L o o king thro ug h 20.05.2020 Age nda PRE SE NT E D BY Co - PowerPoint PPT Presentation

F Y20 Annual Re sults L o o king thro ug h 20.05.2020

Age nda PRE SE NT E D BY Co vid-19 Upda te 4 Hig hlig hts 7 Stra te g y/ Po rtfo lio 9 Pe te r Me nc e F ina nc ia ls CE O 21 L e a sing Upda te 30 F o c us a nd Outlo o k 34 Dave F r ase r Appe ndic e s 36 CF O Note : T his re sults pre se nta tio n sho uld b e re a d in c o njunc tio n with the NZX re le a se da te d 20 Ma y 2020. Due to ro unding , numb e rs pre se nte d in this pre se nta tio n ma y no t a dd up e xa c tly to the to ta ls pro vide d a nd pe rc e nta g e s ma y no t re fle c t e xa c tly a b so lute fig ure s. 2 —

“Our str e ngth lie s in the dive r sity of our por tfolio by se c tor , loc ation and te nant mix, pr oviding fle xibility to suppor t our te nants c hanging ne e ds, e nsur ing a r e silie nt busine ss thr ough var ious e c onomic c yc le s.” Pe te r Me nc e CE O 3 —

Covid- 19 Update 4 —

Covid- 19 Update WORKING CL OSE L Y WIT H AL L ST AKE HOL DE RS  Sta ff  E nsuring sa fe wo rking c o nditio ns a t wo rk a nd a t ho me .  Gre a te r use o f te c hno lo g y.  T e na nts  Wo rking to g e the r to find sho rt te rm so lutio ns.  T ho se te na nts tha t ne e d a ssista nc e a re re c e iving it prima rily via de fe rra l a nd re nta l a b a te me nt.  Inc luding the Alb a ny L ife style Ce ntre , Arg o sy ha s pro vide d fo r a ppro xima te ly $2.8 millio n in re nt a b a te me nts fo r April a nd Ma y sinc e ye a r e nd, fo r te na nts mo st in ne e d.  We will c o ntinue to wo rk c lo se ly with o ur te na nts o ve r the c o ming mo nths.  Constr uc tion a c tivity/ pr oje c ts  Pro je c ts po te ntia lly de la ye d b y 3-4 mo nths.  Gre a te r he a lth & sa fe ty fo c us g ive n so c ia l dista nc ing re q uire me nts.  Inve stor s  Co ntinuo us disc lo sure o b lig a tio ns ma inta ine d a t a ll time s.  F irst hyb rid Annua l Me e ting to b e he ld in July. 5 —

Post Covid- 19 WHAT DOE S A POST COVID- 19 E NVIRONME NT L OOK L IKE ? SE CT OR OUT L OOK E c onomic E nvir onme nt - Sha rp re c e ssio n le ss like ly. Ne gative - So me se c to rs sig nific a ntly mo re e xpo se d tha n o the rs. - Arg o sy’ s ha s limite d dire c t e xpo sure to the mo st a ffe c te d se c to rs b ut will no t b e immune . Politic a l E nvir onme nt Ne utr al - E le c tio n still so me wa y o ff. - Will the e c o no mic fa llo ut b e c a ta lyst fo r c ha ng e ? R e g ula tor y E nvir onme nt - Re -intro duc tio n o f de pre c ia tio n a po sitive . Positive - OCR lo we re d b y 75b ps fo r a minimum o f 1 ye a r. - Othe r g o ve rnme nt initia tive s fo r the e c o no my sho uld b e po sitive . Ar g osy's Outlook - Stra te g y de live ry will c o ntinue to b uild re silie nc e . Ne utr al - Po sitive re g ula to ry c ha ng e s he lping to o ffse t sho rt te rm e c o no mic we a kne ss. - Co re b usine ss is in g o o d sha pe a nd unde rpinning divide nd susta ina b ility. 6 —

Highlights 7 —

F Y20 Annual Re sult 2.7% 3.8% Ne t distrib uta b le inc o me Annua lise d re nt inc re a se o n re nts inc re a se re vie we d $1.30 100m A 6.5% inc re a se drive n b y a $60m 2 nd suc c e ssful 7 ye a r g re e n b o nd re va lua tio n g a in 6.35¢ F ull ye a r F Y20 divide nd, a n inc re a se o f 1.2% o n the prio r ye a r 8 —

Str ate gy / Por tfolio 9 —

Cr e ate . Manage . Own. Pr oac tive de live r y of sustainable gr owth Manage all e le me nts of the busine ss to de live r the r ight outc ome s for all our stake holde r s. Own the r ight asse ts, with the r ight attr ibute s in the r ight Ne w Ze aland loc ations. 10 —

2020 Re sults ST RONG DE L IVE RY OF ST RAT E GY  Suc c e ssfully tra nsitio ne d Va lue Add pro pe rtie s to drive e a rning s a nd c a pita l g ro wth Cre ate (180 Hutt Ro a d, 107 Ca rlto n Go re Ro a d). Pro a c tive de live ry o f susta ina b le g ro wth.  Curre nt o rg a nic va lue a dd de ve lo pme nt pipe line o f o ve r $200m will a dd mo re q ua lity a nd re silie nc e to the b usine ss. Manage So lid le a sing o utc o me s o ve r F Y20 finishing with o nly 1.2% va c a nc y. Ave ra g e  Ma na g e a ll e le me nts o f o ur e xpiry o ve r the ne xt 5 ye a rs o f o nly 9% p.a . b usine ss to de live r the rig ht E xc e lle nt le a sing re sults a nno unc e d with the Cro wn fo r 7WQ spa c e , b uilding is o utc o me s fo r a ll o ur  sta ke ho lde rs. no w 82% le a se d. Stro ng inq uiry fo r re ma ining flo o rs. Citib a nk a nd K hyb e r Pa ss va c a nc ie s a lso a ddre sse d. 2 nd suc c e ssful 7 ye a r Gre e n Bo nd issue o f $100m c o mple te d impro ving de b t  funding dive rsific a tio n a nd te no r.  T ra nsitio n to wa rds AF F O b a se d divide nd po lic y c o ntinue s. Own  Stra te g ic a c q uisitio n o ppo rtunitie s with lo ng te rm c a pita l g ro wth upside a c hie ve d Own the rig ht a sse ts, with during the ye a r (54-56 Ja ma ic a Drive a nd 224 Ne ilso n Stre e t). Othe r o ppo rtunitie s the rig ht a ttrib ute s in the unde r c o nside ra tio n.  rig ht lo c a tio ns. Se ttle d stra te g ic a c q uisitio n o f 244 Puhinui Ro a d, c o ntig uo us to a n e xisting site .  Othe r stra te g ic dive stme nts e xe c ute d (223 K io re ro a Ro a d, Wha ng a re i) No n se ttle me nt o f no n Co re Alb a ny L ife style Ce ntre disa ppo inting . Ho we ve r,  Arg o sy no w fie lding inte re st fro m se ve ra l po te ntia l ne w b uye rs. 11 —

Portfolio Snapshot $1.87B 12 —

Por tfolio highlights 98.8% 6.1 yr s We ig hte d a ve ra g e le a se te rm Oc c upa nc y (WAL T ) 71% 45% Auc kla nd po rtfo lio we ig hting I ndustria l po rtfo lio we ig hting 2.7% 60m Annua lise d re nt inc re a se o n re nts Annua l re va lua tio n g a in, 3.5% re vie we d a b o ve 31 Ma rc h b o o k va lue s 13 —

Por tfolio at a glanc e ION 1 @ 31 MARCH 2020 $1.87 BIL L T OT AL PORT F OL IO VAL UE T OT AL PORT F OL IO VAL UE T OT AL PORT F OL IO VAL UE BY ASSE T MI X BY RE GI ON BY SE CT OR 2% 8% 15% 12% 27% 45% 40% 71% 80% Ba nds Ba nds Ba nds Auc kla nd I ndustria l 75-90% 45-55% (wa s 40-50%) 65-75% Co re We lling to n Offic e Va lue Add - 30-40% 20-30% Re g io na l No rth I sla nd L a rg e F o rma t No n Co re - 10-20% (wa s 15-25%) & So uth I sla nd 2 <10% Re ta il 1. Me tric s inc lude asse t he ld fo r sale – Alb any L ife style Ce ntre 2. I nc lude s up to 5% allo c atio n to the Go lde n T riang le are a b e twe e n Auc kland, T aurang a and Hamilto n. 14 —

Se c tor Summar y INDUST O FFIC E RET L ARG E FO RMAT AIL RIAL Numb e r o f b uilding s Numb e r o f b uilding s Numb e r o f b uilding s 38 16 5 Ma rke t va lue o f a sse ts ($m) Ma rke t va lue o f a sse ts ($m) Ma rke t va lue o f a sse ts ($m) $842.8 $754.2 $270.0 Oc c upa nc y (b y inc o me ) Oc c upa nc y (b y inc o me ) Oc c upa nc y (b y inc o me ) 97.8% 99.4% 100% We ig hte d a ve ra g e le a se te rm (WAL T ) We ig hte d a ve ra g e le a se te rm (WAL T ) We ig hte d a ve ra g e le a se te rm (WAL T ) 7.2yr 5.2yr 5.3yr Co ntra c t yie ld Co ntra c t yie ld Co ntra c t yie ld 5.69% 6.60% 6.54% 15 —

Value Add OPPORT UNIT IE S T O DRIVE CAPIT AL GROWT H AND E ARNINGS  Va lue Add pro pe rtie s to ta l 12% o f the 1 Va lua tion Pr oper ty Sec tor L oc a tion po rtfo lio . $m  Se ve ra l ma jo r de ve lo pme nt pro je c ts 5 Unity Drive , Alb a ny Industria l Auc kla nd 7.4 unde rwa y within the g ro up to 960 Gre a t So uth Ro a d, Pe nro se Industria l Auc kla nd 7.3 tra nsitio n the m to Co re pro pe rtie s, 15 Unity Drive , Alb a ny Industria l Auc kla nd 5.2 driving lo ng te rm c a pita l g ro wth a nd 133 Ro sc o mmo n Ro a d, Wiri Industria l Auc kla nd 9.5 e a rning s. 224 Ne ilso n Stre e t, One hung a Industria l Auc kla nd 32.0  T he fo c us re ma ins o n tra nsfo rming 101 Car lton Gor e R oad, Ne wmar ke t (de fe r r e d) Offic e Auc kland 28.1 Va lue Add a sse ts into g re e n de ve lo pme nts whe re po ssib le . 105 Car lton Gor e R oad, Ne wmar ke t (de fe r r e d) Offic e Auc kland 32.8  So me Va lue Add o ppo rtunitie s whic h 54- 56 Jamaic a Dr ive , We lling ton (unde rway ) I ndustr ial We lling ton 7.2 we re due to c o mme nc e sho rtly ha ve 8- 14 Willis Str e e t/ 360 L amb ton Quay (unde rway ) Offic e We lling ton 89.8 b e e n de fe rre d fo r the time b e ing due T OT AL $m 219.3 to Co vid-19. +$200 m I n Va lue Add pro pe rtie s with po te ntia l to de live r e a rning s a nd c a pita l g ro wth 1. I nde pe nde nt valuatio ns as at 31 Marc h 2020. 16 —