Mirvac Group · ASX:MGR
Mirvac — Shareholder Meeting (November 2011)
57 slides from Mirvac's shareholder meeting presentation, Nov 17, 2011
Slide 1: Chairman's & Managing Director's Presentations
For personal use only 17 November 2011 MIRVAC GROUP CHAIRMAN’S & MANAGING DIRECTOR’S PRESENTATIONS Please find attached copies of the Chairman’s Address and presentation slides and the Managing Director’s Address and presentation slides to be presented at, or immediately following, the Annual Genera
Slide 2: Chairman's Address to the 2011 Annual General Meeting
Chairman’s Address For personal use only to the 2011 Annual General Meeting / General Meetings of Mirvac Limited and Mirvac Property Trust Thursday 17 November 2011 Cabaret Ballroom, Citigate, Perth Mirvac Limited ABN: 92 003 280 699 and Mirvac Funds Limited ABN: 70 002 561 640 (as responsible entit
Slide 3: Chairman's Address
Chairman’s Address Good morning. I’m James MacKenzie, the Chairman of the Board of Directors of Mirvac Limited and Mirvac Funds Limited, the responsible entity of the Mirvac Property Trust. For personal use only Welcome to the Annual General Meeting of Mirvac Limited and the General Meeting of the M
Slide 4: For personal use only
In addition, you may have read references yesterday in the press to Mirvac’s involvement in proposed projects in Karratha which is in the Pilbara region of Western Australia. We are pleased that Mirvac has been announced as the preferred proponent in the development of the Karratha City Centre and M
Slide 5: For personal use only
Australian investment grade properties, and carefully selected residential and commercial developments. For the year ended 30 June 2011, Mirvac’s operating profit was $358.5 million, representing an increase of 30 per cent, and earnings per stapled security were 10.5 cents, which was towards the upp
Slide 6: For personal use only
affected by oversupply and discounting, and with little prospect of improved market conditions we resolved to expedite our exit from a number of these projects. In addition, the Tennyson Reach project on the banks of the Brisbane River was affected by flooding in January, leading to delays in the sa
Slide 7: For personal use only
A third area of focus from international investors relates to progress made in the strategic review of Mirvac’s hotel operations. We announced this strategic review in June, and progress to date has been pleasing. Stage one of the review concluded in September, during which a diverse range of partie
Slide 8: For personal use only
year. I encourage all securityholders to obtain a copy of this report, which sets out the commitments the Group is making to sustainability at a corporate level, together with achievements at a project level. Mirvac’s sustainable development credentials were enhanced through a number of awards durin
Slide 9: Remuneration
salary increases averaging a 1per cent increase, while STI was paid at 70per cent of target. During the year, your Board and Managing Director appropriately recognised changes in the broader property industry, prompting us to put in place a new service agreement for the Managing Director. Peter Hawk
Slide 10: For personal use only
These appointments will see the Mirvac Board expand to seven non-executive directors and one executive director. On a related matter, Sonya Harris, our Company Secretary will resign as of the close of business today. I wish to thank Sonya for her contribution as Company Secretary. For personal use o
Slide 11: Annual General and General Meetings November 2011
annual general and general For personal use only meetings 17 november 2011 Old Treasury Building, Perth, WA
Slide 12: Items of Business
ITEMS OF BUSINESS For personal use only 1) Consideration of Reports 2) Re-election and election of Directors 2.1 Peter Hawkins 2.2 Elana Rubin 3) Remuneration Report 4) Amendments to the Constitution of MPT 5) Participation of the Managing Director in the Long Term Performance Plan MIRVAC GROUP annu
Slide 13: Consideration of Reports
AGENDA ITEM 1 For personal use only Consideration of Reports MIRVAC GROUP annual general & General meetings 17 november 2011 page 3
Slide 14: Re-election and Election of Directors
AGENDA ITEM 2 For personal use only Re-election and election of Directors MIRVAC GROUP annual general & General meetings 17 november 2011 page 4
Slide 15: Re-election of Peter Hawkins
AGENDA ITEM 2.1 For personal use only Re-election and election of Directors > Re-election of Peter Hawkins MIRVAC GROUP annual general & General meetings 17 november 2011 page 5
Slide 16: Re-election of Peter Hawkins: Proxies Received
AGENDA ITEM 2.1 For personal use only Re-election and election of Directors > Re-election of Peter Hawkins Proxies Received For Open Against Abstain Total 2,342,250,700 11,328,081 12,488,256 3,436,217 2,366,067,037 MIRVAC GROUP annual general & General meetings 17 november 2011 page 6
Slide 17: Election of Elana Rubin
AGENDA ITEM 2.2 For personal use only Re-election and election of Directors > Election of Elana Rubin MIRVAC GROUP annual general & General meetings 17 november 2011 page 7
Slide 18: Election of Elana Rubin: Proxies Received
AGENDA ITEM 2.2 For personal use only Re-election and election of Directors > Election of Elana Rubin Proxies Received For Open Against Abstain Total 2,342,291,723 11,342,082 12,650,487 3,218,962 2,366,284,292 MIRVAC GROUP annual general & General meetings 17 november 2011 page 8
Slide 19: Remuneration Report
AGENDA ITEM 3 For personal use only Remuneration Report MIRVAC GROUP annual general & General meetings 17 november 2011 page 9
Slide 20: Remuneration Report: Peter Hawkins
AGENDA ITEM 3 For personal use only Remuneration Report > Peter Hawkins — Chairman, Human Resources Committee MIRVAC GROUP annual general & General meetings 17 november 2011 page 10
Slide 21: Remuneration Report: Proxies Received
AGENDA ITEM 3 For personal use only Remuneration Report Proxies Received For Open Against Abstain Total 2,253,629,143 10,457,592 98,413,240 7,005,340 2,362,499,975 MIRVAC GROUP annual general & General meetings 17 november 2011 page 11
Slide 22: Amendment to the Constitution of MPT
AGENDA ITEM 4 For personal use only Amendment to the Constitution of MPT MIRVAC GROUP annual general & General meetings 17 november 2011 page 12
Slide 23: Amendment to the Constitution: Proxies Received
AGENDA ITEM 4 For personal use only Amendment to the Constitution of MPT Proxies Received For Open Against Abstain Total 2,346,875,659 11,958,335 6,409,064 4,256,216 2,365,243,058 MIRVAC GROUP annual general & General meetings 17 november 2011 page 13
Slide 24: Participation by the Managing Director in the LTPP
AGENDA ITEM 5 For personal use only Participation by the Managing Director in the Long Term Performance Plan MIRVAC GROUP annual general & General meetings 17 november 2011 page 14
Slide 25: Managing Director LTPP: Proxies Received
AGENDA ITEM 5 For personal use only Participation by the Managing Director in the Long Term Performance Plan Proxies Received For Open Against Abstain Total 2,263,166,559 11,038,724 88,498,189 6,801,843 2,362,703,472 MIRVAC GROUP annual general & General meetings 17 november 2011 page 15
Slide 26: www.mirvac.com
For personal use only www.mirvac.com
Slide 27: Managing Director's Presentation November 2011
Managing director’s For personal use only presentation 17 november 2011 Old Treasury Building, Perth, WA
Slide 28: Old Treasury Building, Perth, WA
For personal use only Old Treasury Building, Perth, WA
Slide 29: Old Treasury Building, Perth, WA
For personal use only Old Treasury Building, Perth, WA
Slide 30: Old Treasury Building, Perth, WA
For personal use only Old Treasury Building, Perth, WA
Slide 31: Old Treasury Building, Perth, WA
For personal use only Old Treasury Building, Perth, WA
Slide 32: Old Treasury Building, Perth, WA
For personal use only Old Treasury Building, Perth, WA
Slide 33: Old Treasury Building, Perth, WA
For personal use only Old Treasury Building, Perth, WA
Slide 34: Old Treasury Building, Perth, WA
For personal use only Old Treasury Building, Perth, WA
Slide 35: Mirvac's Vision and Strategy
MIRVAC’s VISION and strategy For personal use only Sustainable model delivers across business cycles Defensive Active core upside $1.9bn 2 $5.9bn 1 1) By book value, including assets under development and indirect investments. 2) Development Division total inventory, investments and loans in associa
Slide 36: Achievements and Key Deliverables
achievements and key deliverables For personal use only 3 Achieved FY11 operating EPS guidance delivering 13.7% growth 3 Refinanced $2.1 billion in facilities and extended debt maturity profile 3 Maintained conservative gearing at 26.3% 3 Improved portfolio quality of MPT with asset disposals and We
Slide 37: Investment – MPT
investment – MPT For personal use only High quality portfolio with strategic office overweight position > 89.1% of MPT office now Premium or A Grade 1 > 87.3% of FY12 rent review contracts fixed or CPI > Modern office portfolio with 58.8% 2 of portfolio under 5 years old > MPT has the 3rd largest A-
Slide 38: Mirvac's Development Division
MIRVAC’S DEVELOPMENT DIVISION For personal use only Mirvac’s competitive advantage in integrated model sales & ACQUISITION design development construction marketing > Local > Specialists in > Project > Control process > Local market relationships product type management > Flexibility knowledge > Kno
Slide 39: Commercial Development Activity: Miller Street
COMMERCIAL DEVELOPMENT ACTIVITY For personal use only 40 Miller Street, North Sydney, NSW (office) > Developed by Mirvac in 2000 > 4 Star NABERS Energy Rating MIRVAC GROUP Managing director’s presentation 17 november 2011 page 13
Slide 40: Commercial Development Activity: Darling Island
COMMERCIAL DEVELOPMENT ACTIVITY For personal use only 1 Darling Island, Pyrmont, NSW (office) > Developed by Mirvac in 2006 > 5 Star NABERS Energy Rating MIRVAC GROUP Managing director’s presentation 17 november 2011 page 14
Slide 41: Commercial Development Activity: 10-20 Bond Street
COMMERCIAL DEVELOPMENT ACTIVITY For personal use only 10-20 Bond Street, Sydney, NSW (Office) 1 > $60m+ refurbishment complete > 10-20 Bond Street now 89.9% 2 committed >Ahead of 70% leasing target by December 2011 1) 50% owned by Investa Office. 2) Includes 78.5% signed leases and 11.4% Heads of Ag
Slide 42: Commercial Development Activity: Nexus Industry Park
COMMERCIAL DEVELOPMENT ACTIVITY For personal use only Nexus Industry Park (Building 4), Prestons, NSW (Industrial) > Practical completion achieved in October 2011 > 100% pre-leased to HPM Legrand Australia MIRVAC GROUP Managing director’s presentation 17 november 2011 page 16
Slide 43: Strategic Relationships: 8 Chifley Square
Strategic relationships For personal use only Part share sell down of project to wholesale investor releases capital 8 Chifley Square, Sydney, nsw (office) Transaction: 50% sale Settlement Date: July 2011 Purchaser: K-REIT Asia Vendor: Mirvac Price: $154.4 to 169.8 million Capitalisation rate: 6.65%
Slide 44: Strategic Relationships: Hoxton Distribution Park
Strategic relationships For personal use only Part share sell down of project to wholesale investor releases capital Hoxton Distribution Park, NSW (Industrial) Transaction: 50% sale Settlement: Expected March 2012 Purchaser: Aviva Investors Vendor: Mirvac Price: $97.4 million Capitalisation rate: 7.
Slide 45: Residential Development – Strategic Positioning
residential development – strategic positioning For personal use only Expanding Mirvac’s brand into mid price Mirvac’s 39 years of experience in point delivers a larger purchaser base Apartments captures structural change Average price of Mirvac’s apartments 1 Medium density house approvals as a sha
Slide 46: Residential Development: ERA Pacific Place
Residential development For personal use only Right project, right location, right price point ERA Pacific Place, Chatswood, NSW > Launched March 2011 > Now 96.6% sold > Construction commenced in June 2011 and scheduled for completion FY14 MIRVAC GROUP Managing director’s presentation 17 november 20
Slide 47: Residential Development: Yarra Point
Residential development For personal use only Right project, right location, right price point Yarra Point, Yarra’s Edge, VIC > Launched October 2010 > Now 78% sold >Construction completion and settlement is scheduled for 2013 MIRVAC GROUP Managing director’s presentation 17 november 2011 page 21
Slide 48: Corporate Responsibility and Sustainability
corporate responsibility and sustainability For personal use only Bond University, QLD FY11 Achievements: >First in the Real Estate Sector for the inaugural Global FTSE4Good ESG Ratings > Highest score, “Best Practice”, for environmental performance by CGI Lewis & Co. > Signatory of the City of Sydn
Slide 49: Corporate Responsibility and Sustainability: Awards
corporate responsibility and sustainability For personal use only FY11 Awards: > The Eco Collection, WA — WA HIA Greensmart Awards for Energy Efficiency — WA Property Council Awards — The AECOM award for Sustainable Developments > Harmony 9, Waverley Park, VIC — Banksia Foundation — Built Environmen
Slide 50: Summary
SUMMARY For personal use only High quality MPT portfolio provides stable performance Development Division leverages commercial expertise De-risk future residential development earnings via pre-sales Residential brand expansion to mid market captures apartment demand Introduction of strategic relatio
Slide 51: Hoxton Park Distribution Centre
hoxton park distribution centre, hoxton park, nsw For personal use only
Slide 52: Managing Director's Address
Managing Director’s Address Thank you James and good morning everyone. As James has outlined, Western Australia is an important market for Mirvac, as we are active herein both the residential and commercial markets. For personal use only Before I begin, can I first turn your attention to the images
Slide 53: For personal use only
Maintaining a sustainable business model is a key focus for Mirvac. With this in mind our objective is to generate 80 per cent of net operating profit after tax from our Investment Division and 20 per cent from development activities through the cycle. Our achievements and key deliverables remain co
Slide 54: For personal use only
Our Development Division operates across New South Wales, Queensland, Victoria and of course here in Western Australia. Residential product includes apartments and masterplanned communities. On the commercial side we have a strong track record in the development of investment grade properties and th
Slide 55: For personal use only
integrated development model. Demolition of the existing building was completed in May 2011 and construction commenced in June 2011. Our team here at Mirvac manages each stage of the development, from the design, to development approvals, construction, leasing, as well as the introduction of a strat
Slide 56: For personal use only
received State Government approval for the development in early March. The team worked together to fast-track the design to be ready for construction in only three months after planning approval was received. Over 90 per cent of this development was sold in less than 11 hours at its weekend release
Slide 57: Closing remarks
In closing I would like to reiterate that we have a strong, resilient and focused business. Our strategy is to generate secure and predictable revenue streams through the cycle. Mirvac’s long-term property investments deliver recurring earnings that support our distributions. For personal use only E