Annual Meeting Presentation and Speeches

NZX and media
announcement
—
29 March 2023



ANNUAL MEETING PRESENTATION AND
SPEECHES
Property for Industry Limited (PFI, the Company) today holds its annual meeting of shareholders virtually
and in person at the HSBC Tower, Auckland.

PFI has provided NZX with a copy of the presentation and speeches to be made at the annual meeting.

If you cannot attend, a recording of the webcast of the meeting will be available to view on PFI’s website
at the conclusion of the meeting.

ENDS




















ABOUT PFI & CONTACT

PFI is an NZX listed property vehicle specialising in industrial property. PFI’s nationwide portfolio of 94 properties is leased to
around 129 tenants.

For further information please contact:


SIMON WOODHAMS
Chief Executive Officer
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Phone: +64 21 749 770
Email: woodhams@propertyforindustry.co.nz
CRAIG PEIRCE
Chief Finance and Operating Officer
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Phone: +64 21 248 6301
Email: peirce@propertyforindustry.co.nz
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Property for Industry Limited
Level 4, Hayman Kronfeld Building, 15 Galway Street, Auckland
1010
PO Box 1147, Shortland Street, Auckland 1140
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www.propertyforindustry.co.nz

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Annual
Meeting
2023
A Shift in Focus
STEADY
UNDERLYING
RESULT
BROWNFIELD
OPPORTUNITIES
SET TO
COMMENCE
SUSTAINABILITY
PROGRAM ADVANCED
PROACTIVE
AND
CONSERVATIVE
CAPITAL
MANAGEMENT
STRONG
RENTAL
GROWTH
RESILIENT INDUSTRIAL
PORTFOLIO OF SCALE
5
Anthony Beverley
Chair of the Board

Annual
Meeting
2023
Robust
Portfolio
$
2,117.2M
CURRENT VALUATION
8.83
CENTS
PER SHARE
5.0 %
5.08YEARS
Weighted Average
Lease Term
100%
OCCUPANCY
$
95.6M
NET RENTAL
INCOME
$
1.4 M
AFFO
6
Anthony Beverley
Chair of the Board

NET RENTAL
INCOME
6
Annual
Meeting
2023
Healthy Leasing
Activity
104,433SQM
2022 - LEASED
15% of portfolio by rent
12%
POSITIVE
RE-LEASING
SPREAD
on previous
contract rent
~
11%
UNDER
RENTED
$
2.988
NTA PER SHARE
4.6C
CONTRACT
RENT UP
▲
98.2
$
MILLION
2021
2022
7
Anthony Beverley
Chair of the Board

Annual
Meeting
2023
Increased Cash
Return for
Shareholders
GROWING
RETURNS
TO SHAREHOLDERS
2023 DIVIDEND GUIDANCE OF
8.10-8.30
CENTS PER SHARE
2.5%
FROM 2022
9
Anthony Beverley
Chair of the Board

Annual
Meeting
2023
Confident in
Our Strategy
FOCUSVALUERETURNS
Continued focus on industrial propertyMaximise the value of current portfolio
Deliver stable returns for investors
10
Anthony Beverley
Chair of the Board
9

Annual
Meeting
2023
Reading
Prevailing Market
Conditions
FOCUSED ON THE FUTURE
Reading the prevailing
market conditions
Strengthening the
expertise in our team
Maintaining strong
relationships with our tenants
MARKETTENANTSTEAM
12
Simon Woodhams
Chief Executive
Officer

12
Annual
Meeting
2023
Sustainability
Strategy
OUR FOCUS AREAS
ECONOMIC
VALUE
PEOPLE &
WELLBEING
DISASTER &
CLIMATE
RESILIENCE
RESOURCES
& WASTE
GREENHOUSE
EMISSIONS
13
Simon Woodhams
Chief Executive
Officer

Annual
Meeting
2023
Sustainability
Strategy
SOLAR
RAINWATER
HARVESTING
SUSTAINABLE
MATERIALS
EMISSION
PERFORMANCE
SETTINGS
DIVERSION OF
LANDFILL WASTE
GREEN STAR
14
Simon Woodhams
Chief Executive
Officer

Annual
Meeting
2023
Brownfield
Opportunities
17
Simon Woodhams
Chief Executive
Officer
STAGE 1 – FISHER & PAYKEL
10.4HECATARES
25,500SQM
GREEN STAR TARGET
S TAG E 1 - WAREHOUSE
FULL SITE

Annual
Meeting
2023
Brownfield
Opportunities
19
Simon Woodhams
Chief Executive
Officer
17
STAGE 2 – SPECULATIVE BUILD
3.9HECATARES
11,200SQM
STAGE 2 - WAREHOUSE
FULL SITE
GREEN STAR TARGET

Annual
Meeting
2023
Looking Ahead
WELL PLACED
DEVELOPMENT
A clear path of development,
locking in gains for the years
ahead.
SUSTAINABILITY
A strong sustainability
strategy to prepare us for
tomorrow.
PREPARATION
Our strong balance sheet,
proactive capital management
and defensive portfolio keep us
prepared for any challenges.
RESILIENCE
Continuing to grow a
resilient industrial portfolio
of scale.
20
Simon Woodhams
Chief Executive
Officer
14

RESOLUTION
That Angela Bull (appointed
by the Board as a Director on
20 February 2023), who
retires and is eligible for
election, be elected as a
Director of the Company.
Resolution
01.
Annual
Meeting
2023
Angela Bull
Independent
Director

RESOLUTION
That Anthony Beverley, who
retires and is eligible for
election, be elected as a
Director of the Company.

RESOLUTION
That Carolyn Steele (appointed
by the Board as a Director on
22 August 2022), who retires
and is eligible for election, be
elected as a Director of the
Company.

RESOLUTION
That Dean Bracewell, who
retires and is eligible for
election, be elected as a
Director of the Company.

RESOLUTION
That the Directors are authorised
to fix the fees and expenses of
the auditors,
PricewaterhouseCoopers
Auckland.

RESOLUTION
That the Directors are authorised
to fix the remuneration of the
Directors of the Company from
the close of this meeting as per
the table shown in the
Explanatory Notes of the Notice
of Meeting.

The information included in this presentation is provided as at 29
March 2023.
Property for Industry Limited (PFI) does not guarantee the repayment
of capital or the performance referred to in this presentation.
Past performance is not a reliable indicator of future performance.
The presentation includes a number of forward looking statements.
Forward looking statements, by their nature, involve inherent risks an
uncertainties. Many of those risks and uncertainties are matters
which are beyond PFI’s control and could cause actual results to
differ from those predicted. Variations could either be materially
positive or materially negative.
While every care has been taken in the preparation of this
presentation, PFI makes no representation or warranty as to the
accuracy or completeness of any statement in it including, without
limitation, any forecasts.
This presentation has been prepared for the purpose of providing
general information, without taking account of any particular
investor’s objectives, financial situation or needs. An investor should,
before making any investment decisions, consider the
appropriateness of the information in this presentation, and seek
professional advice, having regard to the investor’s objectives,
financial situation and needs.
This presentation is solely for the use of the party to whom it is
provided.

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NZX and media
announcement
—
29 March 2023


PRESENTATIONS TO THE PROPERTY FOR
INDUSTRY ANNUAL MEETING

At 11.00am on Wednesday, 29 March 2023

<< Slide 1: WELCOME TO THE 2023 PFI ANNUAL MEETING >>

<< Anthony Beverley >>

Good morning, my name is Anthony Beverley, and I am the Chair of the Board of Directors
of PFI.

Welcome to the twenty-ninth Annual Meeting of PFI. We have a quorum present, so let’s
get underway.

This year we are once again holding this meeting as a hybrid meeting, meaning that we
have participants both here in person, and attending virtually.

Before we start, can I just remind those here in person to put your phone on silent? And, in
case of an emergency, please follow the instructions of the Generator staff. Please follow
the emergency exit doors out of the meeting room. The nearest assembly point is located
on Quay Street.

In order for this hybrid meeting to run smoothly, I would like to confirm how questions and
answers, and voting will work.

First, let’s deal with the procedure around questions and answers: any shareholder or
appointed proxy is eligible to ask questions.

If an eligible online attendee would like to ask a question, you can select the “Q&A” tab on
the right-hand side of your screen at any time, type your question into the box at the
bottom of the screen and press “Send”.

There will be time allocated for in-person attendees to ask questions during the course of
the meeting. We will try to get to as many of the questions as possible, but not all

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questions may be able to be answered during the meeting. In this case, questions will be
followed up after the meeting.

The second key procedure is voting.

We will open the poll for virtual attendees now, to give you plenty of time to vote. The
“Vote” tab is located on the right-hand side of your screen, and from here, the resolution
and voting choices will be displayed. To vote, simply select your voting choice from the
options shown on screen. You may vote for all resolutions at once or by each resolution.
Once your vote has been cast, a green tick will appear. You can change your vote at any
time up until when the poll is closed. Prior to the poll closing, simply select “Change Your
Vote” and choose another voting choice.

Should you require any assistance with asking questions or voting, you can type your
query into the “Q&A” tab at any time and one of the Computershare team will assist you.
Alternatively, you can call Computershare on 0800-650-034 and ask to speak to one of the
administrators supporting the PFI Annual Meeting.

I will explain procedures for voting in person later in the meeting.

<< Slide 2: AGENDA >>

Here is the agenda.

I will start with a short presentation, and then our CEO, Simon Woodhams, will do likewise.

You will then have the opportunity to ask questions or to make comments about those
presentations, or the financial statements and auditor’s report.

Then, as you have seen in the notice of meeting, we have six resolutions we would like
you to approve.

Following those resolutions, we will finish with a further opportunity for questions and
answers when we get to general business.

Those who are here in person are welcome to join us for light refreshments and a more
informal chat with the Board and Management Team after the meeting.

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29 March 2023


<< Slide 3: BOARD PRESENTATION >>

<< Slide 4: INTRODUCTIONS >>

Let me start by re-introducing the Management Team and Board:

▪ Craig Peirce, Chief Finance and Operating Officer;
▪ Simon Woodhams, Chief Executive Officer;
▪ Angela Bull, Independent Director, who was appointed to the Board in February and
is up for election by shareholders today;
▪ Carolyn Steele, Independent Director, who was appointed to the Board in August last
year and is up for election by shareholders today;
▪ David Thomson, Independent Director;
▪ Dean Bracewell, Independent Director; and finally;
▪ Greg Reidy, Independent Director.

We also have representatives from our auditors, PricewaterhouseCoopers, and our legal
counsel, Chapman Tripp, here with us today.

<< Slide 5: A SHIFT IN FOCUS>>

So, ladies and gentlemen, standing back and looking at 2022 from the Company’s
perspective, it is clear that the difficult economic, market and operating conditions that arose
from the COVID-19 pandemic transitioned into quite material changes in both the global and
domestic economies, and capital and investment markets, including property.

Despite the emergence of more difficult economic and market conditions, we are pleased to
report to you that 2022 was another solid year for the Company. While our underlying leasing
and asset management activity continued as normal, it was clear that market expectations
and pricing were changing, and we took a much more opportunistic approach to our
investment and divestment activity. On an overall basis, PFI had a much quieter year in
terms of transactions. While demand for high-quality industrial properties in good locations
remained high, it was harder to find new properties with the right long-term returns profile.

A shift in focus saw us looking to maximise the value of our existing assets, divesting assets
where it made sense to do so and undertaking important activity behind the scenes to
prepare PFI for the next cycle of growth. That activity included executing a buy-back of 3.6
million shares, starting the process to bring facilities management in-house, moving our team

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and operations to new premises and preparing for two major brownfield developments that
will get underway this calendar year.

While there has been a distinct shift in sentiment affecting market pricing generally, the
underlying dynamics of the sectors and assets in which we are invested remain strong.
Tenant demand for industrial property remains high, vacancies are limited and in fact in some
areas are at record lows, rentals continue to increase and construction in the sector
continues at a healthy level.

As a professional landlord to the industrial sector, we have maintained our two-billion-dollar
plus presence and that scale and profile continues to attract relationship and investment
opportunities in our target markets. As expected, earnings were lower than last year’s record
result, but importantly when we step back and take in the 2019 and 2020 results, there is
consistent upward movement over the medium term. Equally importantly, dividends rose
again to 8.10 cents per share, an increase of 2.5% on last year. I’ll come back to the dividend
a little later.

<< Slide 6: ROBUST PORTFOLIO>>

At year end, our Funds From Operations were down 7.8% to 10.21 cents per share while
Adjusted Funds From Operations reduced by 5.0% to 8.83 cents per share. However,
occupancy remained at 100% and net rental income increased by $1.4 million to $95.6
million. Overall, we ended the year with a fully occupied industrial portfolio, comprising 94
properties and 132 tenants, valued at $2.12 billion dollars, this following a $56.7 million
revision downwards in our valuations. Our Weighted Average Lease Term also decreased
slightly but remained above the five-year mark. Not surprisingly, given general cost inflation,
a lift in interest rates and the scarcity of experienced talent available, we incurred higher
costs this year. Interest expenses, bank fees and administrative expenses all climbed as we
continued to invest in our developments, our team, our premises and our systems.

<< Slide 7: HEALTHY LEASING ACTIVITY >>

On the other hand, ongoing high levels of demand for quality industrial space worked to our
advantage in terms of rental revenues. We leased around 15% of our portfolio by rent or
104,000 square metres of space this year at rentals of around 12% above the previous
contracted rent. Reviews of more than 100 leases worth $62.8 million resulted in an average
annual uplift of 4%. The end result was an increase in our contract rent from $95.6 million last

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year to $98.2 million this year. By our calculations, our portfolio remains around 11% under-
rented, giving us ample headroom to capture further market increases.

As a result of changes in market pricing during the year, net tangible assets reduced from a
historic high in 2021 to 298.8 cents per share, still well above the 2020 result of 220.9 cents
per share. I would like to stress that, during the 2022 year, there was considerable
uncertainty as to the degree and longevity of the changes we were observing to both general
economic conditions, and to market pricing, and we purposefully took a very careful
approach. We had a particular focus in ensuring that our gearing remained low, we remain
well covered in terms of capital, and we had an overall focus on making sure we have a solid
balance sheet to take PFI forward into our next phase. In short, ladies and gentlemen, while it
is clear we remain in difficult economic times, both globally and domestically, we are
confident that our underlying portfolio and business are well placed.

<<Slide 8: ENVIRONMENTAL, SOCIAL AND GOVERNANCE>>

Last year, I spoke about the significant focus and effort we were investing into continuing to
strengthen our strategic Environmental, Social and Governance or ESG framework. This
year, we made pleasing and tangible progress in terms of our sustainability program. I want
to call out six of these initiatives because, individually and collectively, they speak to our
focus in this area and how actively we are adopting a sustainability lens to address longer
term factors in more sophisticated ways.

During 2022, we refreshed our sustainability strategy. We completed the R22 refrigerant gas
replacement project. We released our third Task Force on Climate-Related Financial
Disclosures, or TCFD, report, within our Annual Report. We chose to specifically target 5
Green Star ratings for our Bowden and Springs road developments. We created a strategy to
roll out solar across our portfolio. And finally, we started undertaking sustainable
refurbishments. Simon will talk more about the exciting work happening in this area and what
it means for PFI and our tenants going forward in a few minutes.

<<Slide 9: INCREASED CASH RETURNS FOR SHAREHOLDERS>>

Before that though, let me return to the subject of our dividend. Shareholder return has
always been PFI’s overriding imperative and steady growth in dividends is a key part of that,
and one way we measure our success to you, our shareholders. The 2022 year has seen
another increase in dividend, as I referred to earlier, with the Board declaring a cash dividend

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of 8.10 cents per share, representing a pay-out of around 92% of Adjusted Funds From
Operations for the year and 91% on a rolling three-year basis.

One of the key reasons we made the shift to a three-yearly dividend framework, you will
recall, was to enable the Company to continue to steadily increase dividends even when
activities or market temperament meant potentially less immediate earnings accretion. This
year’s dividend guidance demonstrates that. As I said last year, it protects our assurance to
you, and it gives the Company the ability to reduce the impact of short-term market volatility
and pursue opportunities that may take longer to materialise.

Our projection at this stage for next year is a dividend of between 8.10 and 8.30 cents per
share and the upper end of that projection represents another 2.5% increase.

<< Slide 10: CONFIDENT IN OUR STRATEGY>>

Despite the changes in the market in the last 12 months, the Board and Management Team
are confident that our strategy is strong and that the business case to deliver you stable
returns is both compelling and achievable.

Our broader governance framework includes an ongoing focus on Board composition and
capability, and we have previously referred to our Director selection and appointment
process, and broader succession plan. In accordance with that plan, the Board made two
Director appointments during the year and I would like to take a moment to welcome Carolyn
Steele and Angela Bull to the Board. Both Carolyn and Angela have strong technical and
commercial backgrounds, and each brings a different set of skills and past experience to the
Board. We believe both are strong appointments and great additions to the wider PFI team
and we very much look forward to working with Carolyn and Angela going forward. On behalf
of the Board, I would also like to thank retiring Director Susan Peterson for her guidance and
expertise during her time as a director of the Company.

In terms of succession, I have been on the PFI board for many years, initially as a Manager
Appointee and for the past decade or so as an Independent Director. I would like to note that
as part of our succession plan, I have advised the Company that it is my intention to step
down from the Board at a time that suits the Company. Given we have recently farewelled
Susan and welcomed Carolyn and Angela to the Board, the Board has asked that I continue
as a Director and the chair for a further period. We will update shareholders in due course
when PFI takes the next step in terms of our governance succession.

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In terms of the environment we face, while the challenges of COVID-19 may now feel for
many like they are behind us, the long-tail influences of the pandemic remain. What’s more,
the Ukraine war, rising interest rates globally, cooling consumer sentiment and speculation by
some that things will get worse before they get better may have many feeling that we have
swapped one type of uncertainty for another and that new, perhaps even broader, challenges
loom. The recent banking crisis, and the immediacy of the impact this has had and will
continue to have around the world, is a live example. The good news for us is that the
demand for quality logistics space remains high and we have a portfolio comprising quality
assets ideally suited to this sector.

PFI’s long-term strategy and continued focus on industrial property has advanced on a range
of fronts, and the Board is happy with progress. But that doesn’t mean that we can continue
on the same pathways as we have been on in recent years. In order to leverage our current
scale and presence, the best way to take advantage of less frenetic market conditions is to
maximise the value of the current portfolio. With large sites hard to come by and even harder
to justify commercially, redesigning what we have from the ground up represents much better
use of our capital.

In other words, this is very much the time for us to play to a different strength: careful capital
management aimed at maximising what we have to deliver stable returns for investors. Last
year, the team made good use of the drivers available to them through the strategy to do
that, divest sensibly, and position the Company to continue to grow in the years ahead.

I will now hand over to Simon to comment on the year, where he sees PFI heading, and our
two major brownfields opportunities.

<< Slide 11: MANAGEMENT TEAM PRESENTATION >>

<< Simon Woodhams >>

<< Slide 12: READING PREVAILING MARKET CONDITIONS >>

Thanks Ant, and good morning, everyone.

Once again, it’s nice to be able to come together in person and reflect together on what
has been an important year for us. Welcome back to those who regularly attend these
meetings, and a warm welcome if you are joining us for the first time. Also, welcome to
those who have opted to attend online.

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As a Management Team and Board, we really enjoy being able to discuss and show you
what we have been doing over the last 12 months, so let’s get into it.

Today I am going to focus on two topics. Firstly, a subject that has dominated the news
cycle for much of 2023 and will continue to be a major factor for the foreseeable future:
our ability to plan for, and respond to, the challenges of climate change. This is something
we have invested in as part of our overall approach to maximising our portfolio. I’ll talk
about what we’re doing and how sustainability is influencing our approach to property.
Secondly, I want to provide you with updates on two of our most important developments
for the year ahead: Bowden and Springs road.

As Ant pointed out, 2022 was a quieter year for us in terms of transactions. There were
good reasons for that. The properties that were available didn’t meet our commercial
criteria and as I have said in past years, we consider the merits of each and every
acquisition, and divestment for that matter, very carefully. 2021 was a strong year
transactionally, but during 2022 we bided our time and focused on adjusting and preparing
our business for the years ahead.

Our strategy continues to focus on reading prevailing market conditions for opportunities,
being intentional in our management style and making deliberate decisions in our specialist
area that strike the right balance between short-term earnings and long-term value
generation. Part of that is being specific about what constitutes a good PFI investment.

In terms of portfolio growth, we’ll continue to grow our base through proactive and deliberate
investments. Equally, our divestments this year have served two purposes. They have helped
us continue to hone our portfolio, and they have recycled cash to enable us to continue
looking for investments that benefit our investors, tenants, industry, people and planet.

Everything we’ve been doing behind the scenes this year has quietly aligned with these
intentions. Our business thrives on two things, and both of them are people related. One is
our strong tenant relationships. And the other is the expertise of our teams. We’ve paid a
lot of attention to developing capable and agile teams within a distinctive and healthy
culture, and last year’s decision to bring facilities management in-house will bring us even
closer to our tenants and enable us to serve them even better.

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<< Slide 13: SUSTAINABILITY STRATEGY >>

Sustainability is an increasing focus for us. Going forward, we believe there can be no
separation of our commercial and our sustainability goals.

This year we continued to make progress on our sustainability plans, while turning our
attention to the next phase of that journey with the development of a refreshed
sustainability strategy.

That new sustainability strategy is driven by six core principles: the Company will create a
future-proofed and resilient portfolio, and we’ll do that through infusing sustainability into all
our refurbishments, developments, acquisitions and divestments going forward. We’ll
maximise the useful lifespan of our buildings, and that will have two effects. It will help us
minimise waste and it will transform our core portfolio. We are determined to become a
trusted partner for tenants in terms of sustainability and reducing greenhouse gas emissions.
As a professional landlord to the industrial sector, we see that as a pivotal responsibility
going forward. We’ll collaborate with supply-chain partners to minimise waste and promote
positive social impacts. We will focus on strong employee engagement and maintaining
health and safety performance. And finally, we will maintain high standards of financial and
governance performance.

Those six principles will be applied to five material focus areas: greenhouse gas emissions;
resources and waste; disaster and climate resilience; people and wellbeing; and economic
value.

The recent impacts of weather-related events on infrastructure, livelihoods, wellbeing and
regional prosperity are a reminder that a changing natural world demands focused, integrated
and yet patient responses. We understand that sustainability is not set and forget. Rather, it
requires us to be responsive to our changing external environment, to constantly challenge
ourselves to act in the best interests of all, and to remain open to trying new approaches. And
all of this needs to take place within a context of the changing expectations of financial
markets, regulators and our business partners.

Our strategy is about making sure that we do right by all our stakeholders; that our tenants
have buildings they can rely on; that we continue to generate income that our investors can
depend on; and that our buildings form the basis for industrial activities that support regional
economies. Land choice and land use is critical. Energy choices need to be thought through
carefully. We need to consider emissions holistically.

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We have detailed our plans for emissions, resources and waste, disaster and climate
resilience, people and wellbeing and economic value in our Annual Report and I would
encourage you to take the time to find out more about our longer-term plans. Today I want to
focus on one particular aspect: targeting Five Green Star certification as a minimum for our
significant new buildings.

<< Slide 14: SUSTAINABILITY STRATEGY >>

Change doesn’t just happen. If it is to be meaningful and not just reactive, it must be planned
and designed. Over the past three years, we’ve really grown our understanding of the wider
context of our organisation from an emissions perspective. We’ve identified that two types of
emissions in particular have the most material impacts: emissions relating to developments
and refurbishments, known as ‘embodied carbon’, and emissions relating to the operational
performance of our buildings. Our ambition is to minimise both, and to do that we’ve said
we’ll build and refurbish in ways that reduce both embodied and operational greenhouse gas
emissions, and we’ll measure the operational performance of our buildings over time with a
view to improving that performance.

The best way to lock in reduced impacts of course is when we are building from scratch. So
we’ve agreed that when we develop significant new buildings or redevelop current sites,
they’ll be built to the latest sustainability standards by targeting a Five Green Star rating.

The advantage of the Green Star tool is that it’s a holistic approach to ensuring a building
performs to a range of sustainability standards. It ensures that we minimise the impact of
building materials and practices on the environment and that the building is designed
efficiently to minimise greenhouse gas emissions during operation of the building.

To further embed sustainability into all our thinking, we’re also growing our in-house
sustainable development capabilities.

<< Slide 15: SUSTAINABILITY STRATEGY >>

In terms of our other immediate targets, we’ve committed to a range of projects and key
targets through to 2025. They include implementing power metering and monitoring for 50%
of our properties by the end of 2025, installing solar systems at five buildings within the next
three years and minimising and offsetting our residual scope 1 and 2 greenhouse gas
emissions.

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To finish my part of proceedings, I want to bring you up to speed with progress at our
developments at Bowden and Springs roads. These developments are significant not only
because of their brownfields potential but because we are targeting Five Green Star
certification for both. As such, they serve as precedents and benchmarks for that blending of
commercial and sustainability objectives I referred to earlier.

<< Slide 16: BROWNFIELDS OPPORTUNITIES >>

Let’s start with Springs Road. We originally acquired this site in 2013 when PFI merged with
Direct Property Fund. It’s a large landholding – 10.4 hectares – in a prime location, with a
long-term blue-chip tenant in the form of Fisher & Paykel Appliances and low site coverage
that allows for future redevelopment.

<< Slide 17: BROWNFIELDS OPPORTUNITIES >>

In developing new buildings and refurbishing some of the existing buildings, we’ve
recognised that we could incorporate best practice through better design and deliver a more
sustainable, future-proofed, industrial estate. The multi-stage project will start by replacing
one of the existing warehouses with a new 25,500 sqm storage and distribution warehouse
targeting a Five Green Star rating. This stage should be completed by late 2024. An
extension option will then enable Fisher & Paykel Appliances to increase the warehouse by
up to 30,000 sqm should they wish to do so.

Sustainability features planned for the site include rainwater harvesting, the use of
sustainable construction materials, electric vehicle charging stations, greenhouse gas
emissions performance standards, and diversion of construction and demolition waste from
landfill.

All up, this redevelopment enables us to target best-in-class Five Green Star new buildings,
and to introduce further sustainable initiatives into this industrial estate. At the same time,
and just as importantly, a 15-year lease to Fisher & Paykel Appliances will ensure that the
project delivers accretion to both earnings and net tangible assets on a per-share basis.

The second example I want to talk about today is Bowden Road. If you were at this meeting
last year you may recall that I cited this property as a great example of a brownfield
opportunity. We purchased this site originally in 2013. Now, extensive redevelopment over
the next two years will see the current manufacturing, storage and office buildings which

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were constructed in the 1960’s and are now obsolete, replaced with best-in-class storage and
distribution warehousing. Again, we’ll be targeting Five Green Star ratings for this property.

<< Slide 18: BROWNFIELDS OPPORTUNITIES >>

The existing lease expires next month and the first stage of the redevelopment will comprise
a 7,000 sqm warehouse facility which Tokyo Food, the country’s longest-standing Japanese
foods importer, distributor and retailer, have already committed to with a 12-year lease. The
forecast completion date is mid-2024.

<< Slide 19: BROWNFIELDS OPPORTUNITIES >>

The second stage of the development will be an 11,200 sqm high-stud warehouse, 800 sqm
of office and amenities, along with a 2,900 sqm breezeway and 80 car parks. Due to the
strength of the industrial market here in Auckland we have committed to this portion of the
development without first securing a tenant.

In many ways, this redevelopment marks the start of a new era of development for us.
Bowden Road will be our first fully Green Star-rated industrial estate and as such it will
underpin our next era of evolution, both in terms of scale and sustainability, and endorse our
ability to undertake large-scale highest-quality development.

We expect the development to be accretive to both earnings and net tangible assets on a
per-share basis once fully leased. Sustainability features will include solar arrays, water
retention, energy efficiency measures and use of building materials with a lower
environmental impact.

Brownfield opportunities like Bowden Road will play a crucial role in embedding sustainability
and resilience into our portfolio. I talked about this last year. In time, as projects complete and
long-term leases are secured, these “brownfield opportunities” with their Green Star ratings
will make their way into our “core generic” holdings. That in turn will free up more allocation
for further “brownfield opportunities” in our portfolio, to repeat the process. So, brownfield
opportunities like Springs and Bowden roads form an ongoing growth and sustainability
engine for the Company, securing stable returns and strengthening our profile, credibility and
influence in the sector.

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<< Slide 20: LOOKING AHEAD >>

We finished 2022 in a good place. We recorded a steady underlying result. Demand is high.
Rents are forecast to grow and under-renting within the current portfolio offers us a platform
for further rental growth.

We have a clear path for development, and projects like Bowden and Springs road will lock in
a range of gains for the Company in the years ahead. Our sustainability strategy is preparing
us for tomorrow. Our strong balance sheet, proactive capital management and defensive
portfolio give us confidence that we can look through short-term challenges and volatility and
execute on exciting opportunities to continue growing a resilient industrial portfolio of scale.
Doing that will enable us to maintain momentum while meeting investor expectations.

In terms of outlook, we may not see the record results of 2021 in the short to medium, but we
are confident that we will deliver resilient results. And through that, we will set ourselves up
for the next stage of our journey.

Just before I hand back to Ant, I would like to take a moment to thank you, our shareholders
and other stakeholders, who continue to support PFI. As a Management Team and Board,
we look forward to including you in our growth story, well into the future.

Thank you.

<< Slide 21: SHAREHOLDER DISCUSSION >>

Thank you, Simon.

There is now an opportunity for questions or comments on the presentations, or on the
financial statements and auditor’s report, which you can find from page 44 of the annual
report.

For those here in person, if you raise your hand, we’ll get a microphone to you, so that
everyone can hear. Can you start by introducing yourself: your name and whether you’re a
shareholder or a proxy holder and, if you are a proxy holder, the name of the shareholder you
are representing?

For virtual attendees, select the “Q&A” tab, type your question in the box and press “Send”
to submit.

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Thank you for your questions and comments.

<< Slide22: ORDINARY RESOLUTIONS >>

We will now move to the resolutions.

I’ve been advised that 324 shareholders, representing 167,584,210 shares or 33.37% of the
Company’s shares on issue, are represented by proxies.
Voting for the resolutions will be conducted by poll. For the purpose of the poll, I appoint the
Company’s registrar, Computershare, to carry out the poll.

The procedure for the conduct of the poll for in person attendees will be as follows:
▪ Voting papers have been provided with the notice of meeting, pens, where required,
will be distributed now;
▪ If you do not have a voting paper, please see a Computershare representative at the
registration desk who will provide you with a voting paper;
▪ Indicate your vote for, against or abstain, by placing a tick in the appropriate box;
▪ If you are here as a proxy for a shareholder who has not marked ‘proxy discretion’ on
their proxy form, your vote will be automatically counted in accordance with the voting
directions given by your appointer, but please sign the voting paper provided when
you arrived at the meeting;
▪ Where you are a proxy holder and you have been granted a discretion on how to vote
the resolution, please use the voting paper provided when you arrived at the meeting;
▪ After recording your vote, please remember to sign your voting paper, then place the
voting paper in the boxes provided at the back of the room where they will be
collected by Computershare staff.

Having collected the votes, they will be taken to a separate room for counting. The results of
the poll will be announced via NZX as soon as they are available.

Please note that the Board recommends that you vote in favour of each of the six ordinary
resolutions.

<< Slide 23: RESOLUTION 01. >>

Turning to the resolutions.

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The first resolution is: “That Angela Bull, (appointed by the Board as a Director on 20
February 2023), who retires and is eligible for election, be elected as a Director of the
Company”.

The Board considers Angela will be an Independent Director, if elected, and supports her
election.

Angela was appointed as a Director of PFI in February 2023. She is an experienced director
and executive in property investment and commercial developments. Angela is also a
qualified lawyer with significant expertise in environment and property law. There is a profile
of Angela in the notice of meeting.

Angela, would you like to say a few words?

<< Angela to speak >>

<< Anthony Beverley >>

Thank you, Angela.

The resolution is: “That Angela Bull, (appointed by the Board as a Director on 20 February
2023), who retires and is eligible for election, be elected as a Director of the Company”.

Is there any discussion?

Please mark your voting papers for resolution one, or for virtual attendees, select your voting
choice from the options shown under the “Vote” tab on your screen.

As the next resolution is in respect of my re-election, I would like to call upon our People
Committee Chair, Dean, to chair the meeting.

<< Dean Bracewell chaired the meeting >>

<< Slide 24: RESOLUTION 02. >>

Thank you, Anthony.

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The second resolution is “That Anthony Beverley, who retires and is eligible for election, be
elected as a Director of the Company.”

The Board considers Anthony will be an Independent Director, if elected, and supports his re-
election.

Anthony is well-known to many of you, having joined the PFI Board in 2001. There is a profile
of Anthony in the notice of meeting.

The resolution is: “That Anthony Beverley, who retires and is eligible for election, be elected
as a Director of the Company”

Is there any discussion?

Please mark your voting papers for resolution two, or for virtual attendees, select your voting
choice from the options shown under the “Vote” tab on your screen.

I will now hand the meeting back to Anthony.

<< Slide 25: RESOLUTION 03. >>

<< Anthony Beverley >>

Thank you, Dean.

The third resolution is “That Carolyn Steele (appointed by the Board as a Director on 22
August 2022), who retires and is eligible for election, be elected as a Director of the
Company.”

The Board considers Carolyn will be an Independent Director, if elected, and supports her
election.

Carolyn was appointed as a Director of PFI in August 2022. She has a background in
investment management, capital markets and mergers and acquisitions, and currently chairs
PFI’s Audit and Risk Committee. There is a profile of Carolyn in the notice of meeting.

Carolyn, would you like to say a few words?

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<< Carolyn Steele to speak >>

<< Anthony Beverley >>

Thank you, Carolyn.

The resolution is: “That Carolyn Steele, (appointed by the Board as a Director on 22 August
2022), who retires and is eligible for election, be elected as a Director of the Company.”

Is there any discussion?

Please mark your voting papers for resolution three, or for virtual attendees, select your
voting choice from the options shown under the “Vote” tab on your screen.

<< Slide 26: RESOLUTION 04. >>

The fourth resolution is “That Dean Bracewell, who retires and is eligible for election, be
elected as a Director of the Company.”

The Board considers Dean will be an Independent Director, if elected, and supports his re-
election.

Dean has been a Director of PFI since November 2019 and currently chairs PFI’s People
Committee. There is a profile of Dean in the notice of meeting.

Dean, would you like to say a few words?

<< Dean Bracewell to speak >>

<< Anthony Beverley >>

The resolution is: “That Dean Bracewell, who retires and is eligible for re-election, be elected
as a Director of the Company.”

Is there any discussion?

Please mark your voting papers for resolution four, or for virtual attendees, select your voting
choice from the options shown under the “Vote” tab on your screen.

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<< Slide 27: RESOLUTION 05. >>

The fifth resolution is “That the Directors are authorised to fix the fees and expenses of the
auditors, PricewaterhouseCoopers Auckland.”

Is there any discussion?

Please mark your voting papers for resolution five, or for virtual attendees, select your voting
choice from the options shown under the “Vote” tab on your screen.

<< Slide 28: RESOLUTION 06. >>

The sixth, and final resolution, is “That the Directors are authorised to fix the remuneration of
the Directors of the Company from the close of this meeting as per the table shown in the
Explanatory Notes of the Notice of Meeting.”

In setting the proposed rates, the Board commissioned an independent benchmarking review
of the current level of Directors’ fees by Ernst & Young. A summary of Ernst & Young’s report
recommending increases to the fees has been made available to shareholders on PFI’s
website. In requesting this review and setting the proposed Directors’ fees to be put to
shareholders, the Board has also considered the continued robust performance of the
Company and the need to attract and retain directors of a strong calibre.

The proposed rates are set out in the notice of meeting, and if resolution 6 is approved by
shareholders today the set rates will apply from the close of this meeting.

The sixth resolution “That the Directors be authorised to fix the remuneration of the Directors
of the Company from the close of this meeting as per the table shown in the Explanatory
Notes.”

Is there any discussion?

Please mark your voting papers for resolution six, or for virtual attendees, select your voting
choice from the options shown under the “Vote” tab on your screen.

We will just give you all a moment to finalise voting, and then I will close the poll.

The poll is now closed, thank you.

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<< Slide 29: GENERAL BUSINESS >>

We now come to general business.

If there is something you wish to put to the meeting, could you raise your hand and we’ll get
one of the microphones to you? A reminder to please state your name and whether you are a
shareholder or proxy holder. If you are attending virtually, press the “Q&A” tab on your
computer, tablet or mobile, and then type and press “Send” to submit your question.

As mentioned earlier, we will try to get to as many of the questions as possible, but not all
questions may be able to be answered. In this case, questions will be followed up after the
meeting.

<< Slide 30: CLOSE OF MEETING >>

Thank you for your continued support of PFI, and for your attendance today.

That ends the formal part of the meeting and I declare the voting and the meeting closed.

For those here in person, feel free to join us for light refreshments and further conversation.

<< Slide 31: DISCLAIMER >>