Mirvac Group · ASX:MGR
Mirvac — 3Q23 Earnings Presentation
25 slides from Mirvac's earnings presentation, April 2023
Slide 1: 3Q23 Operational & Business Update
3Q23 Campbell Hanan Operational & Business Update Group CEO & Managing Director LIV Aston, Melbourne (artist impression, final design may differ)
Slide 2: Acknowledgement of Country
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life Acknowledgement of Country Mirvac acknowledges Aboriginal and Torres Strait Islander peoples as the Traditional Owners of the lands and waters of Australia, and we offer our respect to their Elders past and present. ‘Reimagining Country’ by Rik
Slide 3: Our competitive advantage
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life Our competitive Award-winning Australian urban asset creator, owner and manager advantage AS S E Dev T CREATION elopment Development EBIT Integrated asset creation and curation capability is our key competitive advantage: NTA Uplift T CURATION
Slide 4: Business responding to long-term structural trends
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life Business responding to long-term structural trends Mirvac’s business leverages structural mega-trends, supporting earnings growth over time Institutional capital demand Urbanisation, densification, Changing demographics Growth in domestic super
Slide 5: Future focus
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life Future focus Retain balance sheet flexibility Expand Funds Management offering Continue to increase cash flow resilience of Investment portfolio Leverage integrated Development capability Continued leadership in sustainability and culture LIV A
Slide 6: Retain Balance Sheet flexibility
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life Retain Balance Sheet flexibility Current position > Strong balance sheet and liquidity position FUTURE FOCUS > Significant coverage over leverage and interest cover covenants Ensure flexibility to execute strategy and take advantage of opportun
Slide 7: Expand Funds Management offering
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life Expand Funds Management offering Current position > Continued institutional demand for quality, modern, sustainable real estate in Australia FUTURE FOCUS > Strong alignment of interest model (capital alignment considered in development and inve
Slide 8: Continue to increase resilience of Investment portfolio
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life Continue to increase resilience of Investment portfolio Current position Active management has driven strong uplift in portfolio quality FUTURE FOCUS > ~$4.2bn of assets disposed over last 10 years > ~$6bn4 of assets created over last 8 years (
Slide 9: Leverage integrated Development capability
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life Leverage integrated Development capability Current position > 50-year track record of development through cycles FUTURE FOCUS > Integrated development, design and construction capability and reputation for quality is a critical competitive adva
Slide 10: Continued leadership in ESG & Culture
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life Continued leadership in ESG & Culture ESG AT THE HEART OF EVERYTHING THAT WE DO STRONG EMPLOYMENT BRAND & CULTURE Achieved Net positive 5.0 star 5.25 star #1 in property, construction in scope 1 and 2 carbon emissions AAA Rating NABERS Average
Slide 11: Organisation repositioning facilitates execution of business objectives
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life Organisation repositioning facilitates execution of business objectives Campbell Hanan Group CEO & Managing Director >7 years at Mirvac 30 years industry experience Stuart Penklis Richard Seddon Scott Mosely Victoria Tavendale Courtenay Smith C
Slide 12: 3Q23 Quarterly update
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life 3Q23 Quarterly update EXECUTING ON BUSINESS OBJECTIVES INVESTMENTS FUNDS MANAGEMENT DEVELOPMENT ACHIEVEMENTS Improving resilience Executing capital Selectively unlocking value Maintaining of Investment portfolio partnership strategy from Develo
Slide 13: Summary & Outlook
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life Summary & Outlook FY23 Guidance1 Operating EPS and DPS Due to adverse weather impacting residential settlements and the deferral 16.0 cents of Aspect North settlement into FY24, the group’s updated FY23 guidance and components are: 15.1 at leas
Slide 14: Positioned for medium-term earnings growth
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life Positioned for medium-term earnings growth Multiple levers to drive growth over time DEVELOPMENT PIPELINE Value creation from diversified ~$30bn development pipeline5, utilising internal design RESIDENTIAL COMPLETIONS and construction platform
Slide 15: Questions
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life Questions Campbell Hanan Courtenay Smith Group CEO & Managing Director Chief Financial Officer APRIL 2023 | 14
Slide 16: Appendix
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life Appendix Aspect, Kemps Creek, Sydney (artist impression, final design may differ) 9 FEBRUARY APRIL 2023 | 15
Slide 17: Investments
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life Investments Office Industrial Retail Build to Rent Total2 Cash collection1 99% 100% 96% 97% 98% Occupancy3 96.1% 100.0% 97.3% 96%4 97.5% WALE5 5.9 yrs 6.2 yrs 3.0 yrs n/a 5.2 yrs NLA leased FYTD 36,523sqm 40,881sqm 61,640sqm n/a 139,044sqm No.
Slide 18: Sustainable, modern, resilient Office portfolio
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life Sustainable, modern, resilient Office portfolio Modern, sustainable office buildings continue to attract strong tenant demand 96.1% Occupancy1 Office demand by grade Two year net absorption, cumulative square metres (3Q22: 95.3%) 150,000sqm 5.9
Slide 19: 100% Sydney Industrial portfolio benefiting from tight conditions
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life 100% Sydney Industrial portfolio benefiting from tight conditions Sydney industrial vacancy remains tight, supporting rent growth 4.00% 30.0% 100% Occupancy1 25.0 (3Q22: 100%) 3.00 20.0 +8.9% Gross re-leasing 2.00 15.0 spreads FYTD 10.0 1.00 5.
Slide 20: Urban Retail portfolio seeing resumption of students, tourists and CBD workers
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life Urban Retail portfolio seeing resumption of students, tourists and CBD workers BROADWAY, SYDNEY Australia – Net Visa Arrivals vs Net Overseas Migration Big Guns #1 MAT sales/ Rolling annual sqm centre in Australia 97.3%Occupancy 1 500,000 Numbe
Slide 21: BTR – strong leasing underway at LIV Munro
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life BTR – strong leasing underway at LIV Munro Residential vacancy rates (postcodes) 3.0% LIV Munro 54% Leased1 2.5 (opened Nov 22) 2.3% 2.0 LIV Indigo 1.6% 96% 1.5 1.4% Occupancy1 1.0 1.0% 0.9% 0.5 Robust underlying market fundamentals support upc
Slide 22: Funds Management – strong momentum underway across multiple sectors
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life Funds Management – strong momentum underway across multiple sectors ESTABLISHING NEW BTR VENTURE PROGRESSING NEW INDUSTRIAL VENTURE NEW OFFICE PARTNERSHIP $1.8bn VENTURE1 $0.6bn PARTNERSHIP1 7 Spencer Street, Melbourne2 Securing a new capital p
Slide 23: Progressing our development pipeline
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life Progressing our development pipeline MIXED USE / OFFICE INDUSTRIAL BUILD TO RENT ~$2.1bn ~84% ~$345m 474 END VALUE2 PRE-LEASED3 END VALUE2 APARTMENTS 396 APARTMENTS Harbourside, Sydney1 Switchyard, Auburn, Sydney1 LIV Anura, Brisbane1 ~$0.7bn L
Slide 24: Residential well placed for undersupplied market
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life Residential well placed for undersupplied market > 288 (1,133 FYTD) lot sales in Q3 remain subdued impacted by rising APARTMENTS IN ESTABLISHED PRECINCTS SELLING WELL <1.4% interest rates, fewer product launches and lower first home buyer activ
Slide 25: Thank you
3Q23 OPERATIONAL & BUSINESS UPDATE Reimagine Urban Life 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 IMPORTANT NOTICE Mirvac Group com