Mirvac Group · ASX:MGR
Mirvac — Q3 FY2014 Earnings Presentation
26 slides from Mirvac's earnings presentation, May 1, 2014
Slide 1: Q3 Operational Update
For personal use only Q3 OPERATIONAL UPDATE 1 MAY 2014 Artist impression of 699 Bourke Street, VIC
Slide 2: Agenda
101 miller street, nsw For personal use only Agenda Q3 snapshot Operational Summary and INVESTOR update guidance TOUR mirvac group I Q3 operational update I 1 May 2014 I 01
Slide 3: Q3 snapshot
broadway shopping centre, nsw For personal use only q3 snapshot mirvac group I Q3 operational update I 1 May 2014 I 02
Slide 4: Q3 snapshot
Q3 snapshot Artist impression of ERA, NSW For personal use only > FY14 EPS guidance of 11.8 to 12.0cpss maintained (8.3% to 10.1% growth) > Strategic portfolio and capital management initiatives: — Exchanged contracts for 50% of 275 Kent Street, Sydney above book value for $435.0m 1 — Call options g
Slide 5: Strategic portfolio management initiatives
STRATEGIC PORTFOLIO MANAGEMENT INITIATIVES For personal use only Strategic transactions improve portfolio quality 1 MPT PROPORTION OF CORE AND NON-CORE ASSETS 8 > Exchanged contracts for 50% of 275 Kent Street, Sydney for $435.0m and granted call options over $391.4m non-core assets 1 Core 97.7% > S
Slide 6: Capital management
CAPITAL MANAGEMENT For personal use only Strategic achievements provide capital management flexibility Artist impression of 699 Bourke Street, VIC > Exchanged contracts for 50% of 275 Kent Street, Sydney and non-core asset disposals 1: — Providing flexibility to redeploy capital across the business
Slide 7: Q3 Operational update
Artist impression of 200 george street, nsw For personal use only Q3 Operational update mirvac group I Q3 operational update I 1 May 2014 I 06
Slide 8: MPT
MPT For personal use only > Occupancy remained high across the portfolio at 97.6% 1 In-house asset management > Group earnings underpinned with a solid WALE of 4.7 years 2 and leasing teams deliver > 110 leasing deals completed during the period; 25,010sqm and 1.7% of portfolio strong portfolio metr
Slide 9: Office — Passive
Office — Passive For personal use only Office CONDITIONS Mirvac’s OFFICE PORTFOLIO > Vacancy across Sydney and Melbourne remains high > Occupancy remains strong at 96.0% 1 > Leasing conditions are likely to remain challenging with > Portfolio de-risked by WALE of 4.8 years 2 incentives remaining ele
Slide 10: Office — In development
Office — In development For personal use only 699 Bourke Street, Melbourne Construction > 100.0% pre-leased to AGL for 10 years progressed to > Fund through with TIAA-CREF executed and construction of first office level has commenced above ground level Treasury Building, Perth > 98.0% pre-leased to
Slide 11: Retail — Passive
Retail — Passive For personal use only RETAIL CONDITIONS mIRVAC’S RETAIL PORTFOLIO > Emerging signs of improving retail sales following low > Broadway Shopping Centre, NSW remains No. 1 Big Gun 1 for 2014 interest rates, improving consumer confidence and the > Maintained strong occupancy of 99.3% 2
Slide 12: Retail — In development
Retail — In development For personal use only 35% of development pipeline completed and/or underway Retail development Stanhope Village, Stage 4, NSW projects remain on > Construction commenced in January 2014, with project completion expected May 2015 > Strong pre-leasing enquiry for Stage 4 develo
Slide 13: Industrial — Passive
Industrial — Passive For personal use only industrial conditions mIRVAC’S INDUSTRIAL PORTFOLIO > Supply is expected to remain limited across Sydney and > Occupancy strong at 99.5% 1 Melbourne > Strong portfolio WALE of 8.2 years 2 > Leasing demand, incentives and rental growth are likely to > Strong
Slide 14: Residential — Market outlook
Residential — Market outlook 1 For personal use only > Sydney’s residential market supported by limited stock; fostering urgency and driving above average price growth > Strong price growth across Sydney has resulted in declining affordability, pressure on rental yields and is facilitating new suppl
Slide 15: Residential — Q3 activity
Residential — Q3 activity For personal use only > Settlement of 606 lots during the period; Chatswood Era, NSW (198 lots), Googong, NSW (79 lots) and Jane Brook, WA (66 lots) > 1,638 lots settled year to date > FY14 target lots upgraded to >2,400; driven by increased contribution from provisioned lo
Slide 16: Development — FY14 expectations and beyond
Development — FY14 expectations and beyond For personal use only > On track to achieve >10% Development ROIC and normalised residential gross margin within target range of 18% to 22% for FY14 > 98.8% of FY14 and 59.1% of FY15 expected Development EBIT 1 secured through exchanged pre-sales contracts
Slide 17: Summary and guidance
8 CHIFLEY square, NSW For personal use only Summary and guidance mirvac group I Q3 operational update I 1 May 2014 I 16
Slide 18: Investing in our people and increasing operational effectiveness
people and effectiveness For personal use only Investing in our people and increasing operational effectiveness > Continued focus on business transformation projects > 45 leaders have completed INSEAD program; an additional 100 senior leaders to attend later in the year > Renewed focus on innovation
Slide 19: Summary and guidance
Summary and guidance For personal use only GuidanceFY14 Group operating profit $432 – $443m Operating EPS 11.8 – 12.0cpss DPS 8.8 – 9.0cpss Weighted average securities 3,674m Target Development ROIC in FY14 >10% mirvac group I Q3 operational update I 1 May 2014 I 18
Slide 20: Investor Tour
20 bond street, NSW For personal use only Investor Tour mirvac group I Q3 operational update I 1 May 2014 I 19
Slide 21: George Street, NSW
200 George STreet, NSW For personal use only Project description: ARTIST IMPRESSION OF 200 GEORGE STREET, nsw > The 200 George Street development site is located at the northern end 35 34 of the Sydney CBD in a key location and incorporates three existing 33 buildings, being 190 and 200 George Stree
Slide 22: Harold Park, NSW
Harold Park, NSW For personal use only Project description: ARTIST IMPRESSION OF Harold park, nsw > Harold Park is a multi-stage residential precinct in the vibrant suburb of Glebe in Sydney’s inner west > Located just 2.5km from the Sydney CBD and surrounded by parks that extend to the Sydney Harbo
Slide 23: Harbourside Shopping Centre, NSW
Harbourside Shopping Centre, NSW For personal use only Asset summary: ASSET METRICS > Harbourside is a three-level 20,820sqm CBD retail centre Settlement date January 2014 > Focus on food, restaurant and entertainment categories: 66% of gross rent from food based retailers Acquisition price $252.0m
Slide 24: Darling Harbour Live: urban regeneration
Darling Harbour Live: A ‘once in a generation’ opportunity for Sydney, $3 billion urban regeneration For personal use only International Convention and Exhibition Centre opening december 2016 “The Haymarket” High class Entertainment Centre, 40,000sqm exhibition New Convention Centre New urban neighb
Slide 25: Disclaimer and important notice
Disclaimer and important notice For personal use only Mirvac Group comprises Mirvac Limited (ABN 92 003 280 699) and Mirvac Property Trust (ARSN 086 This Presentation contains certain “forward looking” statements. The words “anticipated”, “expected”, 780 645). This presentation (“Presentation”) has
Slide 26: Thank you
For personal use only THANK YOU Follow us Mirvac Investor on twitter relations @MirvacIR website