FY24 Interim Valuation update

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12.10.2023
Market Release
FY24 Interim Valuation Update to 30 September
Argosy Property Limited (‘Argosy’) today announced that for the 6 months to 30
September 2023, it expects to record an interim portfolio revaluation loss of $49.5
million, a 2.3% decrease on book values immediately prior to the revaluation. The
values remain subject to audit.
Overall cap rates softened by 19 basis points to an average of 6.03% and this was
a primary driver in revaluation decreases. By sector, Industrial decreased $14.6
million or 1.3%, Office declined by $25.3 million or 3.1%, and Large Format Retail
declined by $9.6 million or 4.7%. The portfolio is 12.8% under-rented, excluding
market rent on developments. More detail is provided in the appendix to this
release. Based on the provisional revaluation announced today, Argosy’s adjusted
NTA would be approximately $1.52 per share compared to $1.58 as at 31 March
2023, and gearing remains in the middle of the target range at approximately 36%.
The impact of the softer cap rates has been partially offset by increases in market
rents. Value added by increased lease terms has in some instances mitigated
value declines. The market has continued to show a clear premium attached to
green buildings.
The independent desktop valuations as at 30 September were completed on all
properties. Peter Mence, CEO of Argosy said, “Argosy’s focus on green property
assets continues to demonstrate clear benefits in tenant demand and now in
relative value, particularly in a softer asset market.”


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

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

Auckland1,520.31,493.2(27.0)(1.8%)5.93%5.66%
Wellington580.6560.0(20.6)(3.5%)6.23%6.25%
Nort h Island Regional & S out h Island59.958.0(1.9)(3.1%)6.50%6.25%
T otal 2,160.7 2,111.2 (49.5)(2.3%)6.03%5.84%
-
-
Indust rial1,132.61,118.0(14.6)(1.3%)5.65%5.48%
Office822.2797.0(25.3)(3.1%)6.42%6.23%
Large Format Ret ail205.9196.3(9.6)(4.7%)6.59%6.25%
T otal 2,160.7 2,111.2 (49.5)(2.3%)6.03%5.84%

%
30 Sep 23
Book Val ue
($m)
30 Sep 22
Valuation
($m)

$m

%
30 Sep 23
Book Val ue
($m)
30 Sep 23
Valuation
($m)

$m
Sep 23
Cap rate
%
Mar 23
Cap rate
%
Sep 23
Cap rate
%
Mar 23
Cap rate
%