Highlights

Internalisation and Corporatisation

The financial year ended 31 March 2012 has seen Argosy transformed from a listed unit trust managed by One Path into a listed company with its own management.  Argosy Property Trust’s unitholders approved internalisation of the Trust’s management at the annual general meeting of unitholders in August 2011.  The effect of internalisation was to completely separate the Trust from ANZ National and from One Path. This resulted in a significant improvement in earnings for the Trust.  At the 2011 AGM the Board of Directors also undertook to investigate corporatisation under which the Trust would be converted to a company, and prepare a recommendation for unit holders consideration, prior to the next AGM.  The corporatisation proposal was expected to generate savings in trustee expenses, such as trustee fees and legal costs. The Manager’s corporatisation proposal was presented to unitholders and approved at an extraordinary meeting in February 2012.  Accordingly the Trust was corporatised and replaced by a new company, Argosy Property Limited, with effect from 1 March 2012.  Following corporatisation, Argosy Property Limited is on track to realise the expected corporatisation savings. 

Future

The Board have advised that opportunities to increase the size of the Company will be investigated as they arise, and pursued where considered beneficial to shareholders.

6.0 Distribution

There was a cash dividend of 6.0 cents per share for the 12 months to 31 March 2012 (ie aggregating the Trust’s interim distribution pre-corporatisation and the company’s final dividend post-corporatisation).  It is expected that this level can be maintained for the 2013 financial year.

Net Income

Net Income has been maintained despite asset sales and a slightly reduced occupancy.

Banking

The banking facilities have been extended on significantly improved terms.