Mirvac Group · ASX:MGR
Mirvac — H1 2024 Earnings Presentation
32 slides from Mirvac's earnings presentation, Feb 8, 2024
Slide 1: 1H24 Results
1H24 For personal use only Results 8 FEBRUARY 2024 The Langlee, Sydney
Slide 2: Acknowledgement of Country
1H24 Results For personal use only ive ‘Reim reat agin 7C in g 2 re Co ea nt ry ), u W ’b nj i yR al a iki S a lam uk uY (Mualgal, Kaurareg, K Acknowledgement of Country Mirvac acknowledges Aboriginal and Torres Strait Islander peoples as the Traditional Owners and Custodians of the lands and waters
Slide 3: Agenda
1H24 Results AGENDA For personal use only Overview Funds Campbell Hanan Scott Mosely Group CEO & CEO, Managing Director Funds Management 03 19 Financial Development Performance Stuart Penklis Courtenay Smith CEO, Development Chief Financial Officer 22 09 Investment Summary Richard Seddon & Guidance
Slide 4: Overview
1H24 Results Overview Campbell Hanan For personal use only Group CEO & Managing Director C R E AT SET IO AS elopment N Dev Development EBIT NTA Uplift Delivers new sustainable assets S E T C U R AT I O AS tm N Inves ent New recurring high quality rental income New recurring asset & funds management
Slide 5: Continuing to execute on strategic objectives with solid 1H24 achievements
1H24 Results Continuing to execute on strategic objectives with solid 1H24 achievements For personal use only Retain balance sheet Increase cash flow resilience Expand Funds Leverage integrated Continued focus on flexibility of Investment portfolio Management offering Development capability sustaina
Slide 6: 1H24 results highlights
1H24 Results 1H24 results highlights For personal use only 1H24 Operating Profit 1H24 EPS 1H24 DPS 1H24 Statutory Result NTA1 Gearing2 $252m (17%) on pcp 6.4c (17%) on pcp 4.5c ($201m) $2.56(3%) on FY23 27.2% Investment Portfolio3 Development Pipeline4 Third-Party Capital Under Management5 Assets Un
Slide 7: Our integrated platform driving superior returns
1H24 Results Our integrated platform driving superior returns 200bp For personal use only DEVELOPMENT INVESTMENT MPT Investment portfolio long-term outperformance6 Mirvac portfolio consistent outperformance Residential Based on compound average annual returns A SS E T C R E AT IO N >$4bn 96.9% 5.3 s
Slide 8: Leveraging our market leadership across a wide spectrum of living sectors
1H24 Results Leveraging our market leadership across a wide spectrum of living sectors For personal use only Deep capability and track record to take advantage of chronic under supply across the wider housing market Flexibility to adapt and capture the full value chain of living MID & HIGH RISE LAND
Slide 9: Utilising our integrated platform to drive positive sustainability outcomes
1H24 Results Utilising our integrated platform to drive positive sustainability outcomes For personal use only Continued focus on Progressing sustainability initiatives sustainability and culture Delivering new sustainable buildings Electrification of existing assets Future focus > All new office as
Slide 10: Financial Performance
1H24 Results Financial Performance For personal use only Courtenay Smith Chief Financial Officer C R E AT SET IO AS elopment N Dev Development EBIT NTA Uplift Delivers new sustainable assets S E T C U R AT I O AS tm N Inves ent New recurring high quality rental income New recurring asset & funds man
Slide 11: 1H24 earnings drivers
1H24 Results 1H24 earnings drivers Investment > Property NOI driven by +2.2% LFL NOI growth, MWOF co-investment and development 1H24 1H23 completion at Switchyard, offset by impact of asset disposals including 60 Margaret Street, ($m) ($m) 4 MetCentre and Stanhope Gardens, Sydney, reduced NOI from T
Slide 12: Solid balance sheet position
1H24 Results Retain balance sheet Solid balance sheet position flexibility > Gearing at 27.2%1; within our target range of 20-30% For personal use only > ~$480m of asset sales in 1H24 and further ~$340m in HoA (~$1.2bn FY24 program) − 60 Margaret Street / MetCentre, Sydney settled; ~$389m − 383 La T
Slide 13: Disciplined portfolio management
1H24 Results Disciplined portfolio management Portfolio management framework Capital allocation For personal use only 1H24 Invested Capital Long term target 1 Capital allocation >70% Investment ~$11.3bn 75% Strategy & execution Investment (Passive1) >70% Office ~$7.1bn 63% ~40% Sharpen focus on CBD
Slide 14: Investment
1H24 Results Investment Richard Seddon For personal use only CEO, Investment C R E AT SET IO AS elopment N Dev Development EBIT NTA Uplift Delivers new sustainable assets S E T C U R AT I O AS tm N Inves ent New recurring high quality rental income New recurring asset & funds management fees F u nd
Slide 15: Premium office portfolio leveraged to tenant and capital demand
1H24 Results Premium office portfolio leveraged to tenant and capital demand Modest lease expiry2 in upcoming years For personal use only 95.0% 5.7 YRS ~35,800 SQM +2.4% 5.3 STAR ~90% 60% Occupancy1 WALE2 Leasing deals 1H24 gross Average NABERS Portfolio located 61% (FY23: 95.0%) (FY23: 5.7yrs) (1H2
Slide 16: Sydney industrial outlook supported by restricted supply
1H24 Results Sydney industrial outlook supported by restricted supply For personal use only +14% 100% 98.7% 6.7 YRS ~15,900 SQM +12.9% ~17% 1H24 Sydney Occupancy2 WALE3 Leasing deals 1H24 gross under rented NOI growth portfolio1 (FY23: 100%) (FY23: 6.6yrs) (1H23: ~40,900 sqm) leasing spreads Well-lo
Slide 17: Urban retail portfolio remains resilient
1H24 Results Urban retail portfolio remains resilient MAT sales and foot traffic growth % For personal use only (Compared to same period prior) 98.3% ~38,100 SQM -2.8% 3.2% 13.9% $11,089/SQM 30% Occupancy1 Leasing deals 1H24 gross MAT growth Occupancy cost2 Specialty sales (FY23: 97.5%) (1H23: ~41,8
Slide 18: Build to Rent sector leadership a competitive advantage
1H24 Results Build to Rent sector leadership a competitive advantage LIV MUNRO LIV INDIGO For personal use only 91.6% 97.8% +8.7% ~1.1% >17% ~3-4% pa Institutional Real Estate Market Australia Leased 1 Occupancy2 1H24 Net Market Market rent Population growth $300bn (opened Nov 22) Leasing spreads3 v
Slide 19: Accelerated exposure to Land Lease via Serenitas transaction
1H24 Results Accelerated exposure to Land Lease via Serenitas transaction For personal use only Growth in 55+ population and low penetration rates 27 ~6,200 SECURED SITES ~98% 2 COMMUNITIES Communities 4,360 operating & 1,890 development sites1,2 development sites recently secured under options DA a
Slide 20: Funds
1H24 Results Funds Scott Mosely For personal use only CEO, Funds Management C R E AT SET IO AS elopment N Dev Development EBIT NTA Uplift Delivers new sustainable assets S E T C U R AT I O AS tm N Inves ent New recurring high quality rental income New recurring asset & funds management fees F u nd s
Slide 21: Diversifying and growing our external funds offering
1H24 Results Expand Funds Diversifying and growing our external funds offering Management offering > Executing on strategic objective to expand Funds management offering to unlock value from the development pipeline For personal use only and leverage Mirvac’s operational expertise > Added 3 major ne
Slide 22: Established platform and partnerships provide greater visibility of future growth
1H24 Results Established platform and partnerships provide greater visibility of future growth For personal use only ~$16.4bn Third-party capital under management1 Growth opportunity > ~$0.6bn2 Mirvac Industrial Venture (MIV) partnering with Australian Growth opportunities with ~$2.2bn industrial pi
Slide 23: Development
1H24 Results Development Stuart Penklis For personal use only CEO, Development C R E AT SET IO AS elopment N Dev Development EBIT NTA Uplift Delivers new sustainable assets S E T C U R AT I O AS tm N Inves ent New recurring high quality rental income New recurring asset & funds management fees F u n
Slide 24: Leveraging our integrated development capability
1H24 Results Leverage integrated Leveraging our integrated development capability Development capability > Selective deployment of capital and focus on sectors with deepest demand For personal use only − Placed $2.8bn of office developments on hold or removed from pipeline,1 including disposal of 38
Slide 25: Utilising competitive advantage across diverse development pipeline
1H24 Results Utilising competitive advantage across diverse development pipeline LIVING For personal use only Mixed-Use: ~$3.1bn1 Build to Rent: ~$1.2bn1,3 Office: ~$4.4bn1 Industrial: ~$2.5bn1 Committed: ~$0.2bn 1 Committed: ~$1.2bn 1,3 Committed: ~$0.6bn 1 Committed: ~$0.7bn 1 Size 474 Size ~63,00
Slide 26: Residential enquiry remains strong, with slower conversion
1H24 Results Residential enquiry remains strong, with slower conversion > 1,131 settlements (1H23: 807), impacted by delayed completion timing ~$1.5bn at Green Square and Willoughby. Defaults remain low 0.7%1 For personal use only 1H24 Key sales highlights > 17% gross margin. Expect FY24 margin to r
Slide 27: Restocked portfolio and well positioned for recovery
1H24 Results Restocked portfolio and well positioned for recovery with acute market under supply Restocked shovel ready developments pipeline Opportunistically restocking development pipeline For personal use only > Took advantage of market conditions to restock pipeline securing a further ~8,400 ne
Slide 28: Summary & Guidance
1H24 Results Summary & Guidance For personal use only Campbell Hanan Group CEO & Managing Director C R E AT SET IO AS elopment N Dev Development EBIT NTA Uplift Delivers new sustainable assets S E T C U R AT I O AS tm N Inves ent New recurring high quality rental income New recurring asset & funds m
Slide 29: FY24 guidance
1H24 Results FY24 guidance For personal use only Mirvac is targeting1: Operating EPS of 14.0-14.3c | Distribution of 10.5c 1. Subject to no material changes to the operating environment and delivering on key initiatives. The Albertine, Melbourne (artist impression, final design may differ) 8 FEBRUAR
Slide 30: Positioned for medium-term earnings growth
1H24 Results Positioned for medium-term earnings growth For personal use only Multiple drivers of growth over time Investment portfolio Funds management Residential completions Development pipeline Resilient, modern, high-quality assets benefiting from Growth opportunities across multiple asset Deli
Slide 31: Important notice
1H24 Results Important notice Mirvac Group comprises Mirvac Limited (ABN 92 003 280 699) and Mirvac Property Trust This Presentation contains certain “forward looking” statements. The words “expected”, “forecast”, “estimates”, For personal use only (ARSN 086 780 645). This presentation (“Presentatio
Slide 32: Thank you
Thank you CONTACT Gavin Peacock, CFA | General Manager Investor Relations | investor.relations@mirvac.com AUTHORISED FOR RELEASE BY The Mirvac Group Board MIRVAC GROUP Level 28, 200 George Street, Sydney NSW 2000 For personal use only Olderfleet, Melbourne