Argosy Property "Resilient, but no re-rating catalyst" (Neutral) Murphy

Research evidence excerpt

Argosy Property "Resilient, but no re-rating catalyst" (Neutral) Murphy

Global Research

20 May 2026ab

Argosy Property Equities

New ZealandResilient, but no re-rating catalyst

Real Estate

12-month rating Neutral

AFFO in-line with UBSe...

Today, ARG reported an in-line FY26 result, with steady operating performance and no 12m price target NZ$1.13

material surprises. However, the tone of the result was more cautious, reflecting a Prior : NZ$1.27

challenging and uncertain operating backdrop, with geopolitical tensions, inflation

Price (19 May 2026) NZ$1.07

pressures and weakening leasing conditions impacting activity. Leasing conversion

timelines have extended, with enquiry levels subdued for much of FY26 before RIC: ARG.NZ BBG: ARG NZ

improving toward year-end. While leasing metrics were broadly stable, occupancy

Trading data and key metrics

softened slightly and retention rates increased to a decade high, suggesting tenants are

52-wk range NZ$1.32-1.02

increasingly opting to “stay put” rather than relocate in an uncertain market. The

portfolio remains ~9% under-rented, although this is likely to be realised only gradually Market cap. NZ$0.93b/US$0.55b

given affordability constraints and weaker leasing conditions. Capital recycling is Shares o/s 873m (ORD)

progressing, with ~$46m of divestments completed (settling in 1H27E), and a further ~ Free float 98%

$139m of non-core assets identified, though timing and pricing remain uncertain. Avg. daily volume ('000) 795

Looking ahead, we believe ongoing macro uncertainty is expected to weigh on near- Avg. daily value (m) NZ$0.9

term earnings momentum. Overall, while fundamentals remain relatively stable, we see Common s/h equity (03/27E) NZ$1.49b

limited near-term catalysts for a re-rating and retain our Neutral rating.