New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Argosy (ARG) has delivered a flat FY23 result at the distributable profit and funds from operations (FFO) lines but with adjusted funds from operations (AFFO) +20% to NZ$58.1m due to lower maintenance capex (7WQ façade in the prior year).</li><li>The result was also supported by a NZ$3m one off settlement from the failed sale of Albany Lifestyle Centre which was partially offset by NZ$1.5m payment for reshaping its interest rate hedging profile.</li><li>ARG’s debt hedging has increased to 71% (was 51% 1H23) but interest rate on active swaps has decreased slightly. Like-for-like rental income growth was a solid +3.5% and included +3.6% growth from rent reviews (was 2.6% 1H23) which suggests better CPI and market outcomes in 2H23.</li></ul>

Argosy (ARG) has delivered a flat FY23 result at the distributable profit and funds from operations (FFO) lines but with adjusted funds from operations (AFFO) +20% to NZ$58.1m due to lower maintenance capex (7WQ façade in the prior year).The result was also supported by a NZ$3m one off settlement from the failed sale of Albany Lifestyle Centre which was partially offset by NZ$1.5m payment for reshaping its interest rate hedging profile.ARG’s debt hedging has increased to 71% (was 51% 1H23) but interest rate on active swaps has decreased slightly. Like-for-like rental income growth was a solid +3.5% and included +3.6% growth from rent reviews (was 2.6% 1H23) which suggests better CPI and market outcomes in 2H23.

Argosy Property

Argosy: FY23 Result – Initial Thoughts