23 Nov 2021

Argosy reports strong first half result

10:37 am on 23 November 2021

Diversified property investor Argosy has reported a strong first half result with revaluation gains and revenue growth.

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Auckland city. Photo: 123rf

Key numbers for six months ended 30 September vs year earlier:

  • Net profit: $127 million vs $114.6m
  • Valuation gain: $91.7m vs $79.8m
  • Revenue: $53.1m vs $50.5m
  • Portfolio: $1.063 billion vs $985M

Argosy's properties are at near 99 percent occupancy, with weighted average lease terms of 5.3 years, and annualised rental increases of 2.4 percent.

"While we delivered positive leasing outcomes over the first half of the year, given the extended nature of the current Covid-19 lockdown and impact on the Auckland economy, we remain somewhat cautious on the outlook for the second half of full year 2022," chief executive Peter Mence said.

"Auckland's underlying property fundamentals remain particularly sound and the industrial sector continues to fare better than others," he said, adding the company was still focused on buying more prime industrial sites in the region.

He said Argosy's portfolio was in good shape with a conservatively geared balance sheet available to pursue further acquisitions.

Debt to total assets ratio, excluding capitalised borrowing costs, was 31.7 percent at 30 September compared with 35.9 percent at 31 March.