
dividends
“After another challenging year affected by lockdowns
and traffic light settings, its pleasing to have delivered
what we consider to be a very solid full year result to
shareholders.”
Peter Mence
CHIEF EXECUTIVE OFFICER
Dave Fraser
CHIEF FINANCIAL OFFICER
8
Annual Report 2022Argosy Property Limited
We delivered on all of our operational focus areas around
vacancies, key expiries and completing developments. We also
divested non-core buildings during the year at healthy premiums
to book value. Our core portfolio metrics have remained sound
despite the operational environment being so difficult for
everyone.
8-14 Willis Street has now been handed over to Statistics New
Zealand. At a total cost o
f $xm, the handover sees Argosy complete
its largest green development project in its history. If we achieve
our target 6 Green Stars the building will certainly be the jewel in
our crown. The Wellington office market continues to exhibit
strong fundamentals which we don’t see waning for some time.
Our ongoing exposure to Government rental streams provides a
high degree of certainty and stability during uncertain times.
Master planning at Argosy’s two key Auckland industrial estates
at Mt Richmond Road and Neilson Street are progressing and we
are fielding a lot of market inquiry for these sites which will be
repurposed into green industrial estates. We’re excited about the
potential these sustainably focused properties bring to the
portfolio and the cross section of new industrial tenants showing
interest. We think strong industrial fundamentals and the fact the
sector is forecast to be the best performer over the next five years
is underpinning occupier interest.
The balance of the portfolio is in excellent shape. Argosy’s capital
structure is sound and we have capacity to execute on
opportunities as they arise. However, with interest rates rising it
we are focusing more on our organic value add development
pipeline. Given the pipeline of work we see ahead, we’ve
resourced the business and development team up accordingly.
Highlights
Key highlights for the period include:
•
Continued focus on sustainability and green developments;
•
Record interim net profit after tax of $xx.0 million;
•
Net property income for the period up xx%;
•
High occupancy (~9x%) and WALT (5.x years);
•
Strong portfolio leasing and rent review outcomes, including
xx% annualised rental growth on rents reviewed;
•
7WQ in Wellington is now 100% leased;
•
$xx million annual revaluation gain, an increase of x% on book
value;
•
Increase in NTA per share to $1.xx from $1.53 at 31 March 2021,
a xx% increase; and
•
FY23 dividend guidance of 6.65 cents per share under the new
dividend policy which commenced from 1 April 2022.
Financial Results
Statement of Comprehensive Income
For the 12 months to 31 March, Argosy reported net property
income of $xx million for the period, up x% compared with the
prior comparable period.
Solid like for like rental growth was bolstered by a full year
contribution from Mt Richmond and lower Covid-19 rent rebates
over the period, partially offset by disposals.
For the year to 31 March, Argosy provided for $x million in rental
abatements to tenants and no deferrals.
Net interest expense of $xx million was up/down by $xx million
on the prior comparable period, primarily due to xxx [lower
overall debt levels and higher capitalised interest].
Annual valuations for the year to 31 March were performed by
CBRE, Colliers International New Zealand Limited, Bayleys and
Jones Lang Lasalle. The total unrealised revaluation gain for the
year to 31 March was $xx million or a xx% increase above book
value. The portfolio is x% under-rented, excluding market rent
on vacant space.
Current tax expense was higher / lower due to large deductions
recorded in the prior comparable period and the non-assessable
deposit for the Albany Lifestyle Centre.
Distributable Income
Net distributable income for the year was $xx million compared
to $.0 million in the prior comparable period.
Valuations
The work performed by the valuers resulted in an annual
revaluation uplift of $x million, or a x% increase above book value.
By location, Auckland was the largest contributor to the total year
end valuation results with an unrealised revaluation increase of
$x million or 84% of the total portfolio uplift. By sector, and at
~50% of Argosy’s portfolio by value Industrial was the key driver
of the overall gain at $x million, up x% on book value. The Office
portfolio increased $x million, and Large Format Retail increased
by $x million.
As a result of the FY22 revaluation gain, Argosy’s NTA increased
to $1.xx, or xx% from $1.64 at 31 March 2021. Following the
revaluation, Argosy’s portfolio shows a contract yield on values of
5.xx% and a yield on fully let market rentals of 5.xx%.
Outlook
With the economy facing a range of headwinds, the next 6-12
months will be challenging for the domestic economy, but we’re
ready for it. We’ll continue to work hard on the things we can
control. On the operational side this is leasing up vacancies and
renewing expiring leases. On the strategic side, we’ll keep
working closely with our tenants and supporting their growth
aspirations, completing our existing green projects and master
planning and development of our value add opportunities. All of
these support the delivery of our ten year strategic plan and
sustainable distributions to shareholders.
I look forward to updating all our stakeholders at our Annual
Meeting in June.
PETER MENCE
Chief Executive Officer
NEED TO UPDATE
SIGNATURE
DAVE FRASER
Chief Financial Officer
9
Annual Report 2022Argosy Property Limited
DAVE FRASER
Chief Financial Officer
9
Annual Report 2022Argosy Property Limited

Owning the right assets with the
right attributes in the right
New Zealand locations.
A business that is adaptable
and responsive to change.
Maintaining strong and
valued relationships across
all stakeholders
A commitment to management
excellence delivering earnings
and dividend growth
Ensuring safe working environments
for Argosy and its partners
A diversified asset allocation across
sectors to reduce volatility and
widen growth opportunities
Targeting strategic growth opportunities
with green potential and a focus on
the Auckland Industrial and Wellington
Government Office markets
Maintaining a portfolio of
high quality, well located
Core assets with growth potential
Proactive delivery of
sustainable growth.
A business culture that is
environmentally focused
Executing green Value Add
portfolio opportunities to drive
earnings and capital growth
A commitment to funding
for green assets
R
e
s
i
l
i
e
n
t
D
i
v
e
r
s
i
f
i
e
d
G
r
e
e
n
Building a Better Future
10
Annual Report 2022Argosy Property Limited

Bottom: 82 Wyndham Street, Auckland
11
Annual Report 2022Argosy Property Limited

Portfolio Overview
Portfolio Metrics, Rent Reviews and Leasing
As at 31 March, Argosy’s WALT was
5.7 years and portfolio occupancy
was 98.7%.
For the year to 31 March, Argosy completed 99 rent reviews
achieving annualised rental growth of 3.0%. These reviews were
achieved on rents totalling $60.1 million. On rents subject to
review by sector, Argosy achieved annualised rental growth of
2.8% for Industrial rent reviews, 3.2% for Office rent reviews and
3.2% for Large Format Retail rent reviews.
Peter Mence said “The second half of the year was challenging as
we operated under red traffic light settings. However, we were
very pleased to have delivered solid results around key operating
metrics of occupancy, rental growth and leasing.”
For the year to 31 March, 76% of rents reviewed were subject to
fixed reviews, 8% were market reviews and 16% were CPI based.
Fixed reviews accounted for 72% of the total annualised rental
uplift and Auckland and Wellington contributed 76% and 19% of
the total annualised rental uplift respectively.
Argosy completed 31 leasing transactions across 74,376m
2
of NLA
over the year to 31 March. Lease transactions were made up of
new leases (23), extensions (3), renewals (5).
Key leasing transaction successes over the financial year include:
•
Thermo Fisher Scientific NZ Limited, 5 Allens Road, East
Tamaki, 6yr renewal
•
Commer
cial Fisheries Services Limited, L12 at 7WQ, new 9yr
lease
•
Mobil Oil NZ Limited, 8 Nugent Street, 3yr extension
•
Macpac Limited, Albany Mega Centre, new 6yr lease
•
Ministry of Housing and Urban Development, 7WQ, new 7.4yr
lease
•
The Baby Factory, Albany Mega Centre, new 6yr lease
•
PBT Transport, 18-20 Bell Ave, new 10yr lease
•
PBT Transport, 12-16 Bell Ave, new 10yr lease
•
Tax Management New Zealand Limited, 23 Customs Street,
new 5yr lease
”It is very pleasing to have 7WQ now 100% leased, with 94% of
space occupied by government tenants. Coupled with the
substantially completed façade works, the building is now well
positioned to deliver resilient, long term income given its
weighting to highly defensive Government rental streams.
The Auckland Industrial sector continues to be very attractive
with strong bottom-up fundamentals, including low vacancy and
strong rental growth. It’s a resilient sector and has the best
forecast returns over the next five years. With half of Argosy’s
portfolio weighted to Industrial, the pipeline of green Value Add
development industrial sites will enhance our portfolio quality
and resilience over the longer term” said Peter Mence.
Our Portfolio
PORTFOLIO METRICS, RENT REVIEWS AND
LEASING
As at 31 March, Argosy’s WALT was 5.x years and
portfolio occupancy was 9x%.
As at 31 March, Argosy’s WALT was 5.1 years and portfolio
occupancy was 9x%.
For the year to 31 March, Argosy completed xx rent reviews
achieving annualised rental growth of xx%. These reviews were
achieved on rents totalling $x million. On rents subject to review
by sector, Argosy achieved annualised rental growth of xx% for
Industrial rent reviews, xx% for Office rent reviews and x% for
Large Format Retail rent reviews.
Peter Mence said “The second half of the year was challenging as
we operated under red traffic light settings. However, we were
very pleased to have delivered solid results around key operating
metrics of occupancy, rental growth and leasing.”
For the year to 31 March, xx% of rents reviewed were subject to
fixed reviews, xx% were market reviews and x% were CPI based.
Fixed reviews accounted for xx% of the total annualised rental
uplift and Auckland and Wellington contributed x% and x% of the
total annualised rental uplift respectively.
Argosy completed xx leasing transactions across xxm
2
of NLA
over the year to 31 March. Lease transactions were made up of
new leases (x), extensions (x), renewals (x).
Key leasing transaction successes over the financial year include:
•
Thermo Fisher Scientific NZ Limited, 2,664m
2
at 5 Allens
Road, East Tamaki 6yr renewal
•
Commercial Fisheries Services Limited, L12 at 7WQ, 1,229m
2
on a new 9yr lease
•
Mobil Oil NZ Limited, 8 Nugent Street, 557m
2
on a 3yr
extension
•
Macpac Limited, Albany Mega Centre, 775m
2
on a new 6yr
lease
•
Ministry of Housing and Urban Development, 7WQ, 1,228m
2
on a new 7.4yr lease
•
The Baby Factory, Albany Mega Centre, 527m
2
on a new 6yr
lease
•
PBT Transport, 18-20 Bell Ave, 8,941m
2
on a new 10yr lease
•
PBT Transport, 12-16 Bell Ave, 9,763m
2
on a new 10yr lease
•
Tax Management New Zealand Limited, 23Customs Street
655m
2
, on a new 5yr lease
“It's great to have 7 Waterloo Quay now 100% leased. Coupled
with the substantially complete façade works, the building is now
well positioned to deliver resilient, long term rental streams given
its weighting to highly defensive Government rental streams. The
Auckland industrial sector continues to be very attractive with
strong bottom-up fundamentals including low vacancy and strong
rental growth. It’s a resilient sector and has the best forecast
returns over the next five years. With over half of Argosy’s
portfolio weighted to it, our pipeline of green value add
development industrial states will only enhance our portfolio
quality and resilience over the longer term” said Peter Mence.
Our Portfolio
10
Annual Report 2022Argosy Property Limited
Our Portfolio
PORTFOLIO METRICS, RENT REVIEWS AND
LEASING
As at 31 March, Argosy’s WALT was 5.x years and
portfolio occupancy was 9x%.
As at 31 March, Argosy’s WALT was 5.1 years and portfolio
occupancy was 9x%.
For the year to 31 March, Argosy completed xx rent reviews
achieving annualised rental growth of xx%. These reviews were
achieved on rents totalling $x million. On rents subject to review
by sector, Argosy achieved annualised rental growth of xx% for
Industrial rent reviews, xx% for Office rent reviews and x% for
Large Format Retail rent reviews.
Peter Mence said “The second half of the year was challenging as
we operated under red traffic light settings. However, we were
very pleased to have delivered solid results around key operating
metrics of occupancy, rental growth and leasing.”
For the year to 31 March, xx% of rents reviewed were subject to
fixed reviews, xx% were market reviews and x% were CPI based.
Fixed reviews accounted for xx% of the total annualised rental
uplift and Auckland and Wellington contributed x% and x% of the
total annualised rental uplift respectively.
Argosy completed xx leasing transactions across xxm
2
of NLA
over the year to 31 March. Lease transactions were made up of
new leases (x), extensions (x), renewals (x).
Key leasing transaction successes over the financial year include:
•
Thermo Fisher Scientific NZ Limited, 2,664m
2
at 5 Allens
Road, East Tamaki 6yr renewal
•
Commercial Fisheries Services Limited, L12 at 7WQ, 1,229m
2
on a new 9yr lease
•
Mobil Oil NZ Limited, 8 Nugent Street, 557m
2
on a 3yr
extension
•
Macpac Limited, Albany Mega Centre, 775m
2
on a new 6yr
lease
•
Ministry of Housing and Urban Development, 7WQ, 1,228m
2
on a new 7.4yr lease
•
The Baby Factory, Albany Mega Centre, 527m
2
on a new 6yr
lease
•
PBT Transport, 18-20 Bell Ave, 8,941m
2
on a new 10yr lease
•
PBT Transport, 12-16 Bell Ave, 9,763m
2
on a new 10yr lease
•
Tax Management New Zealand Limited, 23Customs Street
655m
2
, on a new 5yr lease
“It's great to have 7 Waterloo Quay now 100% leased. Coupled
with the substantially complete façade works, the building is now
well positioned to deliver resilient, long term rental streams given
its weighting to highly defensive Government rental streams. The
Auckland industrial sector continues to be very attractive with
strong bottom-up fundamentals including low vacancy and strong
rental growth. It’s a resilient sector and has the best forecast
returns over the next five years. With over half of Argosy’s
portfolio weighted to it, our pipeline of green value add
development industrial states will only enhance our portfolio
quality and resilience over the longer term” said Peter Mence.
Our Portfolio
10
Annual Report 2022Argosy Property Limited
Our
Portfolio
Portfolio
Overview
12
Annual Report 2022Argosy Property Limited

Acquisitions and Value Add Developments
After balance date
, Argosy acquired 100 Maui Street (Maui
Street), located in Pukete, Hamilton for $33.1 million. Maui Street
has excellent connectivity to motorway arterials and State
Highway One.
The purchase price was the mid-point of a Colliers International
initial valuation range and gives an IRR of 6.7% and an initial yield
of 4.5%.
The acquisition environment remains strong despite rising
interest rates. As highlighted above, Argosy remains open to
strategic acquisitions that meet its investment criteria, preferably
industrial sites within a prime industrial precinct with the
capacity to support tenant growth aspirations.
Divestment of non Core Assets
Argosy sold the Albany Lifestyle Centre in April 2021 and Omahu
Road, Hastings in September 2021. In the second half of FY22, the
Company announced it had unconditionally sold 25 Nugent Street
in Auckland, for $22.0 million. The sale to a local investor,
reflected a 28% premium above book value and settlement is
expected to occur in September 2022. These sales reflect the back
end of Argosy’s capital management initiatives over the last 24
months, where assets no longer meet Argosy’s investment
criteria.
Investment Policy Bands
The Board made a strategic decision to adjust Argosy’s
Investment Policy target bands to increase the portfolios
weighting towards the strongly performing Industrial sector.
Accordingly, by portfolio value, the Industrial target is now
55-65% (was 45-55%), Office is now 25-35% (was 30-40%) and
the Large Format Retail target is now 5-15% (was 10-20%).
Peter Mence said “We have done a lot of work assessing the
organic Value Add opportunities within the portfolio coupled
with analysis of forecast sector returns. Auckland Industrial is
forecast to be the best performing sector over the medium term
and by delivering on our current pipeline of Value Add
opportunities, we expect to be within our new target bands over
the medium term. We’re excited about what the future holds for
Argosy and the development team are going to be extremely busy
delivering a pipeline of well-designed, vibrant and sustainable
spaces for tenants and their staff to work and flourish.”
100 Maui Street, Pukete - Hamilton
P
ost balance date. Argosy unconditionally acquired 100
Maui Street, located in Pukete, Hamilton. The property
has excellent connectivity to motorway arterials and State
Highway One.
Key acquisition metrics for this were:
•
Tenant: Prolife Foods Limited
•
Total: NLA 14,755m
2
•
Lease: Triple net
•
Term: 15 years (with rights of renewal)
•
Initial yield: 4.53%
•
Initial rent: $1.5 million per annum
•
Reviews: 2.25% fixed annual, with market review in
Year 7 and at renewal
•
Site: 3.25 hectares with 8,100m
2
of future development
land
Peter Mence said “We are pleased to have made an
acquisition in the Waikato Region. By location, the
property is consistent with our strategy and enhances our
exposure to the attractive Industrial sector. Prolife Foods
are a well-established local food manufacturer. They are
a high quality partner and an essential service, which
aligns with our strategy of being a diversified business
with resilient earnings and cashflows. There is also
8,100m
2
of vacant land for development in the future
which provides additional attraction to this acquisition.
We’re pleased to welcome Prolife Foods into the Argosy
family. The acquisition sees Argosy with a portfolio
weighting to the Golden Triangle of 1.5% versus our 5%
target and increases our overall Industrial exposure to
approximately 52%.”
13
Annual Report 2022Argosy Property Limited

Portfolio Overview
8-14 Willis Street and 360 Lambton Quay,
W
ellington
The development at 8-14 Willis Street is now substantially
complete with the building to be formally handed over to
Statistics New Zealand. The tenant has access to nine floors and
soft fit out is being undertaken by the tenant as well as audio visual
installation works. The building is targeting a 6 Green Star Built
rating.
Leasing on the office space at 360 Lambton Quay continues and
there is strong interest for the space. Management is progressing
documentation of a lease on the property.
The retail area in both buildings is now fully leased.
7 Waterloo Quay (7WQ), Wellington - leasing and
facade works
The building is now 100% leased and the façade works have
largely been completed.
12-16 & 18-20 Bell Avenue, Mt Wellington, Peter
Baker Transport (PBT)
This $8.8 million redevelopment targeting 4 Green Star continues
to progress well.
Argosy Chief Executive Officer Peter Mence said ”This type of
project really embodies our vision of building a better future for
our tenants, their staff, the environment and of course our
stakeholders. Argosy has built a market leading position over the
last decade in redeveloping existing buildings into green assets,
and we have more of these industrial opportunities in the pipeline.
Extending PBT’s lease at the location for ten years was
fundamental to the project and exemplifies the benefits of having
valuable relationships with our tenants to support their long-term
strategic growth aspirations. "
The development is expected to be completed by September 2022.
105 Carlton Gore Road, Newmarket
Argosy has commenced another project with this $35 million
green redevelopment with an expected completion date in May
2023. The building is now targeting 6 Green Star certification
(previously 5 Star) and is forecast to be valued at $65 million on
completion, generating an IRR of 7.2% and a yield on cost of 5.3%.
Leasing enquiry for the redeveloped building is strong, and it is
expected that it will be leased prior to completion.
“The green redevelopment at 105 Carlton Gore Road will certainly
offer something different, bringing a fresh and vibrant look to the
area” said Peter Mence.
12-16 & 18-20 Bell Avenue, Mt
W
ellington - Peter Baker Transport
Peter Baker Transport (PBT) has occupied 12-16 and 18-20
Bell Avenue in Mt Wellington, Auckland since August
1999.
In November 2021, Argosy announced that it had entered
into an agreement with PBT for it to undertake an
$8.8 million refurbishment and redevelopment of the
sites to reposition them. The development would be
targeting a 4 Green Star Built rating and as part of the
agreement, PBT has entered into a new 10-year lease. On
completion, the project is forecast to have a yield on total
development cost of 5.2%, a valuation of $69.0 million and
IRR of 8.3%.
Argosy Chief Executive Officer Peter Mence said ”We are
very pleased to extend our existing relationship with PBT
for a further 10 years. PBT has been a long term partner
of ours for twenty years and we’re excited to have them
support this new green project and remain part of our
portfolio for the foreseeable future.
The development is very much on strategy and
demonstrates tenants are increasingly collaborative
around environmental and sustainability issues and keen
to support our commitment to reduce our carbon
emissions. The recent expansion of our development
team reflects our commitment to deliver on the growing
development pipeline across the business.”
The landlord base build works across the two properties
includes full upgrades and an end of trip facility. The
external works include new asphalt circulation on the site
and a concrete hardstand to the front-loading zone of
12-16 Bell Ave. The development is projected to be
completed by September 2022.
14
Annual Report 2022Argosy Property Limited

Capital Management
As at 31 March, Argosy’s debt to total assets ratio, excluding
capitalised borrowing costs, was 31.1% compared to 35.9% at
31 March 2021.
The ratio continues to reflect the net impact of divestments and
revaluation gains, offset by development activity during the
period
1
.
Argosy’s year end gearing sits towards the bottom end of its target
gearing band of 30-40%, and well below its bank covenant of 50%.
The Board considers there is sufficient capacity to accommodate
known, medium term funding requirements.
As noted in the firs
t half of the year, Argosy extended $215 million
of its existing syndicated bank facilities with ANZ Bank of New
Zealand Limited, Bank of New Zealand Limited, Hongkong and
Shanghai Banking Corporation, Commonwealth Bank of
Australia and Westpac New Zealand Limited. The total amount
of the bank facilities has reduced by $35 million and is now
$455 million, down from $490 million previously.
Argosy’s weighted average debt tenor, including bonds, was 3.5
years (4.2 years at 31 March 2021) and its weighted average
interest rate was 4.14%, compared to 3.69% at 31 March 2021.
CAPITAL MANAGEMENT
As at 31 March, Argosy’s debt to total assets ratio, excluding
capitalised borrowing costs, was 31.x% compared to 35.9% at
31 March 2021.
The ratio continues to reflect the net impact of divestments and
revaluation gains offset by development activity during the
period[1].
Argosy’s year end gearing sits towards the bottom end of its target
gearing band of 30-40%, and well below its bank covenant of 50%.
[Post balance date, the settlement of 100 Maui Street saw gearing
increase to 32.x%]
The Board considers there is sufficient capacity to accommodate
near term funding requirements. Its target gearing range remains
at 30-40% and well below its bank covenant of 50%.
As noted in the first half of the year, Argosy extended $215 million
of its existing syndicated bank facilities with ANZ Bank of New
Zealand Limited, Bank of New Zealand Limited, Hongkong and
Shanghai Banking Corporation, Commonwealth Bank of
Australia and Westpac New Zealand Limited. The total amount
of the bank facilities has also reduced by $35 million and is now
$455 million, down from $490 million previously.
Argosy’s weighted average debt tenor, including bonds, was 4.x
years (4.2 years at 31 March 2021) and its weighted average
interest rate was 4.xx%, compared to 3.69% at 31 March 2021.

[1]The ratio also excludes the lease liability and right of use asset
at 39 Market Place of $41.x million, recorded in the period under
NZ IFRS 16.
82 Wyndham Street, Auckland - IMAGE TO BE UPDATED
Debt-to-total-assets at 31-March
3x.x%
Bottom of target 30-40% band
xxx
x.x%
xxxx
13
Annual Report 2022Argosy Property Limited
Highgate Parkway, Silverdale, Auckland.
1
The r
atio excludes the right of use asset at 39 Market Place of $40.2 million, recorded in the period under NZ IFRS 16.
Debt-to-total-assets at 31-March
31.1%
Bottom of target 30-40% band
Weighted average debt tenor
3.5yrs
Includes bonds
15
Annual Report 2022Argosy Property Limited

Portfolio Overview
Investment Policy Framework
Ar
gosy has a Clearly Defined
Investment Framework
Argosy is, and will remain, invested in a portfolio that is diversified
by sector, location and tenant mix. The Investment Strategy is
unchanged and Argosy’s portfolio will continue to consist
primarily of Core and Value Add properties.
Core
Core properties are well constructed, well located assets which
are intended to be long-term investments of more than 10 years.
The Core properties target is between 75% to 90% of the portfolio
by value. Core properties are well located with strong long-term
generic demand, a leasing profile that provides for rental growth
of at least CPI and good structural integrity with minimal
maintenance capital expenditure required.
Value Add
Value Add properties are assets which, through skilled asset
management, can increase future earnings and provide capital
growth. Value Add properties will already be well located with
the potential for strong long-term tenant demand. These
properties are available for near to medium-term repositioning or
development with the view to moving into the Core category.
Investment Policy
The Investment Policy clearly defines what properties Argosy will
seek to own by setting the boundaries within which it will operate
and invest. It delivers a clear acquisition checklist and every
potential acquisition (and portfolio asset) can be measured
against that checklist.
In some cases, a portfolio of assets may be considered for
acquisition. The strategy for a potential portfolio acquisition must
be consistent with the overall Argosy Portfolio Investment
Strategy (i.e. the majority by value of the properties are either Core
or offer potential to move to Core in the medium-term).
In certain circumstances, exceptions to the Investment Policy
may be considered where an acquisition is made to meet the
requirements of a valued tenant.
Investment Policy target bands have been adjusted to reflect
development opportunities over the medium-term and the effect
on overall portfolio composition. The Industrial target is now
55-65% (was 45-55%), Office is now 25-35% (was 30-40%) and
the Large Format Retail target is now 5-15% (was 10-20%).
Argosy’s diversified portfolio of quality properties has an average
value of $41.7 million. This allows the Company to react quickly
to changing economic or property market conditions. Liquid
properties, which are properties that could potentially be under
contract within a short period, currently represent 24% of the
portfolio or $519.0 million.
Capital Management
The optimal capital structure for Argosy is one that enables it to
maximise its earnings yield through the property cycle within the
following parameters:
•
pr
operties can be acquired when they meet the approved
Investment Policy criteria, or sold when they are non Core;
•
there are no forced sales of properties or a requirement to issue
equity at a price that is dilutive to shareholders;
•
measured dividend growth is maintained.
Argosy’s debt-to-total assets ratio target band remains at 30-40%.
This band allows Argosy flexibility to react to changing financial
and property market conditions. Any movement beyond pre-set
parameters requires an action plan and timeframe to move debt
levels to within the prescribed range.
Risk Management
Argosy strives to deliver reliable and attractive returns to
shareholders. It takes a considered approach to development,
acquisition, divestment, leasing and capital management
decisions, reflecting its proposition to shareholders as a yield-
based investment.
Argosy has a robust risk assessment process. Risk assessment
reviews are carried out by a representative cross-section of
Argosy’s management team at least twice a year in accordance
with Argosy’s Risk Management Framework. A risk assessment
review has three phases: identification of material risks arising
from Argosy’s operation; assessment of the probability and
consequences of the risk; and development of controls to achieve
a level of residual risk that is within Argosy’s risk appetite.
Argosy generally operates within a medium/low overall risk
range. Argosy has a low risk appetite for risks associated with
managing developments, Value Add projects and compliance
matters.
Portfolio Mix by Sector
51% Industrial
39%Office
10% Large Format Retail
“Our Investment Policy underpins our
strategy of cr
eating a green, resilient
and diversified portfolio.”
Peter Mence
CEO
16
Annual Report 2022Argosy Property Limited

PLACEHOLDER FOR IMAGE/IMAGES.
15
Annual Report 2022Argosy Property Limited
Top: 39 Market Place, Auckland.
17
Annual Report 2022Argosy Property Limited

Portfolio Overview
Unit of measureIndustrialOffice
Large Format
RetailTOTAL
1
Number of buildingsno.3415453
Market value of assets$m1,1278572232,208
Net lettable aream
2
450,714128,53150,204629,449
Occupancy factor by rent%100.0%97.4%98.9%98.7%
Weighted average lease termyears6.06.03.15.7
Average value$m33.157.255.841.7
Passing yield
2
%4.67%6.04%5.61%5.23%
1. All statistics exclude 25 Nugent Street.
2.
Excludes 8-14 Willis Street/360 Lambton Quay and 105 Carlton Gore Road
Lease Expiry Pr
ofile
BY RENT
Percentage of Portfolio (by income)
1.31.3
10.510.5
8.88.8
14.714.7
8.38.3
14.614.6
4.84.8
5.35.3
3.03.0
3.73.7
6.06.0
19.019.0
VacantMar-23Mar-24Mar-25Mar-26Mar-27Mar-28Mar-29Mar-30Mar-31Mar-32Mar-33+
0
5
10
15
20
Annualised rent growth
3.0%
On 99 rent reviews on $60.1 million of rental
income
Industrial sector contributed
52%
Of rental review increase
18
Annual Report 2022Argosy Property Limited

Total Portfolio Value
BY SECTOR
51% Industrial
39%Office
10% Large Format Retail
Total Portfolio Value
BY REGION
72% Auckland
27% Wellington
1% Regional
Portfolio Mix
BY TYPE
78% Core
22% Value Add
0% Non Core
Rent Reviews in FY22
BY SECTOR
No. of
Reviews
Annualised
Rent
Incr
ease
Increase over
Contract ($)
Industrial322.8%922,503
Office493.2%761,310
Large Format Retail183.2%230,782
TOTAL993.0%1,914,595
New Leases completed in FY22
BY SECTOR
Floor Area
(sqm)
Average
Lease
T
erm
(years)
No. of
Leases
Industrial22,20911.218
Office50,5005.510
Large Format Retail1,6676.53
TOTAL74,3769.231
New Leases completed in FY22
BY TYPE
Floor
Ar
ea
(sqm)
Average
Lease
Term
(years)
No. of
Leases
New lease67,0449.823
Right of renewal5,7965.85
Extension1,5361.83
TOTAL74,3769.231
Additional rent
$1.91m
On rents reviewed during FY22
Industrial rent growth increase
2.8%
Annualised growth on 32 rent reviews
19
Annual Report 2022Argosy Property Limited

Our ESG Approach
Argosy's Sustainability Framework
Argosy owns a diversified portfolio of Industrial, Office and Large
Format Retail investment property. We recognise that
sustainability is essential to the continuing success of our business
and is of growing importance to our stakeholders. Our
stakeholders include investors, lenders, tenants, suppliers and
industry groups. The impact of Argosy’s business on the natural
environment and the communities it affects is an increasingly
important consideration for investors and other stakeholders.
Argosy recognises that a critical part of its responsibility to all
stakeholders is to reduce its impact on the environment.
Overarching purpose
To reduce our impact on the environment, create vibrant spaces
for tenants, engage more with stakeholders and provide
transparent and effective governance.
Four Pillars of Argosy's Sustainability Framework
1.
Reduction => Managing and reducing the impact of Argosy’s
operations on the environment, primarily carbon emissions.
2.
Creation => Creating well designed, vibrant and sustainable
spaces for tenants and their staff to work, prosper and flourish.
3.
Engagement => Delivering positive outcomes in communities
we operate in, through greater stakeholder engagement and
influence.
4.
Sustainability => Improving the sustainability and resilience
of our business by focusing on a wider range of outcomes over
and above financial returns.
Environmental, Social & Governance
Argosy's Sustainability Framework
Argosy owns a diversified portfolio of industrial, office and large
format retail investment property. We recognise that
sustainability is essential to the continuing success of our business
and is of growing importance to our stakeholders. Our
stakeholders include investors, lenders, tenants, suppliers and
industry groups. The impact of Argosy’s business on the natural
environment and the communities it affects is an increasingly
important consideration for investors and other stakeholders.
Argosy recognises that a critical part of its responsibility to all
stakeholders is to reduce its impact on the environment.
Overarching purpose
To reduce our impact on the environment, create vibrant spaces
for tenants, engage more with stakeholders and provide
transparent and effective governance.
Four pillars of Argosy's sustainability framework
1.
Reduction => Managing and reducing the impact of Argosy’s
operations on the environment, primarily carbon emissions.
2.
Creation => Creating well designed, vibrant and sustainable
spaces for tenants and their staff to work, prosper and flourish.
3.
Engagement => Delivering positive outcomes in communities
we operate in, through greater stakeholder engagement and
influence.
4.
Sustainability => Improving the sustainability and resilience
of our business by focusing on a wider range of outcomes over
and above financial returns.
“We're very happy to deliver a green
product where we've had really good
collaboration with the tenant.”
SAATYESH BHANA
HEAD OF SUSTAINABILITY, ARGOSY PROPERTY LIMITED
Sustainability
20
Annual Report 2022Argosy Property Limited
Environmental, Social & Governance
ARGOSY’S SUSTAINABILITY FRAMEWORK
Overarching purpose
To reduce our impact on the environment, create vibrant spaces
for tenants, engage more with stakeholders and provide
transparent and effective governance.
Four pillars of Argosy's sustainability framework
1.
Reduction => Managing and reducing the impact of Argosy’s
operations on the environment, primarily carbon emissions.
2.
Creation => Creating well designed, vibrant and sustainable
spaces for tenants and their staff to work, prosper and flourish.
3.
Engagement => Delivering positive outcomes in communities
we operate in, through greater stakeholder engagement and
influence.
4.
Sustainability => Improving the sustainability and resilience
of our business by focusing on a wider range of outcomes over
and above financial returns.
“We're very happy to deliver a green
product where we've had really good
collaboration with the tenant.”
SAATYESH BHANA
HEAD OF SUSTAINABILITY, ARGOSY PROPERTY LIMITED
Our
Environment
18
Annual Report 2022Argosy Property Limited

Sustainability


  
“We're very happy to deliver a green
pr
oduct where we've had really good
collaboration with the tenant.”
SAATYESH BHANA
HEAD OF SUST
AINABILITY, ARGOSY PROPERTY LIMITED
Environmental, Social & Governance
Argosy's Sustainability Framework
Argosy owns a diversified portfolio of industrial, office and large
format retail investment property. We recognise that
sustainability is essential to the continuing success of our business
and is of growing importance to our stakeholders. Our
stakeholders include investors, lenders, tenants, suppliers and
industry groups. The impact of Argosy’s business on the natural
environment and the communities it affects is an increasingly
important consideration for investors and other stakeholders.
Argosy recognises that a critical part of its responsibility to all
stakeholders is to reduce its impact on the environment.
Overarching purpose
To reduce our impact on the environment, create vibrant spaces
for tenants, engage more with stakeholders and provide
transparent and effective governance.
Four pillars of Argosy's sustainability framework
1.
Reduction => Managing and reducing the impact of Argosy’s
operations on the environment, primarily carbon emissions.
2.
Creation => Creating well designed, vibrant and sustainable
spaces for tenants and their staff to work, prosper and flourish.
3.
Engagement => Delivering positive outcomes in communities
we operate in, through greater stakeholder engagement and
influence.
4.
Sustainability => Improving the sustainability and resilience
of our business by focusing on a wider range of outcomes over
and above financial returns.
“We're very happy to deliver a green
product where we've had really good
collaboration with the tenant.”
SAATYESH BHANA
HEAD OF SUSTAINABILITY, ARGOSY PROPERTY LIMITED
Sustainability
20
Annual Report 2022Argosy Property Limited
Environmental, Social & Governance
ARGOSY’S SUSTAINABILITY FRAMEWORK
Overarching purpose
To reduce our impact on the environment, create vibrant spaces
for tenants, engage more with stakeholders and provide
transparent and effective governance.
Four pillars of Argosy's sustainability framework
1.
Reduction => Managing and reducing the impact of Argosy’s
operations on the environment, primarily carbon emissions.
2.
Creation => Creating well designed, vibrant and sustainable
spaces for tenants and their staff to work, prosper and flourish.
3.
Engagement => Delivering positive outcomes in communities
we operate in, through greater stakeholder engagement and
influence.
4.
Sustainability => Improving the sustainability and resilience
of our business by focusing on a wider range of outcomes over
and above financial returns.
“We're very happy to deliver a green
product where we've had really good
collaboration with the tenant.”
SAATYESH BHANA
HEAD OF SUSTAINABILITY, ARGOSY PROPERTY LIMITED
Our
Environment
18
Annual Report 2022Argosy Property Limited

Sustainability


  
Sustainability
20
Annual Report 2022Argosy Property Limited

Sustainability Targets
T
o help measure its progress Argosy has established sustainability
targets in relation to environmental, social and governance
factors:
ENVIRONMENTAL: How does Argosy perform as a
steward of the environment?
ESG FactorsTargets
NABERSNZ RatingsAll of
fice by 2023.
Waste ManagementTarget >75% landfill
diversion on all major
pr
ojects.
Environmental PolicySustainability r
eporting from
2022.
Argosy's Green CultureTransitioning to 100% EV
fleet.
Argosy's Carbon Emissions Collect and report on
Scopes 1, 2 and 3. Reduce
emissions by 30% by 2031.
SOCIAL: How does Argosy manage relationships
with all stakeholders?
ESG FactorsTargets
Employee RelationsIncreased financial
commitment to training
and development.
Employee DiversityContinue to monitor
and disclose.
Tenant RelationsTarget >85% satisfaction
levels by 2024.
Health & SafetyZero Harm.
Community EngagementSignificant incr
ease in
financial community
engagement commitments.
Focus on "changing lives,
saving lives".
GOVERNANCE: Effective leadership and
transpar
ent communication coupled with sound
ethics and robust decision making.
ESG FactorTargets
Argosy is committed to the
highest standar
ds of
business behaviour and
accountability.
Target zero policy breaches.
Maintain best practice from
a business, ethical and
cultural standpoint.
Sustainability Policy
Ar
gosy’s sustainability policy sets out commitments which it
meets through:
•
including a sustainability focus in our governance structure
and policies;
•
maintaining a Sustainability Framework with measurable
objectives;
•
assessing performance against the objectives; and
•
reporting on the sustainability of the business.
A copy of Argosy’s sustainability policy can be found on its website
www.argosy.co.nz.
Sustainability Targets
To help measure its progress Argosy has established sustainability
targets in relation to environmental, social and governance
factors:
ENVIRONMENTAL: How does Argosy perform as a
steward of the environment?
ESG FactorsTargets
NABERSNZ RatingsAll office by 2023.
Waste ManagementTarget >75% landfill
diversion on all major
projects.
Environmental PolicySustainability reporting from
2021.
Argosy's Green CultureTransitioning to 100% EV
fleet.
Argosy's Carbon EmissionsCollect and report on
Scopes 1, 2 and 3. Reduce
emissions by 30% by 2031.
SOCIAL: How does Argosy manage relationships
with all stakeholders?
ESG FactorsTargets
Employee RelationsIncreased financial
commitment to training
and development.
Employee DiversityContinue to monitor
and disclose.
Tenant RelationsTarget >85% satisfaction
levels by 2024.
Health & SafetyZero Harm.
Community EngagementSignificant increase in
financial community
engagement commitments.
Focus on "changing lives,
saving lives".
GOVERNANCE: Effective leadership and
transparent communication coupled with sound
ethics and robust decision making.
ESG FactorsTargets
Argosy is committed to the
highest standards of
business behaviour and
accountability.
Target zero policy breaches.
Maintain best practice from
a business, ethical and
cultural standpoint.
Sustainability Policy
Argosy’s sustainability policy sets out commitments which it
meets through:
Performance
•
including a sustainability focus in our governance structure
and policies;
•
maintaining a Sustainability Framework with measurable
objectives;
•
assessing performance against the objectives; and
•
reporting on the sustainability of the business.
A copy of Argosy’s sustainability policy can be found on its website
www.argosy.co.nz.
THESE ARE PLACEHOLDERS FOR AN IMAGE/IMAGES!
21
Annual Report 2022Argosy Property Limited
8-14 Willis Street, Wellington.
21
Annual Report 2022Argosy Property Limited

Sustainability
Materiality Assessment
F
or the year to 31 March 2022 Argosy implemented sustainability
reporting on material topics in accordance with GRI reporting
principles (core option). To identify material topics, Argosy
engaged EY to carry out a materiality assessment under GRI
guidelines. EY reviewed Argosy’s peers, media commentary,
industry perspectives, as well as Argosy’s internal documentation.
Stakeholders were identified b
y Argosy’s Management team and
include investors, lenders, tenants, suppliers and industry groups.
The material topics and their priority were determined based on
interviews with stakeholders and a workshop with members of
Argosy’s Management team.
The materiality assessment carried out by EY identified seven
material ESG topics as shown in the matrix below.
Business Impact
Climate change
Community
engagement
Tenant experience
and engagement
Engaged, healthy,
diverse and capable
workforce
ESG governance
ESG leadership
Importance to Stakeholders
Green Buildings
IMPORTANTMOST IMPORTANT
IMPORTANT
MOST IMPORTANT
Materiality Matrix
24Annual Report 2022Argosy Property Limited
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Annual Report 2022Argosy Property Limited

The material topics are defined
and broken down into sub-topics
in the table below:
PillarTopicSub-topicDefinition
Environment
The material topics are defined and broken down into sub-topics
in the table below:
PillarTopicSub-topicDefinition
Environment
Green Buildings
•
Embodied carbon
•
Resource efficiency
–
Energy
–
Water
–
Waste
Sustainable and efficient use of resources in the
build process. Minimising the negative impact
of our buildings and embracing new
opportunities to positively impact the
environment.
Climate change
•
Decarbonisation
•
Climate adaptation
Actively transitioning to a net zero economy and
adapting to the physical
impacts of climate change to maintain a
resilient portfolio.
Social
Tenant experience,
engagment and
wellbeing
•
Tenant experience
•
Support tenants
sustainability
practices
•
Tenant health, safety
& wellbeing
Creating flexible, healthy, high quality and
sustainable spaces for our
tenants. Actively engaging with our tenants to
understand and meet their
changing needs.
Engaged, health,
diverse and capable
workforce
•
Employee health,
safety & wellbeing
•
Employee
engagement and
growth
•
Diversity and
inclusion
Cultivating a strong, healthy workplace culture
that attracts, engages and
develops high performing teams that embrace
diversity of thought.
Community
engagement
•
Community impact
•
Community
partnerships
Engaging and supporting our local
communities in which we operate .
Governance
ESG governance
•
ESG governance
•
Communication and
transparency
•
Investor engagement
•
Compliance and
regulation
Building strong, responsible ESG leadership
and governance frameworks to
enable delivery on sustainability ambitions.
Disclosing ESG progress and
initiatives to stakeholders.
ESG leadership
•
Provide leadership in
the sustainability
space within the
property industry
•
Support our
suppliers and
contractors to
implement
sustainable
practices
Encouraging sustainable change throughout
our value chain and industry.
Argosy’s GRI index is set out on page [XX] .
23
Annual Report 2022Argosy Property Limited
Green Buildings
•
Embodied carbon
•
Resour
ce efficiency
–
Energy
–
Water
–
Waste

Sustainable and efficient use of resources in
the build process. Minimising the negative
impact of our buildings and embracing new
opportunities to positively impact the
environment.
The material topics are defined and broken down into sub-topics
in the table below:
PillarTopicSub-topicDefinition
Environment
Green Buildings
•
Embodied carbon
•
Resource efficiency
–
Energy
–
Water
–
Waste
Sustainable and efficient use of resources in the
build process. Minimising the negative impact
of our buildings and embracing new
opportunities to positively impact the
environment.
Climate change
•
Decarbonisation
•
Climate adaptation
Actively transitioning to a net zero economy and
adapting to the physical
impacts of climate change to maintain a
resilient portfolio.
Social
Tenant experience,
engagment and
wellbeing
•
Tenant experience
•
Support tenants
sustainability
practices
•
Tenant health, safety
& wellbeing
Creating flexible, healthy, high quality and
sustainable spaces for our
tenants. Actively engaging with our tenants to
understand and meet their
changing needs.
Engaged, health,
diverse and capable
workforce
•
Employee health,
safety & wellbeing
•
Employee
engagement and
growth
•
Diversity and
inclusion
Cultivating a strong, healthy workplace culture
that attracts, engages and
develops high performing teams that embrace
diversity of thought.
Community
engagement
•
Community impact
•
Community
partnerships
Engaging and supporting our local
communities in which we operate .
Governance
ESG governance
•
ESG governance
•
Communication and
transparency
•
Investor engagement
•
Compliance and
regulation
Building strong, responsible ESG leadership
and governance frameworks to
enable delivery on sustainability ambitions.
Disclosing ESG progress and
initiatives to stakeholders.
ESG leadership
•
Provide leadership in
the sustainability
space within the
property industry
•
Support our
suppliers and
contractors to
implement
sustainable
practices
Encouraging sustainable change throughout
our value chain and industry.
Argosy’s GRI index is set out on page [XX] .
23
Annual Report 2022Argosy Property Limited
Climate change
•
Decarbonisation
•
Climate adaptation
Actively transitioning to a net zero carbon
economy and adapting to the physical
impacts of climate change to maintain a
r
esilient portfolio.
Social
The material topics are defined and broken down into sub-topics
in the table below:
PillarTopicSub-topicDefinition
Environment
Green Buildings
•
Embodied carbon
•
Resource efficiency
–
Energy
–
Water
–
Waste
Sustainable and efficient use of resources in the
build process. Minimising the negative impact
of our buildings and embracing new
opportunities to positively impact the
environment.
Climate change
•
Decarbonisation
•
Climate adaptation
Actively transitioning to a net zero economy and
adapting to the physical
impacts of climate change to maintain a
resilient portfolio.
Social
Tenant experience,
engagment and
wellbeing
•
Tenant experience
•
Support tenants
sustainability
practices
•
Tenant health, safety
& wellbeing
Creating flexible, healthy, high quality and
sustainable spaces for our
tenants. Actively engaging with our tenants to
understand and meet their
changing needs.
Engaged, health,
diverse and capable
workforce
•
Employee health,
safety & wellbeing
•
Employee
engagement and
growth
•
Diversity and
inclusion
Cultivating a strong, healthy workplace culture
that attracts, engages and
develops high performing teams that embrace
diversity of thought.
Community
engagement
•
Community impact
•
Community
partnerships
Engaging and supporting our local
communities in which we operate .
Governance
ESG governance
•
ESG governance
•
Communication and
transparency
•
Investor engagement
•
Compliance and
regulation
Building strong, responsible ESG leadership
and governance frameworks to
enable delivery on sustainability ambitions.
Disclosing ESG progress and
initiatives to stakeholders.
ESG leadership
•
Provide leadership in
the sustainability
space within the
property industry
•
Support our
suppliers and
contractors to
implement
sustainable
practices
Encouraging sustainable change throughout
our value chain and industry.
Argosy’s GRI index is set out on page [XX] .
23
Annual Report 2022Argosy Property Limited
Tenant experience,
engagement and wellbeing
•
T
enant experience
•
Support tenants
sustainability practices
•
Tenant health, safety &
wellbeing
Creating flexible, healthy
, high quality and
sustainable spaces for our tenants. Actively
engaging with our tenants to understand and
meet their changing needs.
The material topics are defined and broken down into sub-topics
in the table below:
PillarTopicSub-topicDefinition
Environment
Green Buildings
•
Embodied carbon
•
Resource efficiency
–
Energy
–
Water
–
Waste
Sustainable and efficient use of resources in the
build process. Minimising the negative impact
of our buildings and embracing new
opportunities to positively impact the
environment.
Climate change
•
Decarbonisation
•
Climate adaptation
Actively transitioning to a net zero economy and
adapting to the physical
impacts of climate change to maintain a
resilient portfolio.
Social
Tenant experience,
engagment and
wellbeing
•
Tenant experience
•
Support tenants
sustainability
practices
•
Tenant health, safety
& wellbeing
Creating flexible, healthy, high quality and
sustainable spaces for our
tenants. Actively engaging with our tenants to
understand and meet their
changing needs.
Engaged, health,
diverse and capable
workforce
•
Employee health,
safety & wellbeing
•
Employee
engagement and
growth
•
Diversity and
inclusion
Cultivating a strong, healthy workplace culture
that attracts, engages and
develops high performing teams that embrace
diversity of thought.
Community
engagement
•
Community impact
•
Community
partnerships
Engaging and supporting our local
communities in which we operate .
Governance
ESG governance
•
ESG governance
•
Communication and
transparency
•
Investor engagement
•
Compliance and
regulation
Building strong, responsible ESG leadership
and governance frameworks to
enable delivery on sustainability ambitions.
Disclosing ESG progress and
initiatives to stakeholders.
ESG leadership
•
Provide leadership in
the sustainability
space within the
property industry
•
Support our
suppliers and
contractors to
implement
sustainable
practices
Encouraging sustainable change throughout
our value chain and industry.
Argosy’s GRI index is set out on page [XX] .
23
Annual Report 2022Argosy Property Limited
Engaged, healthy, diverse
and capable workfor
ce
•
Employee health, safety
& wellbeing
•
Employee engagement
and growth
•
Diversity and inclusion
Cultivating a strong, healthy workplace
cultur
e that attracts, engages and develops
high performing teams that embrace
diversity of thought.
The material topics are defined and broken down into sub-topics
in the table below:
PillarTopicSub-topicDefinition
Environment
Green Buildings
•
Embodied carbon
•
Resource efficiency
–
Energy
–
Water
–
Waste
Sustainable and efficient use of resources in the
build process. Minimising the negative impact
of our buildings and embracing new
opportunities to positively impact the
environment.
Climate change
•
Decarbonisation
•
Climate adaptation
Actively transitioning to a net zero economy and
adapting to the physical
impacts of climate change to maintain a
resilient portfolio.
Social
Tenant experience,
engagment and
wellbeing
•
Tenant experience
•
Support tenants
sustainability
practices
•
Tenant health, safety
& wellbeing
Creating flexible, healthy, high quality and
sustainable spaces for our
tenants. Actively engaging with our tenants to
understand and meet their
changing needs.
Engaged, health,
diverse and capable
workforce
•
Employee health,
safety & wellbeing
•
Employee
engagement and
growth
•
Diversity and
inclusion
Cultivating a strong, healthy workplace culture
that attracts, engages and
develops high performing teams that embrace
diversity of thought.
Community
engagement
•
Community impact
•
Community
partnerships
Engaging and supporting our local
communities in which we operate .
Governance
ESG governance
•
ESG governance
•
Communication and
transparency
•
Investor engagement
•
Compliance and
regulation
Building strong, responsible ESG leadership
and governance frameworks to
enable delivery on sustainability ambitions.
Disclosing ESG progress and
initiatives to stakeholders.
ESG leadership
•
Provide leadership in
the sustainability
space within the
property industry
•
Support our
suppliers and
contractors to
implement
sustainable
practices
Encouraging sustainable change throughout
our value chain and industry.
Argosy’s GRI index is set out on page [XX] .
23
Annual Report 2022Argosy Property Limited
Community engagement
•
Community impact
•
Community
partnerships
Engaging and supporting our local
communities in which we operate.
Governance
The material topics are defined and broken down into sub-topics
in the table below:
PillarTopicSub-topicDefinition
Environment
Green Buildings
•
Embodied carbon
•
Resource efficiency
–
Energy
–
Water
–
Waste
Sustainable and efficient use of resources in the
build process. Minimising the negative impact
of our buildings and embracing new
opportunities to positively impact the
environment.
Climate change
•
Decarbonisation
•
Climate adaptation
Actively transitioning to a net zero economy and
adapting to the physical
impacts of climate change to maintain a
resilient portfolio.
Social
Tenant experience,
engagment and
wellbeing
•
Tenant experience
•
Support tenants
sustainability
practices
•
Tenant health, safety
& wellbeing
Creating flexible, healthy, high quality and
sustainable spaces for our
tenants. Actively engaging with our tenants to
understand and meet their
changing needs.
Engaged, health,
diverse and capable
workforce
•
Employee health,
safety & wellbeing
•
Employee
engagement and
growth
•
Diversity and
inclusion
Cultivating a strong, healthy workplace culture
that attracts, engages and
develops high performing teams that embrace
diversity of thought.
Community
engagement
•
Community impact
•
Community
partnerships
Engaging and supporting our local
communities in which we operate .
Governance
ESG governance
•
ESG governance
•
Communication and
transparency
•
Investor engagement
•
Compliance and
regulation
Building strong, responsible ESG leadership
and governance frameworks to
enable delivery on sustainability ambitions.
Disclosing ESG progress and
initiatives to stakeholders.
ESG leadership
•
Provide leadership in
the sustainability
space within the
property industry
•
Support our
suppliers and
contractors to
implement
sustainable
practices
Encouraging sustainable change throughout
our value chain and industry.
Argosy’s GRI index is set out on page [XX] .
23
Annual Report 2022Argosy Property Limited
ESG governance
•
ESG gover
nance
•
Communication and
transparency
•
Investor engagement
•
Compliance and
regulation
Building strong, responsible ESG leadership
and gover
nance frameworks to enable
delivery on sustainability ambitions.
Disclosing ESG progress and initiatives to
stakeholders.
The material topics are defined and broken down into sub-topics
in the table below:
PillarTopicSub-topicDefinition
Environment
Green Buildings
•
Embodied carbon
•
Resource efficiency
–
Energy
–
Water
–
Waste
Sustainable and efficient use of resources in the
build process. Minimising the negative impact
of our buildings and embracing new
opportunities to positively impact the
environment.
Climate change
•
Decarbonisation
•
Climate adaptation
Actively transitioning to a net zero economy and
adapting to the physical
impacts of climate change to maintain a
resilient portfolio.
Social
Tenant experience,
engagment and
wellbeing
•
Tenant experience
•
Support tenants
sustainability
practices
•
Tenant health, safety
& wellbeing
Creating flexible, healthy, high quality and
sustainable spaces for our
tenants. Actively engaging with our tenants to
understand and meet their
changing needs.
Engaged, health,
diverse and capable
workforce
•
Employee health,
safety & wellbeing
•
Employee
engagement and
growth
•
Diversity and
inclusion
Cultivating a strong, healthy workplace culture
that attracts, engages and
develops high performing teams that embrace
diversity of thought.
Community
engagement
•
Community impact
•
Community
partnerships
Engaging and supporting our local
communities in which we operate .
Governance
ESG governance
•
ESG governance
•
Communication and
transparency
•
Investor engagement
•
Compliance and
regulation
Building strong, responsible ESG leadership
and governance frameworks to
enable delivery on sustainability ambitions.
Disclosing ESG progress and
initiatives to stakeholders.
ESG leadership
•
Provide leadership in
the sustainability
space within the
property industry
•
Support our
suppliers and
contractors to
implement
sustainable
practices
Encouraging sustainable change throughout
our value chain and industry.
Argosy’s GRI index is set out on page [XX] .
23
Annual Report 2022Argosy Property Limited
ESG leadership
•
Pr
ovide leadership in
the sustainability space
within the property
industry
•
Support our suppliers
and contractors to
implement sustainable
practices
Encouraging sustainable change throughout
our value chain and industry.
Argosy’s GRI index is set out on page 96.
23
Annual Report 2022Argosy Property Limited