Profit surges for Argosy Property

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Argosy Property Fund lifted first-half earnings 25 per cent as New Zealand’s fourth-largest listed property investor boosted its occupancy rate and sold non-core assets.

Profit attributable to security holders rose to $37.6 million in the six months ended September 30, from $30.1 million a year earlier, it said.

Sales rose 8.7 per cent to $43.8m while its occupancy rate rose to 99.1 per cent from 97.3 per cent a year earlier.

The company is reducing exposure to retail properties and has identified $70m worth of non-core properties or vacant land that it intends to sell.

It has sold its Waitakere Mega Centre in Henderson, Auckland, for book value of $45.8m, settled $13.9m worth of non-core divestment and lifted the value of its overall portfolio 2.1 per cent to $1.22 billion.

Argosy is upgrading its New Zealand Post building in Wellington and finished the redevelopment of its 15 Stout Street building in the city with the Ministry for Business, Innovation and Employment taking up residence in July.

The lease was won in the government’s new bulk tender process and it has been shortlisted for two further government leases, it said.

“As the property market shows signs of continued buoyancy, our focus will remain firmly on adhering to our strategy,” the company said.

“Our goals for the remainder of the 2015 financial year are to continue to manage the portfolio’s occupancy and lease expiry profile, while searching for opportunities to improve the quality and balance of our property assets.”

Shares of Argosy last traded at $1.055 and have advanced 15 per cent since the start of the year.


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