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Argosy Property Limited
(ARG)
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Rating:65Neutral
Price Target:
$1.00
â–¼(-3.85% Downside)
Action:N/A
Date:10/05/26
Overall score reflects solid value support (low P/E and high yield) and a steadier balance sheet profile for a REIT, partially offset by weaker cash-flow quality (sharp 2026 free-cash-flow drop), volatile earnings history, and a technically weak price trend. Earnings-call takeaways are broadly neutral: improved FFO and debt costs, but meaningful vacancy and leasing-market headwinds.
Positive Factors
Improving recurring operating income
Higher funds from operations and per-share results indicate improving underlying cash earnings from the property portfolio. If this progress continues, it can support sustainable distributions and provide greater capacity to reinvest in assets while strengthening income resilience.
Negative Factors
Weak free-cash-flow conversion
The sharp decline in free cash flow shows that recent reported earnings are not translating proportionally into funds available for dividends, debt reduction, or investment. Persistently weak conversion would reduce financial flexibility and make distributable performance less dependable.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving recurring operating income
Higher funds from operations and per-share results indicate improving underlying cash earnings from the property portfolio. If this progress continues, it can support sustainable distributions and provide greater capacity to reinvest in assets while strengthening income resilience.
Read all positive factors
Argosy Property Limited (ARG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$873.97M
Dividend Yield6.98%
Average Volume (3M)751.62K
Price to Earnings (P/E)6.7
Beta (1Y)0.61
Revenue Growth2.62%
EPS Growth-0.20%
CountryNZ
Employees35
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.15
Shares Outstanding873,970,400
10 Day Avg. Volume742,435
30 Day Avg. Volume751,617
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.70
Price to Sales (P/S)6.10
P/FCF Ratio91.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.07
Revenue Forecast (FY)$122.23M
Argosy Property Limited Business Overview & Revenue Model
Company Description
Argosy Property Limited manages a substantial real estate portfolio within New Zealand. This portfolio consists of approximately 100 diverse properties, encompassing retail, industrial, and commercial sectors. A majority of these assets are strate...
How the Company Makes Money
Argosy Property Limited primarily makes money by owning commercial properties and leasing them to tenants under contractual lease agreements. Its key revenue stream is rental income (including base rent and, where applicable, recoveries from tenan...
Argosy Property Limited Earnings Call Summary
Earnings Call Date:May 20, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: several positive financial outcomes (modest revenue and distributable income growth, improved interest costs and coverage, portfolio valuation gains, sustainability credentials and completed transactions) are tempered by meaningful headwinds—geopolitical uncertainty, higher vacancy and lease timing risk (notably Neilson Street), constrained development outlook due to anticipated construction cost inflation, and persistent dividend stagnation. Management has taken conservative actions (hedging, dividend policy change, DRP suspension, planned divestments) to shore up the balance sheet. Overall, positives and negatives are roughly balanced.Positive Updates
Revenue and Net Property Income Growth
Gross property income was $137.5M, up 3.6% year‑on‑year; net property income (NPI) increased 3.3% to $120.8M.
Negative Updates
Geopolitical Uncertainty and Imported Inflation
Management cited the war involving Iran and return of nonproductive imported inflation; expects market disruption and a prolonged period of uncertainty (potentially 12+ months).
Read all updates
Q4-2026 Updates
Positive
Negative
Revenue and Net Property Income Growth
Gross property income was $137.5M, up 3.6% year‑on‑year; net property income (NPI) increased 3.3% to $120.8M.
Read all positive updates
Company Guidance
Guidance for FY27 was left unchanged at a dividend of $0.0665 per share (Q4 $0.016625), with the DRP suspended and a new dividend policy targeting 80–95% of FFO; FY26 metrics that frame that guidance include gross property income $137.5m (+3.6%), net property income $120.8m (+3.3%), gross distributable income $70.4m (+9.8%), NDI $0.0705/share, FFO $59.1m (+8.3%) or $0.0685/share, and a payout of 97% of AFO (90% of FFO); rent reviews totaled 111 on $81m of rent (72% fixed +3.1% pa, 25% market +4.8% pa, 3% CPI +2.8% pa) with $109m up for review in FY27 (60% fixed); balance sheet metrics include portfolio value $2.2bn (+$94m), debt/total assets 37.2% (now just over 36%), weighted average cost of debt 4.6% (from 5.1%), interest cover 2.7x (bank covenant 2x), 74% fixed-rate cover (added $265m of swaps) and average debt tenor 3.1 years; operational guidance flags minimal development activity, expected construction cost inflation of 10–15%, and—if the Neilson Street lease completes—occupancy improving to 97.2% with WALE ~5.3 years.Argosy Property Limited Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
54
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 159.81M | 155.73M | 153.15M | 144.53M | 131.57M |
| Gross Profit | 120.77M | 116.88M | 116.46M | 112.78M | 105.14M |
| EBITDA | 179.52M | 184.18M | 517.00K | -26.93M | 264.82M |
| Net Income | 127.73M | 125.86M | -55.27M | -80.83M | 236.15M |
Balance Sheet | |||||
| Total Assets | 2.34B | 2.16B | 2.07B | 2.21B | 2.29B |
| Cash, Cash Equivalents and Short-Term Investments | 3.39M | 1.44M | 1.83M | 2.06M | 1.66M |
| Total Debt | 895.21M | 795.81M | 778.01M | 800.07M | 736.66M |
| Total Liabilities | 945.94M | 854.45M | 844.61M | 876.94M | 819.42M |
| Stockholders Equity | 1.40B | 1.31B | 1.22B | 1.34B | 1.47B |
Cash Flow | |||||
| Free Cash Flow | 10.61M | 56.03M | 58.19M | 30.34M | 68.28M |
| Operating Cash Flow | 63.93M | 58.96M | 58.20M | 63.52M | 68.33M |
| Investing Cash Flow | -121.51M | -28.51M | 19.33M | -71.03M | 30.59M |
| Financing Cash Flow | 59.53M | -30.84M | -79.74M | 4.40M | -104.14M |
Argosy Property Limited Technical Analysis
Negative
1.04
Price Trends
1.01
Negative
1.02
Negative
1.07
Negative
Market Momentum
<0.01
Negative
44.30
Neutral
39.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NZ:ARG, the sentiment is Negative. The current price of 1.04 is above the 20-day moving average (MA) of 1.01, above the 50-day MA of 1.01, and below the 200-day MA of 1.07, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 44.30 is Neutral, neither overbought nor oversold. The STOCH value of 39.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NZ:ARG.
Argosy Property Limited Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $873.97M | 6.66 | 9.30% | 6.98% | 2.62% | -0.20% | |
65 Neutral | $347.04M | 15.31 | 4.17% | 2.24% | 21.59% | 119.54% | |
57 Neutral | $1.49B | 29.58 | 2.74% | 6.86% | 2.85% | -13.56% | |
55 Neutral | $1.74B | -217.44 | -0.37% | 6.58% | 4.51% | -162.32% | |
55 Neutral | $1.47B | -45.51 | -1.30% | 6.80% | 8.36% | 42.61% |
* Real Estate Sector Average
NZ:ARG
Argosy Property Limited
1.01
-0.22
-18.16%
NZ:KPG
Kiwi Property Group
0.92
-0.13
-12.36%
NZ:PCT
Precinct Properties New Zealand
0.95
-0.29
-23.33%
NZ:VHP
Vital Healthcare Property
1.81
-0.40
-18.14%
NZ:WIN
Winton Land Limited
1.17
-1.09
-48.45%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.