31 March 2023 Year End valuation update

.1
20.04.2023
Market Release
31 March Year End Valuation Update
Argosy Property Limited (‘Argosy’) today announced that for the 12 months to 31
March 2023, it has recorded a full year portfolio revaluation loss of $146.4 million, a
6.4% decrease on book value. Of this decrease, $23.5 million was recognised in the
30 September 2022 interim result.
Overall cap rates softened by 68 basis points to an average of 5.84% and this was
a primary driver in revaluation decreases. By sector, Industrial decreased $49.1
million or 4.2%. The Office portfolio declined by $78.9 million or 8.9%, and Large
Format Retail declined by $18.5 million or 8.2%. The portfolio is 10.8% under-rented,
excluding market rent on developments. More detail is provided in the appendix
to this release. Based on the provisional revaluation announced today, Argosy’s
adjusted NTA would be approximately $1.57 per share compared to $1.74 as at 31
March 2022.
Unlike other cyclical softening periods, the market is benefiting from increased
rentals as the capitalisation rates ease. The impact of the softer cap rates was
partially offset in many instances by increases in market rents. In some instances,
value added by increased lease terms has mitigated value declines. The market is
showing a clear premium attached to green buildings.
The valuations as at 31 March 2023 remain subject to audit by Deloitte and will be
confirmed in the financial results to be announced to the market on 17 May 2023.
Peter Mence, CEO of Argosy said, “Argosy’s focus on green property assets is
showing clear benefits in tenant demand and now in relative value, in a softer
asset market.”


APPENDIX – VALUATION SUMMARY
.2

Peter Mence
Chief Executive Officer
Argosy Property Limited
Telephone: 09 304 3400
Email: pmence@argosy.co.nz
Dave Fraser
Chief Financial Officer
Argosy Property Limited
Telephone: 09 304 3400
Email: dfraser@argosy.co.nz
Stephen Freundlich
Head of Corporate Communications &
Investor Relations
Argosy Property Limited
Telephone: 09 304 3400
Email: sfreundlich@argosy.co.nz

.2

Footnote: Due to rounding, numbers presented in this table may not add up exactly to the totals provided and percentages
may not reflect exactly absolute figures.

Auckland1,617.51,507.6(109.9)(6.8%)5.66%4.99%
Wellington607.8577.4(30.5)(5.0%)6.25%5.57%
Nort h Island Regional & S out h Island65.959.9(6.1)(9.2%)6.25%5.75%
T otal 2,291.3 2,144.8 (146.4)(6.4%)5.84%5.16%
- -
Indust rial1,176.91,127.8(49.1)(4.2%)5.48%4.75%
Office890.0811.1(78.9)(8.9%)6.23%5.61%
Large Format Ret ail224.4206.0(18.5)(8.2%)6.25%5.49%
T otal 2,291.3 2,144.8 (146.4)(6.4%)5.84%5.16%
1
Book Value excludes Septem ber 2022 revaluation gain/loss
31 Mar 23
Book Val ue
1
($m)
31 Mar 23
Valuation

($m)

$m

%
31 Mar 23
Book Val ue
1
($m)
31 Mar 23
Valuation

($m)

$m

%
Mar 23
Cap rate
%
Mar 23
Cap rate
%
Mar 22
Cap rate
%
Mar 22
Cap rate
%