Argosy Property Limited (ARG) Earnings Call Transcript & Summary

Good afternoon, everybody. It's 2:00. And I guess for the benefit of those of us who are online, we should get underway. My name is Jeff Morrison. I'm the current Chair of the Board of Argosy. And on behalf of my fellow directors and the management team, it's my pleasure to welcome you to the 2026 Annual Meeting of Shareholders of Argosy here at the Yacht Squadron. Sorry, this is -- the presentation is very formulaic, but there will be an opportunity for us to engage after -- during question time. As usual, before we get things underway, there are some housekeeping matters. Firstly, can I remember those shareholders or proxy holders attending in person to have your phones on silent please, Board members included. In the unlikely event of an emergency, please evacuate through the doors behind you. The bathrooms are located through those doors. As in previous years, today's annual meeting is a hybrid meeting. Shareholders who are not attending in person can attend virtually and ask questions and vote through the Computershare online virtual meeting platform, and shareholders can also follow proceedings via the live webcast. Today's meeting will focus on our recent annual results to 31 March '26, our long-term strategy for growth and progress around our sustainability goals. Before we get to those, there are a few procedural matters we need to run through for our hybrid meeting. First, for our shareholders participating through the live webcast polling on the 4 resolutions has now opened. If you are eligible to vote at this meeting, you will be able to cast your vote under the vote tab and votes may now be submitted. Votes can be amended up until the time I declare voting closed. Questions can now also be submitted through Computershare's online virtual meeting platform. If you would like to submit a question, the Q&A is always open. So please feel free to submit questions throughout the meeting. These will be addressed at the relevant time. If you experience any technical issues casting your vote or submitting questions, please refer to the instructions provided in the virtual meeting guide that accompanied the Notice of Meeting or type your query into the Q&A tab or you can call Computershare on 09-488-8700. With those matters explained, I'd like to record the Notice of Meeting was duly given on 22 May. And as there are at least 5 shareholders here today, there is a quorum present. Accordingly, I declare the 2026 Annual Meeting of Argosy Property Limited open. There is detailed information about the Board in the Annual Report. However, I will briefly reintroduce them to you. To my right is Stuart McLauchlan, representing the South Island. Stuart was appointed to the Board in August 2018, and he is a prominent businessman and company director. He's Chairman of the New Zealand Sports Hall of Fame, Scott Technology. He's Director of Scenic Hotels, and EBOS Group Limited, Dunedin Casinos Limited and several other companies. Stuart is also a past President of the New Zealand Institute of Directors. Next to Stuart, we have Rachel Winder. Rachel was first appointed to the Board in August 2019. Rachel has been involved in the property sector for over 20 years across a variety of senior roles, including strategy, portfolio management, financial management, development and leadership. Rachel's position as director is up for election, and we'll hear from her later in the meeting. Next to Rachel, we have Martin Stearne. Martin was first appointed to the Board in 2020. Martin has over 25 years commercial and capital markets experience, primarily in investment banking. Martin currently holds appointments to the NZX NZ RegCo Advisory Panel, the Takeovers Panel, the Investment Committee of the Impact Enterprise Fund. He is a member of INFINZ and IceAngels, and Martin's position as director is also up for election. And again, we'll hear from him during the meeting. Next to Martin, we have Alex Cutler. Alex was first appointed to the Board in October '24, Alex has extensive global experience, assisting multinational organizations in recognizing the strategic importance of sustainability. Alex is a prominent figure in the property industry and a dedicated sustainability expert. She was previously the CEO and Chief Sustainability Officer at RDT Pacific and the CEO of the New Zealand Green Building Council. Finally, I've been a director since 2013 and have over 40 years' experience as a property lawyer as well as my role as Chair. I also sit on the Rem and Nom Committee and the Audit and Risk and ESG committees. Seated next to the Board of Directors is Chief Executive, Peter Mence; and Chief Financial Officer, Dave Fraser. We also have several other members of the management team here today. And I'd like to also welcome our auditors Deloitte, our solicitors Harmos Horton Lusk, our registrar Computershare, and our tax advisers KPMG. The agenda for this afternoon's meeting will be as follows: as Chair I will deliver a brief review of Argosy's 2020 results and strategy. This will be followed by a much more detailed review of Argosy's performance by Peter. Following that, we'll take questions from shareholders. We will then move to the formal resolutions of the meeting. And finally, we will then attend to any general business. After the meeting has been formally closed, please stay for refreshments where the directors and executives will be available to discuss any queries you still have. Proxies have been received in respect of 440,619,500 shares, and these have been audited by Deloitte. There are 873,970,395 shares on issue. I'm pleased now to present to you a summary of the company's performance for the year ended 31 March. You will have received the 2026 Annual Report and Financial Statements, either by post or electronically, depending on your preference. The results side. The Board is pleased with the way management and the staff are focused on operational discipline throughout the year, delivering solid outcomes across occupancy, rental growth and leasing activity. Net property income for the period was up 3.3% on the prior year to $120.8 million. The annual revaluation gain was 585 million -- sorry, $58.5 million, 500, that will be nice, primarily driven by modest cap rate firming and market rental growth. This revaluation gain was the main driver for the increase in NTA to $1.60, up from $1.53 last year. The full year dividend was $0.0665 per share in line with guidance. The Board is very comfortable with the company's capital position and balance sheet strength with debt to total assets at 31 March of 37.2%, comfortably within the target band of 30% to 40%. The sale of 4 Henderson Place, which settled for $40 million in April and 143 Lambton Quay Wellington, which settled for $6 million in May has brought this ratio down to approximately 36% post balance date. Proceeds from these transactions will initially be used to reduce debt and the Board believes the business retains sufficient funding capacity to support new development requirements. Peter will tell us more about the financial performance of the company during his presentation. Many of you will be familiar with this slide. While the framework remains unchanged. We've updated our vision to resilient buildings for a better future, underpinned by our 3 core pillars: a green resilient and diversified business. Our focus on greening the portfolio remains central with a target of 50% green assets by 2031. During the year, the team completed the development of 224 Neilson Street with both buildings in that development achieving a Green Star Design and Built rating. Building 6 at Mt Richmond also achieved a 6 Star Design rating and is progressing well towards a Built certification. The Board were also pleased to see 224 Neilson Street recognized at the 26 Master Builders Commercial Project Awards receiving a national category award, a gold award and the overall environmental and sustainability award. With green assets now comprising 39.2% of the portfolio, we are well placed to deliver on our 50% target. In September 25, the government proposed reforms to New Zealand's earthquake-prone building regime, replacing the current newbuilding standard framework with a more targeted system focused on genuine seismic risk with low seismic regions such as Auckland expected to be excluded. These changes are a very positive step for the sector. Peter contributed to this work as a member of the Seismic Review Steering Group and the Board acknowledges his leadership in this area. Argosy's portfolio remains diversified by sector, location and tenant. We believe this approach will continue to reduce volatility and widen growth opportunities over the long term. Key policy targets include a weighting to industrial of 60% to 70% and a weighting to Auckland of 70% to 80%. Argosy is well positioned, supported by a strong balance sheet and a high-quality diversified portfolio with a clear focus on sustainability and green assets. The planned progressive increase in industrial weighting through the green development pipeline is expected to enhance the certainty and stability of cash flows and earnings over time. The Board has reviewed its dividend policy and determined that a funds from operations or FFO based approach provides a more stable and appropriate measure than adjusted funds from operations or AFFO. AFFO can be subject to significant volatility due to movements in maintenance capital, incentive and leasing costs and other items. Adopting an FFO-based framework reduces this variability and supports more consistent outcomes. Under the revised policy, the company is targeting a payout range of 80% to 90% of FFO while remaining committed to ensuring dividends are sustainable over the long term. Shareholders will be pleased we delivered the dividend in line with guidance of $0.0665 per share for '26. Dividend guidance for '27 is consistent with this at $0.0665 and within the new policy target. Board and CEO succession. The Board continues to focus on the company's long-term success with succession planning a key strategy priority and well underway. In terms of Board succession, as previously advised, I will step down as Chair at the conclusion of next year's AGM, our ASM at the end of my current 3-year term -- on my present current 3-year term. The board has agreed that Martin Stearne will succeed me as Chairman. Martin, who is standing for reelection today with the board's full endorsement is currently Chair of the Rem and Nom Committee and is leading the CEO succession transition. Rachel, who was appointed in August '29 -- sorry, August '19 is also standing for reelection today with the board's full endorsement. Our CEO, Peter intends to retire by next year's ASM, which allows ample time for a well-managed transition and the Board have commenced a search for his successor. I'll now hand over to Peter, who will take you through a brief review of the business performance.

Thanks, Jeff. Pleasure to be back with you here today and to present the CEO report. This is the last address, as Jeff has said, that I'll be presenting as Chief Executive to an annual meeting. And it feels way too early to be thanking all the people that I need to thank, and I'm sure I'll get that opportunity later. We entered 2026 following the Christmas break with a good degree of optimism. However, the global environment has since become somewhat more uncertain, including escalating geopolitical tensions in the Middle East, a resurgence of inflationary pressures and these factors are likely to persist and continue to influence economic conditions in the near term. Against this backdrop, the portfolio has performed solidly. Property bottom-up fundamentals remain resilient with occupancy and tenant retention holding up particularly well. In terms of financial performance, rent review outcomes have exceeded our initial expectations, supported in part by tenant's preference to remain in place. During the financial year of '26, Argosy completed 111 rental reviews across $81 million of rental income, achieving annualized rental growth of 3.5%. Tenant retention remained very strong at 95.1%, and this is certainly one of the highest rates of retention during -- that I've seen during my entire time at Argosy. Government tenants to continue to provide income stability representing 31% of rental income. Looking at the portfolio. These charts highlight our sector, location and core or value-add weightings. It's a good summary of both our current asset allocation and our stock selection strategies. Our portfolio is 55% weighted to industrial as at 31 March. And following the completion of our green value-add development opportunities at Neilson Street and Mt Richmond we will continue to increase towards our target weighting of 60% to 70% over the medium term. We're currently within our desired location weightings with 72% of the portfolio weighted to the Auckland market. 81% of the portfolio was regarded as been core at 31 March. Core properties are those which are well located with strong long-term generic demand and a leasing profile that provides for rental growth of at least CPI with good structural integrity and a minimal capital maintenance requirements. We are continuing to progress the divestment of noncore assets with the property at the corner of Taniwha and Paora Hapi Street and Taupo, that's the warehouse in Taupo, currently under conditional contract along with 99 Khyber Pass. A further 4 properties have been identified as being noncore and with a combined current book value of $129 million. While there is no urgency, these properties are expected to be divested over the medium term. At 224 Neilson Street, we successfully delivered both Warehouse A and Warehouse B during the year with practical completion of Warehouse A achieved in October 2025. Warehouse B is complete and fully leased to Basick Transport reflecting continued demand for quality industrial space and well-located assets. We've also concluded an agreement to lease for Warehouse A for a 16-year term commencing in March 2027. Both warehouses achieved a 6 Green Star Design and Built rating, underscoring our commitment to developing high-quality, sustainable industrial assets. The development incorporates a range of features, including low-carbon concrete, rainwater harvesting, Intelligent Building Systems and a rooftop solar array. As Jeff mentioned, 224 Neilson Street also received industry recognition with awards at the Master Builders Commercial Projects Function, including a national category award, a gold award and the overall Environmental and Sustainability Award. At Mt Richmond Industrial Estate, we achieved practical completion of the first stage in May 2026, including Building 6, a 5,800 square meter warehouse and office facility delivered for tenant Viatris, a global pharmaceutical distributor. This stage also delivered building platforms for 2 additional construction buildings, both of which have been leased to existing tenants. That's the building platform only has been leased to tenants. These platforms provide holding income while longer-term development plans have progressed. Mt Richmond reflects our continued focus on delivering high-quality, future-ready industrial assets that meet evolving occupier demands. Building 6 has already achieved a 6-star design rating with a certification for a 6 Green Star Built Rating underway. Turning to revaluations. Jeff has mentioned some of this, the annual revaluations for the year were performed by CBRE, Colliers International and Jones Lang LaSalle. The total unrealized revaluation gain was $58.5 million, not $500 million, thanks, Jeff. Yes, talk about putting my weights up and -- or a 2.7% increase on book value, which compares to an unrealized revaluation gain for the prior year at $72.7 million. Gains were due to both modest cap rate firming and market rental growth, and there was a $4.4 million gain on the 2 held-for-sale properties those ones, the assets that have been sold deposit paid but have not yet settled at year-end. They since have settled of 4 Henderson Place and 143 Lambton Quay. It was pleasing to see gains across all sectors, with the portfolio under-rented by 9.3%. Argosy reported net property income of $120.8 million for the year, an increase on the prior period, and that was supported by positive rent review outcomes and income from recently completed developments. Argosy continues to benefit from the establishment of our insurance captive with favorable market conditions and increased capacity, supporting greater stability in premiums and improved coverage terms. Interest expense was $39.1 million, down on last year with lower interest rates more than offsetting higher average debt levels. Our weighted average cost of debt reduced to 4.6% from 5.1% last year. Following the revaluation gain outlined earlier, net profit after tax was $127.7 million for the year compared with $125.9 million from last year. Distributable income and funds from operations. Net distributable income was $60.9 million for the year up from $55.8 million. This is an increase of 9.1%, reflecting solid underlying earnings performance. Net distributable income per share was $0.0705 per share, up from $0.0658 per share last year. As Jeff has mentioned, the Board has reviewed Argosy's dividend policy and will move next year to a funds from operations or an FFO approach. FFO and financial year '26 was $0.074 per share, compared to $0.0683 per share last year, an increase of 8.3%. The dividend payout ratio for the year was 90% of FFO compared with 97% in the prior period. Lease expiry profile. The team has worked hard to deliver solid leasing outcomes and what has been a far more challenging operating environment with longer lead times required to close transactions evident through much of the year and still currently. We have completed 32 leasing transactions across 45,335 square meters of space during the year. Lease transactions were, of course, made up with from new leases, 13 of those, renewals, 13 of those and extensions, 6. The lease expiry profile is balanced and with only 5.3% by income of leases due to expire in financial year '27. The largest expiry in FY '27 is at 17 Mayo Road, and I'm pleased to advise that we're already in advanced discussions on releasing that building. The largest expiry in FY '28 is actually a break clause for general distributors at Favona Road representing 7.3% of income. The lease term is for 10 years ending in August 2034, but exercise of the break -- and exercise of the break clause is considered unlikely, because it's a rolling period that expiry has already moved to FY '29. The new lease at 224 Neilson Street will reduce the vacancy and will increase the weighted average lease term and balance that expiry profile still further. As economic conditions improve, it is expected that the imbalance between new supply and net absorption or demand in the industrial space will abate, reducing vacancy and improving rents. We retain some underrenting in the sector. Looking at office space, many organizations have now settled into hybrid models and office attendance does vary between cities alongside a general decline in remote working. Government sector actual attendance still lags the average of 3 days per week. The building environment is increasingly in focus and are part of the sustainability initiatives, end-of-trip facilities are becoming more important. Many research houses have now projected that the demand for Green Buildings in both the office and the industrial sectors will exceed supply in coming years. Looking at retail, Argosy's principal retail exposure is limited to large-format retail, and this is predominantly for us at the Albany Mega Center, we've continued to enjoy high occupancy and solid rental growth following a current project to re-merchandise the center. Turning to the outlook. Since the interim result, global developments have increased market uncertainty and the duration for current conditions and the potential for further escalation still difficult to predict. While we have not yet observed any direct impact on the business to date, ongoing volatility may continue to influence customer sentiment and inflation expectations. This could negatively impact our tenants. We do acknowledge the possibility that some tenants may find conditions difficult and we will continue to monitor arrears and leasing very closely. Against this backdrop, leasing inquiries have remained encouragingly strong. Argosy remains well positioned, supported by a strong balance sheet and a high-quality diversified portfolio with a clear focus on sustainability and on green assets. The management team remains focused on progressing leasing activity, addressing vacancy and near-term expiries, maintaining strong tenant retention across the portfolio. In closing, I'd like to thank Jeff as Chair, the rest of the Board and the fantastic team that make up the Argosy staff family for their dedication and commitment. Thank you, Jeff.

As Peter mentioned, this is expected to be the last meeting where Peter will present as CEO. Peter has been with the company for 32 years and has been CEO since 2009. Over the years, Peter has been instrumental in repositioning the portfolio, improving quality and earnings resilience. He's been a strong advocate of Argosy's investment in sustainability and Green Buildings in particular. As noted earlier, 39% of portfolio assets by value are now rated as green. Thanks to Peter, we are well on track to reach our 50% Green Buildings by 2031. Peter is also instrumental in pioneering green bond financing in the New Zealand market, Argosy's first green bond in 2019 was the first in the sector and well received. Peter is very highly regarded by his peers. We noted earlier, his recent involvement as a listed Sector representative of the Seismic Review Steering Group. Peter is a past lecturer in Advanced Property Management at the Auckland University, past President of the Property Council. In 2013, Peter was honored with the Stuart McIntosh Award in recognition of his contribution to the University. In '21, Peter was honored as the Property Council in New Zealand Members' Laureate, a lifetime membership awarded once a year to the industry's most respected leaders. In 23, Peter received the Supreme Award from the Property Institute. Perhaps even more importantly, Peter has built a strong values-based culture at Argosy with a result that the company has a very low staff turnover. He's extremely empathic -- he has an extremely empathetic approach to leadership, believing that positive employee well-being creates a better environment to deliver on corporate goals and strategy. On behalf of the Board and shareholders, I'd like to congratulate Peter on his career and to wish him very well in his retirement and thank him very much for his enormous contribution to the company. Thank you, Peter. I will now open the meeting for questions about the company's performance generally. Other issues can be addressed as general business later in the meeting. I would like to remind you that only shareholders, proxy holders or shareholder company representatives have a right to speak. In addressing the chair with questions, would you please clearly state your name and advise whether you are a shareholder or a proxy holder or a shareholder company representative. If you have a question, there are people with mics in the aisles, please use those so we can all hear your question. Do I have any questions from the floor or online? As there are no questions at this time, we will now -- sorry, Alicia, I'm just checking with you.

Yes, we have one question online. Actually, 2 questions from 1 person. This is shareholder Roger Clarke. He -- his first question is, we've had 5 years without a dividend increase despite 5 years of inflation and rental growth. When might we expect a dividend increase?

That's a good question and well foreshadowed as I understand it, around the country. Obviously, we've also had 5 years of increasing interest rates for a big part of that changes in the tax regime and some vacancy issues. But I don't know, Peter or Dave, do you want to add anything to that?

Yes. Am I on? Sorry, I got to sit down. Yes. I mean that interest comments are quite relevant. You go back 5 years and our floating rate was 0.25% of it and it raced up to 5.5% as everyone knows quite quickly. So obviously, we had some hedging, but our weighted average cost of debt went from 3.6% to 5.6%. So when you've got $800 million worth of debt, that's $16 million you've got to absorb. On top of that, we were getting deductions for building depreciation, that's $3 million, which was taken out. And even though we've got investment boost back it doesn't really recover all the loss from the depreciation on buildings. Rates in Wellington is another hit. They've gone up by $2 million in the last couple of years. And of course, our buildings in Wellington are gross leases. So that's a direct hit to our bottom line. And then finally, insurance, insurance went up by $4 million in that same period. So we've had a whole bunch of negative issues that we had to deal with. So we had sure had some rental growth, but we've had a lot of cost increases, which we had to absorb. Fortunately, a lot of them are going the other way. So we're really hopeful that we can get things moving north again sometime soon.

And the second question is, have you considered a share buyback with the shares trading at such a deep discount to NTA?

Yes. Obviously, the current discount -- the share price discount to NTA is a prominent feature. And we have frequent discussions at Board level about the potential to redeploy capital in buying back shares. But as with all deployments of capital, it depends on availability and the counterfactuals in terms of other investment opportunities or requirements. So yes, it's certainly something we keep under constant review. Peter or Dave, would you like to add anything?

Yes. I think buybacks do look quite attractive at the moment. There's a couple of points to make. One is execution. A couple of property companies tried to do a buyback 3, 4 years ago, a target of 44 million shares and managed to only buy back 4. So just because you want to do a buyback, it's not necessarily going to be successful. The other thing, too, is the earnings -- accretive earnings. We're in a position now where our balance sheet, we've got 37% gearing. So to buy back shares, we kind of got to sell assets and the yield on our assets that we're trying to sell is about 6.7%. So you sell assets at 6.7%, you buy back shares. The accretion is very modest, something like $0.0001. So -- and okay, that's okay. It's accretive, but you've also got to look at other opportunities. So for example, Mt Richmond, we've made $25 million on that asset in the last 4 years. You're going to throw away all those capital gains if you don't go down that track. So it is an option, but there are other options as well.

Thank you. Thanks, Dave. The much more fulsome explanations. Appreciate you being there. Okay. The resolutions for consideration today. These may only be voted on by shareholders, either in person or virtually or by proxy and proxy holders and shareholder company representatives present. As noted earlier, I've been provided with a record of the valid proxies received. Proxies have been received in respect of 440,619,500 shares, and these have been audited by Deloitte. There are 873,970,395 shares on issue. As I said, this gets a bit formulaic. Resolution 1 proposes that Martin Stearne be elected as a Director. Martin was appointed by the Board in March 2020 and being eligible offers himself for election. The Board has determined that Martin if elected, will be an independent director. And as you know, the Board has determined that should he be reelected, he will succeed me as Chair. I will now ask Martin to say a few words. Martin?

Thank you, Jeff, and thank you, everyone, for attending the meeting today, both here and online. I am Martin Stearne, been on the Board for 6 years and seeking another 3-year term. My background is in investment banking, particularly equity capital markets. So that's listed companies on the stock exchange. My current roles, I'm a senior adviser at Montarne, a member of the Takeovers Panel and I've recently been appointed the Chair of Mercer NZ Residential Property Fund. At Argosy in addition to the Board role, I'm on the Audit and Risk Committee. And as Jeff mentioned, chairing now the Rem and Noms Committee, so involved with the appointment of the new CEO, alongside the rest of the Board. I really enjoy my role at Argosy. I have the capacity for the role and I believe that my skills are complementary to the rest of the Board overall. A vote for me today, and I suppose Rachel also would ensure a level of Board continuity as we approach Pete's end of his tenure here with 1 year to go and provide continuity into the onboarding of a new CEO. Thanks very much in advance for your support today.

Are there any questions on this resolution from the room or online, please.

Martin, do you think your knowledge about financial derivatives would be helpful for this company? For example, earlier on, it was mentioned geopolitical uncertainty and so on. So do you think, for example, a hedge against downturn, do you think something like that is helpful or maybe you know Black-Scholes formula. And then I'm not too sure whether those things can bring constrained optimization to this company. I mean, that it doesn't look like it's part of the meeting.

Sure. Look, I don't have a background in sort of derivative products, financial and engineering, that sort of thing. I suppose those economic elements come under the guidance of the Audit and Risk Committee. There, we do look at things like interest rate hedging, the things we can control. Beyond those financials, really, there's no other avenues we see for hedging on insurance. But perhaps I'll ask Stuart as Chair of the Committee if there's anything else he'd want to add?

Nope. Nothing to add.

Okay. So there are no further questions. I now put to vote on the resolution that Martin Stearne is elected as a Director of the company. Please mark your voting papers or select your voting option on the screen. Pausing momentarily for people the opportunity to do that, should they wish to. [Voting]

Okay. Thank you. I now move to the next resolution. Resolution 2 proposes that Rachel Winder be elected as a director. Rachel was appointed by the Board in 2019 and being eligible offers herself for election. The Board has determined that Rachel if elected, will be an independent director. I'll now ask Rachel to say a few words.

Thank you, Jeff. Hello, and good to see you all again today. Thank you for being here. It is a privilege to be standing for reelection, and I have had the opportunity and enjoyment of contributing to Argosy for nearly 7 years and I've greatly enjoyed that. I remain excited for the opportunities ahead for the company. For those who may not know my about ground, just a quick one, my property career started in Sydney in the '90s, and I've built more than 25 years' experience across the property and the infrastructure sectors. My experience spans property development, portfolio and investment strategy, financial management and organizational transformation across a range of leading organizations in construction, telecommunications, and the financial services sector. I hold a Masters of Business Administration from the University of Otago and a Bachelor of Property from Auckland Uni. I'm also a member of Property Council of New Zealand in the New Zealand Institute of Directors. Outside of Argosy, I currently serve as Chair of Te Atiawa Management Holdings, which is the commercial and investment arm of Te Atiawa Iwi. I'm also a Director of Hamilton Airport and Auckland Thoroughbred. These roles continue to broaden my experience in governance, investment stewardship, infrastructure and long-term value creation, which I bring to my role in the Argosy Board. Thank you for your continued support and for those of you that already voted. I look forward to continuing to contribute to Argosy's success alongside my fellow directors and thank Peter, in particular, and Dave as well from management. Thank you.

Thank you, Rachel. Are there any questions on this resolution from the floor or online? No. Okay. I now put to vote the resolution that Rachel is elected as a Director of the company. Please mark your voting papers or select your voting option on the screen. [Voting]

Thank you. We'll now move to the next resolution. Resolution 3 seeks to revise the directors' remuneration pool following the reduction in board size from 6 to 5 directors. While the overall pool will decrease, the Board is proposing modest increases to individual director fees. Is there any discussion on this resolution? Okay, if not, please mark your voting papers or select your voting option and I'll pause momentarily for you to do that. [Voting]

Okay. Resolution 4 seeks to authorize the Board to fix the auditor's fees and expenses. Is there any discussion on this resolution from the room or online? Okay. Please mark your voting papers or select your voting options. [Voting]

You've done that, I'll now move on. As this is the final resolution, in a minute, I will close voting. Please ensure that you've cast a vote on all resolutions. The votes will then be counted by Computershare who will now begin collecting the voting papers from within the room. I think we can allow that to happen simultaneously. That completes voting on all resolutions. Online voting will now be closed and Computershare will complete collection of the votes and the box is being circulated. The votes collected from the room and online will be added to the proxies already received and the results will be compiled by Computershare, our registrar and then scrutinized by the auditor. The results once available, will be published on the Argosy website and provided to the NZX. I now move on to general business of the meeting and open the floor for questions or comments. Again, I ask that in addressing the chair with questions, would you please clearly state your name and advise with you are a shareholder, proxy holder or shareholder company representatives. For those shareholders online, if you wish to ask a question, select the question icon button on your computer, tablet or mobile phone and then type and submit your question. The question will then be sent to the Board to answer. As noted at the beginning of this meeting, we will try to get as many questions as possible, but not all questions may be able to be answered. In this case, questions will be followed up by e-mail after the meeting. I would like to remind you that only shareholders, proxy holders or shareholder company representatives have a right to speak on questions. Do I now have any questions? Okay. There being no further questions, that completes the formal business of the meeting. Thank you, everyone, for your attendance and participation this afternoon. I formally declare the meeting closed and invite you to join us for refreshments. Thank you.