Mirvac Group · ASX:MGR
Mirvac — Macquarie Australia Conference 2022
22 slides from Mirvac's conference presentation, May 2, 2022
Slide 1: Macquarie Australia Conference
Macquarie Australia Conference For personal use only Susan Lloyd‑Hurwitz 3 May 2022 CEO & MANAGING DIRECTOR
Slide 2: Acknowledgement of Country
MACQUARIE AUSTRALIA CONFERENCE Acknowledgement of Country For personal use only Mirvac pays its respect to all Aboriginal and Torres Strait Islander peoples, Traditional Custodians of the lands and waters of Australia where we live, work and play. ‘Reimagining Country’ by Riki Salam (Mualgal, Kaurar
Slide 3: Diversified integrated model delivers value to our stakeholders
MACQUARIE AUSTRALIA CONFERENCE Diversified integrated model delivers value to our stakeholders For personal use only > Mirvac is a leading, diversified Australian property group, with an integrated development and asset management capability, operating across residential, retail, office, industrial
Slide 4: Integrated model drives growth through cycles
MACQUARIE AUSTRALIA CONFERENCE Integrated model drives growth through cycles For personal use only THE MIRVAC DIFFERENCE INTEGRATED ASSET CREATION AND CURATION CAPABILITY IS A KEY COMPETITIVE ADVANTAGE: 'FLY-WHEEL' EFFECT HAS CONSIDERABLE BENEFITS TO STAKEHOLDERS ASSET CREATION > Development capabil
Slide 5: Integrated model delivers outperformance
MACQUARIE AUSTRALIA CONFERENCE Integrated model delivers outperformance For personal use only ANNUALISED TOTAL RETURN PERFORMANCE CONTINUED GROWTH IN EXTERNAL AUM Mirvac Portfolio vs Australian Market Benchmark ~$5bn 12% $16.0 billion 1 10.8% >22% 9.9% Future potential 9.3% organic growth from 9.0%
Slide 6: Reiterated guidance illustrates the resilience of the business model
MACQUARIE AUSTRALIA CONFERENCE Reiterated guidance illustrates the resilience of the business model For personal use only OPERATING EPS AND DPS 16.0 cents at least 15.0 14.0 14.0 GUIDANCE FY22 EPS 12.0 at least 7.1% GROWTH ON FY21 10.2 10.0 9.9 8.0 6.0 FY21 EPS FY22 EPS GUIDANCE FY21 DPS FY22 DPS GU
Slide 7: Culture & capability are key to our success
MACQUARIE AUSTRALIA CONFERENCE Culture & capability are key to our success For personal use only of competitiv source ea al dv t ic an ri HIGHLY MOTIVATED WORKFORCE 92% 93% t STRONG EMPLOYMENT EQUILEAP #1 IN THE WORLD FOR AFR BOSS #1 BEST PLACES C ag WITH EMPLOYEE BRAND AND CULTURE GENDER EQUALITY T
Slide 8: Sustainability is at the heart of everything that we do
MACQUARIE AUSTRALIA CONFERENCE Sustainability is at the heart of everything that we do For personal use only > Mirvac’s sustainability strategy, This Changes Everything, was launched in 2014 > The strategy was refined in 2018, focussing on six material ESG issues: – Climate change and natural resour
Slide 9: The value proposition
MACQUARIE AUSTRALIA CONFERENCE The value proposition For personal use only GROWTH CATALYSTS > Short term: Quality Investment portfolio benefiting from re-opening, immigration/student returns and bifurcation > Medium term: Delivery of Residential apartments pipeline into LONG TERM under-supplied mark
Slide 10: Quality assets driving office recovery
MACQUARIE AUSTRALIA CONFERENCE Quality assets driving office recovery For personal use only LONG TERM MEDIUM TERM SHORT TERM SYDNEY A-GRADE VACANCY – ASSETS BUILT PRE/POST 2000 95.3% ~$29BN (TRUST) (RESI) PIPELINE 1,800,000 sqm 12% GROWTH CATALYSTS OCCUPANCY 1 1,654,811 10.50% 10 1,200,000 6.2 yrs 8
Slide 11: Urban Retail portfolio to benefit from re-opening of borders and CBD activations
MACQUARIE AUSTRALIA CONFERENCE Urban Retail portfolio to benefit from re-opening of borders and CBD activations For personal use only LONG TERM MEDIUM TERM SHORT TERM CASH COLLECTION AFFECTED BY RESTRICTIONS BUT IMPROVING 4 97.4% ~$29BN (TRUST) (RESI) PIPELINE GROWTH CATALYSTS 100% 98% OCCUPANCY 1 9
Slide 12: Industrial vacancy in Sydney remains tight
MACQUARIE AUSTRALIA CONFERENCE Industrial vacancy in Sydney remains tight For personal use only LONG TERM MEDIUM TERM SHORT TERM INDUSTRIAL VACANCY IN SYDNEY BELOW 1% 100% >100,000 sqm ~$29BN (TRUST) (RESI) PIPELINE 1,200,000 sqm GROWTH CATALYSTS OF PRE-LEASING AT ASPECT 4 OCCUPANCY 1 800,000 6.9 yr
Slide 13: Low dwelling vacancy expected to drive rent growth in Build to Rent
MACQUARIE AUSTRALIA CONFERENCE Low dwelling vacancy expected to drive rent growth For personal use only in Build to Rent LONG TERM MEDIUM TERM SHORT TERM ~$29BN (TRUST) (RESI) PIPELINE RESIDENTIAL VACANCY RATES (All dwellings, seasonally adjusted) LIV INDIGO GROWTH CATALYSTS 98%LEASED 1 6% 4 ~$1.4bn
Slide 14: Residential expect >2,500 settlements for FY22
MACQUARIE AUSTRALIA CONFERENCE Residential expect >2,500 settlements for FY22 For personal use only LONG TERM MEDIUM TERM 2,332 1,645 SHORT TERM ~$29BN (TRUST) (RESI) PIPELINE SALES YTD SETTLEMENTS YTD GROWTH CATALYSTS (3Q22: 518) 1 (3Q22: 342) 1 ~$1.6bn PRE-SALES 1 75% OWNER OCCUPIER PRE-SALES 1 1.
Slide 15: Medium term earnings growth from apartment completions
MACQUARIE AUSTRALIA CONFERENCE Medium term earnings growth from apartment completions LONG TERM For personal use only MEDIUM TERM SHORT TERM Expected settlement profile (lots) 2 Project Value Major projects State Stage (including GST) 1 Ownership 2H22 FY23 FY24 FY25 FY26 Pavilions NSW All stages $35
Slide 16: Apartment fundamentals supported by relative affordability and supply
MACQUARIE AUSTRALIA CONFERENCE Apartment fundamentals supported by relative affordability and supply LONG TERM For personal use only MEDIUM TERM SHORT TERM APARTMENT OUTLOOK SUPPORTED BY VALUE PROPOSITION AND SUPPLY SHORTAGES APARTMENT LAUNCHES WELL-TIMED TO MEET FUTURE APARTMENT RELATIVE AFFORDABIL
Slide 17: ~$29bn development pipeline to deliver long term growth
MACQUARIE AUSTRALIA CONFERENCE ~$29bn development pipeline to deliver long term growth LONG TERM 1 For personal use only MEDIUM TERM SHORT TERM OFFICE INDUSTRIAL BUILD TO RENT MIXED USE RESIDENTIAL ~$6.5bn 1 ~$2.3bn 1 ~$1.4bn 1 ~$2.7bn 1 ~$16.4bn 1 80 Ann Street, LIV Munro, Switchyard Auburn, Aspect
Slide 18: Integrated development capability creating value
MACQUARIE AUSTRALIA CONFERENCE Integrated development capability creating value For personal use only xed use develop ASSET VALUE CREATION ouse mi men DEVELOPMENT FLEXIBILITY n-h t ca c i pa a bi ri v l M ity > $1bn of value created over last 6.5 years > Adjust designs to meet evolving including $12
Slide 19: Pipeline to drive considerable value to investors in the long term
MACQUARIE AUSTRALIA CONFERENCE Pipeline to drive considerable value to investors in the long term For personal use only TRACK RECORD POTENTIAL OF RETURNS ASSET CREATION CAPABILITY DRIVING FUTURE INCOME AND RETURNS FUTURE RETURNS POTENTIAL FUTURE RECURRING ANNUAL NOI – 50% SHARE 1 ~$120m >$250m $300m
Slide 20: For personal use only
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Slide 21: Important notice
MACQUARIE AUSTRALIA CONFERENCE Important notice 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 unknown risks, (ARSN 086 780 645). This presentation (“Pr
Slide 22: Thank you
For personal use only AUTHORISED FOR RELEASE BY Thank you The Mirvac Group Continuous Disclosure Committee CONTACT Gavin Peacock, CFA MIRVAC GROUP General Manager Investor Relations Level 28, 200 George Street, investor.relations@mirvac.com Sydney NSW 2000