Slide 1: 1H13 results
For personal use only 1H13 results 14 february 2013 by mirvac
Slide 2: Agenda
1H13 results I 14 February 2013 I page 1 Agenda by mirvac For personal use only n 1H13 key outcomes n CEO & MD observations and opportunities n Finance Director observations and opportunities n 1H13 financial results and capital management n Operational update n Summary and guidance 1H13 results by
Slide 3: 1H13 key outcomes
1H13 results I 14 February 2013 I page 2 1H13 key outcomes by mirvac For personal use only n 1H13 statutory profit after tax of $55.2m 1 (net of previously disclosed provision of $273.2m) n 1H13 operating profit after tax of $194.2m 2 n FY13 operating EPS guidance of 10.7 to 10.8cpss maintained n Ge
Slide 4: CEO & MD observations and opportunities
1H13 results I 14 February 2013 I page 3 CEO & MD observations and opportunities by mirvac For personal use only Observations Opportunities Total securityholder Underperformance versus AREIT sector n Embed focus on delivering total securityholder return over three and five years return throughout th
Slide 5: CEO & MD observations and opportunities
1H13 results I 14 February 2013 I page 4 CEO & MD observations and opportunities by mirvac For personal use only Observations Opportunities MPT portfolio metrics n Strong metrics n Maintain these metrics and improve where possible n High quality portfolio of assets n Continue to acquire and divest a
Slide 6: Finance and capital management
1H13 results I 14 February 2013 I page 5 For personal use only finance and capital by mirvac management
Slide 7: Finance Director observations and opportunities
1H13 results I 14 February 2013 I page 6 Finance Director observations and opportunities by mirvac For personal use only Observations Opportunities Capital management Balance sheet position is robust n Continue to diversify debt sources and extend Weighted Average Debt Maturity n Exploring the poten
Slide 8: 1H13 financial results
1H13 results I 14 February 2013 I page 7 1H13 financial results 1 by mirvac For personal use only 1H13 ($m) 1H12 ($m) Statutory profit after tax attributable to Group securityholders 55.2 176.6 Statutory EPS 1.6cpss 5.2cpss Includes: Investment properties (including IPUC) 67.9 60.9 Provision for los
Slide 9: Capital management update
1H13 results I 14 February 2013 I page 8 Capital management update by mirvac For personal use only n Gearing within target range of 20-25% at 23.8% 1; look through basis 24.6% n Completed 5 year $150m MTN issuance n S&P maintained BBB rating; updated to positive outlook 1H13 FY12 Drawn debt maturiti
Slide 10: Operational update
1H13 results I 14 February 2013 I page 9 For personal use only operational update by mirvac
Slide 11: Capital partnership update
1H13 results I 14 February 2013 I page 10 Capital partnership update by mirvac For personal use only n Following the success of capital partnering with Keppel REIT ArTIST’S IMPrESSION OF 200 GEOrGE STrEET, SYDNEY, NSw on Treasury Building and 8 Chifley Square, Mirvac is currently progressing the opp
Slide 12: MPT
1H13 results I 14 February 2013 I page 11 MPT by mirvac For personal use only n Strong like-for-like NOI growth of 3.5% n MPT continues to outperform IPD index 1 n Occupancy remains strong across the portfolio at 98.2% 2 n Group earnings remain underpinned with a solid WALE of 5.5 3 years n 193 leas
Slide 13: Office – Passive
1H13 results I 14 February 2013 I page 12 Office – Passive by mirvac For personal use only n Office portfolio has outperformed IPD index over one, three and five years 1 n 1.2% net valuation uplift 2 n 92.6% of office portfolio Premium and A Grade n Like-for-like NOI growth of 4.2% continues to gene
Slide 14: Office – In development
1H13 results I 14 February 2013 I page 13 Office – In development by mirvac For personal use only n $1.6bn 1 pipeline end value to be delivered over the next 5 years n Expertise in development and leasing critical for attracting capital partners n 200 George Street, NSW: secured E&Y for 10 year leas
Slide 15: Retail – Passive
1H13 results I 14 February 2013 I page 14 Retail – Passive by mirvac For personal use only n Non discretionary focus insulates against subdued retail market n Retail portfolio has outperformed IPD index over one and three years 1 n 2.7% like-for-like NOI growth n Occupancy strong at 99.4% 2 (exc. bu
Slide 16: Retail – In development
1H13 results I 14 February 2013 I page 15 Retail – In development by mirvac For personal use only Current strategic retail developments n Retail development pipeline of $202.1m 1 end value kAwANA SHOPPINGwOrlD, qlD OrION TOwN CENTrE, qlD STANHOPE VIllAGE, NSw GLA increase 8,900sqm GLA increase 18,40
Slide 17: Residential – 1H13
1H13 results I 14 February 2013 I page 16 Residential – 1H13 by mirvac For personal use only n Secured $1,018.7m 1 in exchanged pre-sales contracts n 694 lots settled over 1H13: FY13 target reduced to 1,600 –1,700 due to timing and provision impact n $338.7m 1 in new exchanged pre-sales during the p
Slide 18: Development – FY13
1H13 results I 14 February 2013 I page 17 Development – FY13 by mirvac For personal use only n 78.3% of FY13 expected Development EBIT 1 secured n FY13 expected Development EBIT remains on track due to diversification via commercial Top FY13 expected Development EBIT 1 contributors % FY13 % FY13 FY1
Slide 19: Development – FY14 and beyond
1H13 results I 14 February 2013 I page 18 Development – FY14 and beyond by mirvac For personal use only n 57.0% of FY14 expected Development EBIT 1 already secured n Forward pipeline strong with key projects: FY14: Era, Chatswood, NSW; Harold Park Precinct 1, NSW FY15: Harold Park Precinct 1 and 2,
Slide 20: Summary and guidance
1H13 results I 14 February 2013 I page 19 Summary and guidance by mirvac For personal use only Guidance range FY13 Group operating profit $366 – $370m Operating EPS 10.7 – 10.8cpss DPS 8.5 – 8.7cpss Weighted average securities 3,432m Expected Development ROIC in FY14 >10% On track to meet FY13 guida
Slide 21: Disclaimer and important notice
1H13 results I 14 February 2013 I page 20 Disclaimer and important notice by mirvac For personal use only Mirvac Group comprises Mirvac Limited ABN 92 003 280 699 and Mirvac Property Trust An investment in Mirvac stapled securities is subject to investment and other known and ARSN 086 780 645. This
Slide 22: Thank you
For personal use only Thank you by mirvac FOllOw uS ON TwITTEr @MIrVACIr MIrVAC MIrVAC INVESTOr 1H13 rElATIONS PrOPErTY wEBSITE COMPENDIuM
Slide 23: Additional information
For personal use only additional by mirvac information 14 february 2013
Slide 24: Contents
additional information i 14 february 2013 i page 1 Contents by mirvac For personal use only financial results residential 2 1H13 statutory to operating profit reconciliation 33 Reconciliation to Development invested capital 3 1H12 statutory to operating profit reconciliation 34 Gross development mar
Slide 25: 1H13 statutory to operating profit reconciliation
additional information i 14 february 2013 i page 2 1H13 statutory to operating profit reconciliation by mirvac For personal use only investment investment management development unallocated elimination tax total december 2012 $m $m $m $m $m $m $m profit/(loss) attributable to the stapled security ho
Slide 26: 1H12 statutory to operating profit reconciliation
additional information i 14 february 2013 i page 3 1H12 statutory to operating profit reconciliation by mirvac For personal use only Total inc. Hotel Investment discontinued Investment Management Management Development Unallocated Elimination Tax operations December 2011 $m $m $m $m $m $m $m $m Prof
Slide 27: 1H13 operating profit by segment
additional information i 14 february 2013 i page 4 1H13 operating profit by segment by mirvac For personal use only Investment Investment Management Development Unallocated Elimination Total December 2012 $m $m $m $m $m $m Revenue from continuing operations Investment properties rental revenue 277.3
Slide 28: 1H12 operating profit by segment
additional information i 14 february 2013 i page 5 1H12 operating profit by segment by mirvac For personal use only Total inc. Hotel Investment discontinued Discontinued 1 Investment Management Management Development Unallocated Elimination operations operations Total December 2011 $m $m $m $m $m $m
Slide 29: Finance costs
additional information i 14 february 2013 i page 6 Finance costs by mirvac For personal use only 1H13 ($m) 1H12 ($m) Interest and finance charges paid/payable net of provision release 62.2 90.6 Amount capitalised (37.1) (46.0) Interest capitalised in current and prior periods expensed this period ne
Slide 30: Group overhead costs
additional information i 14 february 2013 i page 7 Group overhead costs by mirvac For personal use only 1H13 ($m) 1H12 ($m) % change Employee benefits expenses 1 31.8 33.6 (5.4) Selling and marketing expenses 1 12.0 15.1 (20.5) Other expenses 1 17.0 15.2 11.8 Total overhead expenses 1 60.8 63.9 (4.9
Slide 31: MPT operating EBIT
additional information i 14 february 2013 i page 8 MPT operating EBIT by mirvac For personal use only Detailed breakdown of MPT operating EBIT 1H13 ($m) 1H12 ($m) Net property income 1 Office 125.7 122.9 Industrial 19.3 14.9 Retail 60.7 60.7 Other 4.1 5.1 Total net property income 209.8 203.6 Invest
Slide 32: 1H13 contributions to growth
additional information i 14 february 2013 i page 9 1H13 contributions to growth by mirvac For personal use only 1H12 to 1H13 segmented operating EBIT 1 $300m 280 260 251.9 (0.7) (10.1) 240 (3.0) (5.0) (4.8) (2.9) 225.4 220 200 1H12 Investment Hotel Investment Development Unallocated Elimination 1H13
Slide 33: Liquidity profile
additional information i 14 february 2013 i page 10 Liquidity profile by mirvac For personal use only Facility limits Drawn amount Available liquidity As at 31 December 2012 ($m) ($m) ($m) Total facilities maturing > 12 months 2,827.9 1 2,014.8 1 813.1 Total 2,827.9 2,014.8 813.1 Cash on hand 31 Dec
Slide 34: Debt and hedging profile
additional information i 14 february 2013 i page 11 Debt and hedging profile by mirvac For personal use only 1H13 breakdown of debt maturities Facility Drawn 1H13 hedging and fixed interest profile 1 limit amount $1,500m Fixed Options Swaps Rate Issue / source Maturity date $m $m Bank facilities Jan
Slide 35: Commercial
additional information i 14 february 2013 i page 12 For personal use only commercial by mirvac
Slide 36: Commercial market update
additional information i 14 february 2013 i page 13 Commercial market update 1 by mirvac For personal use only Office Weighting FY13 Medium term Whilst business conditions and the white collar employment outlook remain subdued, the office forecast market is likely to be partially insulated in the sh
Slide 37: Sector and geographic diversification
additional information i 14 february 2013 i page 14 Sector and geographic diversification by mirvac For personal use only Sector diversification 1 58.9% Office 59.0% 28.1% Retail 27.7% 7.5% Industrial 6.8% LPT/ 3.8% unlisted funds 4.8% 1.7% IH13 Other 1.7% IH12 0% 10% 20% 30% 40% 50% 60% 70% Geograp
Slide 38: MPT portfolio snapshot
additional information i 14 february 2013 i page 15 MPT portfolio snapshot by mirvac For personal use only 1H13 1H12 MPT – lease expiry profile and variance to FY12 5 60% Properties owned 1 61 67 54.3% NLA 1 1,347,863sqm 1,313,194sqm 50 Book value 2 $6,013.7m $5,850.1m WACR 7.45% 7.49% 40 Net proper
Slide 39: Top ten tenants by income
additional information i 14 february 2013 i page 16 Top ten tenants by income by mirvac For personal use only Office Retail Rank Tenant Percentage 1 S&P Rating Rank Tenant Percentage 2 S&P Rating 1 Westpac Banking Corporation/St George 21.9% AA- 1 Wesfarmers Limited – Coles 13.2% A- 2 Government 15.
Slide 40: MPT weighted average cap rate
additional information i 14 february 2013 i page 17 MPT weighted average cap rate by mirvac For personal use only 9% 8 7.88% 7.74% 7.55% 7.56% 1 7.55% 1 7.49% 1 7.48% 1 7.45% 1 7 7.01% 6 5 4 3 2 1 0 1H09 FY09 1H10 FY10 1H11 FY11 1H12 FY12 1H13 1) Excludes assets held for development.
Slide 41: Office snapshot
additional information i 14 february 2013 i page 18 Office snapshot by mirvac For personal use only 1H13 1H12 Office lease expiry profile and variance to FY12 3 70% 65.0% Properties owned 25 29 60 NLA 609,846sqm 638,268sqm 50 Book value 1 $3,471.5m $3,431.3m 40 WACR 7.45% 7.45% Net property income $
Slide 42: Office metrics
additional information i 14 february 2013 i page 19 Office metrics by mirvac For personal use only Book value Average passing December 2012 Occupancy 2 gross rent No. of assets $m 1 December 2012 $ per sqm NSW 12 $2,380.6m 97.8% $638 North Sydney 2 $286.3m 100.0% $738 Sydney CBD 4 $1,254.0m 98.2% $7
Slide 43: Retail snapshot
additional information i 14 february 2013 i page 20 Retail snapshot by mirvac For personal use only 1H13 1H12 Retail lease expiry profile and variance to FY12 3 40% Properties owned 19 19 NLA 390,646sqm 391,327sqm 30.6% Book value 1 $1,661.5m $1,610.1m 30 WACR 7.25% 7.29% Net property income $60.7m
Slide 44: Industrial snapshot
additional information i 14 february 2013 i page 21 Industrial snapshot by mirvac For personal use only 1H13 1H12 Industrial lease expiry profile and variance to FY12 3 80% Properties owned 13 15 69.9% NLA 346,972sqm 283,202sqm 60 Book value 1 $445.9m $396.6m WACR 8.00% 8.37% 40 Net property income
Slide 45: Schedule of disposals
additional information i 14 february 2013 i page 22 Schedule of disposals by mirvac For personal use only 1H13 schedule of disposals Previous Gross Proceeds Actual book value sale price above book settlement Property State Sector Status $m $m value $m date 64 Biloela Street, Villawood NSW Industrial
Slide 46: Commercial development pipeline
additional information i 14 february 2013 i page 23 Commercial development pipeline by mirvac For personal use only $1.3bn commercial development pipeline to be undertaken in-house by Mirvac Active Project 1 Type Status FY13 FY14 FY15 FY16 FY17 ✔ 8 Chifley Square Sydney, NSW (50% with Keppel REIT) O
Slide 47: Residential
additional information i 14 february 2013 i page 24 For personal use only residential by mirvac
Slide 48: Residential market outlook
additional information i 14 february 2013 i page 25 Residential market outlook 1 by mirvac For personal use only The outlook for capital city residential markets remains mixed by location, however underlying factors underpinning the residential property market continued to improve through 2012. Lowe
Slide 49: Future projects pipeline
additional information i 14 february 2013 i page 26 Future projects pipeline by mirvac For personal use only Under construction Planning Active Under negotiation Profit recognition profile 1 FY13 FY14 FY15 FY16 FY17 Project Stage Ownership Currently marketing part share Commercial projects sell down
Slide 50: Development 1H13 activity detail
additional information i 14 february 2013 i page 27 Development 1H13 activity detail by mirvac For personal use only 694 lot settlements consisting of: Total Apartments Masterplanned Communities Settlement by lots Lots % Lots % Lots % NSW 332 47.8% 6 0.9% 326 47.0% QLD 155 22.3% 35 5.0% 120 17.3% WA
Slide 51: Development outlook FY13 – FY17
additional information i 14 february 2013 i page 28 Development outlook FY13 – FY17 by mirvac For personal use only Settlement Lots Revenue Released Project State Stage Status Ownership commences Lots pre-sold $m 2 ✔ Yarra’s Edge Towers VIC Yarra Point Nearing completion 100% FY13 201 86.6% 190.5 ✔
Slide 52: Residential development – strategic acquisitions
additional information i 14 february 2013 i page 29 Residential development – strategic acquisitions by mirvac For personal use only n Acquired 2,443 lots n Key growth markets targeted n Profit recognition profile both near and medium term n Price points on strategy n All acquisitions completed unde
Slide 53: Diversification of residential lots/revenue
additional information i 14 february 2013 i page 30 Diversification of residential lots/revenue by mirvac For personal use only 31,130 lots under control Forecast future revenue by product Lots by structure Mirvac share of forecast revenue by State Masterplanned 100% Mirvac inventory 39.6% NSW 39.4%
Slide 54: Strategic positioning
additional information i 14 february 2013 i page 31 Strategic positioning by mirvac For personal use only Residential development business strategic positioning Pipeline diversity of product 1 Average price of Mirvac Apartments 2 100% Masterplanned Communities 53.7% Apartments 46.3% 80 60 40 20 0 FY
Slide 55: Pre-sales analysis
additional information i 14 february 2013 i page 32 Pre-sales analysis by mirvac For personal use only Exchanged contracts – by State 1 Age of exchanged pre-sale contracts 1 $691m > 1yr: 58.7% 1 – 2yrs 34.8% < 2yr: 6.5% $305m $19m $4m NSW VIC WA QLD Masterplanned Communities 33.5% Apartments 25.2% E
Slide 56: Reconciliation to Development invested capital
additional information i 14 february 2013 i page 33 Reconciliation to Development invested capital by mirvac For personal use only Items excluded Total from Development Development Development invested capital eliminations invested capital Reconciliation to Development invested capital $m $m $m $m C
Slide 57: Gross development margin
additional information i 14 february 2013 i page 34 Gross development margin by mirvac For personal use only development Cost of property gross gross and construction development and development development revenue construction margin margin $m $m $m % 1H13 Adjusted for zero margin settlements 174.2
Slide 58: Development operating EBIT reconciliation
additional information i 14 february 2013 i page 35 Development operating EBIT reconciliation by mirvac For personal use only Development $m Revenue Development and construction revenue 317.3 Development management fee revenue 9.9 Interest revenue 2.5 Other revenue 1.0 Inter-segment sales 1.6 COGS O
Slide 59: Development historical information (FY09 – 1H13)
additional information i 14 february 2013 i page 36 Development historical information (FY09 – 1H13) by mirvac For personal use only 1H13 FY12 1H12 FY11 FY10 FY09 Development and construction revenue 317.3 918.4 370.1 958.1 862.2 1,090.8 Gross margin 15.1% 14.3% 15.8% 14.2% 11.4% 16.5% Gross residen
Slide 60: Projects impacted by provision
additional information i 14 february 2013 i page 37 Projects impacted by provision by mirvac For personal use only Project Product Line State Provision Acquisition Date Gainsborough Greens Masterplanned Communities QLD $58.6m Oct 06 Waterfront, Newstead – Site Balance Apartments QLD $51.4m Apr 08 Be
Slide 61: Looking forward
additional information i 14 february 2013 i page 38 Looking forward by mirvac For personal use only n Centralised capital allocation decision making n Average age of non impaired projects is 2.5 years – purchased consistent with current market assumptions n Pro-actively increasing the number of capi
Slide 62: Provision roll off
additional information i 14 february 2013 i page 39 Provision roll off 1 by mirvac For personal use only Provision balance profile Provision release profile $500m Existing provision balance Continue to develop $500m Existing provision balance Continue to develop Unsold stock Englobo Unsold stock Eng
Slide 63: Mirvac buyer profile
additional information i 14 february 2013 i page 40 Mirvac buyer profile by mirvac For personal use only Mirvac’s 1H13 settlements Housing finance: market shares n 68.2% upgraders/empty nesters and investors 80% Investor First home buyer Repeat buyer n Mirvac average price: 60 – House $926,000 1 – L
Slide 64: Growing preference towards apartments
additional information i 14 february 2013 i page 41 Growing preference towards apartments by mirvac For personal use only Migrant households 1 Dwelling structure 2003 to 2008 2 Prior to 2003 2 Separate house 46% 76% Semi-detached/row or terrace house/townhouse 18% 9% Flat, unit or apartment 36% 15%
Slide 65: Mirvac's development business
additional information i 14 february 2013 i page 42 Mirvac’s development business by mirvac For personal use only Definition Capital relationships with small number of investors for development, with Wholesale development delivery by Mirvac provided for fees and share in equity profits Relationships
Slide 66: Hypothetical profit making development project
additional information i 14 february 2013 i page 43 Hypothetical profit making development project – treatment of capitalised costs by mirvac For personal use only Project metrics Total Sales revenue 120 Land (20) Cost of property development and construction (60) Sales & marketing expenses (10) Int
Slide 67: Hypothetical provisioned development project
additional information i 14 february 2013 i page 44 Hypothetical provisioned development project – treatment of capitalised costs by mirvac For personal use only Project Metrics Total Sales revenue 100 Land (25) This is the same project but Cost of property development and construction (50) it has s
Slide 68: Capitalised interest policy
additional information i 14 february 2013 i page 45 Capitalised interest policy by mirvac For personal use only n Mirvac assesses and allocates capitalised interest on a stage-by-stage basis within a project and accounts for the stage separately (not project wide) n Mirvac allocates interest to stag
Slide 69: Net realisable value
additional information i 14 february 2013 i page 46 Net realisable value by mirvac For personal use only n Mirvac undertakes comprehensive and regular reviews of the carrying value of Inventories and JV and Associates. Inventory is required to be carried at the lower of cost and Net Realisable Value
Slide 70: Residential development high density = apartments
additional information i 14 february 2013 i page 47 Residential development high density = apartments by mirvac For personal use only Profile of high density Generic profile — Single stage, 200 unit Apartment projects Month 35 Month 6 Month 12 Month 15 Practical n High barriers to entry DA submitted
Slide 71: Residential development low density = masterplanned communities
additional information i 14 february 2013 i page 48 Residential development low density = masterplanned communities by mirvac For personal use only Profile of low density Generic profile — multi stage, 1,000 lot Masterplanned Community Month 6 Month 24 Month 36 n Lower capital commitment DA submitte
Slide 72: Our markets
additional information i 14 february 2013 i page 49 Our markets by mirvac For personal use only Sector Description Sub-market Example developments Residential Masterplanned communities > First home buyers > Land subdivision > 2nd/3rd home buyers > Completed housing 1 > Investors > Packaged housing 2
Slide 73: Development risk management
additional information i 14 february 2013 i page 50 Development risk management by mirvac For personal use only Superior brand leveraged HIGHER PRE-SALES $ PRICE PREMIUM ACHIEVED REPEAT CUSTOMERS Ability to drive returns in a flat macro market n Better access to capital n National procurement n Bran
Slide 74: Health safety and wellbeing
additional information i 14 february 2013 i page 51 For personal use only HEALTH SAFETY by mirvac AND WELLBEING
Slide 75: Health safety and wellbeing
additional information i 14 february 2013 i page 52 Health safety and wellbeing by mirvac For personal use only From FY08 to FY12 average time lost From FY08 to FY12 the number of injuries through injury days has reduced by 75.9% resulting in workers compensation claims has reduced by 48.8% Average
Slide 76: Mirvac statutory income tax calculation
additional information i 14 february 2013 i page 53 Mirvac statutory income tax calculation by mirvac For personal use only 1H13 ($m) Loss Before Tax (31.8) Less: Trust Profit & Group Eliminations (262.7) Corporation Loss Before Tax (294.5) Net Add Back for Non Deductible Expenses and Non Assessable
Slide 77: FY13 calendar
additional information i 14 february 2013 i page 54 FY13 calendar 1 by mirvac For personal use only Upcoming conference attendance: Event Location Date Private Roadshow Melbourne 18 – 19 February 2013 Private Roadshow Sydney 21 – 22 February 2013 Private Roadshow Singapore 25 February 2013 Private R
Slide 78: Glossary
additional information i 14 february 2013 i page 55 Glossary by mirvac For personal use only Term Meaning Term Meaning ABS Australian Bureau of Statistics MGR Mirvac Group ASX code A-REIT Australian Real Estate Investment Trust MPT Mirvac Property Trust Bp Basis Points MTN Medium Term Note CBD Centr
Slide 79: Disclaimer and important notice
additional information i 14 february 2013 i page 56 Disclaimer and important notice by mirvac For personal use only Mirvac Group comprises Mirvac Limited ABN 92 003 280 699 and Mirvac Property Trust An investment in Mirvac stapled securities is subject to investment and other known and ARSN 086 780
Slide 80: Thank you
For personal use only Thank you by mirvac FOLLOW US ON TWITTER @MIRVACIR MIRVAC MIRVAC INVESTOR 1H13 RELATIONS PROPERTY WEBSITE COMPENDIUM