Retail Roadshow Presentation

Argosy Property Limited
Retail Roadshow
22 June – 8 July
2022

“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
Achievements & Highlights7
Portfolio Highlights8
Financials14
Leasing Update23
Focus and Outlook26
Note: Due to rounding, numbers presented in this presentation may not add up exactly to the totals provided and percentages may notre flect exactly absolute
figures.

Vision and
Strategy
.4

.5

●XXX
XX
.6
FY22 Achievements
Delivered solid results through a challenging year
Laid a strong foundation for 2023 and beyond
Continued to deliver on our sustainability and development strategies
Continued building strong relationships with tenants
Delivered on key focus areas (key expiries and vacancies)
Progressed future development opportunities
XX
●XXX

.7
$105.1
$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

.8
98.7%
Occupancy
5.7yrs
Weighted average lease term
Portfolio Highlights
3.0%
Annualised rent review increase on rents
reviewed

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%)

Value Add Properties
.11
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
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.
Status & ProjectSectorLocation
Value @
31 Mar 22
Total
Complete
8-14 Willis Street/ 360 Lambton Quay OfficeWellington146.1
146.1
Underway
12-20 Bell Avenue, Mt Wellington IndustrialAuckland60.9
105 Carlton Gore Road, Newmarket OfficeAuckland27.0
1-5 Unity Drive, Albany IndustrialAuckland29.3
117.2
Planning
5 Allens Road, East Tamaki IndustrialAuckland6.4
224 Neilson Street, Onehunga IndustrialAuckland36.9
8-14 Mt Richmond Drive, Mt Wellington IndustrialAuckland90.0
101 Carlton Gore Road, Newmarket OfficeAuckland29.5
162.8
Future
Currently Leased (6 properties)Industrial Auckland
58.9
Total $m484.9

Annual Revaluations
.12
$163.7m gain reported, or 8% increase
over book value. Portfolio market yield
firms 35bps. 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
$163.7m
Annual revaluation gain above book
value @ 31 March
Note: Due to rounding, numbers presented in this presentation may not add up exactly to the totals provided and
percentages may not reflect exactly absolute figures.
Auck land 1,578.4 9.9%
Wellington 596.6
3.4%
Regional 32.5 7.3%
Total 2,207.5 8.0%
Industrial
1,127.0 14.7%
Office 857.4 1.1%
Large Format Retail 223.2 4.6%
Total 2,207.5 8.0%
31 Mar 22
Valuation
($m)

%
31 Mar 22
Valuation
($m)

%

.13
Value Add Case Study: Mt Richmond Estate
Mt Wellington Highway
Great South Rd
Bell Avenue
Mt Richmond
Drive
Key Case study metrics:
15km from CBD
40,000m
2
of new warehouse space
+$250m projected end value
4,000m
2
of new office space
~7% IRR

Financials
.14

Gross Property Income Waterfall
.15
Acquisition income offset by disposals of low growth assets

Financial Performance
.16
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
.17
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.
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)
.18
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
.19
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. * Totals inclusive of NZIFRS 16 Lease adjustments.

NTA Per Share
.20
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.

Debt Profile including Bonds
.21
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
.22
A 4
th
quarter dividend of 1.6375cps was
declared with 0.1276 cents per share
imputation credits attached.
The record date was 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
.23

.24
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
.25
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 8.8%
expiry in Mar-27 to Ministry for Business,
Innovation and Employment, at 15-21
Stout Street.
Portfolio under rented by 3.3%.
Expiry profile remains well
managed
3.3%
Under renting across portfolio

Focus &
Outlook
.26

FY23 has challenges ahead, but we’re well placed
.27
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

Thank you
.28

Disclaimer
.29
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.
22 June – 8 July 2022