2023 Annual Result

.1
17.5.2023
Market Release
FY23 Annual Result – Building a better future
Argosy will present the FY23 annual result via a teleconference and webcast at 10am
today. Please visit https://s1.c-conf.com/diamondpass/10029421-fo91te.html or dial 0800
453 055 and quote the conference ID 10029421. 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 2023.
Key highlights for the period include:
• Net property income for the period of $112.8 million, up 7.3%;
• Net distributable income of $64.2 million;
• High year end occupancy (99.3%) and WALT (5.4 years);
• $146.6 million annual revaluation loss, down 6.4% on book value, resulting in a net loss
after tax of $80.8 million;
• NTA per share of $1.58 from $1.74 at 31 March 2022;
• Strong portfolio leasing and rent review outcomes, including 3.6% annualised rental
growth on rents reviewed;
• Continued focus on sustainability with several green developments completed and 105
Carlton Gore Road nearing completion;
• A full year dividend of 6.65 cents per share, a 1.5% increase over FY22; and
• FY24 dividend guidance of 6.65 cents per share.
Chairman Jeff Morrison said, “The Argosy Board is pleased with the way management and
staff have delivered another solid result and continued to execute on the Company’s asset
allocation strategy, increasing its Industrial weighting and reducing its weighting to Office.

.2
Inflation and interest rates have, and continue to be, an obvious concern and this is
reflected in market volatility across the sector. Management is constantly reviewing the
portfolio and the resilience of tenants and underlying rental income, and is comfortable
with the current position. Government tenancies comprise 34% of total rent, providing a high
degree of earnings certainty. Tenant retention and occupancy ratios have been
particularly pleasing in a challenging year.
CBRE research indicates the bottom-up fundamentals of the Auckland Industrial and
Wellington Office sectors remain strong, and Argosy’s exposure to these sectors also helps
support the company’s earnings and consequently the dividends it is able to pay.
Earnings are underpinned by a solid capital position. Argosy’s interest rate management
strategy sees it with less than 30% floating debt exposure, which is prudent in the current
environment. Furthermore, the Board remains comfortable that Argosy has sufficient funding
capacity to accommodate medium term development requirements and any further
adverse property valuation movements.
Market data suggests that the long-standing strategy of focusing on sustainable spaces is
being rewarded through increasing tenant enquiry for sustainable buildings, in both the
Auckland and Wellington markets. This underscores our long-held view that the local market
is now catching up with international trends and that the resilience of revenue streams is,
and will continue to be, enhanced by the increased number of green buildings in the
portfolio.
Our ongoing commitment to greening the portfolio, primarily through redevelopment, is also
driving higher revenue streams and stronger tenant retention levels. There is a growing
preference by tenants for sustainable green rated buildings. Furthermore, Management is
reporting increased anecdotal evidence of growing rental premiums being achieved for
green buildings and expects this to increase over time. The formal opening of our green
development at 8-14 Willis Street was a highlight during the year. A 6 Star Green Built Rating
is being targeted for this building.
Looking ahead, it is clear that the New Zealand economy will face challenges during the
remainder of FY24. With this in mind, the Board has decided to maintain the dividend at the
current level, so dividend guidance for FY24 is for a pay-out of 6.65 cents per share.”
Management review
Argosy’s Chief Executive Officer, Peter Mence said “We finished FY23 with some excellent
operational results across the business following a summer blotted with extreme weather
and inflation concerns. We are well positioned to start FY24 strongly.
Operationally, the business is in good shape with several new leases and renewals already
addressed, particularly the renewal with General Distributors at Favona Road.

.3
The Auckland Office leasing market has proven more resilient than many expected,
particularly in the green building segment.
Master Planning continues at our two green Value Add industrial precincts at Mt Richmond
and Neilson Street. We continue to receive strong market enquiry for these properties which
will underpin our green development pipeline over the medium term.
As a management team, we are conscious of balancing near term results with delivery of
our longer term strategic goals. For FY24, we will continue to focus on working with our
customers, addressing expiries and leasing vacancy within the portfolio.
The growing tenant demand evident for high quality and vibrant spaces to support their
business requirements validates our confidence in the long term strategy.
These green projects will provide impetus to our goal of half our portfolio being green by
2031. The combination of these short and long term focus areas will underpin the delivery of
our strategy and sustainable distributions to shareholders.”
Financial Results
Statement of Comprehensive Income
For the 12 months to 31 March, Argosy reported net property income of $112.8 million for the
period, up $7.6 million or 7.3% compared with the prior comparable period.
Net property income was bolstered by solid like for like rental growth, the contribution from
100 Maui Street and development income.
Net interest expense of $36.3 million was up $10.7 million on the prior comparable period,
primarily due to higher floating rates, higher overall debt levels and lower capitalised
interest.
Annual valuations for the year to 31 March 2023 were performed by CBRE Limited, and
Colliers International New Zealand Limited. The total unrealised revaluation loss for the year
to 31 March was $146.6 million or 6.4% on book value. In general, portfolio capitalisation rate
softening of 68 basis points to 5.84% was offset to some extent by market rental growth. Of
the annual decline $23.5 million was recognised in the interim result at 30 September 2022.
By sector, Industrial decreased $49.1 million or 4.2%. The Office portfolio declined by $79.0
million or 8.9%, and Large Format Retail declined by $18.5 million or 8.2%. The portfolio was
10.8% under-rented, excluding market rent on vacant space.
As a result of the FY23 revaluations, Argosy’s NTA declined to $1.58 from $1.74 at 31 March
2022. Following the revaluation, Argosy’s portfolio shows a contract yield on values of 5.60%
and a yield on fully let market rentals of 6.21%.

.4
The revaluation loss contributed to a net loss after tax of $80.8 million, compared to a net
profit of $236.2 million in FY22.
Distributable Income
Net distributable income for the year was $64.2 million compared to $64.7 million in the prior
comparable period.
Portfolio Activity
Portfolio Metrics, Rent Reviews and Leasing
Peter Mence said “During the second half of the year the economic landscape became
more challenging. However, the team delivered some excellent results around the key
operating metrics of occupancy, rental growth and leasing.”
As at 31 March, Argosy’s WALT was a healthy 5.4 years and portfolio occupancy was 99.3%
up from 98.7% as at the prior year end.
For the year to 31 March, Argosy completed 106 rent reviews, achieving annualised rental
growth of 3.6%. These reviews were achieved on rents totalling $73.0 million.
On rents subject to review by sector, Argosy achieved annualised rental growth of 3.4% for
Industrial rent reviews, 3.5% for Office rent reviews and 4.7% for Large Format Retail rent
reviews.
For the year to 31 March, 65% of rents reviewed were subject to fixed reviews, 22% were
market reviews and 13% were CPI based.
Argosy completed 36 leasing transactions across 97,500m
2
of NLA over the year to 31
March. Lease transactions were made up of new leases (16), extensions (4), renewals (16).
Key leasing highlights over the financial year include;
• General Distributors, 80-120 Favona Road, 46,828m
2

• McLarens Group (NZ) Limited, Citigroup, 988m
2

• Debonaire Furniture Limited, 39 Randwick Road, 4,142m
2

• Visypet (NZ) Limited, 211 Albany Highway, 15,191m
2

• Hospitality Services Limited, Citigroup, 656m
2

• Briscoes Group, Albany Mega Centre, 5,650m
2

• Ministry for the Environment, 8 Willis Street, 2,245m
2

• Lighting Direct, Albany Mega Centre, 571m
2

Peter Mence said ”The team worked very hard over the back end of the financial year and
attracted and retained some great tenants for Argosy.

.5
Recent CBRE data indicates that, while a quieter twelve months ahead is expected, the
Auckland Industrial sector remains very attractive with strong bottom-up fundamentals,
including low vacancy and strong rental growth. Industrial remains very much a resilient
sector and has some of the best forecast returns through to 2026.
Argosy’s portfolio is 53% weighted to Industrial, and it is clear that our pipeline of green
Value Add development Industrial sites will further enhance portfolio quality and resilience
over the longer term.”
Divestment of non Core Assets
During the year, Argosy settled the sale of 25 Nugent Street in Auckland, for $22.0 million (at
a 28% premium to the then book value). At year end, there are a small number of assets
which are earmarked for sale as they no longer meet Argosy’s investment criteria (totalling
approximately $66.0 million).
Developments
105 Carlton Gore Road, Newmarket
This $35 million redevelopment is nearing completion with a target date of 1 June 2023. The
remaining focus is on interior finishes including integrated tenancy fitout on the ground floor,
part Level 3 and all of Level 4. The building is currently ~50% leased and Argosy is in exclusive
negotiations with potential new tenants for both Level 2 (1,055m
2
) and the balance of part
Level 3. This would only leave Level 1 available for lease.
Mt Richmond
Master Planning continues at this 10.6 hectare Value Add green development site in the
central industrial precinct of Mt Wellington, only 15km from Auckland CBD. The industrial
estate is targeting a minimum 6 Green Star rating with high stud options ranging from
4,000m
2
– 18,000m
2
, ample parking, café and state of the art end-of -trip facilities. Resource
consents have been lodged and are being processed by Auckland Council. Stage 1
(earthworks consents) are expected to be uplifted imminently. Stage 2 (structure) consents
are expected to be uplifted in the coming weeks.
Peter Mence said “We are getting some very good interest from a range of good quality
tenants across a diverse range of sectors.”
Neilson Street
Neilson Street is the second of Argosy’s Value Add green development sites. It is strategically
located 8km from the Auckland CBD with excellent access to both motorway networks. The
site will offer 5 Green Star high stud office/warehouse options from 3,500m
2
– 7,000m
2
.

.6
“The Neilson Street location is generating strong interest and we are negotiating with top
quality tenants. There is a lot of market demand for modern, well located and sustainable
buildings. Developments such as this, coupled with attractive market fundamentals, means
we are well placed to benefit from this demand.” said Peter Mence.
Capital Management
As at 31 March, Argosy’s debt to total assets ratio, excluding capitalised borrowing costs,
was 35.1% compared to 31.1% at 31 March 2022.
The ratio reflects the net impact of revaluation losses, acquisitions and development activity
during the period
1
. Argosy’s year end gearing sits towards the middle of its target gearing
band of 30-40%, and well below its bank covenant of 50%.
During the period Argosy increased and extended its syndicated bank facilities with ANZ
Bank of New Zealand Limited, Bank of New Zealand Limited, The Hongkong and Shanghai
Banking Corporation, Commonwealth Bank of Australia and Westpac New Zealand Limited.
Argosy also announced that Industrial and Commercial Bank of China Limited (ICBC) joined
the syndicate. The total amount of the bank facility has increased by $20 million and is now
$475 million.
Argosy’s weighted average debt tenor, including bonds, was 3.2 years (3.5 years at 31
March 2022) with the nearest tranche of bank debt expiring in April 2025. Its weighted
average interest rate was 5.39% (4.14% at 31 March 2022).
Strategy and Governance
“Argosy remains focused on building a better future. We will do this through our
commitment to sustainability and greening our portfolio, meeting tenant demand, through
redevelopment of existing buildings and development of new ones. We remain weighted to
the Auckland Industrial market, where half of our portfolio is positioned to leverage from
attractive long term structural trends.
As we look ahead to FY24, the economic environment is looking more challenging for
business and for consumers. We remain focused on delivering on key objectives that will
support earnings and dividend sustainability. This includes completing existing developments
and associated leasing up, commencing our new green industrial projects, and addressing
residual vacancies and near term expiries. Our big strategic goals, particularly around
greening the portfolio, will support resilient and sustainable dividend growth to shareholders
over the long term” said Jeff Morrison.


1
The ratio excludes the right of use asset at 39 Market Place of $40.1 million, recorded in the period under NZ IFRS 16.

.7
Argosy’s Annual Shareholders Meeting (ASM) will be held as a hybrid meeting on 20 June at
2pm at the Royal New Zealand Yacht Squadron in Auckland. Argosy continues to utilise the
hybrid functionality of the ASM. It allows shareholders to attend virtually and participate in all
elements of the meeting including questions and answers and completing all voting.
Martin Stearne and Rachel Winder 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 1.6625 cents per share has been declared for the March
quarter with imputation credits of 0.01801 cents per share attached. This brings the full year
dividend to 6.65 cents per share in line with previous guidance. The dividend will be paid to
shareholders on 21 June 2023 and the record date will be 7 June 2023. The Dividend
Reinvestment Plan remains suspended by the Board until further notice.
Jeff Morrison said “With strong foundations in place, Argosy starts the FY24 year in very good
shape both from a capital and business position. Whilst the near term operating
environment is going to be challenging, the company remains focused on its strategy of
delivering a sustainably focused (green), resilient and diversified business that creates long
term value for shareholders.”

-END-
.7

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

---

The business
of being green
Annual Report 2023

At Argosy we’re focused
on building a better future
by creating vibrant and
sustainable spaces for our
tenants, and their staff, to
prosper while also reducing
our impact on the planet.
Sustainability is at the heart
of what we do as a business
and how we plan to grow.
This is evident by our
growing portfolio of green
buildings, designed to
reduce carbon emissions
and waste and to minimise
energy usage.
Leading
the way
In the last seven years
we’ve completed nine green
redevelopments representing
over 75,000m
2
of space. Our
green builds adopt innovative
products and approaches to
bring our existing buildings
in line with world leading
green standards.
What makes our approach
truly unique from many
others in our sector is that
we primarily target retro-fitting
existing buildings to make
them more energy efficient.
2Annual Report 2023Argosy Property Limited

Our goal is
to have over
50% of our
portfolio in
green buildings
by 20 31.
This unique approach has
a double impact, increasing
New Zealand’s energy efficient
green buildings while also
reducing the number of
non-green buildings.
Today 31% of our portfolio
by value is green.
2023 highlights10
Building a better future12
Chairman's Review14
Management Report16
Numbers at a glance20
Our Leadership & Governance22
Financial summary27
Consolidated Financial Statements29
Corporate Governance60
Investor Statistics72
Directory76
3Annual Report 2023Argosy Property Limited

Many of our tenants are on
their own green journey,
looking to do right by their
people, by their communities
and by the environment.
They’re looking for productive
work environments that
enhance their people’s
wellbeing, are energy
efficient and also allow
them to operate with a lower
carbon footprint. We adopt
a number of sustainable
practices to support these
tenant goals, including:
∙ Solar panels to reduce
traditional energy usage.
∙ Metering systems to monitor
electricity and water usage.
∙ Rainwater collection systems,
for toilets and irrigation.
∙ L
ow water use gardens
and landscaping.
∙ I
ntelligent LED lighting
with occupancy and
daylight controls.
∙ Attractive outdoor spaces
to encourage staff wellbeing.
∙ End-of-trip facilities,
including showers, bike
racks and stretch areas,
that support people’s
healthy lifestyle choices.
Driven
by tenant
demand
*Defined as reused or redeveloped buildings not new builds. NZGBC data as at 31 March 2023.
5 GREEN STAR BUILT RATED (OR HIGHER) BUILDINGS*
ArgosyOwner 2Owner 1Owner 3Owner 5Owner 4Owner 6
36%
Argosy owns over
one third of all the
redeveloped 5 Green
Star Office Built rated
(or higher) buildings
in New Zealand.
4Annual Report 2023Argosy Property Limited

What is a Green Star rating?
A Green Star rating is an independent evaluation
that assesses your project against criteria set by the
New Zealand Green Building Council. Green Star
ratings can be from zero (assessed) to 6 Stars (World
Leadership). This system takes a holistic approach
that not only looks at direct environmental impacts
like water and energy, but also accounts for waste
management, public transport and management.
What is a NABERSNZ rating?
NABERSNZ is a system for rating the energy efficiency
of office buildings. It is an independent tool, backed by
the New Zealand government. A NABERSNZ Certified
Rating gives a star rating, from 0 to 6, that clearly
shows your building’s energy performance compared
to others.
Market-leader
in retro-fitting
existing buildings
Our approach to sustainability
is driven by the needs of
our tenants, seeing us
attract quality tenants across
diversified industries. This
growing tenant demand for
green buildings is reflected
in the longer-term value of
our green properties. For us
sustainability is good business.
5Annual Report 2023Argosy Property Limited

14 green buildings
15-21 Stout Street, Wellington
CURRENT NABERSNZ RATING
5.5 Star Energy Base Build
GREEN STAR RATING
5 Star Office Built
82 Wyndham Street, Auckland
CURRENT NABERSNZ RATING
6.0 Star Energy Base Build
GREEN STAR RATING
5 Star Office Built
Highgate Parkway, Auckland
CURRENT NABERSNZ RATING
n/a
1
GREEN STAR RATING
5 Star Industrial Built
107 Carlton Gore Road, Auckland
CURRENT NABERSNZ RATING
5.0 Star Energy Base Build
GREEN STAR RATING
5 Star Office Built
8-14 Willis Street, Wellington
CURRENT NABERSNZ RATING
Targeting 5 Star
GREEN STAR RATING
Targeting 6 Star
Our
results
1. NABERSNZ rating not available for industrial buildings.
Note: Green Buildings are defined under Argosy’s Green
Bond Framework which can be found on its website
www.argosy.co.nz under Investor Centre.
6Annual Report 2023Argosy Property Limited

99 Khyber Pass Road, Auckland
CURRENT NABERSNZ RATING
5.0 Star Energy Base Build
GREEN STAR RATING
–
23 Customs Street, Auckland
CURRENT NABERSNZ RATING
4.5 Star Energy Base Build
GREEN STAR RATING
–
1-3 Unity Drive, Auckland
CURRENT NABERSNZ RATING
n/a
1
GREEN STAR RATING
Targeting 4 Star
105 Carlton Gore Road
CURRENT NABERSNZ RATING
Targeting 5 Stars
GREEN STAR RATING
Targeting 6 Star
18-20 Bell Avenue, Auckland
CURRENT NABERSNZ RATING
n/a
1
GREEN STAR RATING
Targeting 4 Star
12-16 Bell Avenue, Auckland
CURRENT NABERSNZ RATING
n/a
1
GREEN STAR RATING
Targeting 4 Star
308 Great South Road, Auckland
CURRENT NABERSNZ RATING
4.5 Star Energy Base Build
GREEN STAR RATING
–
143 Lambton Quay, Wellington
CURRENT NABERSNZ RATING
Renewal pending
GREEN STAR RATING
5 Star Office Built
5 Allens Road
CURRENT NABERSNZ RATING
n/a
1
GREEN STAR RATING
Targeting 4 Star
7Annual Report 2023Argosy Property Limited

Building a better future
8-14 WILLIS ST CASE STUDY
In the first half of the 2023 financial year Argosy completed
the redevelopment of 8-14 Willis Street/360 Lambton Quay
in Wellington – including the workspace for Stats NZ,
the Ministry for the Environment and a number of high
street speciality retail tenants. The development featured
innovative design with a focus on creating resilient and
sustainable workspaces for the future.
Argosy implemented a number of optimisation measures
to balance cost, programme and the requirement for large
open plan floor plates. One of the key innovations was the
combination of an automated process to tune the buildings
seismic performance that resulted in the use and most
efficient placement of 4,000kN dampers throughout the
building to control the building’s lateral drift – significantly
reducing the amount of structure that previously may have
been required to achieve a 130% NBS rating.
“Argosy and Stats NZ have
created a great workplace
for our people. We are
really pleased with 8 Willis.”
Helen Cooper,
Head of Workplace Environments
STATS NZ
8Annual Report 2023Argosy Property Limited

“By working
collaboratively with
the team at Stats
NZ, it’s allowed us
to deliver a fantastic
result for them and
their people.”
Marilyn Storey,
Head of Development
ARGOSY
Stats NZ
Stats NZ collects information from people and
organisations through censuses and surveys.
Stats NZ uses this data to publish news stories
and insights about Aotearoa New Zealand, and
support others to use the information.
Total NLA
16,776m
2
Retail NLA
3 ,10 0 m
2
Term
15 years
The design team in collaboration with Argosy, the
contractor and Stats NZ implemented a number of solutions
and technologies to position the building as a comfortable
and sustainable workplace.
In addition to these sustainability features the Stats NZ
fitout was integrated into the project to minimise
construction waste and inefficiency; while supporting
the tenant’s aspiration to inform the building design
to best reflect the culture and values of the organisation
and to create a meaningful workplace identity.
Argosy is targeting a 6 Green Star Built rating and 5 Star
NABERSNZ energy efficiency rating for the building.
If certified, 8 Willis Street will become Wellington’s
and Argosy’s first 6 Star rated building which is quite
an achievement.
6 Stars is defined as “world leading” in environmentally
sustainable building practice and epitomises the highest
standard of quality in design and what is actually built.
The modern, innovative features of the building include:
roof top solar panels, rain water harvesting, chilled beams
to deliver both cooling & heating concurrently and a new
HVAC system to meet Green Star requirements. Modern
end of trip facilities were also included as part of the
development, including e-bike chargers.
9Annual Report 2023Argosy Property Limited

2023 highlights
$ 5 8 .1m
ADJUSTED
FUNDS FROM
OPERATIONS
5.4yrs
WEIGHTED
AVERAGE LEASE
TERM (WALT)
$1.5 8
NET TANGIBLE
ASSETS
99.3%
OCCUPANCY
3 5 .1%GEARING
6.65cps
FULL YEAR
DIVIDEND
1.5%
2023 highlights
10Annual Report 2023Argosy Property Limited

INDUSTRIAL SECTOR WEIGHTING
53%
PERCENTAGE OF INDUSTRIAL PORTFOLIO
LOCATED IN AUCKLAND
87%
Sustainability
5 Star
NABERSNZ energy ratings achieved
on two buildings
31%
Green assets, % of portfolio
Toitū
Net Carbonzero Certification (for 2022)
6 Star
Green Built certification target
for 8-14 Willis Street
>90%
Landfill diversion tracking
for 105 Carlton Gore Road
Social
$93,000
in community support
32 beds
and bedding packs donated to Variety
GOVERNMENT SECTOR RENTAL INCOME
34%
11Annual Report 2023Argosy Property Limited

Building a
better future
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
12Annual Report 2023Argosy Property Limited

Top: 39 Market Place, Bottom: Snickel Lane.
13Annual Report 2023Argosy Property Limited

Chairman's Review
08Annual Report 2022Argosy Property Limited
Building a
Better Future
“The Argosy Board is pleased with the way
m
anagement and staff have delivered another solid
result and continued to execute on the Company’s
asset allocation strategy, increasing its Industrial
weighting and reducing its weighting to Office.”
Jeff Morrison
CHAIRMAN
14Annual Report 2023Argosy Property Limited

On behalf of the Board of Directors,
it is my pleasur
e to present Argosy’s
2023 Annual Report.
Inflation
and interest rates have, and continue to be, an obvious
concern and this is reflected in market volatility across the
sector. Management is constantly reviewing the portfolio and
the resilience of tenants and underlying rental income, and is
comfortable with the current position. Government tenancies
comprise 34% of total rent, providing a high degree of earnings
certainty.  Tenant retention and occupancy ratios have been
particularly pleasing in a challenging year.
CBRE research indicates the bottom-up fundamentals of the
A
uckland Industrial and Wellington Office sectors remain
s
trong, and Argosy’s exposure to these sectors also helps
support the company’s earnings and consequently the dividends
it is able to pay.
Earnings are underpinned by a solid capital position. Argosy’s
inter
est rate management strategy sees it with less than
30% floating debt exposure, which is prudent in the current
environment. Furthermore, the Board remains comfortable
that Argosy has sufficient funding capacity to accommodate
medium term development requirements and any further
adverse property valuation movements.
Market data suggests that the long-standing strategy of focusing
on sus
tainable spaces is being rewarded through increasing
tenant enquiry for sustainable buildings, in both the Auckland
and Wellington markets. This underscores our long-held view
that the local market is now catching up with international
trends and that the resilience of revenue streams is, and will
continue to be, enhanced by the increased number of green
buildings in the portfolio.
Our ongoing commitment to greening the portfolio, primarily
thr
ough redevelopment, is also driving higher revenue streams
and stronger tenant retention levels. There is a growing
preference by tenants for sustainable green rated buildings.
Furthermore, Management is reporting increased anecdotal
evidence of growing rental premiums being achieved for green
buildings and expects this to increase over time. The formal
opening of our green development at 8-14 Willis Street was a
highlight during the year. A 6 Star Green Built Rating is being
targeted for this building.
Strategy
Argosy remains focused on building a better future. We will
do this thr
ough our commitment to sustainability and greening
our portfolio, meeting tenant demand, through redevelopment
of existing buildings and development of new ones. We remain
weighted to the Auckland Industrial market, where half of our
portfolio is positioned to leverage from attractive long term
structural trends.
As we look ahead to FY24, the economic environment is
looking mor
e challenging for business and for consumers.
We remain focused on delivering on key objectives that will
support earnings and dividend sustainability. This includes
completing existing developments and associated leasing up,
commencing our new green industrial projects, and addressing
residual vacancies and near term expiries. Our big strategic
goals, particularly around greening the portfolio, will support
resilient and sustainable dividend growth to shareholders over
the long term.
Governance
Argosy’s Annual Shareholders Meeting (ASM) will be held as a
h
ybrid meeting on 20 June at 2pm at the Royal New Zealand
Yacht Squadron in Auckland. Argosy continues to utilise the
hybrid functionality of the ASM. It allows shareholders to
attend virtually and participate in all elements of the meeting
including questions and answers and completing all voting.
Martin Stearne and Rachel Winder will retire in accordance
with the Compan
y’s constitution and the NZX Listing Rules and
will be eligible for re-election.
Dividends
A fourth quarter dividend of 1.6625 cents per share has been
declar
ed for the March quarter with imputation credits of
0.01801 cents per share attached. This brings the full year
dividend to 6.65 cents per share in line with previous guidance.
The dividend will be paid to shareholders on 21 June 2023 and
the record date will be 7 June 2023. The Dividend Reinvestment
Plan remains suspended by the Board until further notice.
Looking ahead, it is clear that the New Zealand economy will
face challenges during the r
emainder of FY24.  With this in
mind, the Board has decided to maintain the dividend at the
current level, so dividend guidance for FY24 is for a pay-out of
6.65 cents per share.
Outlook
With strong foundations in place, Argosy starts the FY24
y
ear in very good shape both from a capital and business
position. Whilst the near term operating environment is
going to be challenging, the company remains focused on
its strategy of delivering a sustainably focused (green),
resilient and diversified business that creates long term value
for shareholders.
JEFF MORRISON
Chairman
FY23 full year dividend
6.65cps
A 1.5% increase on the prior period
FY24 dividend guidance
6.65cps
Inline with FY23 dividend
15Annual Report 2023Argosy Property Limited

Management Report
10Annual Report 2022Argosy Property Limited
A sustainable focus
“We finished FY23 with some excellent operational
r
esults across the business following a summer
blotted with extreme weather and inflation concerns.
We are well positioned to start FY24 strongly.”
Peter Mence
CHIEF EXECUTIVE OFFICER
Dave Fraser
CHIEF FINANCIAL OFFICER
16Annual Report 2023Argosy Property Limited

Operationally, the business is in good shape with several new
leases and r
enewals already addressed, particularly the renewal
with General Distributors at Favona Road. The Auckland Office
leasing market has proven more resilient than many expected,
particularly in the green building segment.
Master Planning continues at our two green Value Add
indus
trial precincts at Mt Richmond and Neilson Street. We
continue to receive strong market enquiry for these properties
which will underpin our green development pipeline over the
medium term.
Highlights
Key highlights for the period include:
•Net property income for the period of $112.8 million,
up 7
.3%;
•Net distributable income of $64.2 
million;
•High year end occupancy (99.3%) and WALT (5.4 years);
•$146.6
 million annual revaluation loss, down 6.4% on book
value, resulting in a net loss after tax of $80.8 million;
•NTA per share of $1.58 from $1.74 at 31 March 2022;
•Strong portfolio leasing and rent review outcomes, including
3
.6% annualised rental growth on rents reviewed;
•Continued focus on sustainability with several green
de
velopments completed and 105 Carlton Gore Road
nearing completion;
•A full year dividend of 6.65 cents per share, a 1.5% increase
o
ver FY22; and
•FY24 dividend guidance of 6.65 cents per share.
Financial Results
Statement of Comprehensive Income
For the 12 months to 31 March, Argosy reported net property
income of $
112.8 million for the period, up $7.6 million or 7.3%
compared with the prior comparable period.
Net property income was bolstered by solid like for like
r
ental growth, the contribution from 100 Maui Street and
development income.
Net interest expense of $36.3 million was up $10.7
 million on
the prior comparable period, primarily due to higher floating
rates, higher overall debt levels and lower capitalised interest.
Annual valuations for the year to 31 March 2023 were
performed b
y CBRE Limited, and Colliers International New
Zealand Limited. The total unrealised revaluation loss for the
year to 31 March was $146.6 million or 6.4% on book value. In
general, portfolio capitalisation rate softening of 68 basis points
to 5.84% was offset to some extent by market rental growth. Of
the annual decline $23.5 million was recognised in the interim
result at 30 September 2022. 
By sector, Industrial decreased $49.1
 million or 4.2%. The Office
portfolio declined by $79.0 million or 8.9%, and Large Format
Retail declined by $18.5 million or 8.2%. The portfolio was
10.8% under-rented, excluding market rent on vacant space.
As a result of the FY23 revaluations, Argosy’s NTA declined to
$
1.58 from $1.74 at 31 March 2022. Following the revaluation,
Argosy’s portfolio shows a contract yield on values of 5.60% and
a yield on fully let market rentals of 6.21%.
The revaluation loss contributed to a net loss after tax of
$80
.8  million, compared to a net profit of $236.2 million
in FY22.
Distributable Income
Net distributable income for the year was $64.2 million
compar
ed to $64.7 million in the prior comparable period.
Portfolio Metrics, Rent Reviews and Leasing
During the second half of the year the economic landscape
became mor
e challenging. However, the team delivered some
excellent results around the key operating metrics of occupancy,
rental growth and leasing.
As at
31 March, Argosy’s WALT was a healthy 5.4 years and
portfolio occupancy was 99.3% up from 98.7% as at the prior
year end.
For the year to
31 March, Argosy completed 106 rent reviews,
achieving annualised rental growth of 3.6%. These reviews were
achieved on rents totalling $73.0 million.
On rents subject to review by sector, Argosy achieved
annualised r
ental growth of 3.4% for Industrial rent reviews,
3.5% for Office rent reviews and 4.7% for Large Format Retail
rent reviews.
For the year to
31 March, 65% of rents reviewed were subject
to fixed reviews, 22% were market reviews and 13% were
CPI based.
Argosy completed 36 leasing transactions across 97,500m
2
of
NLA o
ver the year to 31 March. Lease transactions were made
up of new leases (16), extensions (4), renewals (16).
Key leasing transaction successes over the financial
year include:
•General Distributors, 80-120 Favona Road, 46,828m
2
•McLarens Group (NZ) Limited, Citigroup, 988m
2
•Debonaire Furniture Limited, 39 Randwick Road, 4,142m
2
•Visypet (NZ) Limited, 211 Albany Highway, 15,191m
2
•Hospitality Services Limited, Citigroup, 656m
2
•Briscoes Group, Albany Mega Centre, 5,650m
2
•Ministry for the Environment, 8 Willis Street, 2,245m
2
•Lighting Direct, Albany Mega Centre, 571m
2
The team worked very hard over the back end of the
financial
year and attracted and retained some great tenants for Argosy. 
Recent CBRE data indicates that, while a quieter twelve months
ahead is e
xpected, the Auckland Industrial sector remains very
attractive with strong bottom-up fundamentals, including low
vacancy and strong rental growth. Industrial remains very much
a resilient sector and has some of the best forecast returns
through to 2026.
Argosy’s portfolio is 53% weighted to Industrial, and it is clear
that our pipeline of gr
een Value Add development Industrial
sites will further enhance portfolio quality and resilience over
the longer term.
Net Property Income
$112.8m
Up 7.3% for the period
17Annual Report 2023Argosy Property Limited

Management Report
Value Add Developments
105 Carlton Gore Road, Newmarket
This $35
 million redevelopment is nearing completion with a
target date of 1 June 2023. The remaining focus is on interior
finishes including integrated tenancy fitout on the ground floor,
part Level 3 and all of Level 4. The building is currently ~50%
leased and Argosy is in exclusive negotiations with potential
new tenants for both Level 2 (1,055m
2
) and the balance of part
Level 3. This would only leave Level 1 available for lease.
Mt Richmond, Mt Wellington
Master Planning continues at this 10.6 hectare Value Add
gr
een development site in the central industrial precinct of
Mt Wellington, only 15km from Auckland CBD. The industrial
estate is targeting a minimum 6 Green Star rating with high
stud options ranging from 4,000m
2
– 18,000m
2
, ample parking,
café and state of the art end-of-trip facilities. Resource consents
have been lodged and are being processed by Auckland Council.
Stage 1 (earthworks consents) are expected to be uplifted
imminently. Stage 2 (structure) consents are expected to be
uplifted in the coming weeks.
We are getting some very good interest from a range of good
quality tenants acr
oss a diverse range of sectors.
Neilson Street, Onehunga
Neilson Street is the second of Argosy’s Value Add green
de
velopment sites. It is strategically located 8km from the
Auckland CBD with excellent access to both motorway
networks. The site will offer 5 Green Star high stud office/
warehouse options from 3,500m
2
– 7,000m
2
.
The Neilson Street location is generating strong interest and
w
e are negotiating with top quality tenants. There is a lot
of market demand for modern, well located and sustainable
buildings. Developments such as this, coupled with attractive
market fundamentals, means we are well placed to benefit.
Divestment of non Core Assets
During the year, Argosy settled the sale of 25 Nugent Street in
A
uckland, for $22.0 million (at a 28% premium to the then book
value). At year end, there are a small number of assets which are
earmarked for sale as they no longer meet Argosy’s investment
criteria (totalling approximately $66.0 million).
Capital Management
As at
31 March, Argosy’s debt to total assets ratio, excluding
capitalised borrowing costs, was 35.1% compared to 31.1%
at 31 March 2022. The ratio reflects the net impact of
revaluation losses, acquisitions and development activity during
the period.
1
Argosy’s year end gearing sits towards the middle
of its target gearing band of 30-40%, and well below its bank
covenant of 50%.
During the period Argosy increased and extended its syndicated
bank facilities with AN
Z Bank of New Zealand Limited, Bank
of New Zealand Limited, The Hongkong and Shanghai Banking
Corporation, Commonwealth Bank of Australia and Westpac
New Zealand Limited. Argosy also announced that Industrial
and Commercial Bank of China Limited (ICBC) joined the
syndicate. The total amount of the bank facility has increased
by $20 million and is now $475 million.
Argosy’s weighted average debt tenor, including bonds, was 3.2
y
ears (3.5 years at 31 March 2022) with the nearest tranche of
bank debt expiring in April 2025. Its weighted average interest
rate was 5.39% (4.14% at 31 March 2022).
Outlook
As a management team, we are conscious of balancing near
term r
esults with delivery of our longer term strategic goals. For
FY24, we will continue to focus on working with our customers,
addressing expiries and leasing vacancy within the portfolio.
The growing tenant demand evident for high quality and
vibr
ant spaces to support their business requirements validates
our confidence in the long term strategy.
These green projects will provide impetus to our goal of half
our portfolio being gr
een by 2031.  The combination of these
short and long term focus areas will underpin the delivery of
our strategy and sustainable distributions to shareholders.
We look forward to updating all our stakeholders at our Annual
M
eeting in June.
PETER MENCE
Chief Executive
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
1
The ratio excludes the right of use asset at 39 Market Place of $40.1
 million, recorded in the period under NZ IFRS 16.
Debt-to-total-assets at 31-March
1
35.1%
Middle of target 30-40% band
Weighted average debt tenor
3.2yrs
Includes bonds
18Annual Report 2023Argosy Property Limited

Investment
Policy Framework
Argosy 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
ar
e 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 incr
ease 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 o
wn 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 s
trategy 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
ma
y be considered where an acquisition is made to meet the
requirements of a valued tenant.
Investment Policy target bands also reflect
development
opportunities over the medium-term and the effect on overall
portfolio composition. The Industrial target is 55-65%, Office is
25-35% and the Large Format Retail target is 5-15%.
Argosy’s
diversified portfolio of quality properties has an
average value of $39.7 million. Liquid properties, which are
properties that could potentially be under contract within
a short period, currently represent 22% of the portfolio or
$475 million.
Capital Management
The optimal capital structure for Argosy is one that enables it to
maximise its earnings yield thr
ough the property cycle within
the following parameters:
•properties can be acquired when they meet the approved
In
vestment 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 dilutiv
e to shareholders;
•measured dividend growth is maintained.
Argosy’s debt-to-total assets ratio target band remains at
30-40%. This band allo
ws 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
shar
eholders. 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
r
eviews 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
r
ange. Argosy has a low risk appetite for risks associated
with managing developments, Value Add projects and
compliance matters.
Portfolio Mix by Sector
53% Industrial
38% Office
9% Large Format Retail
“Our Investment Policy is a key pillar
of our strategy of cr
eating a green,
resilient and diversified portfolio.”
Peter Mence
CEO
19Annual Report 2023Argosy Property Limited

Numbers at a glance
Unit of
measureIndustrialOffice
Large Format
RetailTotal
Number of buildingsno.3515454
Market value of assets$m1,1288112062,145
Net lettable aream²461,600131,88950,204643,693
Occupancy factor by rent%100.098.5100.099.3
Weighted average lease termyears6.15.22.95.4
Average value$m32.254.151.539.7
Passing yield
1
%5.076.106.515.60
1. Passing yield excludes 105 Carlton Gore Road, 39 Market Place and 224 Neilson Street.
ANNUALISED RENT GROWTH
3.6%
Across 106 reviews on $73m of
rental income
INDUSTRIAL SECTOR WEIGHTING
53%
Artists’ impression, 224 Neilson Street, Auckland.
Numbers at a glance
20Annual Report 2023Argosy Property Limited

Lease Expiry Profile BY RENT
Total Portfolio Value BY REGION
Total Portfolio Value BY SECTOR
0
5
10
15
20
Mar-34+Mar-33Mar-32Mar-31Mar-30Mar-29Mar-28Mar-27Mar-26Mar-25Mar-24Vacant
17.2
3.5
6.5
4.6
3.3
6.7
14.3
13.9
7.9
10.5
10.9
0.7
Percentage of portfolio by income
New leases completed in FY23 BY SECTOR
Floor Area
(sqm)
Average
Lease Term
(years)
No. of
Leases
Office13,5374.720
Industrial
76,3488.18
Large Format Retail
7,6155.38
TOTAL97,5006.836
Rent reviews in FY23 BY SECTOR
No. of
Reviews
Annualised
Rent
Increase
Increase
over
Contract ($)
Industrial373.4%2,103,280
Office
473.5%1,022,581
Large Format Retail
224.7%689,790
TOTAL1063.6%3,815,651
New leases completed in FY23 BY TYPE
Floor Area
(sqm)
Average
Lease Term
(years)
No. of
Leases
New lease8,4685.616
Right of renewal
87,5647.216
Extension
1,4681.94
TOTAL97,5006.836
Portfolio Mix BY TYPE

Core

Value-Add

Non Core

Auckland

Wellington

Regional

Industrial

Office

Large Format Retail
38%
53%
9%
27%
70%
3%
16%
81%
3%
21Annual Report 2023Argosy Property Limited

Our Leadership & Governance
Ethics & Values
Argosy's approach
Our values guide our internal conduct as well as our
r
elationships with external parties. In striving for outstanding
performance, we do not compromise our ethics or principles.
We place great importance on honesty, integrity, quality
and trust.
Our values
•Ethics
– Inspiring trust in our actions by doing the
right thing.
•Culture
– Creating a fun environment that encourages
inclusiveness and teamwork.
•Respect – Treating all stakeholders with courtesy
and understanding.
•Accountability
– Taking ownership and responsibility.
•Communication – Promoting
effective communication to
all stakeholders.
Governance 
Argosy will maintain the highest standards of corporate
beha
viour and accountability.
Argosy's approach
The Company is committed to fostering open and transparent
communications with in
vestors, ensuring it delivers to the
highest standards and complies with the NZX listing rules.
Argosy is proactive in meeting all its continuous disclosure
obligations to ensur
e that all investors are fully informed
of all material information necessary to assess the
Company’s performance.
Argosy upholds the highest ethical standards, acting in good
faith and in the bes
t interests of shareholders at all times.
The ethical and behavioural standards we expect of Directors,
officers and employees are set out in our Code of Conduct and
Ethics. Argosy’s website contains key governance policies which
support the delivery of the highest standards of corporate
behaviour. Policies include but are not limited to;
•Code of conduct and ethics;
•Conflicts of interests;
•Reporting against the NZX code;
•Diversity;
•Sustainability;
•Insider trading; and
•Shareholder communications.
Performance
Argosy regularly reviews the performance, skills and structure
of its Boar
d and committees to ensure independent and
effective governance.
Our
Leadership &
Gover
nance
22Annual Report 2023Argosy Property Limited

Annual Meeting
Argosy’s Annual Shareholders Meeting (ASM) will be held as a
h
ybrid meeting on 20 June at 2pm at the Royal New Zealand
Yacht Squadron in Auckland. Argosy continues to utilise the
hybrid functionality of the ASM. It allows shareholders to
attend virtually and participate in all elements of the meeting
including questions and answers and completing all voting.

Martin Stearne and Rachel Winder will retire in accordance
with the Company’s constitution and the NZX Listing Rules
and will be eligible for re-election. As usual, all shareholders
are encouraged to attend the meeting where you will have
the opportunity to listen to and meet the Board of Directors
in person.
Retail Roadshow
The 2023 Retail Roadshow schedule has been released. Chief
E
xecutive Officer Peter Mence will visit 13 cities around New
Zealand from 21 June to 13 July.
The Retail Roadshow remains a key engagement tool for
M
anagement to meet directly with shareholders and update
them on the business performance, sustainability objectives and
10-year strategic plan.
Argosy shareholders have always shown a great understanding
of the business and the lis
ted property space generally.
Key Dates
(indicative only and subject to change)
20 June
2023
Annual Shareholders Meeting.
21 June
2023
Final quarter FY23 dividend payment.
June 2023
Annual Retail Roadshow commences 21 June
.
Concludes Friday 13 July.
September 2023
FY24 1
st
Quarter Dividend Payment.
November 2023
FY24 Interim results release.
December 2023
FY24 2
nd
Quarter Dividend Payment.
Annual Meeting
20 June
Hybrid meeting to be held in Auckland
Annual Retail Roadshow starts
21 June
13 city Retail Roadshow commences
23Annual Report 2023Argosy Property Limited

Our Leadership & Governance
Board of Directors
Jeff Morrison
Chair
Director since July 2013
Mr Morrison has 40 years of experience as a property
la
wyer, 29 of them as a commercial property partner at
Russell McVeagh, and now practises on his own account. Mr
Morrison is a trustee of the Spirit of Adventure and other
charitable trusts and holds a number of private company
directorships. Mr Morrison is a qualified lawyer with a
Bachelor of Laws degree from The University of Auckland. He
is also a member of the Institute of Directors in New Zealand.
Our Leadership & Governance
Board of Directors
Jeff Morrison
Chair
Director since July 2013
Mr Morrison has 40 years of experience as a property lawyer,
29 of them as a commercial property partner at Russell
McVeagh, and now practises on his own account. Mr Morrison
is a trustee of the Spirit of Adventure and other charitable trusts
and holds a number of private company directorships. Mr
Morrison is a qualified lawyer with a Bachelor of Laws degree
from The University of Auckland. He is also a member of the
Institute of Directors in New Zealand.
Jeff Morrison
Chair
Chris Gudgeon
Director
Director since November 2018
Mr Gudgeon has been involved in property investment,
development and construction in New Zealand for more than
25 years. He was previously Chief Executive of Kiwi Property
Group and Capital Properties NZ Ltd. He is currently a director
of Crown Infrastructure Partners and Ngāti Whātua Ōrākei
Whai Rawa Limited. Mr Gudgeon holds an MBA from the
Wharton School, University of Pennsylvania and a Bachelor of
Engineering degree from The University of Canterbury. He is a
Fellow of the Royal Institute of Chartered Surveyors and is a
past President of Property Council New Zealand.
Chris Gudgeon
Director
Stuart McLauchlan
Director
Director since August 2018
Mr McLauchlan is a Senior Partner of GS McLauchlan & Co
Business Advisors and Accountants, a prominent businessman
and company director. He is a Director of Scenic Hotels Group
Limited, Dunedin Casinos Limited, EBOS Group Limited and
several other companies. Mr McLauchlan is also Chairman of
the NZ Sports Hall of Fame, AD Instruments Pty Limited and
Scott Technology Limited. He is also a past President of the New
Zealand Institute of Directors. Mr McLauchlan is a qualified
accountant with a Bachelor of Commerce degree from the
University of Otago, an FCA from Chartered Accountants
Australia and New Zealand and is a Chartered Fellow of the New
Zealand Institute of Directors.
Stuart McLauchlan
Director
36
Annual Report 2022Argosy Property Limited
Mike Pohio
Director
Director since February 2019
Mr Pohio has 25 years of senior executive and governance
experience across a range of industries including property,
investment, port/logistics and dairy. He is the Chairman of Ngāi
Tahu Holdings Corporation (NTHC), Rotoiti 15 Investments LP
and Mana Ahuriri Holdings L P. He is also a director on the board
of Te Atiawa Iwi Holdings. Mr Pohio holds an MBA from IMD,
Lausanne, an FCA from Chartered Accountants Australia and
New Zealand and is a Chartered Member of the New Zealand
Institute of Directors.
Mike Pohio
Director
Martin Stearne
Director
Director since March 2020
Mr Stearne has over 20 years commercial and capital markets
experience, primarily gained during his time at Jarden and its
predecessors from 1995 until 2015. He currently holds
appointments to the NZX Listing Subcommittee, the Takeovers
Panel and the Investment Committee of the Impact Enterprise
Fund. He is a member of INFINZ and IceAngels. Mr Stearne
holds a B.Sc (Hons) in maths and a B.Com in finance from the
University of Otago. He is also a member of the New Zealand
Institute of Directors.
Martin Stearne
Director
Rachel Winder
Director
Director since August 2019
Mrs Winder has been involved in the property sector for over
20 years across a variety of senior roles including strategy,
portfolio management, financial management, development,
and leadership. Her experience spans small, medium and large
enterprise across construction, telecommunications and
financial services. Mrs Winder has a particular interest in how
property strategy can be an enabler for business performance.
Currently consulting across a range of entities including the
government sector, Rachel holds an MBA from the University
of Otago and a Bachelor of Property from Auckland University.
She is also a member of Property Council New Zealand and the
New Zealand Institute of Directors.
Rachel Winder
Director
37
Annual Report 2022Argosy Property Limited
3839Annual Report 2022Annual Report 2022Argosy Property LimitedArgosy Property Limited
Jeff Morrison
Chair
Chris Gudgeon
Director
Director since November 2018
Mr Gudgeon has been involved in property investment,
de
velopment and construction in New Zealand for more than
25 years. He was previously Chief Executive of Kiwi Property
Group and Capital Properties NZ Ltd. He is currently a
director of Crown Infrastructure Partners and Ngāti Whātua
Ōrākei Whai Rawa Limited. Mr Gudgeon holds an MBA
from the Wharton School, University of Pennsylvania and
a Bachelor of Engineering degree from The University of
Canterbury. He is a Fellow of the Royal Institute of Chartered
Surveyors and is a past President of Property Council
New Zealand.
Chris Gudgeon
Director
Stuart McLauchlan
Director
Director since August 2018
Mr McLauchlan is a Senior Partner of GS McLauchlan & Co
B
usiness Advisors and Accountants, a prominent businessman
and company director. He is a Director of Scenic Hotels
Group Limited, Dunedin Casinos Limited, EBOS Group
Limited and several other companies. Mr McLauchlan is also
Chairman of the NZ Sports Hall of Fame, AD Instruments
Pty Limited and Scott Technology Limited. He is also a
past President of the New Zealand Institute of Directors.
Mr McLauchlan is a qualified accountant with a Bachelor of
Commerce degree from the University of Otago, an FCA from
Chartered Accountants Australia and New Zealand and is a
Chartered Fellow of the New Zealand Institute of Directors.
Stuart McLauchlan
Director
24Annual Report 2023Argosy Property Limited

Mike Pohio
Director
Director since February 2019
Mr Pohio has 25 years of senior executive and governance
e
xperience across a range of industries including property,
investment, port/logistics and dairy. He is the Chairman
of Ngāi Tahu Holdings Corporation (NTHC), Mana Ahuriri
Holdings Limited Partnership and Rotoiti 15 Investments LP.
He is also a director on the Board of Te Atiawa Iwi Holdings.
Mr Pohio holds an MBA from IMD, Lausanne, an FCA from
Chartered Accountants Australia and New Zealand and is a
Chartered Member of the New Zealand Institute of Directors.
Mike Pohio
Director
Martin Stearne
Director
Director since March 2020
Mr Stearne has over 20 years commercial and capital markets
e
xperience, primarily gained during his time at Jarden
and its predecessors from 1995 until 2015. He currently
holds appointments to the NZX Listing Subcommittee, the
Takeovers Panel and the Investment Committee of the Impact
Enterprise Fund. He is a member of INFINZ and IceAngels.
Mr Stearne holds a B.Sc (Hons) in maths and a B.Com in
finance from the University of Otago. He is also a member of
the New Zealand Institute of Directors.
Our Leadership & Governance
Board of Directors
Jeff Morrison
Chair
Director since July 2013
Mr Morrison has 40 years of experience as a property lawyer,
29 of them as a commercial property partner at Russell
McVeagh, and now practises on his own account. Mr Morrison
is a trustee of the Spirit of Adventure and other charitable trusts
and holds a number of private company directorships. Mr
Morrison is a qualified lawyer with a Bachelor of Laws degree
from The University of Auckland. He is also a member of the
Institute of Directors in New Zealand.
Jeff Morrison
Chair
Chris Gudgeon
Director
Director since November 2018
Mr Gudgeon has been involved in property investment,
development and construction in New Zealand for more than
25 years. He was previously Chief Executive of Kiwi Property
Group and Capital Properties NZ Ltd. He is currently a director
of Crown Infrastructure Partners and Ngāti Whātua Ōrākei
Whai Rawa Limited. Mr Gudgeon holds an MBA from the
Wharton School, University of Pennsylvania and a Bachelor of
Engineering degree from The University of Canterbury. He is a
Fellow of the Royal Institute of Chartered Surveyors and is a
past President of Property Council New Zealand.
Chris Gudgeon
Director
Stuart McLauchlan
Director
Director since August 2018
Mr McLauchlan is a Senior Partner of GS McLauchlan & Co
Business Advisors and Accountants, a prominent businessman
and company director. He is a Director of Scenic Hotels Group
Limited, Dunedin Casinos Limited, EBOS Group Limited and
several other companies. Mr McLauchlan is also Chairman of
the NZ Sports Hall of Fame, AD Instruments Pty Limited and
Scott Technology Limited. He is also a past President of the New
Zealand Institute of Directors. Mr McLauchlan is a qualified
accountant with a Bachelor of Commerce degree from the
University of Otago, an FCA from Chartered Accountants
Australia and New Zealand and is a Chartered Fellow of the New
Zealand Institute of Directors.
Stuart McLauchlan
Director
36
Annual Report 2022Argosy Property Limited
Mike Pohio
Director
Director since February 2019
Mr Pohio has 25 years of senior executive and governance
experience across a range of industries including property,
investment, port/logistics and dairy. He is the Chairman of Ngāi
Tahu Holdings Corporation (NTHC), Rotoiti 15 Investments LP
and Mana Ahuriri Holdings L P. He is also a director on the board
of Te Atiawa Iwi Holdings. Mr Pohio holds an MBA from IMD,
Lausanne, an FCA from Chartered Accountants Australia and
New Zealand and is a Chartered Member of the New Zealand
Institute of Directors.
Mike Pohio
Director
Martin Stearne
Director
Director since March 2020
Mr Stearne has over 20 years commercial and capital markets
experience, primarily gained during his time at Jarden and its
predecessors from 1995 until 2015. He currently holds
appointments to the NZX Listing Subcommittee, the Takeovers
Panel and the Investment Committee of the Impact Enterprise
Fund. He is a member of INFINZ and IceAngels. Mr Stearne
holds a B.Sc (Hons) in maths and a B.Com in finance from the
University of Otago. He is also a member of the New Zealand
Institute of Directors.
Martin Stearne
Director
Rachel Winder
Director
Director since August 2019
Mrs Winder has been involved in the property sector for over
20 years across a variety of senior roles including strategy,
portfolio management, financial management, development,
and leadership. Her experience spans small, medium and large
enterprise across construction, telecommunications and
financial services. Mrs Winder has a particular interest in how
property strategy can be an enabler for business performance.
Currently consulting across a range of entities including the
government sector, Rachel holds an MBA from the University
of Otago and a Bachelor of Property from Auckland University.
She is also a member of Property Council New Zealand and the
New Zealand Institute of Directors.
Rachel Winder
Director
37
Annual Report 2022Argosy Property Limited
3839Annual Report 2022Annual Report 2022Argosy Property LimitedArgosy Property Limited
Martin Stearne
Director
Rachel Winder
Director
Director since August 2019
Mrs Winder has over 20 years commercial property
e
xperience including development, strategy, portfolio
management, and financial management.  Her experience
spans both commercial and government, particularly
construction, telecommunications and financial services. Mrs
W
inder has a particular interest in how property strategy can
be an enabler for business performance. Currently consulting
across a range of entities, Rachel holds an MBA from the
University of Otago and a Bachelor of Property from Auckland
University. She is also a member of Property Council New
Zealand and the New Zealand Institute of Directors.
Our Leadership & Governance
Board of Directors
Jeff Morrison
Chair
Director since July 2013
Mr Morrison has 40 years of experience as a property lawyer,
29 of them as a commercial property partner at Russell
McVeagh, and now practises on his own account. Mr Morrison
is a trustee of the Spirit of Adventure and other charitable trusts
and holds a number of private company directorships. Mr
Morrison is a qualified lawyer with a Bachelor of Laws degree
from The University of Auckland. He is also a member of the
Institute of Directors in New Zealand.
Jeff Morrison
Chair
Chris Gudgeon
Director
Director since November 2018
Mr Gudgeon has been involved in property investment,
development and construction in New Zealand for more than
25 years. He was previously Chief Executive of Kiwi Property
Group and Capital Properties NZ Ltd. He is currently a director
of Crown Infrastructure Partners and Ngāti Whātua Ōrākei
Whai Rawa Limited. Mr Gudgeon holds an MBA from the
Wharton School, University of Pennsylvania and a Bachelor of
Engineering degree from The University of Canterbury. He is a
Fellow of the Royal Institute of Chartered Surveyors and is a
past President of Property Council New Zealand.
Chris Gudgeon
Director
Stuart McLauchlan
Director
Director since August 2018
Mr McLauchlan is a Senior Partner of GS McLauchlan & Co
Business Advisors and Accountants, a prominent businessman
and company director. He is a Director of Scenic Hotels Group
Limited, Dunedin Casinos Limited, EBOS Group Limited and
several other companies. Mr McLauchlan is also Chairman of
the NZ Sports Hall of Fame, AD Instruments Pty Limited and
Scott Technology Limited. He is also a past President of the New
Zealand Institute of Directors. Mr McLauchlan is a qualified
accountant with a Bachelor of Commerce degree from the
University of Otago, an FCA from Chartered Accountants
Australia and New Zealand and is a Chartered Fellow of the New
Zealand Institute of Directors.
Stuart McLauchlan
Director
36
Annual Report 2022Argosy Property Limited
Mike Pohio
Director
Director since February 2019
Mr Pohio has 25 years of senior executive and governance
experience across a range of industries including property,
investment, port/logistics and dairy. He is the Chairman of Ngāi
Tahu Holdings Corporation (NTHC), Rotoiti 15 Investments LP
and Mana Ahuriri Holdings L P. He is also a director on the board
of Te Atiawa Iwi Holdings. Mr Pohio holds an MBA from IMD,
Lausanne, an FCA from Chartered Accountants Australia and
New Zealand and is a Chartered Member of the New Zealand
Institute of Directors.
Mike Pohio
Director
Martin Stearne
Director
Director since March 2020
Mr Stearne has over 20 years commercial and capital markets
experience, primarily gained during his time at Jarden and its
predecessors from 1995 until 2015. He currently holds
appointments to the NZX Listing Subcommittee, the Takeovers
Panel and the Investment Committee of the Impact Enterprise
Fund. He is a member of INFINZ and IceAngels. Mr Stearne
holds a B.Sc (Hons) in maths and a B.Com in finance from the
University of Otago. He is also a member of the New Zealand
Institute of Directors.
Martin Stearne
Director
Rachel Winder
Director
Director since August 2019
Mrs Winder has been involved in the property sector for over
20 years across a variety of senior roles including strategy,
portfolio management, financial management, development,
and leadership. Her experience spans small, medium and large
enterprise across construction, telecommunications and
financial services. Mrs Winder has a particular interest in how
property strategy can be an enabler for business performance.
Currently consulting across a range of entities including the
government sector, Rachel holds an MBA from the University
of Otago and a Bachelor of Property from Auckland University.
She is also a member of Property Council New Zealand and the
New Zealand Institute of Directors.
Rachel Winder
Director
37
Annual Report 2022Argosy Property Limited
3839Annual Report 2022Annual Report 2022Argosy Property LimitedArgosy Property Limited
Rachel Winder
Director
25Annual Report 2023Argosy Property Limited

Our Leadership & Governance
Senior Management Team
To read bios of all our people please
visit our website: ar
gosy.co.nz/
about-us/our-people
Peter Mence
Chief Executive
Officer
Peter is the Chief Executive of Argosy Property Limited. An
engineer b
y background, Peter has 40 years of experience in
the property industry working with Progressive Enterprises,
Challenge Properties, Richard Ellis and Green and McCahill.
Peter joined Armstrong Jones (NZ) in 1994 and was
appointed General Manager of Argosy (then known as ING
Property Trust) in 2007. Instrumental in the rebranding
and internalisation of the company’s management Peter was
appointed Chief Executive of the business in 2009.
Peter is a Fellow of the Property Institute and is a past
lectur
er in Advanced Property Management at The University
of Auckland and is a past President of the Property Council
of New Zealand. He is a current Trustee of Saint Andrews
Village, and the New Zealand Sailing Trust.
In 2013 Peter was honoured with the Stuart McIntosh
a
ward in recognition of his contribution to the University
of Auckland.
In 2021, Peter was honoured as the Property Council New
Zealand M
embers’ Laureate, a lifetime membership awarded
once a year to the industry's most respected leaders.
Our Leadership & Governance
To read bios of our people please visit
our website: argosy.co.nz/about-us/
our-people
Peter Mence
Chief Executive
Officer
Dave Fraser
Chief Financial
Officer
Anna Hamil
Financial Controller
David Snelling
General Counsel
Steve Freundlich
Head of Corporate
Communications &
Investor Relations
Saatyesh Bhana
Head of
Sustainability
Management Team
38
Annual Report 2022Argosy Property Limited
40Annual Report 2022Argosy Property Limited
Peter Mence
Chief
Executive
Officer
Dave Fraser
Chief Financial
Officer
Dave joined the team in 2011 and was originally responsible
for the planning and e
xecution of the management
internalisation and Argosy’s corporatisation. He now oversees
the financial and corporate activities of the Company.
Dave has spent over 30 years in senior
financial and general
management roles both in New Zealand and overseas,
including six years in Japan as a senior vice president with
the Jupiter Group.
He has broad experience in strategic and operational
planning
, business development, debt restructures, equity
raisings and merger and acquisitions. In addition to being
a qualified Chartered Accountant, Dave has Bachelor of
Commerce and Master of Business Administration degrees
from The University of Auckland.
Our Leadership & Governance
To read bios of our people please visit
our website: argosy.co.nz/about-us/
our-people
Peter Mence
Chief Executive
Officer
Dave Fraser
Chief Financial
Officer
Anna Hamil
Financial Controller
David Snelling
General Counsel
Steve Freundlich
Head of Corporate
Communications &
Investor Relations
Saatyesh Bhana
Head of
Sustainability
Management Team
38
Annual Report 2022Argosy Property Limited
40Annual Report 2022Argosy Property Limited
Dave Fraser
Chief
Financial
Officer
26Annual Report 2023Argosy Property Limited

Net Property Income
$m
102.5102.5
99.799.7
106.5106.5
105.1105.1
112.8112.8
FY19FY20FY21FY22FY23
0
30
60
90
120
Net Distributable Income
Cents Per Share
6.946.94
7.207.20
8.148.14
7.687.68
7.587.58
FY19FY20FY21FY22FY23
0.00
2.00
4.00
6.00
8.00
10.00
Debt-to-total-assets Ratio
percentage
35.635.6
38.838.8
35.935.9
31.131.1
35.1
35.1
FY19FY20FY21FY22FY23
0
10
20
30
40
50
FINANCIAL SUMMARY
Unit of
measure
FY2019FY2020FY2021FY2022FY2023
Net property income$m102.599.7106.5105.1112.8
Profit
before financial income/(expenses) and
other gains/(losses) and tax
$m91.588.295.693.3102.0
Revaluation gains on investment property$m70.559.9157.7163.7(146.6)
Profit
for the year (before taxation)
$m143.3123.9248.4241.2(70.9)
Profit
for the year (after taxation)
$m133.7119.1241.7236.2(80.8)
Earnings per sharecents16.1614.4029.0428.01(9.55)
Gross distributable income per sharecents8.147.918.618.038.11
Net distributable income per sharecents6.947.208.147.687.58
Total assets$m1,675.11,929.62,156.82,291.52,212.6
Debt-to-total-assets ratio%35.638.835.931.135.1
Net assets backing per sharecents122130153174158
Cash dividend per sharecents6.286.356.456.556.65
Shares on issue at year endm827.0827.2839.5846.6846.7
Total equity$m1,009.01,075.81,280.61,472.11,335.7
PROPERTY METRICS
Unit of
measure
FY2019FY2020FY2021FY2022FY2023
Number of tenantsno.171177157157158
Number of properties
1
no.6059555354
Average property value$m27.831.636.641.739.7
Net lettable areasqm587,125584,932632,872629,449643,693
Total book value$m1,667.01,866.92,010.82,207.52,144.8
Weighted average lease termyears6.146.095.515.675.39
Occupancy factor by rental%97.798.899.098.799.3
Occupancy factor by area%97.898.399.399.499.5
1.Certain titles have been consolidated and treated as one. The total number of buildings excludes properties held for sale.
27Annual Report 2023Argosy Property Limited

9 Ride Way Auckland
28Annual Report 2023Argosy Property Limited

29Annual Report 2023Argosy Property Limited
CONSOLIDATED FINANCIAL STATEMENTS
Contents
Consolidated Statement of Financial Position30
Consolidated Statement of Comprehensive Income31
Consolidated Statement of Changes in Equity32
Consolidated Statement of Cash Flows33
Notes to the Consolidated Financial Statements34
Independent Auditor's Report58

CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023
Note
Group
2023
$000s
Group
2022
$000s
Non-current assets
Investment properties
5
2,184,8992,247,715
Derivative
financial instruments
6
14,81812,157
Other non-current assets
7
183246
Total non-current assets
2,199,9002,260,118
Current assets
Cash and cash equivalents
6
2,0571,663
Trade and other receivables
6
,8
5,1664,306
Derivative
financial instruments
6
122–
Other current assets
9
5,1903,459
Taxation receivable202–
12,7379,428
Investment property
classified as held for sale
5
,10
–22,000
Total current assets
12,73731,428
Total assets
4
2,212,6372,291,546
Shareholders' funds
Share capital
11
820,069819,857
Share based payments reserve
12
673385
Retained earnings
13
514,953651,880
Total shareholders' funds
1,335,6951,472,122
Non-current liabilities
Interest bearing liabilities
14
759,991696,475
Derivative
financial instruments
6
36,25241,515
Non-current lease liabilities
25
39,95340,074
Deferred tax
20
18,05912,687
Total non-current liabilities
854,255790,751
Current liabilities
Trade and other payables
15
18,79621,999
Taxation payable–331
Current lease liabilities
25
121116
Derivative
financial instruments
6
–747
Other current liabilities
16
3,7703,280
Deposit received for investment property classified as held for sale
10
–2,200
Total current liabilities
22,68728,673
Total liabilities
876,942819,424
Total shareholders' funds and liabilities
2,212,6372,291,546
For and on behalf of the Board
Jeff
Morrison
Director
Stuart McLauchlan
Director
Date:
16 May 2023
The notes to the accounts form part of and are to be read in conjunction with these consolidated financial statements.
30Annual Report 2023Argosy Property Limited

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
Note
Group
2023
$000s
Group
2022
$000s
Gross property income from rentals124,323112,462
Gross property income from expense recoveries20,21219,108
Property expenses(31,760)(26,425)
Net property income
4
112,775105,145
Administration expenses
17
10,79211,813
Profit
before financial income/(expenses), other gains/(losses) and tax
101,98393,332
Financial income/(expenses)
Interest expense
18
(36,414)(25,647)
Gain/(loss) on derivative financial instruments held for trading7,29512,383
Interest income12618
(28,993)(13,246)
Other gains/(losses)
Revaluation gains/(losses) on investment property
5
(146,557)163,662
Realised gains/(losses) on disposal of investment property
5
(369)(2,558)
Settlement for failed sale of investment property3,000–
(143,926)161,104
Profit/(loss)
before income tax attributable to shareholders
(70,936)241,190
Taxation expense
19
9,8975,040
Profit/(loss)
and total comprehensive income/(loss) after tax
(80,833)236,150
All amounts are from continuing operations.
Earnings/(loss) per share
Basic and diluted earnings/(loss) per share (cents)
22
(9.55)28.01
The notes to the accounts form part of and are to be read in conjunction with these consolidated financial statements.
31Annual Report 2023Argosy Property Limited

CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
Note
Group
2023
$000s
Group
2022
$000s
Shareholders' funds at the beginning of the year
1,472,1221,280,635
Profit/(loss)
and total comprehensive income/(loss) for the year
(80,833)236,150
Contributions by shareholders
Issue of shares from Dividend Reinvestment Plan
11
–10,189
Issue costs of shares
11
–(42)
Dividends to shareholders
13
(56,094)(55,016)
Equity settled share based payments
12
500206
Shareholders' funds at the end of the year
1,335,6951,472,122
The notes to the accounts form part of and are to be read in conjunction with these consolidated financial statements.
32Annual Report 2023Argosy Property Limited

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
Group
2023
$000s
Group
2022
$000s
Cash
flows from operating activities
Cash was provided from:
Property income145,804133,876
Interest received12618
Settlement for failed sale of investment property3,000–
Cash was applied to:
Property expenses(32,907)(25,336)
Interest paid(31,853)(22,571)
Interest paid for ground lease(2,009)(2,020)
Employee
benefits(6,245)(5,658)
Taxation paid(4,581)(880)
Other expenses(4,308)(3,970)
Net cash from/(used in) operating activities
2167,02773,459
Cash
flows from investing activities
Cash was provided from:
Sale of properties, deposits and deferrals19,91995,627
Cash was applied to:
Capital additions on investment properties(54,267)(59,868)
Capitalised interest on investment properties(3,509)(5,134)
Purchase of properties, deposits and deferrals(33,177)(40)
Net cash from/(used in) investing activities
(71,034)30,585
Cash
flows from financing activities
Cash was provided from:
Debt drawdown14101,61651,629
Cash was applied to:
Repayment of debt14(38,577)(110,351)
Dividends paid to shareholders net of reinvestments(56,573)(45,052)
Issue cost of shares(10)(44)
Repayment of lease liabilities(116)(110)
Bond costs(63)(51)
Facility
refinancing fee(378)(164)
Swap contract termination payment(1,498)–
Net cash from/(used in) financing activities
4,401(104,143)
Net increase/(decrease) in cash and cash equivalents
394(99)
Cash and cash equivalents at the beginning of the period1,6631,762
Cash and cash equivalents at the end of the period
2,0571,663
The notes to the accounts form part of and are to be read in conjunction with these consolidated financial statements.
33Annual Report 2023Argosy Property Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1.
 REPORTING ENTITY
Argosy Property Limited (APL or the Company) is an FMC
R
eporting Entity under the Financial Markets Conduct Act
2013 and the Financial Reporting Act 2013. APL is incorporated
under the Companies Act 1993 and domiciled in New Zealand.
The Company's principal activity is investment in properties
which include Indus
trial, Office and Large Format Retail
properties, predominantly in Auckland and Wellington.
These
financial statements are the consolidation of APL and its
subsidiaries (the Group).
2.
 BASIS OF PREPARATION
Statement of compliance
These
financial statements have been prepared in accordance
with Generally Accepted Accounting Practice in New Zealand
(NZ GAAP). The accounting policies applied in these
financial statements comply with New Zealand equivalents to
International Financial Reporting Standards (NZ IFRS) and
other applicable Financial Reporting Standards issued and
effective at the time of preparing these statements as applicable
to the Company as a profit-oriented entity. These Group
financial statements also comply with International Financial
Reporting Standards (IFRS).
These
financial statements were approved by the Board of
Directors on 16 May 2023.
Basis of measurement
The
financial statements have been prepared on the historical
cost basis except for derivative financial instruments and
investment properties which are measured at fair value.
Use of estimates and judgements
The preparation of
financial statements in conformity with NZ
IFRS requires the use of certain critical accounting estimates
that affect the application of policies and reported amount of
assets and liabilities, income and expenses. The area involving
a higher degree of complexity and where assumptions and
estimates are significant to the financial statements is note 5
- valuation of investment property.
Functional and presentation currency
These
financial statements are presented in New Zealand
dollars which is the Company’s functional currency and have
been rounded to the nearest thousand dollars ($000).
Basis of consolidation
The Group’s financial
statements incorporate the financial
statements of APL and its controlled subsidiaries as set out
in note 24. Control is achieved when the Company has power
over the investee; is exposed, or has rights, to variable returns
from its involvement with the investee, and has the ability
to use its power to affect its returns. The results of the
subsidiaries are included in the consolidated statement of
comprehensive income from the date of acquisition which is
the date the Company became entitled to income from the
subsidiaries acquired. All significant intercompany transactions
are eliminated on consolidation.
Statement of cash flows
The statement of cash flows is prepared on a GST
e
xclusive basis, which is consistent with the statement of
comprehensive income.
The following terms are used in the statement of cash flows:
Operating activities
are the principal revenue producing
activities of the Group and other activities that are not investing
or financing activities.
Investing activities
are the acquisition and disposal of
long term assets and other investments not included in
cash equivalents.
Financing activities
are activities that result in changes
in the size and composition of the contributed equity and
borrowings of the entity. Termination payments for swap
contracts, establishment fees, extension fees and arranger fees
are considered financing activities as they effect a change in the
company’s borrowing arrangements.
Cash and cash equivalents comprise cash balances and demand
deposits
. Bank overdrafts that are repayable on demand and
form an integral part of the Group’s cash management are
included as a component of cash and cash equivalents for the
purpose of the statement of cash flows.
3. MATERIAL ACCOUNTING POLICIES
Change in accounting policies
Accounting policies and methods of computation have been
applied consis
tently to all periods and by all Group entities.
New accounting standards adopted
At the date of authorisation of these
financial statements, the
Group has not applied any new and revised NZ IFRS standards
and amendments that have been issued but are not yet effective.
34Annual Report 2023Argosy Property Limited

4.
  SEGMENT INFORMATION
The principal business activity of the Group is to invest in, and actively manage, properties in New Zealand. NZ IFRS 8 Operating
Segments r
equires operating segments to be identified on the basis of internal reports about components of the Group that are
regularly reviewed by the chief operating decision maker, being the Chief Executive Officer, in order to allocate resources to
segments and assess their performance.
The information reported to the Group’s Chief Executive Officer includes investment property information aggregated into three
business sectors
, Industrial, Office and Large Format Retail, based on what the occupants actual or intended use is. Segment profit
represents profit earned by each segment including allocation of identifiable revaluation gains/(losses) on investment properties and
gains/(losses) on disposal of investment properties.
The following is an analysis of the Group’s results by reportable segments.
IndustrialOffice
Large Format Retail
Total
2023
$000s
2022
$000s
2023
$000s
2022
$000s
2023
$000s
2022
$000s
2023
$000s
2022
$000s
Segment
profit/(loss)
Net property income
1
52,74950,20047,04643,58312,98011,362112,775105,145
Realised gains/(losses) on disposal
of investment pr
operties(1)(694)(333)–(35)(1,864)(369)(2,558)
Settlement for failed sale of
investment pr
operty
––––3,000–3,000–
52,74849,50646,71343,58315,9459,498115,406102,587
Interest on ground lease––(2,009)(2,015)––(2,009)(2,015)
Revaluation gains/(losses) on
investment properties(49,108)144,748(78,998)9,082(18,451)9,832(146,557)163,662
Total segment
profit/(loss)
2
3,640194,254(34,294)50,650(2,506)19,330(33,160)264,234
Unallocated:
Administration expenses(10,792)(11,813)
Net interest expense(34,279)(23,614)
Gain/(loss) on derivative financial instruments held for trading7,29512,383
Profit/(loss)
before income tax
(70,936)241,190
Taxation expense(9,897)(5,040)
Profit/(loss)
for the year
(80,833)236,150
1.Net property income consists of revenue generated from external tenants less property operating expenditure.
2.There were no inter-segment sales during the year (
31 March 2022: Nil).
35Annual Report 2023Argosy Property Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
4. SEGMENT INFORMATION
(CONTINUED)
IndustrialOfficeLarge Format Retail
Total
2023
$000s
2022
$000s
2023
$000s
2022
$000s
2023
$000s
2022
$000s
2023
$000s
2022
$000s
Segment assets
Current assets2,5841,5726,1154,2418691,5069,5687,319
Investment properties1,127,7751,126,975851,174897,540205,950223,2002,184,8992,247,715
Non-current assets
classified
as held
for sale
–––22,000–––22,000
Total
segment assets
1,130,3591,128,547857,289923,781206,819224,7062,194,4672,277,034
Unallocated assets18,17014,512
Total assets
2,212,6372,291,546
IndustrialOfficeLarge Format RetailTotal
2023
$000s
2022
$000s
2023
$000s
2022
$000s
2023
$000s
2022
$000s
2023
$000s
2022
$000s
Segment liabilities
Current liabilities3,9942,7458,84816,1661,7382,09314,58021,004
Non-current liabilities––39,95340,074––39,95340,074
Total segment liabilities
3,9942,74548,80156,2401,7382,09354,53361,078
Unallocated liabilities822,409758,346
Total liabilities
876,942819,424
For the purposes of monitoring segment performance and allocating resources between segments, all assets are allocated to
r
eportable segments other than cash and cash equivalents, derivatives, other non-current assets and other minor current assets that
cannot be allocated to particular segments. All liabilities are allocated to reportable segments other than borrowings, derivatives, tax
liabilities and other minor current liabilities that cannot be allocated to particular segments.
36Annual Report 2023Argosy Property Limited

5.
 INVESTMENT PROPERTIES
Accounting policy – Investment properties
Investment property is property held to earn rental income.
Investment property is initially measured at cost and subsequently measured at fair value with any change therein recognised
in
profit or loss.
Initial direct costs incurred in negotiating and arranging operating leases and lease incentives granted are added to the
carrying amount of the leased asset.
In accordance with the valuation policy of the Group, complete property valuations are carried out at least annually by
independent r
egistered valuers. The valuation policy stipulates that the same valuer may not value a building for more than
two consecutive years. The fair values are based on market values being the estimated amount for which a property could be
exchanged on the date of the valuation between a willing buyer and a willing seller in an arm’s length transaction after proper
marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.
The valuations are prepared using a combination of the Capitalisation of Contract Income, Capitalisation of Market Income
and Discounted Cash Flo
w methodologies. Discounted Cash Flow methodology is based on the estimated rental cash flows
expected to be received from the property adjusted by a discount rate that appropriately reflects the risks inherent in the
expected cash flows.
Following the adoption of NZ IFRS 16 on 1 April 2019, a right-of-use asset and investment were recognised on the ground
lease that e
xists over 39 Market Place, Viaduct Harbour, Auckland.
Investment properties are derecognised when they have been disposed of and any gains or losses incurred on disposal are
r
ecognised in profit or loss in the year of derecognition.
Borrowing costs directly attributable to property under development are capitalised as part of the cost of those assets.
Industrial
2023
$000s
Office
2023
$000s
Large Format Retail
2023
$000s
Group
2023
$000s
Movement in investment properties
Balance at
1 April1,126,975897,540223,2002,247,715
Acquisition of property33,220––33,220
Capitalised costs17,52833,3881,32652,242
Change in fair value(49,108)(78,998)(18,451)(146,557)
Change in capitalised leasing costs(168)(125)(31)(324)
Change in lease incentives(672)(631)(94)(1,397)
Investment properties at
31 March
1,127,775851,174205,9502,184,899
Less lease liability (39 Market Place)–(40,074)–(40,074)
Investment properties at
31 March excluding NZ IFRS
16 lease adjustments
1,127,775811,100205,9502,144,825
37Annual Report 2023Argosy Property Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
5. INVESTMENT PROPERTIES
(CONTINUED)
Industrial
2022
$000s
Office
2022
$000s
Large Format Retail
2022
$000s
Group
2022
$000s
Movement in investment properties
Balance at 1 April984,950854,335213,2002,052,485
Capitalised costs8,78658,09635767,239
Transfer to properties held for sale–(22,000)–(22,000)
Disposals(10,743)––(10,743)
Change in fair value144,7489,0829,832163,662
Change in capitalised leasing costs(24)(559)(19)(602)
Fair value changes on lease liability–(1,385)–(1,385)
Principal repayment of lease liability–(110)–(110)
Change in lease incentives(742)81(170)(831)
Investment properties at
31 March
1,126,975897,540223,2002,247,715
Less lease liability (39 Market Place)–(40,190)–(40,190)
Investment properties at
31 March excluding NZ IFRS
16 lease adjustments
1,126,975857,350223,2002,207,525
Held for sale at
31 March
–22,000–22,000
Total investment properties at
31 March including held
for sale excluding NZ IFRS 16 lease adjustments
1,126,975879,350223,2002,229,525
Investment properties are
classified as level 3 (inputs are unobservable for the asset or liability) under the fair value hierarchy on the
basis that adjustments must be made to observable data of similar properties to determine the fair value of an individual property.
The Group holds the freehold to all investment properties other than 39 Market Place, Viaduct Harbour, Auckland.
Group
2023
$000s
Group
2022
$000s
Acquisition of properties
100 Maui Street, Pukete, Hamilton33,220–
33,220–
Disposal of properties
25 Nugent Street, Grafton, Auckland22,024–
Albany Lifestyle Centre, Albany, Auckland–87,455
1478 Omahu Road, Hastings–10,743
22,02498,198
Sale proceeds of properties disposed of22,00097,600
Net gain/(loss) on disposal
(24)(598)
Selling costs(345)(1,960)
Total gain/(loss) on disposal
(369)(2,558)
38Annual Report 2023Argosy Property Limited

5. INVESTMENT PROPERTIES
(CONTINUED)
All investment properties were independently valued as at 31 March 2023 in accordance with the Group's valuation policy. The
v
aluations were prepared by independent registered valuers Colliers International New Zealand Limited and CBRE Limited. The
total value per valuer was as follows:
Group
2023
$000s
Group
2022
$000s
Bayleys Valuation Limited–90,800
Colliers International New Zealand Limited1,180,2251,426,900
CBRE Limited964,600577,875
Jones Lang LaSalle–111,950
2,144,8252,207,525
Investment properties are stated at fair value by independent valuers supported by market evidence of property sale transactions
and leasing activity
. These valuations are reviewed by the Asset Management team within Argosy. The major inputs and
assumptions that are used in the valuation that require judgement include forecasts of the current and expected future market
rentals and growth, maintenance and capital expenditure requirements, an assessment of yields, discount rates, occupancy, leasing
costs and weighted average lease terms.
In deriving a market value under each approach, all assumptions are based, where possible, on market based evidence and
tr
ansactions for properties with similar locations, conditions and quality of construction and fitout.
Generally as occupancy and weighted average lease terms increase, yields
firm, resulting in increased fair values for investment
properties. A movement in any of these assumptions could result in a significant change in fair value.
Investment property metrics for the year ended
31 March 2023 are as follows:
IndustrialOfficeLarge Format RetailTotal
Contract yield
1
- Average5.07%6.10%6.51%5.60%
Market yield
1
- Average5.68%6.96%6.29%6.21%
Occupancy (rent)100.0%98.5%100.0%99.3%
Occupancy (net lettable area)100.0%97.7%100.0%99.5%
Weighted average lease term (years)6.15.22.95.4
No. of buildings
2
3515454
Fair value total (000s)
$1,127,775$811,100$205,950$2,144,825
Total (000s)
$1,127,775$811,100$205,950$2,144,825
1.105 Carlton Gore Road, 224 Neilson Street and 39 Market Place have been excluded from the yield metrics. 105 Carlton Gore Road has been valued
on the basis of the completion of the r
edevelopment currently underway, the 224 Neilson Street valuation is based on land only and the 39 Market
Place valuation is based on discounted cash flow methodology.
2.Certain titles have been consolidated and treated as one.
39Annual Report 2023Argosy Property Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
5. INVESTMENT PROPERTIES
(CONTINUED)
Investment property metrics for the year ended 31 March 2022 are as follows:
IndustrialOfficeLarge Format RetailTotal
Contract yield
1
- Average4.67%6.04%5.61%5.23%
Market yield
1
- Average4.87%6.29%5.62%5.43%
Occupancy (rent)100.0%97.4%98.9%98.7%
Occupancy (net lettable area)100.0%97.4%99.0%99.4%
Weighted average lease term (years)6.06.03.15.7
No. of buildings
2
3415453
Fair value total (000s)
$1,126,975$857,350$223,200$2,207,525
Held for sale (000s)–$22,000–$22,000
Total (000s)
$1,126,975$879,350$223,200$2,229,525
1.8-14 Willis Street/360 Lambton Quay and 105 Carlton Gore Road have been excluded from the yield metrics as the rents of these properties included in
the valuation r
eports were based on the completion of the planned redevelopment work. The property held for sale has also been excluded from these
yield metrics. The fair value of 8-14 Willis Street/360 Lambton Quay was based on the completed redevelopment less the costs to complete.
2.Certain titles have been consolidated and treated as one. The total number of buildings excludes the property held for sale.
6. FINANCIAL INSTRUMENTS
Accounting policy - Non-derivative financial
instruments
Non-derivative
financial instruments comprise trade and other receivables, cash and cash equivalents, borrowings
(comprising of interest bearing liabilities and lease liabilities) and trade and other payables.
Non-derivative financial instruments are initially measured at fair value plus directly attributable costs. Subsequently these
ins
truments are measured at amortised cost using the effective interest method. The carrying values of these financial
instruments are a reasonable approximation of their fair values.
The
effective interest method is a method of calculating the amortised cost of a financial asset or financial liability and of
allocating interest income over the relevant period (including all fees and points paid or received between the parties to
the contract that form an integral part of the effective interest rate, transaction costs and other premiums or discounts)
through the expected life of the financial instrument, or, where appropriate, a shorter period to the net carrying amount of the
financial instrument.
Accounting policy - Derivative financial instruments
Interest rate swaps are entered into to manage interest rate exposure. For interest rate swaps, the net differential paid or
r
eceived is recognised as a component of interest expense in the profit or loss.
Interest rate swaps are initially recognised at zero at the date a derivative contract is entered into and are remeasured to their
fair v
alue at subsequent reporting dates. The resulting gain or loss is recognised in profit or loss immediately.
Interest rate swaps are presented as a non-current asset or a non-current liability if the remaining maturity of the instrument
is mor
e than 12 months and it is not expected to be realised or settled within 12 months. Other interest rate swaps are
presented as current assets or current liabilities.
40Annual Report 2023Argosy Property Limited

6. FINANCIAL INSTRUMENTS
(CONTINUED)
The Group has the following financial instruments:
Group 2023
Derivatives at
fair value
through
profit/
(loss)
$000s
Financial assets
measured
at amortised cost
$000s
Financial
liabilities
measured
at amortised cost
$000s
Total
$000s
Financial assets
Cash and cash equivalents–2,057–2,057
Derivative
financial instruments (current and term)14,940––14,940
Trade and other receivables–5,166–5,166
14,9407,223–22,163
Financial liabilities
Interest bearing liabilities––(759,991)(759,991)
Trade and other payables––(18,796)(18,796)
Derivative
financial instruments (current and term)(36,252)––(36,252)
Lease liabilities (current and term)––(40,074)(40,074)
Other current liabilities––(3,770)(3,770)
(36,252)–(822,631)(858,883)
Group 2022
Derivatives at
fair value
through
profit/
(loss)
$000s
Financial assets
measured
at amortised cost
$000s
Financial
liabilities
measured
at amortised cost
$000s
Total
$000s
Financial assets
Cash and cash equivalents–1,663–1,663
Derivative
financial instruments (current and term)12,157––12,157
Trade and other receivables–4,306–4,306
12,1575,969–18,126
Financial liabilities
Interest bearing liabilities––(696,475)(696,475)
Trade and other payables––(21,999)(21,999)
Derivative
financial instruments (current and term)(42,262)––(42,262)
Lease liabilities (current and term)––(40,190)(40,190)
Other current liabilities––(3,280)(3,280)
(42,262)–(761,944)(804,206)
41Annual Report 2023Argosy Property Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
6. FINANCIAL INSTRUMENTS
(CONTINUED)
Risk management
The use of
financial instruments exposes the Group to credit,
interest rate and liquidity risks. The Group’s overall risk
management programme focuses on the unpredictability of
financial markets and seeks to minimise potential adverse
effects on the Group’s financial performance.
Credit risk
Credit risk relates to the risk that the counterparty to a
financial
instrument may default on its obligations to the Group,
resulting in financial loss.
The Group's main exposure to credit risk arises from trade
r
eceivables and transactions with financial institutions, and is
summarised in the preceding table. There are no significant
concentrations of credit risk in specific receivables due to
receivables mainly comprising a large number of tenants in the
Group’s property portfolio and the Group policy to limit the
amount of credit exposure to any financial institution.
The Group manages its exposure to credit risk from trade
r
eceivables through its credit policy which includes performing
credit evaluations on customers requiring credit. The Group
does not hold any collateral in respect of balances past due.
Details of impairment losses relating to trade receivables
together with the ageing of receivables is provided in note 8.
The risk from financial institutions is managed by placing cash
and deposits with high cr
edit quality financial institutions only.
Cash deposits are placed with ANZ Bank New Zealand Limited.
Interest rate risk
Interest rate risk arises from long term borrowings (refer note
14
). Variable rate borrowings expose the Group to cash flow
interest rate risk while fixed rate borrowings expose the group
to fair value interest rate risk.
The Group manages its exposure to interest rate risk through
deriv
atives in the form of both floating-to-fixed and fixed-
to-floating interest rate swaps. These derivatives provide an
economic hedge against variability in cash flows as a result of
changes in variable interest rates on borrowings.
The Group’s policy is to maintain a range of approximately
40-
100% of its borrowings in fixed interest rate instruments
unless otherwise instructed by the Board of Directors. At year
end, 71.4% of borrowings, after the effect of associated swaps,
were at fixed rates (2022: 57.1%).
Liquidity risk
Liquidity risk is the risk that the Group may encounter
difficulty
in meeting its obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset.
Liquidity risk mainly arises from the Group’s obligations in
respect of long term borrowings, derivatives and trade and
other payables. The Group aims to maintain flexibility in
funding by keeping committed credit lines available (refer
note 14).
42Annual Report 2023Argosy Property Limited

6. FINANCIAL INSTRUMENTS
(CONTINUED)
The expected undiscounted cash flows of the Group’s financial liabilities by remaining contractual maturity at the balance sheet
date is as follows:
Group 2023
Carrying
Amount
$000s
Less than
1 year
$000s
1-2 years
$000s
2-3 years
$000s
3-4 years
$000s
4-5 years
$000s
5+ years
$000s
Financial liabilities
Interest bearing liabilities
1
(759,991)(37,944)(197,944)(248,682)(261,659)(126,604)–
Trade and other payables(18,796)(18,796)–––––
Derivative
financial instruments(36,252)(6,942)(6,100)(5,366)(3,941)(1,701)(93)
Lease liabilities(40,074)(2,125)(2,125)(2,125)(2,125)(2,125)(114,139)
Other current liabilities(3,770)(3,770)–––––
(858,883)(69,577)(206,169)(256,173)(267,725)(130,430)(114,232)
1.The undiscounted
cashflows on interest bearing liabilities includes interest, margin and line fees.
Group 2022
Carrying
Amount
$000s
Less than
1 year
$000s
1-2 years
$000s
2-3 years
$000s
3-4 years
$000s
4-5 years
$000s
5+ years
$000s
Financial liabilities
Interest bearing liabilities
1
(696,475)(19,352)(97,360)(218,689)(200,997)(104,442)(126,604)
Trade and other payables(21,999)(21,999)–––––
Derivative
financial instruments(42,262)(4,332)(4,349)(4,071)(1,712)(2,030)(885)
Lease liabilities(40,190)(2,125)(2,125)(2,125)(2,125)(2,125)(118,281)
Other current liabilities(3,280)(3,280)–––––
(804,206)(51,088)(103,834)(224,885)(204,834)(108,597)(245,770)
1.The undiscounted
cashflows on interest bearing liabilities includes interest, margin and line fees.
To manage the Group’s exposure to interest rate risk on variable rate instruments, the Group has implemented a hedging strategy
that uses interest rate swaps that have a range of maturities. At 31 March 2023, the Group had active interest rate derivatives (both
payer and receiver swaps) with a notional contract amount of $770 million (2022: $725 million). The active derivatives mature over
the next 5 years (2022: 6 years). Payer swaps have fixed interest rates ranging from 1.37% to 4.90% (2022: 0.93% to 4.90%). Swaps
with a notional amount of $150 million have been entered into but are not yet effective at 31 March 2023 (2022: $55 million).
Interest rate swaps are measured at the present value of future cash flows estimated and discounted based on applicable yield
curv
es derived from observable market interest rates. Accepted market best practice valuation methodology using mid-market
interest rates at the balance date is used, provided from sources perceived to be reliable and accurate. Interest rate swaps have been
classified into Level 2 of the fair value hierarchy on the basis that the valuation techniques used to determine the values at balance
date use observable inputs.
The net liability for derivative financial instruments as at 31 March
2023 is $21.3 million (2022: $30.1 million). The mark-to-market
decrease in the liability for derivative financial instruments is a result of the movement in the interest rate curve during the
financial year.
43Annual Report 2023Argosy Property Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
6. FINANCIAL INSTRUMENTS
(CONTINUED)
Sensitivity analysis
The sensitivity analysis below details the potential future impact of reasonably possible changes in the observable inputs over the
ne
xt financial period. It has been determined based on the exposure to interest rates for both derivative and non-derivative financial
instruments at the reporting date.
Group
2023
Impact on
Profit
& Loss
$000s
Group
2022
Impact on
Profit
& Loss
$000s
Increase of 100 basis points132(3,144)
Decrease of 100 basis points(158)3,204

7.
 OTHER NON-CURRENT ASSETS
Accounting policy - Property, plant and equipment
All property, plant and equipment is stated at historical cost less accumulated depreciation and accumulated impairment
losses
. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
At the end of each reporting period, the Group reviews the carrying amounts of its assets to determine whether there
is an
y indication that those assets have suffered impairment. If any such indication exists, the recoverable amount of the
asset is estimated in order to determine the extent of the impairment (if any). Where it is not possible to estimate the
recoverable mount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which
the asset belongs.
An impairment is recognised immediately in
profit or loss.
Group
2023
$000s
Group
2022
$000s
Property, plant and equipment and software183246
Total other non-current assets
183246
There was no impairment in the current year (2022: Nil).
44Annual Report 2023Argosy Property Limited

8.
 TRADE AND OTHER RECEIVABLES
Accounting policy - Trade and other receivables
Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost using the
effective
interest method, less provision for impairment. A provision for impairment of trade receivables is established to
reflect an estimate of amounts that the Group will not be able to collect in accordance with the original terms of the
receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of
estimated future cash flows, discounted at the original effective interest rate.
Group
2023
$000s
Group
2022
$000s
Trade receivables1,7251,306
Loss allowance(50)(86)
1,6751,220
Amount receivable from insurance proceeds21292
Other receivables3,2792,994
Total trade and other receivables
5,1664,306
The average credit period on receivables is 3.2 days (2022: 3.1 days). The Group is entitled to charge interest on trade receivables as
determined in each individual lease agr
eement. Interest is charged on receivables over 90 days on a case by case basis. The Group
has provided for 50% of all receivables over 90 days unless there is information suggesting that particular amounts are recoverable.
This amount increases to 100% of any receivable that is determined as not being recoverable. Trade receivables less than 90 days are
provided for based on estimated non-recoverable amounts, determined by reference to relevant factors, conditions, and information
at reporting date including past default experience.
Aged past due but not impaired trade receivables
Group
2023
$000s
Group
2022
$000s
0-30 days past due54374
31-60 days past due5079
Beyond 60 days past due1477
118530
Included in the Group's trade receivable balance are debtors with a carrying amount of $118,036 (2022: $530,312) which are past
due at the r
eporting date, for which the Group has not provided as there has not been a significant change in credit quality and the
amounts are still considered recoverable.
Movement in the loss allowance
Group
2023
$000s
Group
2022
$000s
Balance at the beginning of the year86131
(Decrease)/increase in allowance recognised in profit or loss(36)(45)
Balance at the end of the year
5086
45Annual Report 2023Argosy Property Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
9.
 OTHER CURRENT ASSETS
Group
2023
$000s
Group
2022
$000s
Prepayments4,8093,041
Other381418
Total other current assets
5,1903,459
10.
 PROPERTY HELD FOR SALE
No investment property was subject to an unconditional sale and purchase agreement at 31 March 2023 (31 March 2022: 25 Nugent
S
treet, Grafton, Auckland ($22.0 million)).
11. SHARE CAPITAL
Group
2023
$000s
Group
2022
$000s
Balance at the beginning of the period819,857809,230
Issue of shares from Dividend Reinvestment Plan–10,189
Issue costs of shares–(42)
Issue of shares from equity settled share based payments212480
Total share capital
820,069819,857
The number of shares on issue at 31 March 2023 was 846,723,895 (2022: 846,550,602).
All shares are fully paid and rank equally with one vote attached and carry the right to dividends.
Reconciliation of number of shares
(in 000s of shares)
Group
2023
Group
2022
Balance at the beginning of the period846,551839,528
Issue of shares from Dividend Reinvestment Plan–6,704
Issue of shares from share based payments173319
Total number of shares on issue
846,724846,551
46Annual Report 2023Argosy Property Limited

11. SHARE CAPITAL
(CONTINUED)
Capital risk management
The Group's capital includes shares, reserves and retained earnings with total shareholders' funds equal to $1,335.7 million (2022:
$
1,472.1 million).
The Group maintains a strong capital base so as to maintain investor, creditor and market confidence and to sustain the Group's
futur
e on-going activities and development of the business. The impact of the level of capital on equity holder returns is also
recognised along with the need to maintain a balance between the higher returns that might be possible with greater gearing and
the advantages and security afforded by a sound capital position.
The Board's intention is to maintain the debt-to-total-assets ratio between 30-40% in the medium term. The Group's banking
co
venants require that the aggregate principal amount of the loan outstanding does not exceed 50% of the fair value of property at
all times. All banking covenants have been met during the year.
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising
the r
eturn to stakeholders through optimisation of debt and equity. The Group's policies in respect of capital management and
allocation are reviewed regularly by the Board of Directors. There have been no material changes in the Group's overall strategy
during the year.
12. SHARE BASED PAYMENTS RESERVE
Accounting policy - Share based payments
The fair value of performance share rights (PSRs) are recognised as an expense in the statement of financial performance over
the v
esting period of the rights with a corresponding entry to the share based payments reserve.
PSRs were
offered to senior executives, commencing 1 April 2015. Under the scheme, PSRs are issued to participants which give
them the right to receive ordinary shares in the Company after a three year period, subject to certain vesting and other conditions
being met. The vesting of the PSRs is subject to the Company achieving a positive total shareholder return (measured against the
Company's share price on the date of the issue of the PSRs, and including dividends) over a three year measurement period. The
total number which actually vest will be dependent on the relative ranking of the Company's total shareholder returns against a
comparator group of listed entities determined by the Board from the S&P/NZX All Real Estate Gross Index.
The total expense recognised in the year to
31 March 2023 in relation to equity settled share based payments was $500,000 (2022:
$206,400). A total of 173,293 (2022: 318,573) PSRs vested during the year and each PSR was converted to one ordinary share at an
issue price of $1.23.
Grant dateVesting date
Granted
during the
year
1
Weighted
average
issue price
Balance at
the beginning
of the period
1
Vested
during the
period
1
Forfeited
during the
period
1
Balance at
the end of
the period
1
2023
1 April
2022
1 April
2025
299,844$1.381,026,806(173,293)(127,043)
2
1,026,314
2022
1 April
2021
1 April
2024
281,621$1.441,117,874(318,573)(54,116)
3
1,026,806
2021
1 April
2020
1 April
2023
444,849$0.90994,309–(321,284)
4
1,117,874
2020
1 April
2019
1 April
2022
300,336$1.25962,643(156,579)(112,091)
5
994,309
1.This is the number of PSRs.
2.The rights forfeited relate to those issued on
1 April 2019.
3.The rights forfeited relate to those issued on 1 April 2018.
4.The rights forfeited relate to those issued on 1 April 2017.
5.The rights forfeited relate to those issued on 1 April 2016.
47Annual Report 2023Argosy Property Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
13.
 RETAINED EARNINGS
Group
2023
$000s
Group
2022
$000s
Balance at the beginning of the year651,880470,746
Profit/(loss)
for the year(80,833)236,150
Dividends to shareholders(56,094)(55,016)
Total retained earnings
514,953651,880
The annual dividend paid to shareholders was 6.6250 cents per share, paid in three quarterly distributions of 1.6625 cents per share,
and one quarterly dis
tribution of 1.6375 cents per share (2022: annual dividend paid was 6.5250 cents per share).
After
31 March 2023, the final dividend was declared. The dividend has not been provided for. Refer to note 27.
14.
 INTEREST BEARING LIABILITIES
Accounting policy - Interest bearing liabilities
All interest bearing liabilities are initially measured at fair value net of transaction costs. Subsequent to initial recognition,
using the
effective interest method.
Borrowing costs are the costs incurred in establishing the bank facility and fixed
rate bonds. These costs are amortised over
the life of the instrument at the effective interest rate.
Group
2023
$000s
Group
2022
$000s
Syndicated bank loans438,167375,128
Fixed rate green bonds325,000325,000
Borrowing costs(3,176)(3,653)
Total interest bearing liabilities
759,991696,475
Weighted average interest rate on interest bearing liabilities
(inclusive of bonds, interest rate swaps, margins and line fees)5.39%4.14%
Group
2023
$000s
Group
2022
$000s
Total interest bearing liabilities at the beginning of the year696,475754,521
Drawdowns from syndicated bank loans101,61651,629
Repayments to syndicated bank loans(38,577)(110,351)
Additional
refinancing fee on interest bearing liabilities(441)(191)
Refinancing
fee on interest bearing liabilities amortised during the year
918867
Total interest bearing liabilities at the end of the year
759,991696,475
48Annual Report 2023Argosy Property Limited

14. INTEREST BEARING LIABILITIES (CONTINUED)
Syndicated bank loans
Group
2023
$000s
Group
2022
$000s
ANZ Bank New Zealand Limited121,58380,064
Bank of New Zealand10,79280,040
The Hongkong and Shanghai Banking Corporation Limited70,00070,000
Commonwealth Bank of Australia50,00070,000
Westpac New Zealand Limited125,79275,024
Industrial and Commercial Bank of China60,000–
Total syndicated bank loans
438,167375,128
As at
31 March 2023, the Group had a syndicated revolving facility with ANZ Bank New Zealand Limited, Bank of New Zealand,
The Hongkong and Shanghai Banking Corporation Limited, Commonwealth Bank of Australia, Westpac New Zealand Limited and
Industrial and Commercial Bank of China for $475.0 million (31 March 2022: $455.0 million) secured by way of mortgage over the
investment properties of the Group. The facility includes a Tranche A limit of $160.0 million, a Tranche B limit of $125.0 million, a
Tranche D limit of $110.0 million and a Tranche I limit of $80.0 million.
Tranche A matures on
1 April 2025, Tranche B on 1 October 2025, Tranche D on 1 October 2026 and Tranche I on 19 May 2026.
The limits for Tranches B and I remain unchanged from 31 March 2022. The Tranche A limit increased from $80.0 million to
$
160.0 million and the Tranche D limit increased from $90.0 million to $110.0 million. Tranche C was cancelled. The Tranche A
maturity date increased by two years, while the maturity dates for Tranches B, D and I all increased one year from 31 March 2022.
Fixed rate green bonds
NZX code
Value of Issue
$000sIssue DateMaturity DateInterest Rate
Fair Value
$000s
ARG010100,00027 March
2019
27 March
2026
4.00%93,821
ARG020100,00029 October
2019
29 October
2026
2.90%90,207
ARG030125,00027 October
2020
27 October
2027
2.20%104,444
The fair value of the
fixed rate green bonds is based on the listed market price at balance date and is therefore classified as Level 1
in the fair value hierarchy. Interest on ARG010 bonds is payable in equal instalments on a quarterly basis in March, June, September
and December. Interest on ARG020 and ARG030 bonds is payable in equal instalments on a quarterly basis in April, July, October
and January.
The green bonds are secured by way of mortgage over the investment properties of the Group.
49Annual Report 2023Argosy Property Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
15.
 TRADE AND OTHER PAYABLES
Accounting policy - Trade and other payables
Trade and other payables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method.
Group
2023
$000s
Group
2022
$000s
GST payable1,070785
Other creditors and accruals17,72621,214
Total trade and other payables
18,79621,999
16.
 OTHER CURRENT LIABILITIES
Accounting policy - Employee benefits
A provision is recognised for benefits accruing to employees in respect of annual leave and long service leave when it is
pr
obable that settlement will be required and they are capable of being measured reliably.
Provisions made in respect of employee
benefits expected to be settled within 12 months are measured at their nominal values
using the remuneration rate expected to apply at the time of settlement. Provisions made in respect of employee benefits
which are not expected to be settled within 12 months are measured as the present value of the estimated future outflows to
be made by the Group in respect of services provided by employees up to the reporting date.
Group
2023
$000s
Group
2022
$000s
Employee entitlements744733
Other liabilities3,0262,547
Total other current liabilities
3,7703,280
50Annual Report 2023Argosy Property Limited

17.
 ADMINISTRATION EXPENSES
Group
2023
$000s
Group
2022
$000s
Auditor's remuneration:
Audit of the annual
financial statements165160
Review of the interim
financial statements4643
Annual meeting fees611
Employee
benefits6,5277,347
Other expenses4,0624,265
Doubtful debts expense/(recovery)(36)(45)
Bad debts2232
Total administration expenses
10,79211,813
18.
 INTEREST EXPENSE
Accounting policy - Interest expense
Interest expense on borrowings is recognised using the effective interest method.
Group
2023
$000s
Group
2022
$000s
Interest expense(37,914)(28,766)
Interest on ground lease (39 Market Place)(2,009)(2,015)
Less amount capitalised to investment properties3,5095,134
Total interest expense
(36,414)(25,647)
Capitalised interest relates to the developments at 8-14 Willis Street/360 Lambton Quay, Wellington and 105 Carlton Gore Road,
N
ewmarket, Auckland (2022: Capitalised interest relates to the developments at 8-14 Willis Street/360 Lambton Quay, Wellington
and 105 Carlton Gore Road, Newmarket, Auckland).
51Annual Report 2023Argosy Property Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
19.
 TAXATION
Accounting policy - Taxation
Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or loss except to the
e
xtent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at
the r
eporting date, and any adjustment to tax payable in respect of previous years.
Group
2023
$000s
Group
2022
$000s
The taxation charge is made up as follows:
Current tax expense3,7774,980
Deferred tax expense5,372884
Adjustment recognised in the current year in relation
to the current tax of prior years748(824)
Total taxation expense recognised in
profit or loss
9,8975,040
Reconciliation of accounting profit/(loss) tax expense
Profit/(loss)
before tax(70,936)241,190
Current tax expense at 28%(19,862)67,533
Adjusted for:
Capitalised interest(983)(1,438)
Fair value movement in derivative financial instruments(2,042)(3,467)
Fair value movement in investment properties41,036(45,825)
Restructure of
financial instruments(1,561)–
Deductible repairs and maintenance expenditure capitalised for accounting purposes(2,039)(4,975)
Depreciation(9,597)(8,154)
Depreciation recovered/(loss) on disposal of investment properties331,202
Tax on accounting gain/(loss) on disposal of investment properties103716
Settlement for failed sale of investment property(828)–
Other(483)(612)
Current taxation expense
3,7774,980
Movements in deferred tax assets and liabilities attributable to:
Investment properties1,384(3,030)
Fair value movement in derivative financial instruments3,6033,467
Other385447
Deferred tax expense
5,372884
Prior year adjustment748(824)
Total tax expense recognised in profit or loss9,8975,040
As part of the measures to provide relief for businesses during the Covid-19 pandemic, the Government reintroduced depreciation
deductions for commercial and industrial buildings effective from 1 April 2020.
There were no imputation credits at 31 March 2023 (2022: Nil).
52Annual Report 2023Argosy Property Limited

20.
 DEFERRED TAX
Accounting policy - Deferred tax
Deferred tax is recognised on temporary differences between the carrying amount of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance
sheet liability method. Deferr
ed tax liabilities are generally recognised for all taxable temporary differences and deferred tax
assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary
differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or
from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affect
neither the taxable profit nor the accounting profit.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the
asset r
ealised.
Under NZ IAS 12, the measurement of deferred tax liabilities and deferred tax assets depends on whether an entity expects
to r
ecover an asset by using it or by selling it and includes a presumption that an investment property is recovered entirely
through sale unless it will be consumed over its useful life.
The following are the major deferred tax liabilities and (assets) recognised by the Group, and the movements thereon during the
curr
ent and prior reporting years:
Interest rate
swaps
$000s
Investment
property
$000s
Other
$000s
Total
$000s
At
1 April 2022(8,430)16,0225,09512,687
Charge/(credit) to deferred taxation expense for the year3,6031,3843855,372
At
31 March 2023
(4,827)17,4065,48018,059
At
1 April 2021(11,897)19,0524,64811,803
Charge/(credit) to deferred taxation expense for the year3,467(3,030)447884
At
31 March 2022
(8,430)16,0225,09512,687
Deferred tax is provided in respect of depreciation expected to be recovered on the sale of property at fair value. Depreciation is
claimed at Inland R
evenue Department approved rates.
Investment properties are valued each year by independent valuers (as outlined in note 5). These values include an allocation of the
v
aluation between the land and building components. The calculation of deferred tax on depreciation recovered and changes in fair
value relies on the split provided by the valuers.
It is assumed that all
fixtures and fittings will be sold at their tax book value.
53Annual Report 2023Argosy Property Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
21.
 RECONCILIATION OF PROFIT/(LOSS) AFTER TAXATION WITH CASH FLOWS FROM OPERATING ACTIVITIES
Group
2023
$000s
Group
2022
$000s
Profit/(loss) after tax
(80,833)236,150
Movements in working capital items relating to investing and financing
activities9,0633,457
Non cash items
Movement in deferred tax liability5,372884
Movement in interest rate swaps(7,295)(12,383)
Fair value change in investment properties146,557(163,662)
Movements in working capital items
Trade and other receivables(860)(2,371)
Taxation receivable(533)3,052
Trade and other payables(3,203)8,003
Other current assets(1,731)539
Other current liabilities490(210)
Net cash from operating activities
67,02773,459
22.
 EARNINGS/(LOSS) PER SHARE
Basic and diluted earnings/(loss) per share is calculated by dividing the profit attributable to shareholders of the Company by the
w
eighted average number of ordinary shares on issue during the year.
Group
2023
Group
2022
Profit/(loss)
attributable to shareholders of the Company ($000s)(80,833)236,150
Weighted average number of shares on issue (000s)846,697843,207
Basic and diluted earnings/(loss) per share (cents)
(9.55)28.01
Weighted average number of ordinary shares
Issued shares at beginning of period (000s)846,551839,528
Issued shares at end of period (000s)846,724846,551
Weighted average number of ordinary shares (000s)
846,697843,207
On
16 May 2023, a final dividend of 1.6625 cents per share was approved by the Board. The Dividend Reinvestment Plan programme
has been suspended by the Board until further notice.
54Annual Report 2023Argosy Property Limited

23.
 DISTRIBUTABLE INCOME AND ADJUSTED FUNDS FROM OPERATIONS
Group
2023
$000s
Group
2022
$000s
Profit/(loss) before income tax(70,936)241,190
Adjustments:
Revaluation (gains)/losses on investment property146,557(163,662)
Realised (gains)/losses on disposal of investment properties3692,558
(Gain)/loss on derivative financial instruments held for trading(7,295)(12,383)
Gross distributable income
68,69567,703
Tax impact of depreciation recovered on disposal of investment properties331,202
Current tax expense(4,525)(4,156)
Net distributable income
64,20364,749
Weighted average number of ordinary shares (000s)846,697843,207
Gross distributable income cents per share
8.118.03
Net distributable income cents per share
7.587.68
Net distributable income
64,20364,749
Amortisation of tenant incentives and leasing costs2,7424,649
Funds from operations (FFO)
66,94569,398
Capitalisation of tenant incentives and leasing costs(1,023)(1,103)
Maintenance capital expenditure(6,446)(5,843)
7 Waterloo Quay façade repairs–(14,496)
Swap contract termination payment(1,498)–
Maintenance capital expenditure recovered through sale107376
Adjusted funds from operations (AFFO)
58,08548,332
FFO cents per share
7.918.23
AFFO cents per share
6.865.73
Dividends paid/payable in relation to period6.656.55
Dividend payout ratio to FFO84%80%
Dividend payout ratio to AFFO97%114%
From
1 April 2022, the Company's dividend policy is based on adjusted funds from operations (AFFO). AFFO is based on the
Property Council of Australia Voluntary Best Guidelines for disclosing FFO and AFFO as interpreted by the Company and amended
to include maintenance capital expenditure recovered through sales.
FFO and AFFO are non-GAAP measures and may not be directly comparable with other entities.
55Annual Report 2023Argosy Property Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
24.
 INVESTMENT IN SUBSIDIARIES
The Company has control over the following subsidiaries:
Name of subsidiaryPrincipal activity
Place of
incorporation
and operationHolding 2023Holding 2022
Argosy Property No.1 LimitedProperty investmentNZ100%100%
Argosy Property Management LimitedManagement companyNZ100%100%
The subsidiaries have the same reporting date as the Company.
25.
 LEASES
Accounting policy - Leases
The Group as a lessee
Argosy do not recognise right of use assets or lease liabilities for short term leases or low value leases. Lease payments for
these leases ar
e recognised as an expense on a straight line basis over the lease term.
Where Argosy
identifies a lease, the following treatment is applied: 
Right of use assets are measured at cost comprising the amount of the initial lease liability, any payments made before the
commencement of the lease
, direct costs and any restoration costs. Right of use assets are disclosed within the same line item
as that within which the corresponding underlying assets would be presented if they were owned. Some right of use assets
meet the definition of investment properties. Refer note 5 for policies and disclosure on investment properties.
Lease liabilities are measured at the net present value of the lease payments. These payments include fixed lease payments,
amount e
xpected to be payable under residual value guarantees, variable lease payments that are based on an index or rate,
the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and payments of penalties for
terminating the lease, if the lease term reflects the lessee exercising that option.
These lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the
lessee’
s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to
obtain an asset of similar value in a similar economic environment with similar terms and conditions.
Subsequent to initial measurement, each lease payment is allocated between the principal and finance cost. The finance cost is
char
ged to the statement of comprehensive income over the lease period so as to produce a constant periodic rate of interest
on the remaining balance of the liability for each period.
The maturity analysis of lease liabilities is presented in note 6.
The Group as a lessor
Leases are
classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of
ownership to the lessee. All other leases are classified as operating leases.
The Group has entered into commercial property leases on its investment properties. The Group has determined that
it r
etains all significant risks and rewards of ownership of these properties and has thus classified these leases as
operating leases.
Rental income from operating leases is recognised in the period to which it relates. Initial direct costs incurred in negotiating
and arr
anging an operating lease are added to the carrying amount of the leased asset and amortised to property expenses on a
straight-line basis over the lease term.
In the event that lease incentives are paid to enter into the operating leases, such incentives are recognised as an asset. The
aggr
egate cost of incentives is recognised as a reduction of rental revenue on a straight-line basis.
When a contract includes both lease and non-lease components, consideration is allocated to each component under
the contr
act.
56Annual Report 2023Argosy Property Limited

25. LEASES
(CONTINUED)
Lease liabilities
Lease liabilities relate to the ground lease at 39 Market Place, Viaduct Harbour, Auckland.
Group
2023
$000s
Group
2022
$000s
Opening balance40,19041,685
Fair value adjustment–(1,385)
Lease liability interest expense2,0092,015
Ground rent paid(2,125)(2,125)
Total lease liabilities40,07440,190
Non-cancellable operating lease receivable
Operating leases relate to the investment properties owned by the Group with the leases expiring between 2023 and 2037. The
lessee does not ha
ve an option to purchase the property at the expiry of the lease.
Group
2023
$000s
Group
2022
$000s
Within one year120,282117,840
One year or later and not later than
five years358,313329,495
Later than
five years
216,912236,205
Total operating lease receivable695,507683,540
There were no contingent rents recognised as income during the year.
26.
 COMMITMENTS
Building upgrades and developments
Estimated capital commitments contracted for building projects not yet completed at 31 March 2023 and not provided for were
$
20.1 million (2022: $37.7 million).
There were no other commitments as at 31 March 2023 (2022: Nil).
The Company has the following guarantee, which is not expected to be called upon:
As a condition of listing on the New Zealand Stock Exchange (NZX), NZX requires all issuers to provide a bank bond to NZX under
N
ZX Main Board/Debt Market Listing Rule 2.6.2. The bank bond required from APL for listing on the NZX Main Board is $75,000.
27. SUBSEQUENT EVENTS
On
16 May 2023, a final dividend of 1.6625 cents per share was approved by the Board. The record date for the final dividend is
7 June 2023 and a payment is scheduled to shareholders on 21 June 2023. Imputation credits of 0.0180 cents per share are attached
to the dividend.
28. RELATED PARTY TRANSACTIONS
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been
eliminated on consolidation and ar
e not disclosed in this note. Details of transactions between the Group and other related parties
are disclosed below.
Group
2023
$000s
Group
2022
$000s
Key management and directors compensation
Salaries and other short term employee
benefits1,8431,707
Share based payments212480
Directors' fees728723
Total
2,7832,910
57Annual Report 2023Argosy Property Limited

Independent Auditor’s Report
To the Shareholders of Argosy Property Limited
Opinion We have audited the consolidated financial statements of Argosy Property Limited and its subsidiaries (the ‘Group’),
which comprise the consolidated statement of financial position as at 31 March 2023, and the consolidated statement
of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for
the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting
policies.
In our opinion, the accompanying consolidated financial statements, on pages 30 to 57, present fairly, in all material
respects, the consolidated financial position of the Group as at 31 March 2023, and its consolidated financial
performance and cash flows for the year then ended in accordance with New Zealand Equivalents to International
Financial Reporting Standards (‘NZ IFRS’) and International Financial Reporting Standards (‘IFRS’).
Basis for opinion We conducted our audit in accordance with International Standards on Auditing (‘ISAs’) and International Standards on
Auditing (New Zealand) (‘ISAs (NZ)’). Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Consolidated Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the Company in accordance with Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand) issued by the New
Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants (including International Independence Standards), and we
have fulfilled our other ethical responsibilities in accordance with these requirements.
Other than in our capacity as auditor and vote scrutineering at the Annual Shareholders’ Meeting, we have no
relationship with or interests in the Company or any of its subsidiaries. These services have not impaired our
independence as auditor of the Company and Group.
Audit materiality


We consider materiality primarily in terms of the magnitude of misstatement in the financial statements of the Group
that in our judgement would make it probable that the economic decisions of a reasonably knowledgeable person
would be changed or influenced (the ‘quantitative’ materiality). In addition, we also assess whether other matters that
come to our attention during the audit would in our judgement change or influence the decisions of such a person (the
‘qualitative’ materiality). We use materiality both in planning the scope of our audit work and in evaluating the results
of our work.
We determined materiality for the Group financial statements as a whole to be $3.4 million.
Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
consolidated financial statements of the current period. These matters were addressed in the context of our audit of
the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Key audit matter How our audit addressed the key audit matter
Investment property valuations

As disclosed in note 5 of the consolidated financial statements, investment
properties were valued at $2,185 million as at 31 March 2023. The
investment properties are classified into three segments being, Industrial,
Office, and Large Format Retail.

The methods used for assessing fair values include the capitalisation of
contract income, capitalisation of market income and discounted cash flow
methodologies. Fair values are calculated using actual and forecasted inputs
and assumptions including market rentals and growth, maintenance and
capital expenditure requirements, an assessment of yields, discount rates,
occupancy, leasing costs and weighted average lease terms. Adjustments are
made to observable market data of similar properties to reflect the specific
nature and location of the individual properties.

The Group’s policy is to engage independent registered valuers to perform
valuations for each of the properties on at least an annual basis.

The valuation of investment properties is a key audit matter due to the
subjective judgements and assumptions in the valuation process.
We read the valuation reports for all properties that were subject to
revaluation at year end. We checked for any limitations of scope in the
valuation reports that would impact the reliability of the valuations. When
considered appropriate, discussions were held with the valuers to confirm
the valuation approach used. These discussions related to the general
market, as well as specific properties identified by us.
We assessed the valuers’ experience and professional accreditations. This
included having each of the valuers confirm their independence,
qualifications and that the scope of work undertaken was in line with
professional valuation standards and financial reporting standards. In
addition, we considered the Group’s process for reviewing and challenging
the valuation reports to ensure that they accurately reflected the individual
characteristics of each property.
The major inputs to the valuation process were tested across a sample of
properties. For the sample selected, key changes in rental assumptions,
occupancy, capitalisation rates and terms were agreed to underlying lease
agreements and to market comparatives where relevant. Yields across the
three segments were compared to property industry publications and other
observable market data where available.
For a sample of properties, ownership was confirmed through property title
searches.
Our internal valuation specialists were used in assessing the
appropriateness of the valuation methodology.
58Annual Report 2023Argosy Property Limited

Other information

The Board of Directors are responsible on behalf of the Group for the other information. The other information
comprises the information in the Annual Report that accompanies the consolidated financial statements and the audit
report.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
Our responsibility is to read the other information and consider whether it is materially inconsistent with the
consolidated financial statements, or our knowledge obtained in the audit or otherwise appears to be materially
misstated. If so, we are required to report that fact. We have nothing to report in this regard.
Board of Directors’
responsibilities for the
consolidated financial statements
The Board of Directors are responsible on behalf of the Group for the preparation and fair presentation of the
consolidated financial statements in accordance with NZ IFRS and IFRS, and for such internal control as the Board of
Directors determine is necessary to enable the preparation of consolidated financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors are responsible on behalf of the Group for
assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless the Board of Directors either intend to liquidate the Group or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the
audit of the consolidated financial
statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with ISAs and ISAs (NZ) will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial statements is located on the
External Reporting Board’s website at:
https://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1
This description forms part of our auditor’s report.
Restriction on use

This report is made solely to the Company’s shareholders, as a body. Our audit has been undertaken so that we might
state to the Company’s shareholders those matters we are required to state to them in an auditor’s report and for no
other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than
the Company’s shareholders as a body, for our audit work, for this report, or for the opinions we have formed.







Peter Gulliver
Partner
for Deloitte Limited
Auckland, New Zealand
16 May 2023

59Annual Report 2023Argosy Property Limited