Argosy Property profit slips

Multibillion-dollar diversified landlord Argosy Property’s net profit fell marginally by 5 per cent annually mainly because of net property income falling and expenses rising.

Last year’s $248.4 million net profit after tax fell to $236.2m in the year to March 31.

The 2021 net property income of $106.5m fell to $105.1m in 2022 and administration expenses rose from $10.9m to $11.8m.

Yet valuations rose from $157.7m to $163.7m, indicating the strength of its portfolio. Although those boosted the bottom line, they were not enough to offset the falling income from rents and rising costs.

Profit before tax dropped from $248.4m to $241.2m and the tax bill fell from last year’s $6.7m to $5m in 2022. The business owns properties valued at $2.26 billion, mainly in the North Island.

It gave tenants rental rebates of $1.6m in the previous year but said Covid rent rebates were lower during this most recent period.

The company is trading around $1.20, down 23 per cent annually.

It has a market capitalisation of $1.01b, with 846 million shares issued. It had been trading as high as $1.73 last September, before global sharemarket movements.