Argosy Property Limited Investor Update March 2025

Investor
Up
date
March 2025
CEO Comment
An update from our CEO, Peter
Me
nce p.3
Business Update
Recent award wins and new
Di
rector appointment, p.4
ESG Update
An update on our work with our
co
mmunity partners p.5
Portfolio Update
Portfolio and dividend update p.6
Sustainable innovation: new industrial developments
t
a
rget top Green Star ratings
Argosy's strategic acquisitions
and developments in
Penrose and Mt Wellington
exemplify our commitment
to sustainability and value
addition. These projects
are a testament to our
dedication to creating high-
value properties that meet
the evolving demands of
the market while minimising
environmental impact.”
Marilyn Storey
HEAD OF DEVELOPMENT
In recent years Argosy Property has made two
s
i
gnificant strategic acquisitions to strengthen
our portfolio in key industrial areas. In January
2020, we acquired 224 Neilson Street, followed
by the purchase of Mt Richmond in March 2021.
These properties, located in the thriving
industrial hubs of Penrose and Mt Wellington
respectively, span a total of 14 hectares. This
move underscores our dedication to enriching
our portfolio with high-value, sustainable
assets. These acquisitions showcase our
Value-Add strategy, which focuses on
developing prime properties in response to
market demand.
Development at 224 Neilson Street, Onehunga.
Argosy Property LimitedInvestor Update March 202501

Sustainable innovation (continued)
The developments at 224 Neilson Street and
Mt
Richmond will feature seven buildings,
each targeting 6 Green Star Design and As
Built ratings, showcasing a strong commitment
to sustainability.
The buildings will incorporate a variety of
su
stainable and innovative features to minimise
environmental impact and enhance resilience:
•Low carbon concrete, with up to 20%
cement substitutes, significantly reduces
carbon emissions.
•Stormwater management is addressed
th
rough advanced overland flowpaths
designed to handle high rainfall events,
ensuring effective water management.
•The buildings boast a high freeboard
of
300mm, double the building
code requirement, providing additional
flood protection.
•Rainwater harvesting systems are installed,
wi
th tanks supplying water for building wash
and non-potable bathroom needs, reducing
reliance on mains water.
•Water efficiency is further enhanced
wi
th low consumption fittings, including
bathroom fixtures and tapware.
•Solar energy is harnessed through PV solar
ar
rays, providing 1.8mW of power at Mt
Richmond and 1.0mW of power at 224
Neilson Street.
•Lower GHG refrigerants are used in hybrid
sy
stems with heat recovery to attenuate
greenhouse gas emissions.
•High-performance facades are designed
to
reduce solar gain, enhancing
energy efficiency.
•Advanced electrical systems include smart
LE
D lighting to deliver increased comfort
and minimise energy consumption, sub-
metering systems to track performance
and site infrastructure designed to
accommodate EV charging requirements.
•Designs include low VOC products, such
as
paints and linings, to improve indoor
air quality.
•Carbon offsetting is implemented, with the
em
bodied carbon of each building offset
using certified carbon credits, covering
all emissions up to the end of the
construction phase.
•Sustainable materials, such as timber
fr
om certified sources, further reduce the
environmental footprint.
•Energy monitoring is facilitated by
su
b-metering systems that constantly
track performance.
•Development plans are informed by climate
ri
sk and adaptation plans, with buildings
designed to withstand 3.1 degrees of climate
change, ensuring long-term resilience
224 Neilson Street spans 3.5 hectares and
fe
atures a 6,500 sqm warehouse/office,
which has recently been leased to Bascik
Transport for a 12-year term. This building has
achieved a 6 Star Green Star Design and As
Built rating.The second building comprising
15,300sqm, will be completed in September
20
25 and market enquiry is strong.
The Mt Richmond site will be developed in
tw
o stages to ensure a structured and efficient
build process. The first stage, which has
already commenced, covers approximately 4.6
hectares. We have secured Viatris Limited for
6,633 sqm of space on a 10-year lease, with a
target completion date of April 2026. Platforms
for two additional warehouses will be available
for lease as yard or development. The second
stage will encompass the remaining 6 hectares,
featuring two buildings totalling 31,000 sqm.
These developments will help Argosy move
to
wards our industrial target band of 60-70%.
Currently, our portfolio's industrial weighting
stands at 52%, and with the completion of 224
Neilson Street, it will increase to 54%. Stage 2
of the Mt Richmond site planned for completion
in 2027/28, will further boost this to 58%,
including budgeted disposals.
We look forward to sharing more updates with
yo
u on these innovative developments.
Mt Richmond site, Mt Wellington.
Artist impression of Mt Richmond, Mt Wellington.
Argosy Property LimitedInvestor Update March 202502

CEO Comment
Are we there yet?
While it is clear that the domestic New
Z
ealand economy is still struggling, the recent
cuts in the Official Cash Rate have enabled
some initial positive changes in the property
market. The reduction in funding costs is
having a positive influence on capital values
with the beginnings of asset value growth
evident in recent transactions and valuations.
The property market is often slow to show
meaningful evidence and there remains a
shortage of transactional evidence to illustrate
the change, however there is at least stability
in asset values with the suggestion of more
positive effects in the very near future.
Argosy’s 30 September 2024 interim value
as
sessments were conducted internally based
on research from CBRE data and these were
peer reviewed by Colliers International for use
in the interim accounts. While the resulting
increase in value was modest, the change in
direction was clearly significant.
On the occupancy front, we had expected that
le
ase enquiry would improve in the first part
of the new year, but it has certainly exceeded
our expectations. Enquiry of course does not
equal new leases, but naturally we will not
achieve new leases without enquiry. And new
leases are being achieved! Most notably the
new sustainable industrial building at Neilson
Street was leased to Basick Transport and we
have made great progress with leasing both
the 105 and 101 Carlton Gore Rd properties.
We have only 500sqm still to commit in each
building and both are under negotiation.
So in summary, we know that the economy is
ch
allenged and we are obviously aware that
many are struggling to make the proverbial
ends meet, but the property market is showing
all the right signs for a brighter year ahead in
both value and in occupancy. It is of course
the latter that generates net property income to
pay dividends.
Turning to dividends, we are aware that there
wi
ll be many Argosy shareholders who are
relying on their distributions to make the
earlier mentioned ends meet! We are equally
aware that any reduction in that dividend
would be especially unwelcome in the current
environment. The Board have been tolerant of
moving outside policy guidelines where they
are able to see a return to policy guidelines in
the short term. In order to avoid dividend cuts,
we have been marginally outside policy bands
during the current year.
At the same time, we are aware that the share
pr
ice is well below the net tangible asset (NTA)
backing at the present. NTA is total assets
(principally our investment properties) minus
liabilities (principally bank debt and green
bonds), divided by shares on issue. The share
price has traded below NTA for some time now,
along with the rest of the Sector and it has been
46 months since the Sector last traded at a
premium. The record is 64 months following
the global financial crisis. The discount to NTA
results in a dividend yield to investors of 9.8%
(at a marginal tax rate of 33% and a share price
of $1.01).
POSITIVES AND PRESSURE POINTS
As the level of restriction on the domestic
ec
onomy reduces, we should see some signs
of things getting better shortly.
The construction industry has been beaten
up
pretty well over the last two months and
the bad news for the sector just keeps on
coming, albeit the sector is showing particular
strain because it is coming from a high base.
Activity levels were at a peak before the current
recession started to bite. In this environment
we are continuing to hear of contracts being
cancelled and put on hold. The only positive
here is that construction costs have reduced
particularly in sub and finishing trades.
For Argosy, and our development programme
at
Neilson Street, Mt Richmond and later at
East Tamaki, the lower construction costs are
a good positive and certainly help the feasibility
of these developments.
Enquiry levels for new leases in the commercial
of
fice sector and in the industrial sector are
strong and that is a very positive factor.
As the economy begins to show life, well
lo
cated bulk retail centres are expected to
show good rental growth and we certainly have
a very positive expectation from the Albany
Mega Centre which represents the majority of
Argosy’s Large Format Retail exposure.
WHAT ABOUT
SUS
T
AINABLE BUILDINGS?
With the change in the US Presidency, there
h
a
s been a push from that part of the world to
reduce the focus on sustainability. The thing
is – that won’t stop global climate change.
When the largest emitter per capita in the
world says, “You know what? We don’t care”,
there is a clear requirement to increase the
focus on what climate change is doing to us
– and will continue to do to us at an alarmingly
increasing rate.
At Argosy we continue to see strong demand
fo
r sustainable buildings, and we can only
see this increasing as the impacts of climate
change become harder to ignore. The speed of
future change is now likely to increase, and this
means that climate change adaption plans are
of increasing relevance.
OUTLOOK
It has certainly been a challenging time and
there have been some tough decisions that
have needed to be made.
We have continued our move to increase the
we
ighting to industrial property in the greater
Auckland area, and to increase the quality of
the portfolio. This has led to the reintroduction
of the dividend reinvestment plan which is
popular with retail shareholders.
On the positive side we have lost very few
te
nants to the economic downturn thus far
and we have generally managed to replace any
tenants with higher value rental levels almost
straight away. Arrears have been well managed
and are at very low levels. While there have
been challenges, we have not seen a need to
reduce the dividend to shareholders and the
business is looking sound for the year ahead.
CEO
Comment
Peter Mence
CHIEF EXECUTIVE OFFICER
Argosy Property LimitedInvestor Update March 202503

Business Update
8-14 Willis Street, Wellington.
8 Willis Street / Stewart
Dawsons Corner Receives
Highly Commended Award
from World Green
Building Council
Argosy’s 8 Willis / Stewart Dawsons Corner
h
a
s been honoured with a Highly Commended
award at the World Green Building Council’s
Asia Pacific Leadership in Green Buildings
Awards (AP Leadership Awards), held in
Bengaluru, India on 13 November 2024.
Argosy’s redevelopment project was one of
only three to be recognised in this category at
these prestigious awards.
The AP Leadership Awards offers an
un
paralleled opportunity to showcase
pioneering people, organisations and projects
behind the sustainable, resilient and equitable
building movement from 17 countries across
the Asia Pacific network.
Having already swept up numerous accolades
he
re in New Zealand, including the 2024
Property Council Property Industry Awards’
Supreme Award and international structural
engineering awards, this latest commendation
places the central Wellington office among
an elite selection of buildings worldwide
that showcase low-carbon sustainable design
and performance.
Recognising Excellence:
Sa
atyesh Bhana Receives
Sustainability Award at
2024 Auckland Property
People Awards
Argosy’s Head of Sustainability, Saatyesh
B
h
ana, was honoured with the C3 Construction
Excellence in Sustainability Award at the 2024
Auckland Property People Awards. The judges
praised Saatyesh's passion and leadership,
highlighting his nearly two-decade-long
driving force behind Argosy’s sustainability
transformation. As Head of Sustainability,
he has spearheaded green retrofit projects,
including 15 Stout Street and 8 Willis Street,
which have set new benchmarks for energy
efficiency, environmental innovation, and
contributed to critical sustainability strategy
workstreams for the organisation, including
Green Bonds and Sustainability Reporting.
The judges also noted Saatyesh’s influence
wi
thin the property and building industry
and his pivotal role in guiding Argosy’s
commitment to minimising its carbon footprint,
stating that his work continues to inspire and
make a significant impact on the future of
sustainable building. Competition in Saatyesh’s
category was very strong, with the University
of Auckland “B201 Redevelopment" project
team and Goodman Property's “Tawharau
Lane” project. Congratulations Saatyesh for
well-deserved recognition by your peers!
Argosy appoints
ne
w Director
Alex Cutler, new Argosy Director.
We are pleased to introduce Alex Cutler
as
a new Director of Argosy after joining
the Argosy Board in October 2024. Alex
is a career long sustainability expert and
well-known in the New Zealand property
industry for her understanding of sustainability
strategy, as reflected in her most recent
roles as CEO and Chief Sustainability Officer
of RDT Pacific and prior to that, as CEO
of the New Zealand Green Building Council.
Alex also has global experience working with
multinational organisations to assist their
understanding of the strategic importance of
sustainability. Argosy’s strategy is increasingly
focused on achieving sustainability goals and
to have someone with Alex’s experience
and qualification on the Board reinforces the
importance of this field to the business and to
the future of the Company.
Saatyesh Bhana at the Auckland Property People Awards.
Argosy Property LimitedInvestor Update March 202504

ESG Update
Keystone Trust
We are thrilled to announce that we are
n
ow in our second year as a Keystone
Trust Scholarship partner. It was with great
pleasure that we presented the 2025 Keystone
Argosy Property Limited Scholarship to
Pius Mihigo, a student at AUT, studying
a Bachelor of Construction in Quantity
Surveying. Pius was awarded his scholarship
at the Keystone New Zealand Property
Education Trust Annual Awards for his passion,
commitment and potential within the property
and construction industry. The evening was
a wonderful celebration, bringing together
students, industry leaders, and sponsors to
celebrate the promising future of the property
and construction industry.
Keystone New Zealand Property Education
Tr
ust is instrumental in breaking down
barriers students face by offering financial
aid, mentorship, and industry connections.
This support assists students to obtain a
te
rtiary education and set themselves up for a
successful property or construction career.
Spirit of Adventure Trust
In 2024, Argosy proudly sponsored a student
fo
r a 10-day Youth Development Voyage with
the Spirit of Adventure Trust. This organisation
is dedicated to youth development through sail
training, offering young New Zealanders unique
opportunities to build confidence, leadership
skills, and a sense of responsibility while
enjoying the adventure of sailing. The voyage
not only provides hands-on sailing experience
but also fosters teamwork and personal growth.
Participants are challenged to step out of their
comfort zones, develop resilience, and form
lasting friendships. By supporting this initiative,
Argosy is investing in the future leaders of New
Zealand, helping them gain valuable life skills
and a deeper appreciation for the maritime
heritage of the country.
Surf Lifesaving NZ
Argosy is proud to support the Hot Water
B
e
ach, Taylor's Mistake, St Clair, Lyall
Bay, and Red Beach Surf Lifesaving Clubs.
These clubs play a crucial role in ensuring
the safety of beachgoers and fostering a
sense of community along New Zealand's
beautiful coastlines. Each year, Argosy's
contributions help these clubs ensure that
both locals and visitors can enjoy the
beaches safely. This partnership reflects our
commitment to environmental, social, and
governance principles.
Our support helps these clubs make a positive
im
pact on the communities they serve. Argosy
is dedicated to fostering strong community
relationships and contributing to the overall
safety and enjoyment of New Zealand's
coastal areas.
Red Beach Surf Lifesaving, Auckland.
Variety - The
Ch
ildren's Charity
We were proud to support Variety New
Z
e
aland’s Beds for Kids programme via the
Warm Hearts Appeal 2024, a vital initiative
aimed at providing warm beds and bedding
to children in need across New Zealand.
This programme was designed in response
to the increasing rate of respiratory-related
hospitalisations amongst New Zealand's
children and young people. Last year, the
Warm Hearts Winter Appeal raised over
$470,000, benefiting thousands of children
by supplying them with new beds and
bedding packs. Argosy’s support for this
cause underscores our commitment to building
stronger, healthier communities.
ESG
Update
Nathan Herbert from Argosy (left) with Pius Mihigo, recipient of the 2025 Keystone Argosy Property Limited Scholarship.
Argosy Property LimitedInvestor Update March 202505

Portfolio Update AS AT 31 JANUARY 2025
PROPERTIES
50
TENANTS
159
PORTFOLIO
$2.0b
WALT
5.0yrs
OCCUPANCY
96.2%
TOTAL PORTFOLIO UPDATE
by sector
10%Retail
38%Office
52%Industrial
TOTAL PORTFOLIO UPDATE
by region
70%Auckland
27%Wellington
3%Regional
TOTAL PORTFOLIO UPDATE
by asset type
83%Core
11%Value Add properties
6%Held for sale
Dividend
The 3rd Quarter Dividend for the 2025
fi
nancial year of 1.6625 cents per share with
imputation credits of 0.206074 cents per share
attached was announced on 26 February 2025.
The record date for the dividend was 12 March
2025 and the payment date is 26 March 2025.
Overseas investors will receive an additional
supplementary dividend of 0.093513 cents per
share to offset non-resident withholding tax.
Important dates
FY25 Q3 DIVIDEND PAYMENT
26 March 2025
FY25 ANNU
AL ANNOUNCEMENT
21 May 2025
FY25 Q4 DIVIDEND PAYMENT
June 2025
FY26 Q1 DIVIDEND PAYMENT
September 2025
CONTACT
T/ 0800 653 653 T/ +64 9 304 3400
F/ +64 9 302 0996
39 Market Place, Auckland 1010,
PO Box 90214, Victoria Street West,
Auckland 1142, New Zealand
argosy.co.nz
REGISTRAR
To find out about more about your investment,
please contact Computershare:
T/ +64 9 488 8777 T/ +64 9 488 8787
enquiry@computershare.co.nz
computershare.com/InvestorCentre
Argosy Property LimitedInvestor Update March 202506