Slide 1: Results by Mirvac
results For personal use only by mirvac 24 august 2010 Artist impression of 8 Chifley Square, Sydney, NSW
Slide 2: Disclaimer and Important Notice
DISCLAIMER AND IMPORTANT NOTICE For personal use only Mirvac Group comprises Mirvac Limited ABN 92 003 280 699 and Mirvac This Presentation contains certain “forward looking” statements. The words Property Trust ARSN 086 780 645. This presentation and the annexures thereto “anticipated”, “expected”,
Slide 3: Agenda
agenda For personal use only GROUP STRATEGY KEY FY10 ACHIEVEMENTS financial RESULTS INVESTMENT DEVELOPMENT SUMMARY & Guidance MIRVAC FY10 results presentation 24 august 2010 page 2
Slide 4: Group Strategy
GROUP STRATEGY For personal use only 80% Operating NPAT through cycle target 20% Operating NPAT through cycle target Mirvac Property Trust development Target unlevered 10 year Internal Rate of Return Target unlevered average (“IRR”) of >11% project IRR of >18% > Focus on large, masterplanned > Maxim
Slide 5: Key FY10 Strategic Achievements
KEY FY10 STRATEGIC ACHIEVEMENTS For personal use only > Execution of strategy > Upgrade of quality > Positioned for growth Mergers and acquisitions Mirvac Real Estate Investment Trust (“MREIT”) acquisition in December 2009 > $915m acquisition of a diversified Australian investment portfolio at 9.3%
Slide 6: Key FY10 Strategic Achievements
KEY FY10 STRATEGIC ACHIEVEMENTS For personal use only Investment Division Repositioned and upgraded portfolio quality through acquisitions and selective divestments 1 > $235m non-aligned asset sales at 3.4% premium to book value Activated full refurbishment at 10-20 Bond St, Sydney, NSW (office) > P
Slide 7: Financial Results
financial results For personal use only justin mitchell, CFO Artist impression of refurbishment of 10–20 Bond Street, Sydney, NSW MIRVAC FY10 results presentation 24 august 2010 page 6
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS For personal use only FY10 ($m) Net profit attributable to the stapled securityholders 234.7 Specific non-cash items, including: 162.3 1 Net losses from fair value of: > Investment properties (including impact of adopting AASB 140 — investment properties under construction, prev
Slide 9: Core Divisions: Investment & Development
2 core divisions investment & development For personal use only Investment 1 FY10 FY09 % Change Operating profit before tax $325.1m $237.9m 36.7% Operating EBIT 2 $298.9m $245.6m 21.8% Portfolio value $5,787.7m 3 $3,689.9m 56.9% Development Operating profit before tax $20.1m $29.1m (30.9%) Operating
Slide 10: Hotel Management & Investment Management
hotel management & investment management For personal use only Hotel Management FY10 FY09 % Change Operating profit before tax $11.6m $13.7m (15.3%) Operating EBIT 1 $11.4m $13.3m (14.3%) Average room rate $168 $177 (5.1%) Occupancy rate 74% 73% 1.4% Investment Management 2 Operating loss before tax
Slide 11: Debt
DEBT For personal use only Debt strategy > Continue to diversify sources of debt capital and extend maturity profile > Issued $150m 5 year MTN at 265 basis points (>2x over subscribed) > MTN issuance program will continue over next 12 to 18 months > Refinance June 2011 bank facility with option to r
Slide 12: Strong Liquidity Post WOT
strong LIQUIDITY POST WOT For personal use only Available liquidity of $698m post WOT transaction comfortably within target range Facility Limit Drawn Amount Available Liquidity As at 30 June 2010 ($m) ($m) ($m) September 2010 — MTN 200.0 200.0 0.0 February 2011 — Non recourse fund debt 200.0 200.0
Slide 13: Investment
INVESTMENT For personal use only Andrew Butler, CEO investment 275 Kent Street, Sydney, NSW MIRVAC FY10 results presentation 24 august 2010 page 12
Slide 14: Mirvac's Investment Division
MIRVAC’S INVESTMENT DIVISION For personal use only Competitive advantage in integrated model development LEASING & PROPERTY Facilities Investment ACQUISITION capability MARKETING MANAGEMENT MANAGEMENT MANAGEMENT Investment Division (MPT) core competencies: > Active portfolio management providing pro
Slide 15: Investment Market Update
investment Market update For personal use only State of the investment markets Office Weighting Forecast Rent growth is visible in the Melbourne CBD, static in Sydney while Brisbane is close to the bottom of the cycle. Prime asset values are appreciating in 56.6% Melbourne and Sydney, Canberra is st
Slide 16: Portfolio Highlights
PORTFOLIO HIGHLIGHTS For personal use only FY10 FY10 FY11 CPI > Solid FY10 like-for-like net income growth of 3.7% Occupancy Like-for-like & fixed reviews Sector post WOT income growth post WOT > 96.0% of FY11 rent reviews CPI or fixed > High portfolio occupancy rate of 97.6% Office 97.5% 4.0% 97.7%
Slide 17: Transformation of MPT
Transformation of MPT For personal use only > Grown recurring income > 56.9% increase in portfolio value since 30 June 2009 — $915m acquisition of MREIT — $1,137m acquisition of WOT > Completed $235m of non-aligned asset sales at 3.4% 1 premium to book value of which $105m were MREIT sales at a 3.3%
Slide 18: Reactivated Commercial Development Pipeline
reactivated COMMERCIAL DEVELOPMENT PIPELINE For personal use only $1,208m pipeline of Australian institutional grade real estate, undertaken in-house by Mirvac Development FY10 commercial development pipeline 1 Project (Ownership) Type Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 10-20 Bond Street $60m
Slide 19: Hotel Management
HOTEL MANAGEMENT For personal use only > Hotels under management increased to 46 > Operating performance: — Occupancy 74% — Average room rate $168 — RevPAR growth (3.9%) > Recovering corporate, conference and international travel combined with limited supply are positive drivers for the hotel sector
Slide 20: Investment Strategy
investment strategy For personal use only > Execution of strategy > Upgrade of quality > Positioned for growth MIRVAC FY10 results presentation 24 august 2010 page 19
Slide 21: Development
DEVELOPMENT For personal use only Brett Draffen, CEO Development Artist impression of beachside Leighton, Leighton, WA MIRVAC FY10 results presentation 24 august 2010 page 20
Slide 22: Mirvac's Development Division
MIRVAC’S development DIVISION For personal use only Competitive advantage of fully integrated model sales & ACQUISITION design development construction marketing FY10 Target FY10 Achievement Commence residential projects to meet >7 projects fast-tracked, 3 successfully released to market expected de
Slide 23: FY10 Settlements
FY10 Settlements For personal use only FY10 highlights 1,805 lot settlements consisting of: 100% owned 37% > 1,805 lots settled, a 14.7% increase on FY09 MWRDP 32% Project development agreements 22% > Gross margin 17.6% excluding zero margin Joint Ventures 9% settlements (1H10: 16.2%) > NSW Homes ma
Slide 24: Mirvac Buyer Profile
mirvac BUYER PROFILE For personal use only Mirvac’s FY10 settlements Investor and non first home buyers (“FHB”) more resilient > 74% upgraders/empty nesters and investors > 90% of purchases by FHB involve a mortgage. > Mirvac average price: For repeat buyers, only around 65% of housing — House $594,
Slide 25: Residential Market Outlook
Residential Market outlook For personal use only Annual price growth appears to be moderating to single digits. However new housing starts are still substantially below underlying demand and fundamentals remain positive. NSW Current Forecast Improved affordability on the back of fiscal stimulus has
Slide 26: FY11 Outlook
FY11 outlook For personal use only Mirvac’s position as Australia’s pre-eminent residential developer is evidenced by $802m 1 ($704m as at 30 June 2010) of exchanged residential pre-sales contracts > 60.8% of total forecast FY11 residential revenue secured by pre-sales FY11 major contributors % FY11
Slide 27: Fast-tracked Projects
Fast-tracked projects For personal use only Net Revenue 1 Released Division Project Stage Ownership Settlement Year Lots $m VIC Harcrest Stage 1 20% FY12 63 5.8 4 NSW Rhodes Waterside Elinya 20% FY12 107 13.3 NSW Rhodes Waterside Kiewa 20% FY12 111 15.2 NSW Rhodes Waterside Alkira 20% FY13 145 16.2
Slide 28: Our Markets
our markets 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 > Investor > Packaged housing 2 > Typical price range: > Land $170K — $300K > Housing $350K —
Slide 29: Residential Development Pipeline
residential development pipeline For personal use only Exisiting pipeline major contributors – over 10,500 lots in 5 years FY11 FY12 FY13 FY14 FY15 apartment Revenue $2,231m 1 to be supplemented lots: 2,585 by new acquisitions integrated Revenue $1,268m 1 to be supplemented housing lots: 2,949 by ne
Slide 30: Development Acquisition Strategy
development acquisition strategy For personal use only Development Acquisition Strategy: > Capital requirement driven by expeditious completion of impaired projects and re-allocation of funds from Investment asset sales > Redeploy funds to higher return projects > Acquire sites within strategy and h
Slide 31: Summary & Guidance
SUMMARY & guidance For personal use only Artist impression of Yarra’s edge riverfront homes, docklands, vic MIRVAC FY10 results presentation 24 august 2010 page 30
Slide 32: Summary
SUMMARY For personal use only > Execution of strategy > Upgrade of quality > Positioned for growth MIRVAC FY10 results presentation 24 august 2010 page 31
Slide 33: Guidance
GUIDANCE For personal use only Guidance FY11 Group operating NPAT $350 — $365m Operating earnings per security 10.2 — 10.6 cpss 1 Implied earnings growth 9.7% — 14.0% Distribution per security 8.0 – 9.0 cpss 1 Weighted average securities 3,432.4m 1) Cents per stapled security. MIRVAC FY10 results pr
Slide 34: Additional Information
ADDITIONAL INFORMATION For personal use only sirius building, 23 Furzer Street, Canberra, ACT MIRVAC FY10 results presentation 24 august 2010 page 33
Slide 35: Index
Index For personal use only Financial Results Development 35 FY10 AIFRS to Operating NPAT Reconcilation 53 Diversification of Residential Lots/Revenue 36 FY09 AIFRS to Operating NPAT Reconcilation 54 Affordability has not Returned to 2008 Levels NEW 37 FY10 Operating Segment NEW 55 Affordability? Ho
Slide 36: FY10 AIFRS to Operating NPAT Reconciliation
FY10 AIFRS to operating NPAT RECONCILATION For personal use only Investment Hotel Management/ Investment Development Management MAM Unallocated Elimination Tax Totals $m $m $m $m $m $m $m $m Net profit/(loss) after tax before non-controlling interest (“NCI”) 306.4 19.6 (10.8) (0.1) (81.6) (3.9) 7.8
Slide 37: FY09 AIFRS to Operating NPAT Reconciliation
FY09 AIFRS to operating NPAT RECONCILATION For personal use only Investment Hotel Management/ Investment Development Management MAM Unallocated Elimination Tax Totals $m $m $m $m $m $m $m $m Net profit/(loss) after tax before NCI (551.1) (354.7) 12.3 (216.2) (42.2) 7.4 65.3 (1,079.2) Less NCI 0.1 —
Slide 38: FY10 Operating Segment
FY10 operating segment For personal use only Investment Hotel Management/ Investment Development Management MAM Unallocated Elimination Totals June 2010 $m $m $m $m $m $m $m Revenue Development and construction revenue — 861.5 — — — 0.7 862.2 Development management fee revenue — 32.2 — — — (1.1) 31.
Slide 39: FY09 Operating Segment
FY09 operating segment For personal use only Investment Hotel Management/ Investment Development Management MAM Unallocated Elimination Totals June 2009 $m $m $m $m $m $m $m Revenue Development and construction revenue — 1,093.0 — — — (2.2) 1,090.8 Development management fee revenue — 31.6 — — — (7.
Slide 40: FY10 Contributions to Growth
FY10 CONTRIBUTIONS TO GROWTH For personal use only FY09 to FY10 segmented operating EBIT growth $53.3m ($27.7m) $35.0m ($41.6m) ($1.9m) $11.0m $281.6m $253.5m FY09 Investment Development Hotel Investment Unallocated Elimination FY10 Management Management FY09 to FY10 segmented operating NPAT growth
Slide 41: Proforma Balance Sheet
PROFORMA BALANCE SHEET For personal use only Statement of financial position June 2010 plus WOT 1 $m Assets Cash and cash equivalents 70.6 Receivables 386.4 Inventories 1,634.3 Investment properties 2 5,359.4 Property, plant and equipment 355.2 Investments accounted for using the equity method 410.6
Slide 42: Debt and Hedging Profile
DEBT AND HEDGING PROFILE For personal use only Hedging profile post WOT 1 Debt sources post WOT Bank Facilities 64% 2,000 $m USPP 22 % MTN 15% 1,500 5.98% 6.06% 6.06% 6.06% 5.91% 5.94% 5.88% 5.90% 1,000 500 250 0 06 Aug 10 30 Jun 11 30 Jun 12 30 Jun 13 30 Jun 14 30 Jun 15 30 Jun 16 30 Jun 17 Fixed O
Slide 43: WOT Capitalisation Rate Sensitivity
WOT CAPITALISATION RATE SENSITIVITY For personal use only Change in WOT portfolio cap rates Proforma 30 June 10 August 10 (0.25%) (0.50%) (0.75%) (1.00%) Portfolio value $4,625.6m $5,787.7m $5,828.6m $5,872.5m $5,919.7m $5,970.7m Change from proforma August 10 0.7% 1.5% 2.3% 3.2% Balance sheet geari
Slide 44: Impact of MREIT Acquisition
impact of MREIT Acquisition For personal use only > On 7 December 2009, scheme of arrangement implemented for Mirvac to acquire remaining issued units in MREIT > Acquisition generated $140m of value for Mirvac securityholders Net assets acquired at fair value (100% of NTA) $476.0m Consideration Cash
Slide 45: Disposals
DISPOSALS For personal use only Gross 1 Previous Premium/ sale price book value (discount) Settlement FY10 disposals State Type $m $m to book value date Perpetual Building, 10 Rudd Street, Canberra ACT Office 18.7 18.7 0.0% Sep 09 30-32 Compark Circuit, Mulgrave VIC Industrial 7.2 6.5 10.7% Oct 09 M
Slide 46: Top Ten Tenants by Gross Income Post WOT
TOP TEN TENANTS BY GROSS INCOME post wot For personal use only Rank Tenant Percentage 1 Westpac – St George 13.4% 2 Government 8.7% 3 Woolworths 7.9% 4 Wesfarmers – Coles 4.8% 5 Fairfax Holdings 2.4% 6 IBM Australia 1.9% 7 GM Holden 1.6% 8 United Group 1.5% 9 Wilson Parking Australia 1.2% 10 Alcatel
Slide 47: Sector and Geographic Diversification Post WOT
sector and geographic diversification post wot For personal use only Sector diversification 44.4% Office 56.6% 40.3% Retail 30.8% 7.3% Industrial 7.2% Indirect property 5.2% investments 3.9% Other – 2.8% FY 09 hotel, carparks 1.5% FY 10 POST WOT 0% 10% 20% 30% 40% 50% 60% 70% Geographic diversificat
Slide 48: MPT Portfolio Snapshot
MPT portfolio snapshot For personal use only FY10 1 FY09 Properties owned 2 77 58 NLA 1,488,924 sqm 1,049,021 sqm Book value $5,787.7m $3,689.9m Like-for-like net income growth 3.7% 1.7% Occupancy 3 97.6% 95.9% NLA leased 171,582 sqm 159,990 sqm % of portfolio NLA leased 13.1% 15.3% No. of tenant re
Slide 49: Office Snapshot
office snapshot For personal use only FY10 1 FY09 Office portfolio breakdown by book value Properties owned 31 21 Premium Grade 5.3% A Grade 83.5% NLA 655,077 sqm 359,634 sqm B Grade 10.5% Book value $3,252.1m $1,597.6m C Grade 0.8% Like-for-like net income growth 4.0% 5.8% Occupancy 1 97.5% 98.1% N
Slide 50: Office Metrics
office metrics 1 For personal use only Book value Occupancy Average passing No of assets Jun 10 Jun 10 2 gross rent per sqm NSW 12 $1,115 98.0% $542 North Sydney 2 $264 97.4% $626 Sydney Fringe 2 $260 100.0% $514 Sydney CBD 6 $410 97.7% $600 Homebush/Rhodes 2 $181 94.4% $367 VIC 4 $419 98.8% $381 So
Slide 51: Retail Snapshot
retail snapshot For personal use only FY10 FY09 Retail portfolio breakdown by book value Properties owned 25 21 Sub Regional 73.9% Bulky Goods Centre 11.3% NLA 523,250 sqm 467,430 sqm CBD Retail 8.2% Book value $1,768.2m $1,448.3m Neighbourhood 6.7% Like-for-like net income growth 5.2% (0.3)% Occupa
Slide 52: Industrial Snapshot
industrial snapshot For personal use only FY10 1 FY09 Properties owned 17 12 NLA 310,596 sqm 221,957 sqm Book value $412.8m $261.6m Like-for-like net income growth 0.3% (5.2)% Occupancy 97.0% 90.8% NLA Leased 44,115 sqm 31,087 sqm % of portfolio NLA leased 14.7% 14.0% No. of tenant rent reviews 41 2
Slide 53: Investment Management
INVESTMENT MANAGEMENT For personal use only Rationalisation process significantly complete Exited FY10 Mirvac PFA Responsible entity sold to APGF Mirvac UK 1 Sold operating company MREIT Acquired by Mirvac AustralianSuper Mandate terminated 2 Mirvac Aqua Sold 50% interest in management company and M
Slide 54: Diversification of Residential Lots/Revenue
Diversification of residential lots/revenue For personal use only 21,578 lots under control Lots by state Mirvac share of revenue by type Lots by structure NSW 17.7% APARTMENT 56.8% 100% ON BALANCE SHEET 37.6% QLD 21.2% LAND 21.8% JV 9.5% VIC 38.8% HOUSE 21.4% MWRDP 32.2% WA 22.4% PDA 21.6% MIRVAC F
Slide 55: Affordability Has Not Returned to 2008 Levels
affordability has not returned to 2008 levels For personal use only > Influence of price growth and rate rises have changed the affordability environment, however remains reasonable, relative to historic levels Proportion of family income to meet loan repayments Comparison with previous peaks Period
Slide 56: Affordability? House Price to Income Ratio
affordability? house price to income ratio For personal use only Average variable mortgage rate Average variable mortgage rate 1990–1997 12.3% 1998–current 7.15% 5 4 3 2 1 0 Mar 90 Mar 94 Mar 98 Mar 02 Mar 06 Mar 10 Source: ABS, RBA, Mirvac Research > Lower interest rates have been capitalised into
Slide 57: Residential Development – Sydney
residential development – sydney 1 For personal use only CHELSEA GARDENS, CASTLE HILL 63 LOTS $14.1m NEWBURY, STANHOPE 1,747 LOTS $14.9m SPRINGDALE, KILLARA 60 LOTS COMPLETED FY10 EDGEWOOD, WOODCROFT 388 LOTS SYDNEY CBD $0.6m RHODES WATERSIDE, RHODES MIDDLETON GRANGE 844 LOTS 732 LOTS $48.1m $117.1m
Slide 58: Residential Development – Central Coast NSW
residential development – central coast nsw 1 For personal use only GILLIESTON 414 LOTS $57.8m FLETCHER 274 LOTS $23.2m THE ROYAL, NEWCASTLE 338 LOTS $272.2m MAGENTA SHORES, NORTH ENTRANCE 492 LOTS RESIDENTIAL ESTATE $346.6m APARTMENTS MIXED 1) Mirvac’s share of forecast revenue. MIRVAC FY10 results
Slide 59: Residential Development – South East QLD
residential development – south east qld 1 For personal use only MARINER’S PENINSULA, TOWNSVILLE 190 LOTS $94.0m JOYNER 32 LOTS $9.3m HAMILTON 540 LOTS $292.0m WATERFRONT, NEWSTEAD MOSSVALE ON MANLY, 724 LOTS WAKERLEY $838.0m 180 LOTS $16.3m TENNYSON REACH, BRISBANE CBD TENNYSON WATERLINE, BULIMBA 3
Slide 60: Residential Development – Melbourne
residential development – melbourne 1 For personal use only MELBOURNE CBD ROCKBANK 5,780 LOTS YARRA'S EDGE, DOCKLANDS $486.7m 1,172 LOTS $1,058.8m HARCREST, WANTIRNA SOUTH 844 LOTS $68.4m LAUREATE, ALBERT PARK 46 LOTS $87.4m WAVERLEY PARK, MULGRAVE 1,307 LOTS $309.0m ARGYLE AT WATERWAYS, BRAESIDE 14
Slide 61: Residential Development – Perth
residential development – perth 1 For personal use only MINDARIE KEYS, MINDARIE 1,541 LOTS $0.6m JANE BROOK 217 LOTS BEACHSIDE LEIGHTON, DIANELLA $64.6m LEIGHTON 81 LOTS 142 LOTS $39.2m $405.9m SWANBOURNE PERTH CBD 125 LOTS THE PENINSULA, BURSWOOD $72.7m 665 LOTS $231.8m ALEXANDRA VILLAGE, KENSINGTO
Slide 62: Gross Residential Margin
GROSS RESIDENTIAL MARGIN For personal use only Cost of property Gross Gross Development and development development development construction revenue and construction margin margin $m $m $m % FY10 Adjusted for zero margin settlements 379.0 (312.5) 66.5 17.6 Provision projects 251.2 (245.9) Adjusted 6
Slide 63: Segment Information Gross Margin Calculation
Segment information Gross margin calculation For personal use only Sources of Development Elimination Totals development revenue $’000 $’000 $’000 Revenue Development and construction revenue 100% owned & PDAs 861.5 0.7 862.2 A Development management fee revenue MWRDP & PDAs 32.2 (1.1) 31.1 B Share
Slide 64: Hotel Management
hotel management For personal use only Managed and Managed/Strata Strata/Managed Lot Owned Franchise Mirvac provides a reservation Mirvac operates the hotel under Mirvac owns the land, Mirvac does not own or Definition system, sales and marketing a lease agreement with individual building and hotel
Slide 65: Hotel Management Brand Portfolio
hotel management brand portfolio For personal use only 24 hotels 1 hotel Future Openings 3,074 rooms 107 rooms 6 hotels 1 hotel 1,188 rooms 97 rooms 88 rooms Opening Nov 10 8 hotels 1 hotel 697 rooms 65 rooms 1 hotel 1 hotel 241 rooms 59 rooms 2 hotels 1 hotel 229 rooms 55 rooms MIRVAC FY10 results
Slide 66: Corporate Responsibility and Sustainability
corporate responsibility and sustainability For personal use only Mirvac’s strong commitment means managing environmental, social and economic risks and responsibilities, while delivering sustainable outcomes Recent industry leadership > 1st zero carbon concept home Harmony 9, Waverley Park, VIC > 1
Slide 67: Corporate Responsibility and Sustainability
corporate responsibility and sustainability For personal use only 2010/2009 Awards > 2010 UNAA World Environment Day Green Building Award — Bond University Mirvac School of Sustainable Development, QLD > 2010 Premier of Victoria’s Sustainability in the Built Environment Award — Harmony 9, Waverley P
Slide 68: 1H11 Calendar
1H11 Calendar For personal use only Upcoming conference attendance: Event Location Date Goldman Sachs JBWere Australasian Investment Forum London 6-7 September 2010 Merrill Lynch Annual Investment Conference New York 9-10 September 2010 CLSA Conference Hong Kong 16-17 September 2010 Merrill Lynch Gl
Slide 69: For personal use only
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