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

SLIDE 1 20.05.2020

Annual Re sults

F Y20

L

o king thro ug h

SLIDE 2 PRE SE NT E D BY

Age nda

2 — Pe te r Me nc e Dave F r ase r CE O CF O

Co vid-19 Upda te

4

Hig hlig hts

7

Stra te g y/ Po rtfo lio

9

F ina nc ia ls

21

L e a sing Upda te

30

F

c us a nd Outlo o k

34

Appe ndic e s

36

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.

SLIDE 3

“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

viding fle xibility to

suppor t our te nants c hanging ne e ds, e nsur ing a r e silie nt busine ss thr

ugh var

ious e c onomic c yc le s.”

3 — Pe te r Me nc e CE O

SLIDE 4

Covid- 19 Update

4 —

SLIDE 5

Covid- 19 Update

5 — 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

je 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.

SLIDE 6 SE CT OR OUT L OOK E c onomic E nvir

nme nt
Sha rp re c e ssio n le ss like ly.
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

nme nt
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

nme nt
Re -intro duc tio n o f de pre c ia tio n a po sitive .
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 .
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.

Post Covid- 19

6 — WHAT DOE S A POST COVID- 19 E NVIRONME NT L OOK L IKE ? Ne gative Ne utr al Ne utr al Positive

SLIDE 7

Highlights

7 —

SLIDE 8

F Y20 Annual Re sult

8 —

3.8%

Ne t distrib uta b le inc o me inc re a se

$1.30

A 6.5% inc re a se drive n b y a $60m 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

f 1.2% o n the prio r ye a r

100m

2nd suc c e ssful 7 ye a r g re e n b o nd

2.7%

Annua lise d re nt inc re a se o n re nts re vie we d

SLIDE 9

Str ate gy / Por tfolio

9 —

SLIDE 10

Cr e ate . Manage . Own.

10 — Pr

ac tive de live r

y of sustainable gr

wth

Own the r ight asse ts, with the r ight attr ibute s in the r ight Ne w Ze aland loc ations. 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.

SLIDE 11 Cre ate Pro a c tive de live ry o f susta ina b le g ro wth. Manage Ma na g e a ll e le me nts o f o ur b usine ss to de live r the rig ht

utc o me s fo r a ll o ur

sta ke ho lde rs. Own Own the rig ht a sse ts, with the rig ht a ttrib ute s in the rig ht lo c a tio ns.

2020 Re sults

11 — ST RONG DE L IVE RY OF ST RAT E GY 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 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 unde r c o nside ra tio n. 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. 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 e xpiry o ve r the ne xt 5 ye a rs o f o nly 9% p.a . 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 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. 2nd 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. 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 (180 Hutt Ro a d, 107 Ca rlto n Go re Ro a d). 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.

         

SLIDE 12

$1.87B

Portfolio Snapshot

12 —

SLIDE 13

Por tfolio highlights

13 —

98.8%

Oc c upa nc y

71%

Auc kla nd po rtfo lio we ig hting

2.7%

Annua lise d re nt inc re a se o n re nts re vie we d

6.1 yr s

We ig hte d a ve ra g e le a se te rm (WAL T )

45%

I ndustria l po rtfo lio we ig hting

60m

Annua l re va lua tio n g a in, 3.5% a b o ve 31 Ma rc h b o o k va lue s

SLIDE 14

Por tfolio at a glanc e

14 — $1.87 BIL L ION1 @ 31 MARCH 2020 T OT AL PORT F OL IO VAL UE BY SE CT OR 45% 40% 15% I ndustria l Offic e L a rg e F

rma t

Re ta il T OT AL PORT F OL IO VAL UE BY RE GI ON 71% 27% 2% Auc kla nd We lling to n Re g io na l No rth I sla nd & So uth I sla nd T OT AL PORT F OL IO VAL UE BY ASSE T MI X 80% 12% 8% Co re Va lue Add No n Co re Ba nds 45-55% (wa s 40-50%) 30-40% 10-20% (wa s 15-25%) Ba nds 65-75% 20-30% <10% Ba nds 75-90%

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. 2

SLIDE 15

Se c tor Summar y

15 —

38

Numb e r o f b uilding s

16

Numb e r o f b uilding s

5

Numb e r o f b uilding s

$842.8

Ma rke t va lue o f a sse ts ($m)

$754.2

Ma rke t va lue o f a sse ts ($m)

$270.0

Ma rke t va lue o f a sse ts ($m)

97.8%

Oc c upa nc y (b y inc o me )

99.4%

Oc c upa nc y (b y inc o me )

100%

Oc c upa nc y (b y inc o me )

7.2yr

We ig hte d a ve ra g e le a se te rm (WAL T )

5.2yr

We ig hte d a ve ra g e le a se te rm (WAL T )

5.3yr

We ig hte d a ve ra g e le a se te rm (WAL T )

5.69%

Co ntra c t yie ld

6.60%

Co ntra c t yie ld

6.54%

Co ntra c t yie ld INDUST RIAL O FFIC E L ARG E FO RMAT RET AIL

SLIDE 16

Value Add

16 — OPPORT UNIT IE S T O DRIVE CAPIT AL GROWT H AND E ARNINGS 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

+$200m

 Va lue Add pro pe rtie s to ta l 12% o f the po rtfo lio .  Se ve ra l ma jo r de ve lo pme nt pro je c ts unde rwa y within the g ro up to tra nsitio n the m to Co re pro pe rtie s, driving lo ng te rm c a pita l g ro wth a nd e a rning s.  T he fo c us re ma ins o n tra nsfo rming Va lue Add a sse ts into g re e n de ve lo pme nts whe re po ssib le .  So me Va lue Add o ppo rtunitie s whic h we re due to c o mme nc e sho rtly ha ve b e e n de fe rre d fo r the time b e ing due to Co vid-19.

1. I

nde pe nde nt valuatio ns as at 31 Marc h 2020. Pr

per

ty Sec tor L

c a tion

Va lua tion 1 $m 5 Unity Drive , Alb a ny Industria l Auc kla nd 7.4 960 Gre a t So uth Ro a d, Pe nro se Industria l Auc kla nd 7.3 15 Unity Drive , Alb a ny Industria l Auc kla nd 5.2 133 Ro sc o mmo n Ro a d, Wiri Industria l Auc kla nd 9.5 224 Ne ilso n Stre e t, One hung a Industria l Auc kla nd 32.0 101 Car lton Gor e R

ad, Ne wmar

ke t (de fe r r e d) Offic e Auc kland 28.1 105 Car lton Gor e R

ad, Ne wmar

ke t (de fe r r e d) Offic e Auc kland 32.8 54- 56 Jamaic a Dr ive , We lling ton (unde rway ) I ndustr ial We lling ton 7.2 8- 14 Willis Str e e t/ 360 L amb ton Quay (unde rway ) Offic e We lling ton 89.8 T OT AL $m 219.3

SLIDE 17

De ve lopme nt Pipe line

17 — GRE E N DE VE L OPME NT S RE MAIN T HE KE Y F OCUS  107 Car lton Gor e Road: c o mple te d De c e mb e r-19.  180-202 Hutt Road: c o mple te d Ma rc h-20.  7WQ: Re sidua l se ismic a nd re insta te me nt wo rks ne a ring c o mple tio n.  54-56 Jamaic a Dr ive : On tra c k pre Co vid-19 b ut no w e xpe c te d to c o mple te Aug ust-20.  8-14 Willis Str e e t/ 360 L ambton Quay: Co nstruc tio n pro g re ss suspe nde d due to Co vid-19. Wa s due fo r c o mple tio n in April-21 b ut no w de la ye d to Aug ust-21.

1. E

xpe c te d value o n c o mple tio n b ase d o n ‘ as if c o mple te ’ (le ss c o st to c o mple te ) valuatio ns pe rfo rme d b y inde pe nde nt value rs as at 31 Marc h 2020.

2. Ac q uire d b y F

re ig htways 1 April 2020

3. I

nc lude s 360 L amb to n Quay (fo rme rly S te wart Dawso n Co rne r).  Gr e e n de ve lopme nts a t 101 Ca rlto n Go re Ro a d a nd 105 Ca rlto n Go re Ro a d ha ve b e e n de fe rre d due to Co vid- 19. E xpe c te d va lue o n c o mple tio n o f de ve lo pme nt pro je c ts

$276m

Developm ent Ma jor T ena nt T ype L

c a tion

Cost to c om plete $m 1 For ec a st c om pletion Sep- 20 Ma r

21

Sep- 21 Ma r

22

Under wa y / c om m enc ed 7WQ Va rio us Cro wn te na nts OFF WTN 10.2 128.0 Aug-20 54-56 Ja ma ic a Drive Big Chill 2 IND WTN 3.0 10.3 Aug-20 8-14 Willis Stre e t 3 Sta tistic s Ne w Ze a la nd OFF/ RET WTN 48.2 138.0 Aug-21 T OT AL 61.4 276.3 Gre e n De v e lo pme nts Standard De v e lo pme nts FY 2021 FY 2022

SLIDE 18

Gr e e n Pr

je c ts Unde r

way

18 —  T ar ge t c omple tion: Aug ust 2021  Anc hor te nant: Statistic s Ne w Z e aland / 15 ye ars  Gr e e n Star r ating: T arg e ting 6 Star Built  NABE RSNZ r ating: T arg e ting 5 Star  Value 1: $138.0 millio n 8-14 Willis Str e e t/ 360 L ambton Quay, We llington

1. E

xpe c te d value o n c o mple tio n b ase d o n ‘ as if c o mple te ’ valuatio ns pe rfo rme d b y inde pe nde nt value rs as at 31 Marc h 2020.  T he de ve lo pme nt will c re a te b o th a sub sta ntia lly ne w 11 le ve l,12,800m2 b uilding a nd 3,100m2 o f prime re ta il/ o ffic e spa c e

n the 360 L

a mb to n Qua y pa rt o f the site (fo rme rly Ste wa rt Da wso n Co rne r).  T he o ffic e / b uilding is ta rg e ting a 6 Gre e n Sta r Built ra ting a nd 5 Sta r NABE RSNZ e ne rg y e ffic ie nc y ra ting . T he o ffic e c o mpo ne nt ha s a ne w 15 ye a rle a se with Sta tistic s Ne w Ze a la nd.  T he de ve lo pme nt inc o rpo ra te s inno va tive a nd susta ina b le fe a ture s inc luding ; ra inwa te r ha rve sting , c hille d b e a ms to de live r he a ting & c o o ling , a ne w HVAC syste m to c o mply with Gre e n Sta r re q uire me nts a nd mo de rn e nd o f trip se rvic e s.  Arg o sy is fina lising the po te ntia l re ta il mix fo r the lo c a tio n a nd is in disc ussio n with a ra ng e o f po te ntia l te na nts fo r the spa c e .  Wa s due fo r c o mple tio n in April 2021 b ut due to Co vid-19 it is no w de la ye d to Aug ust 2021.

SLIDE 19

7WQ Re instate me nt & Insur anc e Claim

19 — PROGRE SS BE ING MADE Re instate me nt / Se ismic Wor ks T he re insta te me nt a nd se ismic wo rks to the b uilding a re la rg e ly c o mple te . F ina l wo rks unde r the re insta te me nt pro je c t a re re q uire d fo r to ile ts, flo o r c o ve ring s a nd in c e iling se rvic e s in L e ve l 12. T he se ismic wo rks a re a lso c o mple te e xc e pt fo r the re insta te me nt o f the L e ve l 12 spa ndre ls a nd the c o mple tio n o f wo rks to the inte rc ha ng e . Ce rtific a tio n o f 80% o f NBS ha s b e e n a c hie ve d. T he se two pro je c ts a re e xpe c te d to b e c o mple te d in the first ha lf o f this fina nc ia l ye a r. Insur anc e Claim Arg o sy ha s sub mitte d 14 inte rim c la ims in re spe c t o f ma te ria l da ma g e a nd b usine ss inte rruptio n to 31 Ma rc h 2020. Arg o sy c o ntinue s to wo rk with insure rs to wa rds re so lutio n o f its c la im.

SLIDE 20

Re valuations

20 — PORT F OL IO RE L AT IVE L Y RE SIL IE NT T HROUGH COVID- 19 IMPACT  Re va lua tio n g a in 3.5% a b o ve b o o k va lue . Po rtfo lio ma rke t yie ld firme d 24b ps.  Re g io na lly, Auc kla nd wa s the b ig g e st c o ntrib uto r o f the re va lua tio n g a in a t 83% a nd Industria l wa s the la rg e st c o ntrib uting se c to r, a t 89%.  L a rg e fo rma t re ta il firme d 4b ps with va lue rs ta king a mo re c o nse rva tive a ppro a c h to this se c to r a ro und re nta l g ro wth, va c a nc y a nd le a sing up.

1. 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 e xa c tly re fle c t a b so lute fig ure s.
2. Ma rke t Yie lds a re e xc luding 7 Wa te rlo o Qua y, 8-14 Willis Stre e t/ 360 L

a mb to n Qua y a nd 54-56 Ja ma ic a Drive a s the re nts o f the se pro pe rtie s inc lude d in the va lua tio ns we re b a se d o n the c o mple tio n o f the pla nne d re me dia l a nd re de ve lo pme nt wo rk re q uire d to b e unde rta ke n. T he Alb a ny L ife style Ce ntre (he ld fo r sa le ) is a lso e xc lude d fro m the yie ld me tric s. 31 Ma r 20 31 Ma r 19 Auc kla nd 1,188.8 1,238.5 49.7 4.2% 6.22% 6.43% We lling to n 498.0 507.0 9.0 1.8% 7.19% 7.48% No rth Isla nd Re g io na l & So uth Isla nd 35.7 36.8 1.2 3.2% 6.98% 7.45% T

ta l

1,722.4 1,782.3 59.9 3.5% 6.41% 6.65% 31 Ma r 20 31 Ma r 19 Industria l 789.5 842.8 53.4 6.8% 6.17% 6.46% Offic e 734.6 754.2 19.5 2.7% 6.83% 7.14% L a rg e Fo rma t Re ta il 198.3 185.4 (13.0)

6.5%

6.23% 6.27% T

ta l

1,722.4 1,782.3 59.9 3.5% 6.41% 6.65% Ma r ket Yield 2 31 Ma r 20 Book Va lue ($m ) 1 31 Ma r 20 Va lua tion ($m ) Δ $m Δ % Ma r ket Yield 31 Ma r 20 Book Va lue ($m ) 1 31 Ma r 20 Va lua tion ($m ) Δ $m Δ %

SLIDE 21

F inanc ials

21 —

SLIDE 22

Inc ome Re c onc iliation

22 — ST E ADY RE NT AL GROWT H OF F SE T BY DE VE L OPME NT S AND DISPOSAL S

SLIDE 23

F inanc ial Pe r for manc e

23 — RE SIL IE NT OPE RAT IONAL PE RF ORMANCE L ike -fo r-like re nta l g ro wth o f 2.4% during the pe rio d. Ne t pro pe rty inc o me wa s do wn due to a c o mb ina tio n o f prio r ye a r pro pe rty dive stme nts, pro pe rtie s unde r de ve lo pme nt a nd a o ne -o ff te rmina tio n fe e re c e ive d - o ffse t b y lo we r pro pe rty e xpe nse s1. Inte re st e xpe nse lo we r a s the inte re st o n hig he r a ve ra g e de b t wa s o ffse t b y inte re st ra te sa ving s a nd hig he r c a pita lise d inte re st o n de ve lo pme nts. So lid full ye a r re va lua tio n g a in, e q ua ting to a 3.5% inc re a se a b o ve b o o k va lue .

1. $2.2 millio n re c la ssifie d fro m pro pe rty e xpe nse s to inte re st e xpe nse a nd de pre c ia tio n unde r NZ IF

RS 16. T his is the first time this sta nda rd ha s b e e n a do pte d b y the Co mpa ny. No te : 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 e xa c tly re fle c t a b so lute fig ure s. FY20 FY19 $m $m Ne t pro pe rty inc o me 99.7 102.5 Administra tio n e xpe nse s (11.4) (10.9) Pr

fit befor

e fina nc ia l inc om e/ (expenses),

ther

g a ins/ (losses) a nd ta x 88.2 91.5 Ne t inte re st e xpe nse (22.8) (24.2) Ga in/ (lo ss) o n de riva tive s 2.1 (7.4) Re va lua tio n g a ins 59.9 70.5 Impa irme nt (lo ss) o n he ld fo r sa le (3.0)

Re a lise d g a ins/ (lo sse s) o n dispo sa l

(0.1) 6.1 Ne t: Insura nc e pro c e e ds & e a rthq ua ke e xpe nse (0.5) 6.8 Pr

fit befor

e ta x 123.9 143.3 Ta xa tio n e xpe nse (4.7) (9.6) Pr

fit a fter

ta x 119.1 133.7 Ea rning s pe r sha re (c e nts) 14.40 16.16

SLIDE 24

Distr ibutable Inc ome

24 — INCRE ASE IN NE T DIST RIBUT ABL E INCOME PE R SHARE Afte r no n-c a sh a d justme nts a nd c urre nt ta x, ne t d istrib uta b le inc o me inc re a se d $2.2 millio n o r 3.8%. T a x e xpe nse lo we r d ue to lo we r pro fit in F Y20, hig he r c a pita lise d inte re st, hig he r d e d uc tib le c a pita l e xpe nd iture , d e pre c ia tio n a nd lo ss o n d ispo sa ls. F Y20 Ne t Distrib uta b le I nc o me pe r sha re , a 3.7% inc re a se o n the prio r pe rio d

7.2c ps

FY20 FY19 $m $m Pr

fit befor

e inc om e ta x 123.9 143.3 Adjuste d fo r: Re va lua tio ns g a ins (59.9) (70.5) Impa irme nt (lo ss) o n he ld fo r sa le 3.0

Re a lise d lo sse s/ (g a ins) o n dispo sa l

0.1 (6.1) De riva tive fa ir va lue lo ss/ (g a in) (2.1) 7.4 Ea rthq ua ke e xpe nse ne t o f re c o ve rie s 0.5 (6.8) Gr

ss distr

ibuta ble inc om e 65.4 67.3 De pre c ia tio n re c o ve re d 0.0 1.7 Curre nt ta x e xpe nse (5.9) (11.7) Net distr ibuta ble inc om e 59.6 57.4 We ig hte d a ve ra g e numb e r o f o rdina ry sha re s (m) 827.2 827.0 Gro ss distrib uta b le inc o me pe r sha re (c e nts) 7.91 8.14 Ne t distrib uta b le inc o me pe r sha re (c e nts) 7.20 6.94 NOT E : 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 e xa c tly re fle c t a b so lute fig ure s.

SLIDE 25

Inve stme nt Pr

pe r

tie s

25 — GROWT H DRIVE N BY DE VE L OPME NT S AND RE VAL UAT ION GAINS Ca pita lise d c o sts: Drive n b y la rg e de ve lo pme nts inc luding 7WQ, 8-14 Willis Stre e t/ 360 L a mb to n Qua y, 107 Ca rlto n Go re Ro a d a nd 180-202 Hutt Ro a d, We lling to n. Ac q uisitio ns: 54 Ja ma ic a Drive We lling to n, 244 Puhinui Ro a d, Auc kla nd a nd 224 Ne ilso n Stre e t, Auc kla nd. Dispo sa l: 223 K io re ro a Ro a d, Wha ng a re i Re va lua tio n g a in o f $60m, +3.5% a b o ve b o o k va lue . * ROU = Rig ht o f Use

SLIDE 26

NT A pe r shar e r e c onc iliation

26 — GROWT H UNDE RPINNE D BY RE VAL UAT ION GAIN

SLIDE 27

Ge ar ing

27 —  Alb a ny L ife style Ce ntre re ma ins he ld fo r sa le a nd pla ns a re in pla c e to dive st in F

Y21. Arg o sy is

c urre ntly fie lding inte re st fro m a ra ng e o f pa rtie s.  T a rg e t po lic y g e a ring ra ng e is b e twe e n 30-40% a nd Arg o sy is c urre ntly within the b a nd.  Arg o sy ha s $140.6m o f a sse ts c la ssifie d a s no n Co re (inc luding the Alb a ny L ife style Ce ntre ). Dive stme nt o f the se a sse ts a t b o o k va lue wo uld re duc e pro fo rma g e a ring b y ~5%.  Gre e n b o nds issue d inc re a se d to $200 millio n during F Y20 with a se c o nd suc c e ssful issua nc e o f $100 millio n 7 ye a r b o nds a t a c o upo n o f 2.90%. CAPIT AL ST RUCT URE SOUND, WIT HIN BANDS AND WE L L BE L OW COVE NANT 1. E xc lude s c a pita lise d b o rro wing c o sts. FY20 FY19 $m $m Inve stme nt pro pe rtie s 1,782.3 1,667.0 Asse t he ld fo r sa le 84.6 0.0 Rig ht o f Use Asse t 41.8 0.0 Othe r a sse ts 20.9 8.1 T

ta l a ssets

1,929.6 1,675.1 Rig ht o f Use Asse t (41.8) 0.0 T

ta l a ssets (net of R

ig ht of Use Asset) 1,887.8 1,675.1 Fixe d Ra te Gre e n Bo nds 200.0 100.0 Ba nk de b t 1 533.2 496.2 T

ta l Debt & Bond Funding

733.2 596.2 Debt- to- tota l- a ssets r a tio 2 38.8% 35.6%

SLIDE 28

F unding & Inte r e st Rate Manage me nt

28 —  During F Y20, Arg o sy e xte nde d its b a nk fa c ilitie s, re fina nc e d thre e tra nc he s o f e xisting de b t a nd e xpa nde d its syndic a te .  Arg o sy a lso suc c e ssfully c o mple te d a se c o nd $100m 7 ye a r se nio r se c ure d Gre e n Bo nd issue whic h wa s o ve r- sub sc rib e d.  Sub se q ue nt to ye a r e nd, Arg o sy a dde d a ne w b a nking fa c ility, T ra nc he I, fo r $75 millio n. T his ne w T ra nc he e xpire s in Ma y 2024. We ig hte d a ve ra g e fa c ility te rm a s a t 31 Ma rc h

3.6yr s

1. I nc luding marg in and line fe e s. 2. E xc luding I F RS 16 adjustme nt in F Y20, I CR is 3.0x E XT E NDE D T E NOR & DIVE RSIF IE D DE BT FY20 FY19 We ig hte d a ve ra g e dura tio n o f b a nk fa c ility 3.6 ye a rs 2.7 ye a rs We ig hte d a ve ra g e inte re st ra te 1 3.95% 4.75% Inte re st Co ve r Ra tio 2.8x 3.2x % o f fixe d ra te b o rro wing s 50% 53% 2

SLIDE 29

Divide nds

29 —  T he F Y20 divide nd wa s inc re a se d 1.2%

n the prio r ye a r.

 A 4th q ua rte r c a sh divide nd o f 1.5875 c e nts pe r sha re ha s b e e n de c la re d, with nil imputa tio n c re dits a tta c he d, a nd will b e pa id o n 24 June 2020.  T he Divide nd Re inve stme nt Pla n ha s b e e n re o pe ne d a nd will b e a va ila b le fo r pa rtic ipa tio n in the 4th q ua rte r divide nd with a 3% disc o unt.  T he F Y21 divide nd g uida nc e re fle c ts the Bo a rd’ s wish fo r sha re ho lde rs to sha re in the c o ntinue d so lid o pe ra ting re sults whilst a llo wing Arg o sy to ma inta in its mo me ntum to wa rds a n AF F O b a se d divide nd po lic y o ve r the me dium te rm.

6.35c ps

F Y21 full ye a r divide nd g uida nc e b a se d o n c urre nt pro je c tio ns fo r the po rtfo lio RE SIL IE NT AND SUST AINABL E DIVIDE NDS

SLIDE 30

L e asing Update

30 —

SLIDE 31

L e asing Suc c e ss

31 — ST RONG L E ASING OUT COME S OVE R F Y20  Arg o sy le a se d 107,617m 2 a c ro ss the po rtfo lio , o r 18% o f the po rtfo lio s to ta l ne t le tta b le a re a . 36 tra nsa c tio ns o ve r the pe rio d, with 17 re ne wa ls, 4 e xte nsio ns a nd 15 ne w le a se s.  No ta b le le a se s o ve r the ye a r inc lude :  7WQ, We lling to n DI A1 9yrs fo r 4,133m 2  7WQ, We lling to n MHUD2 9.25yrs fo r 3,675m 2  7WQ, We lling to n Kaīnga Ora 9.25yrs for 7,001m2  Wiri site s, Mt We lling to n Ca rdina l L

g istic s 15yrs fo r 43,916m2

 56 Ja ma ic a Drive Big Chill 15yrs fo r 1,885m 2  Alb a ny Me g a Ce ntre No rth Be a c h 10yrs fo r 1,085m 2  Wa ke fie ld St, We lling to n BP Oil NZ 14yrs fo r 2,026m2

6.1yr s

3rd c o nse c utive ye a r WAL T ma inta ine d a b o ve 6 ye a rs

1. De partme nt o f I

nte rnal Affairs (DI A).

2. Ministry fo r Ho using and Urb an De ve lo pme nt (MHUD)

SLIDE 32

L e ase E xpir y

32 — ST ABL E PROF IL E OVE R T HE ME DIUM T E RM  5yr a ve ra g e inc o me pe rc e nta g e e xpiring in a ny ye a r ~9%.  L a rg e st sing le e xpiry o ve r ne xt 5 ye a rs is 5.5% in Ma rc h-25 b e ing Ge ne ra l Distrib uto rs a t 80-120 F a vo na Ro a d, Ma ng e re .  K e y le a se e xpirie s b e ing fo c use d

n o ve r the first six mo nths o f F

Y21 inc lude :  MBIE a t 147 L a mb to n Qua y, We lling to n  Go ug h Go ug h & Ha mme r, 960 Gre a t So uth Ro a d, Auc kla nd  Viridia n Gla ss, 39 Ra ndwic k Ro a d, We lling to n  Ho me s Co nsulting Gro up, 39 Ma rke t Pla c e , Auc kla nd

SLIDE 33

Se c tor Summar y

33 — INDUST RIAL O FFIC E L ARG E FO RMAT RET AIL ► Ne t a b so rptio n c o ntinue s to drive a dditio na l supply. ► L imite d la nd supply in Auc kla nd a nd We lling to n e nc o ura g e s no n- tra ditio na l lo c a tio ns. ► Re nta l g ro wth c o ntinue s fo r g o o d q ua lity pro pe rty. ► Va c a nc y re ma ins ve ry lo w, with c o nstra ine d funding limiting spe c ula tive supply. ► E ffe c t o f Co vid-19 re c e ssio n e xpe c te d to b e mute d. ► F le xib le wo rking e nviro nme nts c o ntinue to drive a disc o nne c t b e twe e n e mplo yme nt g ro wth a nd ne t a b so rptio n. ► Ne t a b so rptio n e ffe c t o f Co vid-19 is ye t to b e q ua ntifie d with c o nflic ting tre nds o f wo rking fro m ho me o ffse t b y a dditio na l spa c e re q uire me nts a nd le ss a c tivity b a se d wo rking in the me dium te rm. ► Re nta l g ro wth impa c te d b y ne w supply – so fte r in Auc kla nd, re fle c te d in hig he r inc e ntive s, a nd firme r in We lling to n. ► T he We lling to n ma rke t c o ntinue s to sho w stro ng de ma nd, with lo w va c a nc y fo r g o o d q ua lity se ismic a lly so und spa c e tha t is we ll lo c a te d. T he re is a sho rta g e o f la rg e flo o r pla te / hig h q ua lity sto c k with upwa rd re nta l g ro wth pre ssure a s a re sult. Pre mium a nd Gra de A va c a nc y is minima l. ► E q uilib rium with o n-line re ta iling is ye t to sho w full e ffe c t. ► Struc tura l c ha ng e in re ta il pro pe rty will sho w inc re a se d fo c us o n sho wro o m a nd se mi industria l fa c ilitie s. ► I mpa c t o f a dditio na l de ve lo pme nt will b e fe lt in se c o nda ry lo c a tio ns. ► L a rg e fo rma t, a nd e nte rta inme nt re ta il e xpe c te d to b e mo st se c ure

the r tha n use de pe nda nt o n

to urism. ► Mo ve to o nline re ta iling ha s po te ntia l to a c c e le ra te a s a re sult

f Co vid-19 lo c kdo wn.

► Re nta l g ro wth e xpe c te d to b e fla t

r mildly ne g a tive .

SLIDE 34

F

c us and Outlook

34 —

SLIDE 35

2021 F

c us

35 — Cre ate Pro a c tive de live ry o f susta ina b le g ro wth. Manage Ma na g e a ll e le me nts o f

ur b usine ss to de live r the

rig ht o utc o me s fo r a ll o ur sta ke ho lde rs. Own Own the rig ht a sse ts, with the rig ht a ttrib ute s in the rig ht lo c a tio ns. E nsure a ll e xisting de ve lo pme nts in pro g re ss re c o mme nc e swiftly a nd sa fe ly. Dive st a ll no n Co re a sse ts to re duc e g e a ring a nd pro vide mo re fle xib ility. Co ntinue to inve st in a dive rse ra ng e o f pro pe rtie s a c ro ss se c to rs, lo c a tio ns a nd size s. Inve stme nt a c tivity fo c use d o n e xisting po rtfo lio – pre fe ra b ly g re e n de ve lo pme nts. Ca re fully ma na g e o ur wa y thro ug h Co vid-19 to minimise the fina nc ia l impa c t. Wo rk c lo se ly with o ur te na nts during Co vid-19 to e nsure hig h re te ntio n ra te s a nd ke y e xpirie s/ va c a nc ie s a re a ddre sse d e a rly. L e a se up the b a la nc e o f 7 Wa te rlo o Qua y. Ma inta in tra nsitio n to wa rds AF F O b a se d divide nd po lic y. Ma inta in o ur g re e n / susta ina b le fo c us o n a ll a c q uisitio n a nd de ve lo pme nt

ppo rtunitie s.

Co ntinue tra nsitio ning $200 millio n wo rth o f Va lue Add o ppo rtunitie s to drive e a rning s a nd c a pita l g ro wth. Ma ke a ppro pria te risk / re wa rd de c isio ns, with pre -c o mmitme nts pre fe rre d o n a ll de ve lo pme nts.

SLIDE 36

Appe ndic e s

36 —

SLIDE 37

Adjuste d F unds F r

m Ope r

ations (AF F O)

37 — No te : Due to ro und ing , numb e rs p re se nte d in this p re se nta tio n ma y no t a d d up e xa c tly to the to ta ls p ro vid e d a nd p e rc e nta g e s ma y no t e xa c tly re fle c t a b so lute fig ure s. AF F O is a n a lte rna tive p e rfo rma nc e me a sure use d to a ssist inve sto rs in a sse ssing the Co mp a ny’ s und e rlying p e rfo rma nc e a nd to d e te rmine inc o me a va ila b le fo r d istrib utio n. T his re c o nc ilia tio n is b a se d

n g uid e line s fo r d isc lo sing AF

F O a s p ro vid e d b y the Pro p e rty Co unc il o f Austra lia . FY20 FY19 $m $m Pr

fit befor

e inc om e ta x 123.9 143.3 Re va lua tio n g a ins (59.9) (70.5) Impa irme nt lo ss o n he ld fo r sa le 3.0

Re a lise d lo sse s/ (g a ins) o n dispo sa l

0.1 (6.1) De riva tive fa ir va lue (g a in)/ lo ss (2.1) 7.4 Ea rthq ua ke e xpe nse ne t o f re c o ve rie s 0.5 (6.8) Gr

ss distr

ibuta ble inc om e 65.4 67.3 De pre c ia tio n re c o ve re d 0.0 1.7 Curre nt ta x e xpe nse (5.9) (11.7) Net distr ibuta ble inc om e 59.6 57.4 Amo rtisa tio n o f te na nt inc e ntive s a nd le a sing c o sts 3.5 3.9 Funds fr

m oper

a tions (FFO) 63.0 61.3 Ca pita lisa tio n o f te na nt inc e ntive s a nd le a sing c o sts (5.5) (6.5) Ma inte na nc e c a pita l e xpe nditure (6.0) (4.6) Ta x e ffe c te d ma inte na nc e c a pita l e xpe nditure re c o ve re d 0.3 1.5 Adjusted funds fr

m oper

a tions (AFFO) 51.8 51.7 We ig hte d a ve ra g e numb e r o f sha re s o n issue (m) 827.2 827.0 AFFO per sha r e (c ents) 6.27 6.25 Divide nds pa id / pa ya b le in re la tio n to pe rio d 6.35 6.28 Divide nd pa yo ut ra tio (to AFFO) 101% 100%

SLIDE 38

Re nt Re vie ws by T ype , Se c tor & L

c ation

38 — No te : Due to ro und ing , numb e rs p re se nte d in this p re se nta tio n ma y no t a d d up e xa c tly to the to ta ls p ro vid e d a nd p e rc e nta g e s ma y no t e xa c tly re fle c t a b so lute fig ure s. T ype # Pr e vious Re nt ($000's) % of r e nt r e vie we d Ne w Re nt ($000's) $ Inc r e ase (000's) % Inc r e ase Annualise d $ Inc r e ase (000's) % of T

tal

Annualise d Inc r e ase Annualise d % Inc r e ase T

tal

100 43,453 100% 44,896 1,443 3.3% 1,163 100% 2.7% By r e vie w type F ixe d 66 27,374 63% 28,205 831 3.0% 831 71% 3.0% Ma rke t 12 5,218 12% 5,542 324 6.2% 144 12% 2.8% CPI 22 10,861 25% 11,149 288 2.7% 188 16% 1.7% By se c tor Industria l 28 20,401 47% 21,081 680 3.3% 585 50% 2.9% Offic e 43 12,624 29% 12,981 357 2.8% 312 27% 2.5% L F R 29 10,428 24% 10,835 406 3.9% 266 23% 2.6% By loc ation Auc kla nd 89 37,711 87% 39,047 1,336 3.5% 1,060 91% 2.8% We lling to n 9 3,891 9% 3,951 59 1.5% 55 5% 1.4% Othe r 2 1,851 4% 1,898 48 2.6% 48 4% 2.6%

SLIDE 39

Re nt Re vie ws – Auc kland, We llington & Re gional

39 — L

c ation

# Pr e vious Re nt ($000's) % of r e nt r e vie we d Ne w Re nt ($000's) $ Inc r e ase (000's) % Inc r e ase Annualise d $ Inc r e ase (000's) % of T

tal

Annualise d Inc r e ase Annualise d % Inc r e ase Auc kland Industria l 22 17,681 47% 18,288 607 3.4% 516 44.3% 2.9% Offic e 39 10,353 27% 10,691 338 3.3% 293 25.2% 2.8% L F R 28 9,677 26% 10,068 391 4.0% 251 21.6% 2.6% 89 37,711 100% 39,047 1,336 3.5% 1,060 91.1% 2.8% We llington Industria l 5 1,620 42% 1,661 40 2.5% 36 3.1% 2.2% Offic e 4 2,271 58% 2,290 19 0.8% 19 1.6% 0.8% L F R 0% 0.0% 0.0% 0.0% 9 3,891 100% 3,951 59 1.5% 55 4.7% 1.4% Re gional Nor th Island & South Island Industria l 1 1,099 59% 1,132 33 3.0% 33 2.8% 3.0% L F R 1 751 41% 766 15 2.0% 15 1.3% 2.0% 2 1,850 100% 1,898 48 2.6% 48 4.1% 2.6% No te : Due to ro und ing , numb e rs p re se nte d in this p re se nta tio n ma y no t a d d up e xa c tly to the to ta ls p ro vid e d a nd p e rc e nta g e s ma y no t e xa c tly re fle c t a b so lute fig ure s.

SLIDE 40

Por tfolio Me tr ic s

40 — DE F E NSIVE AND RE SIL IE NT T E NANT S, HIGH E SSE NT IAL SE RVICE E XPOSURE

SLIDE 41

Por tfolio Snapshot

41 — HIGH PORT F OL IO QUAL IT Y IS BE ING RE F L E CT E D IN OUR ME T RICS 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 FY16 FY17 FY18 FY19 FY20 WAL T (ye a r s) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% FY16 FY17 FY18 FY19 FY20 De bt- to- tota l- asse ts 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% FY16 FY17 FY18 FY19 FY20 Oc c upa nc y $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 FY16 FY17 FY18 FY19 FY20 Ne t T a ng ible Asse ts

SLIDE 42

Disc laime r

42 — T his pre se nta tio n ha s b e e n pre pa re d b y Arg o sy Pro pe rty L imite d. T he de ta ils in this pre se nta tio n pro vide g e ne ra l info rma tio n o nly. It is no t inte nde d a s inve stme nt o r fina nc ia l a dvic e a nd must no t b e re lie d upo n a s suc h. Yo u sho uld o b ta in inde pe nde nt pro fe ssio na l a dvic e prio r to ma king a ny de c isio n re la ting to yo ur inve stme nt o r fina nc ia l ne e ds. T his pre se nta tio n is no t a n o ffe r o r invita tio n fo r sub sc riptio n o r purc ha se o f se c uritie s o r o the r fina nc ia l pro duc ts. Pa st pe rfo rma nc e is no indic a tio n o f future pe rfo rma nc e . All va lue s a re e xpre sse d in Ne w Ze a la nd c urre nc y unle ss o the rwise sta te d. 20 Ma y 2020