Slide 1: FY13 results
For personal use only FY13 results 23 AUGUST 2013 by mirvac
Slide 2: Agenda
FY13 results I 23 August 2013 I page 1 Agenda by mirvac For personal use only n FY13 snapshot n Review of observations and opportunities n FY13 financial results and capital management n Operational update n FY14 strategy scorecard n Summary and guidance FY13 results by mirvac
Slide 3: FY13 snapshot
FY13 results I 23 AUGUST 2013 I page 2 For personal use only fy13 snapshot by mirvac
Slide 4: FY13 snapshot
FY13 results I 23 August 2013 I page 3 FY13 snapshot by mirvac For personal use only n FY13 operating EPS of 10.9cpss; ahead of guidance of Yarra POINT, Yarra’s Edge Vic 10.7 to 10.8cpss 1,2 (statutory earnings of 4.1cpss) n Acquired $584m office portfolio from GE n Strategic capital management init
Slide 5: Review of observations and opportunities
FY13 results I 23 AUGUST 2013 I page 4 For personal use only review of observations and by mirvac opportunities
Slide 6: Review of observations and opportunities
FY13 results I 23 August 2013 I page 5 Review of observations and opportunities by mirvac For personal use only Opportunities FY13 action Development n Prioritise ROIC in all decision making Set target active invested capital of 20%; 25% cap returns n Assess inventory levels and determine target Inc
Slide 7: Review of observations and opportunities
FY13 results I 23 August 2013 I page 6 Review of observations and opportunities by mirvac For personal use only Opportunities FY13 action MPT portfolio n Maintain metrics and improve where possible MPT metrics remained steady despite subdued metrics n Continue to acquire and divest assets to further
Slide 8: Finance and capital management
FY13 results I 23 AUGUST 2013 I page 7 For personal use only finance and capital by mirvac management
Slide 9: FY13 financial results
FY13 results I 23 August 2013 I page 8 FY13 financial results 1 by mirvac For personal use only FY13 ($m) FY12 ($m) % change Statutory profit after tax attributable to Group securityholders 139.9 416.1 (66.4%) Statutory EPS 4.1cpss 12.2cpss Includes: Investment property revaluations (including IPUC)
Slide 10: Capital management update
FY13 results I 23 August 2013 I page 9 Capital management update by mirvac For personal use only n Increased and extended $1.7bn syndicated loan on 3 July 2013 n Gearing at 23.6% within target range of 20-30% 1,2 n Average borrowing cost fell to 5.7% 2, 3 from 7.6% 3 n Average debt maturity increase
Slide 11: Operational update
FY13 results I 23 AUGUST 2013 I page 10 For personal use only operational update by mirvac
Slide 12: MPT
FY13 results I 23 August 2013 I page 11 MPT by mirvac For personal use only n MPT continues to outperform IPD index over one, three and five years 1 n Strong like‑for-like NOI growth of 3.5% n Occupancy remained strong across the portfolio at 97.9% (98.5% excluding GE transaction) 2 n Group earnings
Slide 13: Office – Passive
FY13 results I 23 August 2013 I page 12 Office – Passive by mirvac For personal use only n Office portfolio continues to outperform IPD index over three and five years; in line on one year1 n Strong like-for-like NOI growth of 3.9% n Strategic acquisition of 7 office assets from GE n Occupancy high
Slide 14: Office – Passive outlook
FY13 results I 23 August 2013 I page 13 Office – Passive by mirvac For personal use only Office outlook Mirvac’s response n The office market is suffering from macro n Mirvac’s internal leasing team has uncertainties and a softening in white collar significantly de-risked future expiries: employment
Slide 15: Office – In development
FY13 results I 23 August 2013 I page 14 Office – In development by mirvac For personal use only n FY13 commercial development EBIT of $25.6m 1 n $2.2bn 2 pipeline end value to be delivered n Projects under construction de-risked; average 81.0% pre-leased n 45,700sqm in pre-leasing completed in FY13
Slide 16: Retail – Passive
FY13 results I 23 August 2013 I page 15 Retail – Passive by mirvac For personal use only n Retail portfolio outperforming IPD index over one and three years 1 n Steady 2.6% like-for-like NOI growth n Occupancy strong at 99.2% 2 n Specialty occupancy costs manageable at 15.7% 3; 14.9% on like-for-lik
Slide 17: Retail – Passive outlook
FY13 results I 23 August 2013 I page 16 Retail – Passive by mirvac For personal use only Retail outlook Mirvac’s response n The retail environment remains challenging n Mirvac’s internal leasing teams have with caution and slowing income growth focused on increasing exposure to resilient contributin
Slide 18: Retail – In development
FY13 results I 23 August 2013 I page 17 Retail – In development by mirvac For personal use only Unlocking value via $800m 1 retail Active projects Incremental NOI $8.0m+ development pipeline Yield on Cost 7% to 8% Target Development IRR (10yr) 10% to12% 2 artist impression of Stanhope Village, NSW a
Slide 19: Industrial – Passive
FY13 results I 23 August 2013 I page 18 Industrial – Passive by mirvac For personal use only n 5.9% like-for-like NOI growth FY13 FY12 n Occupancy strong at 99.4% 1 Like-for-like NOI growth 5.9% -0.1% n Portfolio is de-risked by WALE of 8.8 2 years Occupancy 1 99.4% 98.7% n Non core asset sale progr
Slide 20: Residential – FY13 activity
FY13 results I 23 August 2013 I page 19 Residential – FY13 activity by mirvac For personal use only n FY13 Residential EBIT of $111.2m 1 n $1,005.4m 2 in exchanged pre-sales contracts; $732.5m secured in FY13 n Settled 1,809 lots; ahead of 1,600 to 1,700 revised target (driven by provisioned project
Slide 21: Residential – Market outlook
FY13 results I 23 August 2013 I page 20 Residential – Market outlook 1 by mirvac For personal use only n In response to sound underlying fundamentals, residential NSW transaction volumes steadily strengthened over the course of Weighting FY14 Medium term 2013, albeit from different baselines on a st
Slide 22: Residential – Mirvac's outlook
FY13 results I 23 August 2013 I page 21 Residential – Mirvac’s outlook by mirvac For personal use only n Forward pipeline strong with key projects capturing demand: Expected settlement of exchanged pre-sales contracts – FY14: Era, Chatswood, NSW (99.0% pre-sold) Harold Park Precinct 1, NSW (93.6% pr
Slide 23: Development – FY14 expectations
FY13 results I 23 August 2013 I page 22 Development – FY14 expectations by mirvac For personal use only n On track to achieve >10% Development ROIC ERA, Chatswood, Sydney NSW n 65.4% of FY14 expected Development EBIT 1 secured n Strong year expected targeting >2,200 lot settlements n Exposure to NSW
Slide 24: FY14 strategy scorecard
FY13 results I 23 AUGUST 2013 I page 23 For personal use only FY14 strategy by mirvac scorecard
Slide 25: Mirvac's vision
FY13 results I 23 August 2013 I page 24 Mirvac’s vision by mirvac For personal use only Setting the standard as a world-class Australian property group that attracts the best Integrated Leveraging our integrated model to create, own, manage Diversified Maintaining an appropriate balance of passive a
Slide 26: FY14 strategy scorecard
FY13 results I 23 August 2013 I page 25 FY14 strategy scorecard by mirvac For personal use only 200 george street, Sydney NSW FY14 action Office n Target continued IPD outperformance n Unlock value from GE acquisition n Substantially complete leasing balance of 8 Chifley, NSW n Pre-lease of commerci
Slide 27: FY14 strategy scorecard
FY13 results I 23 August 2013 I page 26 FY14 strategy scorecard by mirvac For personal use only 8 Chifley, Sydney NSW FY14 action Residential n Action englobo disposal program development n $100m to $140m in provision release for FY14 n Focus on restocking pipeline within acquisition mandates n De-r
Slide 28: Summary and guidance
FY13 results I 23 AUGUST 2013 I page 27 For personal use only summary and by mirvac guidance
Slide 29: Summary and guidance
FY13 results I 23 August 2013 I page 28 Summary and guidance by mirvac For personal use only Guidance FY14 Group operating profit $428 – $443m Operating EPS 11.7 – 12.0cpss DPS 8.8 – 9.0cpss Weighted average securities 3,673m Expected Development ROIC in FY14 >10% Well positioned to deliver secure e
Slide 30: Disclaimer and important notice
FY13 results I 23 August 2013 I page 29 Disclaimer and important notice by mirvac For personal use only Mirvac Group comprises Mirvac Limited (ABN 92 003 280 699) and Mirvac Property An investment in Mirvac stapled securities is subject to investment and other known and Trust (ARSN 086 780 645). Thi
Slide 31: Thank you
For personal use only Thank you by mirvac Follow us on twitter @MirvacIR Mirvac Mirvac Investor Fy13 relations Property website compendium