2023 Retail Roadshow Presentation

Argosy Property Limited
Retail
Roadshow:
21 June to
13 July
2023

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

Agenda
.3
Vision & Strategy4
Results Summary7
Portfolio Highlights8
Financials17
Leasing Update26
Focus and Outlook30
Note: Due to rounding, numbers presented in this presentation may not add up exactly to the totals provided and percentages may notre flect exactly absolute
figures.

Vision and
Strategy
.4

.5

●XXX
.6
2023 Achievements
Delivered a solid FY23 result
Executed asset allocation strategy and portfolio repositioning
Continued our sustainability and development strategies
Delivered on key focus areas (key expiries and vacancies)
Prudent capital management
Sustained dividend

.7
$112.8m
Net property income
$64.2m
Net distributable income
$1.58
NTA per share
35.1%
Gearing in the mid-point of target range
Results Summary
($146.6)m
Unrealisedrevaluation loss to 31 March

.8
Note: Portfolio value excludes right of use asset at 39 Market Place of $40.1 million
99.3%
Occupancy
5.4yrs
Weighted average lease term
3.6%
Annualised rent review increase on rents
reviewed
Portfolio highlights

Sector Summary
.9
Number of
buildings
INDUSTRIAL
Number of
buildings
OFFICE
Number of
buildings
LARGE FORMAT RETAIL
35154
Market value
of assets ($m)
Market value
of assets ($m)
Market value
of assets ($m)
$1,127.8$811.1$206.0
Occupancy
(by income)
Occupancy
(by income)
Occupancy
(by income)
100%98.5%100%
Weighted average
lease term (WALT)
Weighted average
lease term (WALT)
Weighted average
lease term (WALT)
6.1yrs5.2yrs2.9yrs
Contract
yield
Contract
yield
Contract
yield
4.76%5.97%5.56%

Portfolio at a glance @ 31 March
.10
Sectorby value %Region by value %Asset Mixby value %
1.Large Format Retail.
2.Regional North Island and South Island. This weighting also includes up to 5% allocation to the Golden Triangle area between Auckland, Tauranga
and Hamilton.
2
1

Argosy Portfolio vs MSCI Benchmark
.11

Dividends
.12
A 4
th
quarter dividend of 1.6625cps has
been declared with 0.01801 cents per
share imputation credits attached.
Overseas investors will receive an
additional supplementary dividend of
0.008171 cents per share to offset non-
resident withholding tax.
The record date is 7 June and the
payment date is 21 June.
Steady and sustainable
6.65cps
FY24 dividend guidance
6.28
6.35
6.45
6.55
6.656.65
5.00
5.20
5.40
5.60
5.80
6.00
6.20
6.40
6.60
6.80
FY19FY20FY21FY22FY23FY24f
Dividend cps

Revaluations
.13
Independent valuations undertaken at 31
March.
$146.6m decline reported, or 6.4%
revaluation to book values.
Cap rate softening has been offset to
some extent by market rental growth.
Continued dearth of transactional
evidence during the period.
Cap rate headwinds but rental
growth delivers
Note: Due to rounding, numbers presented in this presentation may not add up exactly to the totals provided and percentages may not reflect
exactly absolute figures.
Auck land1,617.61,507.6(110.0)(6.8%)
Wellington607.8577.4(30.5)(5.0%)
North Island Regional & South Island65.959.9(6.1)(9.2%)
Total
2,291.4 2,144.8 (146.6)(6.4%)
Industrial1,176.91,127.8(49.1)(4.2%)
Office890.1811.1(79.0)(8.9%)
Large Format Retail224.4206.0(18.5)(8.2%)
Total 2,291.4 2,144.8 (146.6)(6.4%)
31 Mar 23
Book Val ue
($m)
31 Mar 23
Valuation
($m)

$m

%
31 Mar 23
Book Val ue
($m)
31 Mar 23
Valuation
($m)

$m

%

Value Add Properties
.14
Conversion and transformation of Value
Add properties remains a key strategic
driver over the next decade.
Green project at 105 Carlton Gore Road
nearing completion.
Master Planning for Mt Richmond and
Neilson Street industrial estates
progressing – resource consents with
Council.
Value Add properties with potential to
deliver future earnings and capital
growth
Green assets delivering
Status & ProjectSectorLocation
Completed
12-16 & 18-20 Bell Ave, Mt WellingtonIndustrialAuckland
105 Carlton Gore Road, NewmarketOfficeAuckland
Planning
224 Neilson Street, Onehunga IndustrialAuckland
Future
101 Carlton Gore Road, Newmarket OfficeAuckland
8-14 Mt Richmond Drive, Mt Wellington IndustrialAuckland
Currently Leased (6 properties)Industrial Auckland

.15
Value Add case study: 8-14 Willis Street
5 Star
NABERSNZ energy rating being targeted
6 Star
Green Built rating being targeted
15yr
Lease commitment to Statistics
New Zealand
4.8%
Final yield on cost
$150m
Book Value @ 31 March

.16
50%
Leased by net lettable area
Value Add case study: 105 Carlton Gore Road
5 Star
NABERSNZ energy rating being targeted
6 Star
Green Built rating being targeted
5.3%
Forecast yield on cost

Financials
.17

Gross Property Income Waterfall
.18
All areas of business contributing to rental growth

Financial Performance
.19
The net property income increase was
driven by a range of factors including
strong like-for-like rental growth, leasing
up activity, the acquisition of Maui St and
developments.
Corporate expenses were down due to
the combination of lower acquisition
investigation costs and development
salaries capitalisedto projects.
Net interest expense was higher driven by
higher volume of debt, higher floating
interest rates and lower capitalised
interest.
The unrealisedrevaluation loss of $146.6m
was driven by cap rate softening, offset
by market rental growth.
Top line growth maintained
$112.8m
Net property income
Note: Due to rounding, numbers presented in this presentation may not add up exactly to the totals provided and
percentages may not reflect exactly absolute figures.
FY23FY22
$m$m
Net property incom e112.8105.1
Adm inistration expenses(10.8)(11.8)
Pr ofi t befor e fi nanci al i ncome/(expenses), other gai ns/(l osses)
and tax
102.093.3
Net interest expense(36.3)(25.6)
Gain/(loss) on derivatives 7.3 12.4
Other gains/(losses)
Rev aluation gains/(losses) on inv estm ent property(146.6) 163.7
Realised gains/(losses) on disposal(0.4)(2.6)
Settlem ent for failed sale of property 3.0
Pr ofi t/(l oss) befor e i ncome tax attr i butabl e to shar ehol der s(70.9) 241.2
Taxation expense 9.9 5.0
Pr ofi t/(l oss) and total compr ehensi ve i ncome/(l oss) after tax(80.8) 236.2
Earnings per share (cents)(9.5)28.0

Distributable Income
.20
Net distributable income for the year was
$64.2m compared to $64.7m in the prior
comparable period.
Current tax expense (after depreciation
recovered adjustments) was due to
higher repairs and maintenance
deductibles in the prior comparable
period.
Stability key in a
challenging market
Note: Due to rounding, numbers presented in this presentation may not add up exactly to the totals provided and percentages may
not reflect exactly absolute figures.
$64.2m
Net distributable income
FY23FY22
$m$m
Pr ofi t befor e i ncome tax(70.9) 241.2
Adjustments:
Rev aluation (gains)/losses on inv estm ent property 146.6 (163.7)
Realised losses/(gains) on disposal 0.4 2.6
Derivative fair value (gain)/loss(7.3)(12.4)
Gr oss di str i butabl e i ncome68.767.7
Depreciation recov ered 0.0 1.2
Current tax expense(4.5)(4.2)
Net di str i butabl e i ncome64.264.7
Weighted average number of ordinary shares (m)846.7843.2
Gr oss di str i butabl e i ncome per shar e (cents)8.118.03
Net di str i butabl e i ncome per shar e (cents)7.587.68

Adjusted Funds From Operations (AFFO)
.21
7WQ façade works completed in FY22
AFFO payout ratio was 97% for the
period.
AFFO covered dividends key
$58.1m
AFFO for the year to 31 March
Note: Due to rounding, numbers presented in this presentation may not add up exactly to the totals provided and
percentages may not reflect exactly absolute figures.
FY23
FY22
$m$m
Net di str i butabl e i ncome64.264.7
Amortisation of tenant incentives and leasing costs 2.7 4.6
Funds fr om oper ati ons (FFO)66.969.4
Capitalisation of tenant incentives and leasing costs(1.0)(1.1)
Maintenance capital expenditure
(6.4)
(5.8)
7 Waterloo Quay façade repairs - (14.5)
Sw ap contract termination payment
(1.5)
-
Maintenance capital expenditure recov ered through sale 0.1 0.4
Adjusted funds fr om oper ati ons (AFFO)58.148.3
Weighted average number of ordinary shares (m)846.7843.2
FFO cents per share 7.918.23
AFFO cents per shar e
6.865.73
Dividends paid/payable in relation to period6.656.55
Dividend payout ratio to FFO84%80%
Dividend payout ratio to AFFO97%114%

Investment Properties
.22
Portfolio value down slightly over the period
Note: Due to rounding, numbers presented in this presentation may not add up exactly to the totals provided and
percentages may not reflect exactly absolute figures. 1. Including NZ IFRS16 adjustment. 2. Excluding NZ IFRS16 adjustment.
1
2

NTA Per Share
.23
NTA movement driven by unrealisedrevaluations
Note: Due to rounding, numbers presented in this presentation may not add up exactly to the totals provided and
percentages may not reflect exactly absolute figures.

Balance Sheet Management
.24
Acquisition of Maui St and completion of
developments pushes debt higher
Argosy has sufficient facility headroom to
complete existing developments and any
near-term opportunities.
$66m of assets regarded as non Core
Balance sheet sound, green
Value Add developments
and acquisition drives debt
movement
35.1%
Debt to total assets ratio in the
middle of the target 30-40% range
1. Excludes capitalised borrowing costs. 2. Excludes Right of Use Asset at 39 Market Place of $40.1 million
Note: Due to rounding, numbers presented in this presentation may not add up exactly to the totals provided and percentages may not reflect
exactly absolute figures.
FY23FY22
$m$m
Investment properties2,184.9
2,247.7
Asset held for sale22.0
Other assets27.7 21.8
Total assets2,212.6
2,291.5
Right of Use Asset(40.1)(40.2)
Total assets (net of Right of Use Asset)2,172.6
2,251.4
Fixed Rate Green Bonds325.0 325.0
Bank debt
1
438.2 375.1
Total Bank Debt & Bond Funding763.2
700.1
Debt-to -total-assets ratio
2
35.1%
31.1%

Debt Profile including Bonds
.25
During the year Argosy extended its
existing syndicated bank facilities with its
banking group.
Industrial and Commercial Bank of China
Limited (ICBC) has joined the syndicate.
The total amount of the bank facility is
$475m with the nearest tranche expiring
in April 2025.
Argosy’s $325m of green bonds continue
to provide important diversification and
tenor benefits to the business.
Green bonds provide
diversification and tenor
3.2yrs
Weighted average duration of
Argosy’s debt
285
190
0
100
100
125
0
50
100
150
200
250
300
350
400
450
FY24FY25FY26FY27FY28
Facilities ($m)
Bank facilitiesExisting Green Bonds

Leasing
.26

.27
15km from CBD
Prime industrial location
Green development
40,000m2 of warehouse
4,000m2 of office
End value +$250m
IRR ~8%
Value Add Case Study: Mt Richmond Estate
Leasing
59,386
Of NLA renewed by General Distributors
for 10 years
5yrs
Renewed lease commitment by Visypet
for 15,191m
2
at 211 Albany Highway
36
Leasing transactions including 16 new
leases, 16 renewals and 4 extensions
~15%
Equivalent of total portfolio by NLA
97,500
Of NLA leased over the year,

Lease Expiry & Rent Review Profile
.28
The largest single expiry remains the 9.4%
expiry in Mar-27 to Ministry for Business,
Innovation and Employment, at 15-21
Stout Street.
FY24 sees $91.4m of portfolio income
subject to rent reviews. Of these, $61.8m
is subject to fixed reviews, $21.8m to
market review and $7.8m to CPI.
Expiry profile remains well
managed
3.6%
Annualisedrent review for FY23

MARKET INSIGHTS
.29
Strong demand continues to drive
additional supply but quieter period in
2024 is projected.
Limited land supply in Auckland and
Wellington continues pressure on land
values with prime sites holding their
value.
Rentals continue to show solid growth in
well located assets.
“Reshoring” return of domestic
manufacturing.
Vacancy remains very low, with limited
speculative supply.
Supply chain issues largely resolved but
Just-in-time challenges remain.
INDUSTRIAL
Flexible working environments continue
but full-time remote work is declining.
Changes in the way space is used,
focusing on the environment, now a staff
attraction matter.
Increased focus from tenants on
sustainability/green.
Decrease in space available for sub-
lease following pandemic.
Wellington has low vacancy, and
demand continues for good quality,
green well located space.
Auckland office still exhibits elevated
(but reducing) vacancy with occupancy
demand focused on green assets.
OFFICE
Online proportion of total sales has
reduced post pandemic.
Large Format Retail continues to receive
solid demand in prime locations.
Retailers consolidating to a fewer
number of locations.
LARGE FORMAT RETAIL

Focus &
Outlook
.30

FY24 brings fresh challenges, but we’re well placed
.31
New Zealand domestic economy continues to experience headwinds from high interest rates and inflation.
Argosy’s diversified portfolio exposure to attractive sectors provides resilience in turbulent times. Diversification remainsa strength.
The company remains well positioned to navigate through near term economic volatility, underpinned by its sound capital positionand
growing portfolio of green and environmentally centredbuildings.
Our key objectives for FY24 remain clear and unchanged from what has delivered success previously: keep delivering strong operational
results, address key expiries, lease up remaining vacancies, complete key green developments and commence new ones as planned.
Progress Master planning across key green Value Add developments at Neilson Street and Mt Richmond where we continue to receive strong
market interest in these opportunities.
Strong bottom up property fundamentals in key markets (Auckland Industrial and Wellington Office) continue to present attractivedynamics
of low supply, high demand and steady rental growth. Rising demand by the market for green buildings remains very encouragingand Argosy
is well placed to benefit.
Deliver sustainable dividends to shareholders.
Strategy delivery is our key focus

Thank you.
.32

Disclaimer
.33
This presentation has been prepared by Argosy Property Limited. The details in this presentation provide general
information only. It is not intended as investment or financial advice and must not be relied upon as such. You
should obtain independent professional advice prior to making any decision relating to your investment or
financial needs. This presentation is not an offer or invitation for subscription or purchase of securities or other
financial products. Past performance is no indication of future performance.
All values are expressed in New Zealand currency unless otherwise stated.
21 June – 13 July 2023