Tuesday 23rd November 2021
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Argosy Property Limited (‘Argosy’ or the ‘Company’) has reported its results for the 6 months to 30 September 2021.
Chairman Jeff Morrison said, ”Our business has again demonstrated its quality and resilience, allowing us to deliver sustainable earnings, cashflows and dividends to shareholders.
Argosy’s management team have worked hard delivering some very positive operational results. FY22 started very well with the economy and operating environment looking positive.
However, in August we returned to Alert Level 4 lockdown. This created a very challenging time again for tenants, staff, contractors and other stakeholders in the business. Nonetheless, Argosy is well placed to manage this near term economic volatility.
Based on current projections for the portfolio and subject to market conditions, the forecast FY22 dividend has been reconfirmed at 6.55 cents per share.”
Argosy’s Chief Executive Officer, Peter Mence said, “Despite the extended lockdown in Auckland and ensuing economic challenges which continue today, we are pleased to have delivered a solid result for the first six months of the 2022 financial year.
Although net distributable income fell, primarily due to the non-refundable deposit income recorded in the prior comparable period, our portfolio metrics were maintained at very high levels. We achieved solid rent reviews and leasing results despite difficult economic conditions.
A second quarter dividend of 1.6375 cents per share has been declared for the September quarter with imputation credits of 0.0720 cents per share attached. The second quarter dividend will be paid to shareholders on 22 December 2021 and the record date will be 8th December. The Dividend Reinvestment Plan (DRP) will be available for shareholders to participate in but no discount will apply. Argosy continues to pay dividends in line with its current policy, where annual dividends are less than net distributable income. However, as outlined in the FY21 annual results, commencing 1 April 2022, Argosy’s policy will be to pay dividends between 85-100% of AFFO.
Structural change in the occupancy market hastened by the pandemic and New Zealand’s responses to it is a key focus for the year ahead.
Argosy’s quality portfolio is in good shape and its balance sheet is conservatively geared. It has capacity and flexibility to fund its near-term green Value Add opportunities. The balance of FY22 will be about focusing on the core operational elements of the business – including addressing key expiries and remaining rent reviews, leasing up remaining vacancies and developments. Argosy will progress its pipeline of green Value Add projects and focus on driving earnings and capital growth.
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