Argosy Property Limited Analysis

Overview

Argosy Property Limited initially joined the NZX in December 2002 as the Paramount Property Trust, following a public offering of 25.3m units at $1 each. Since then Argosy has grown to be one of the largest diversified property investment vehicles listed on the NZX, and undergone a number of changes in its management structure.

Prior to management internalisation in August 2011, Argosy was managed by entities controlled by the Symphony Group, ING and most recently ANZ. In August 2011 Argosy's shareholders voted to buy the management rights, and adopted a company structure in February 2012. These transactions have moved Argosy from an externally managed unit trust structure to its present, simpler, company structure.

After property sales to manage debt levels during the global financial crisis, in December 2012 Argosy announced an institutional placement and share purchase plan which raised $100m of capital to fund the acquisition of two Wellington investment properties. In July 2013 Argosy announced an underwritten renounceable rights issue which raised a further $80m of capital to maintain debt levels within its target range and fund future acquisitions in accordance with its portfolio investment strategy.

Argosy published its portfolio investment strategy in its 31 March 2013 annual report. The strategy identifies key features of properties that Argosy will seek to acquire, and sets target bands for the mix of its diversified retail, industrial and commercial property portfolio.

Performance

The following information was extracted from Argosy Property Limited's full year results, released on 20 May 2026:

Argosy Property Limited (‘Argosy’ or the ‘Company’) has reported its results for the year ended 31 March 2026.

KEY RESULTS FOR THE PERIOD:

• Net property income for the period of $120.8 million, which is up by 3.3% on the prior comparable period.

• $58.5 million revaluation gain, including assets held for sale, for the 12 months to 31 March ($72.7 million revaluation gain in the prior comparable period), up 2.7% on book value, contributing to a full year net profit after tax of $127.7 million ($125.9 million in the prior comparable period).

• Net distributable income of $60.9 million, up 9.1% on the prior comparable period.

• Occupancy steady at 94.6% and a Weighted Average Lease Term (WALT) of 5.0 years.

• NTA per share of $1.60, up from $1.53 at 31 March 2025.

• Portfolio gearing as at 31 March 2026 is 37.2%, comfortably within the target band of 30-40%. Portfolio gearing has fallen to 36.1% following the settlement of held for sale properties.

• Strong rent review increases (3.5% annualised rental growth on rents reviewed).

• Progress on green developments, continuing our portfolio transformation and progress to a 50% green portfolio by 2031 (39% at 31 March, including Warehouse 6 at Mt Richmond).

• FY26 full year dividend of 6.65 cents per share, in line with guidance.