Slide 1: Mirvac Group 1H16 Results
MIRVAC GROUP 11 FEBRUARY 2016 For personal use only RESULTS 1H16
Slide 2: Introduction
MIRVAC GROUP For personal use only 1H16 RESULTS INTRODUCTION MIRVAC I 1H16 RESULTS I 11 FEBRUARY 2016 I 01
Slide 3: Delivering on Strategic Objectives
DELIVERING ON STRATEGIC OBJECTIVES For personal use only Strategy has delivered high quality portfolio PORTFOLIO REPOSITIONING > $366m valuation increase across the portfolio $1,400m 7.40% > Record leasing success and strong portfolio metrics 1,200 FY16 asset sales 7.20 target $400-$600m Focused and
Slide 4: Secured Opportunities Aligned with Urban Strategy
SECURED OPPORTUNITIES ALIGNED WITH URBAN STRATEGY For personal use only > Secured the acquisition of five new projects located in densely populated urban catchments > Strong catchments support future outlook OFFICE ASSET AND DEVELOPMENT AUSTRALIAN TECHNOLOGY PARK, SYDNEY 1 >$1bn End value ATP to be
Slide 5: Secured Opportunities Aligned with Urban Strategy
SECURED OPPORTUNITIES ALIGNED WITH URBAN STRATEGY For personal use only RETAIL ASSET INDUSTRIAL ASSET RESIDENTIAL DEVELOPMENT RESIDENTIAL DEVELOPMENT EAST VILLAGE, ZETLAND, SYDNEY 1 RYDALMERE, SYDNEY 1 MARRICKVILLE HOSPITAL, SYDNEY EAGLE FARM, BRISBANE >$13,000/ sqm 100% ~$200m >1,000 Sales producti
Slide 6: Sustainability and People
SUSTAINABILITY AND PEOPLE For personal use only This Changes Everything People > Launched Mirvac Energy: A company that will invest in solar systems > Recognised as a 2015 WGEA Employer of Choice for Gender Equality for our own assets earning an income stream by selling energy > Launched Mirvac Lear
Slide 7: 1H16 Financial Results
MIRVAC GROUP For personal use only 1H16 FINANCIAL RESULTS MIRVAC I 1H16 RESULTS I 11 FEBRUARY 2016 I 06
Slide 8: High Quality Portfolio Driving Substantial Uplift in Property Valuations
HIGH QUALITY PORTFOLIO DRIVING SUBSTANTIAL UPLIFT IN PROPERTY VALUATIONS For personal use only > Statutory profit up 69% to $472.7m (1H15: $279.0m), statutory EPS 1H16 1H15 $M $M of 12.8cpss (1H15: 7.6cpss) Statutory profit after tax 472.7 279.0 > 1H16 revaluation uplift of $365.9m (35% of the book
Slide 9: 1H16 Operating Results in Line with Expectations
1H16 OPERATING RESULTS IN LINE WITH EXPECTATIONS For personal use only > 1H16 result in line with expectations, significantly stronger 2H16 1H16 1H15 OPERATING RESULTS $M $M contribution expected — Investment EBIT supported by acquisitions, development Investment 230.7 238.9 completions and embedded
Slide 10: Strong Balance Sheet and Visibility of Future Cashflows
STRONG BALANCE SHEET AND VISIBILITY OF FUTURE CASHFLOWS For personal use only > Gearing of 27.6%, within the Group’s target range of 20-30% CAPITAL MANAGEMENT METRICS 1H16 FY15 > Average borrowing costs reduced to 4.9% Balance sheet gearing 2 27.6% 24.3% > Maintained weighted average debt maturity a
Slide 11: Delivery of 2H16 Settlements on Track
DELIVERY OF 2H16 SETTLEMENTS ON TRACK For personal use only > Operating cashflow for the Group skewed significantly to second half of FY16 2H16 EXPECTED PRESALES REVENUE MAJOR SETTLEMENTS SECURED (LOTS) SECURED OWNERSHIP > $877m 1 of residential pre-sales expected to settle in 2H16 Harold Park, NSW
Slide 12: Retail Operational Update
MIRVAC GROUP For personal use only RETAIL OPERATIONAL UPDATE MIRVAC I 1H16 RESULTS I 11 FEBRUARY 2016 I 11
Slide 13: Urban Strategy Delivering Outperformance
URBAN STRATEGY DELIVERING OUTPERFORMANCE For personal use only > High occupancy maintained at 99.3% RETAIL PORTFOLIO RESULTS 1H16 FY15 1H15 > Like-for-like growth steady at 2.2% 1 Portfolio value $2,312.9m $2,139.5m $2,039.2m Net valuation uplift 2 3.9% 3.4% 1.4% > Delivered strong comparable MAT gr
Slide 14: Capturing Organic Growth Potential
CAPTURING ORGANIC GROWTH POTENTIAL For personal use only > Investing in existing assets located in key metropolitan markets to drive CASE STUDY: organic growth KAWANA SHOPPINGWORLD, QLD > Four developments currently underway: — Orion Springfield, Stage 2, QLD (88% leased) 32,000 sqm expansion creati
Slide 15: Overweight to Sydney Urban Assets Supports Future Portfolio Growth
OVERWEIGHT TO SYDNEY URBAN ASSETS SUPPORTS FUTURE PORTFOLIO GROWTH For personal use only > Sydney inner urban retail assets 1 proven outperformance INNER URBAN ASSETS POSITIONED FOR GROWTH — Outperforming leasing spreads of 6.7% $10,500 17.9% 18.0% — Outperforming net valuation uplift of 5.0% $10,24
Slide 16: Office & Industrial Operational Update
MIRVAC GROUP For personal use only OFFICE & INDUSTRIAL OPERATIONAL UPDATE MIRVAC I 1H16 RESULTS I 11 FEBRUARY 2016 I 15
Slide 17: High-Quality Office Assets Driving Record Leasing Success
HIGH-QUALITY OFFICE ASSETS DRIVING RECORD LEASING SUCCESS For personal use only > Completed over 190,400 sqm of leasing activity, representing over OFFICE PORTFOLIO RESULTS 1H16 FY15 1H15 25% of portfolio income Portfolio value $4,498.0m 1 $4,108.0m $4083.2m — 86% of all leasing executed in Sydney N
Slide 18: Strong Industrial Portfolio Metrics Maintained
STRONG INDUSTRIAL PORTFOLIO METRICS MAINTAINED For personal use only > High occupancy maintained at 99.3% INDUSTRIAL PORTFOLIO RESULTS 1H16 FY15 1H15 > Long WALE of 7.2 years Portfolio value $691.4m $661.0m $416.6m Net valuation uplift 1 3.6% 6.5% 0.6% > Like-for-like NOI growth of 2.7%, driven by e
Slide 19: Developing Quality Passive Assets and Generating Development Returns
DEVELOPING QUALITY PASSIVE ASSETS AND GENERATING DEVELOPMENT RETURNS For personal use only TREASURY BUILDING, PERTH > Mirvac’s ability to create high-quality commercial assets generates: — Stable long-term recurrent income — Superior returns (not competing for assets on market) — Development profits
Slide 20: Active Office Pipeline Has Grown to $2.1bn
ACTIVE OFFICE PIPELINE HAS GROWN TO $2.1BN For personal use only > $2.1bn active office pipeline on track: 86% pre-leased and target average IRR 14% > $2.2bn future commercial development pipeline: $2.0bn office pipeline and $208m industrial pipeline including: — 55 Pitt St, Sydney, 477 Collins St,
Slide 21: Overweight Exposure to Prime Grade Assets in Sydney and Melbourne
OVERWEIGHT EXPOSURE TO PRIME GRADE ASSETS IN SYDNEY AND MELBOURNE SUPPORT POSITIVE OUTLOOK For personal use only OFFICE NET DEMAND BY GRADE – SYDNEY & MELBOURNE CBD 1 > 79% of Mirvac’s office portfolio located in Sydney and Melbourne 250,000 sqm — 94% Premium and A Grade 200,000 > 90% of Mirvac’s in
Slide 22: Residential Operational Update
MIRVAC GROUP For personal use only RESIDENTIAL OPERATIONAL UPDATE MIRVAC I 1H16 RESULTS I 11 FEBRUARY 2016 I 21
Slide 23: Continued Sales Momentum Delivering Strong 1H16 Activity
CONTINUED SALES MOMENTUM DELIVERING STRONG 1H16 ACTIVITY For personal use only > 1H16 sales activity of ~1,960 lots in line with 2H15 reflecting continued SALES ACTIVITY BY LOTS 2 momentum of Sydney and Melbourne masterplanned communities (MPC) 2,000 lots projects and Brisbane apartments — Woodlea,
Slide 24: Residential Market Overview
RESIDENTIAL MARKET OVERVIEW For personal use only SYDNEY MIRVAC PIPELINE 1 37% NSW > Momentum supported by pent-up demand and strong economy — NSW population growth has accelerated over past few years — Greater Sydney unemployment very low (below 5%) — Stronger for longer construction cycle is being
Slide 25: Effectively Managing Risk While Securing Future Returns
EFFECTIVELY MANAGING RISK WHILE SECURING FUTURE RETURNS For personal use only $2.6bn > $2.6bn pre-sales securing future income — Fast tracking future sales releases to capture market and further de-risk future development earnings Residential pre-sales detail 1 > Establishing resilience through bran
Slide 26: Strong Pipeline Supports Volumes Over the Medium Term
STRONG PIPELINE SUPPORTS VOLUMES OVER THE MEDIUM TERM For personal use only > Development EBIT has increased significantly since FY13 driven DEVELOPMENT EBIT 1 by a higher residential contribution $200m — Volumes and margins up 150 — Revenue from provisioned projects down > Existing pipeline support
Slide 27: Outlook and Group Guidance
MIRVAC GROUP For personal use only OUTLOOK AND GROUP GUIDANCE MIRVAC I 1H16 RESULTS I 11 FEBRUARY 2016 I 26
Slide 28: Outlook and Group Guidance
OUTLOOK AND GROUP GUIDANCE For personal use only OVO, GREEN SQUARE, SYDNEY NSW Office, Industrial and Retail > Maintain strong metrics through active asset management > Deliver $2.1bn active office development pipeline > Deliver retail development pipeline and advance planning on future opportunitie
Slide 29: Important Notice
IMPORTANT NOTICE For personal use only Mirvac Group comprises Mirvac Limited (ABN 92 003 280 699) and Mirvac Property Trust (ARSN 086 780 An investment in Mirvac stapled securities is subject to investment and other known and unknown risks, 645). This presentation (“Presentation”) has been prepared
Slide 30: Thank You
MIRVAC GROUP For personal use only THANK YOU FOLLOW US MIRVAC MIRVAC ON TWITTER INVESTOR RELATIONS 1H16 PROPERTY @MIRVAC WEBSITE COMPENDIUM MIRVAC I 1H16 RESULTS I 11 FEBRUARY 2016 I 29