Mirvac Group · ASX:MGR
Mirvac — H1 2021 Earnings Presentation
33 slides from Mirvac's earnings presentation, Feb 12, 2021
Slide 1: 1H21 Results: Reimagine Urban Life
1H21 Reimagine Urban Life Results 12 February 2021
Slide 2: Acknowledgement of Country
1H21 RESULTS Acknowledgement of Country Mirvac acknowledges the Traditional Owners of the land on which we work, and we pay our respect to Elders past and present EY Centre, 200 George Street, Sydney 12 FEBRUARY 2021 — 1
Slide 3: Agenda
1H21 RESULTS Agenda Commercial Financial & Mixed-Use Commercial Summary Overview Results Asset Creation Property Residential & Guidance SUSAN LLOYD-HURWITZ STEPHEN GOULD BRETT DRAFFEN CAMPBELL HANAN STUART PENKLIS SUSAN LLOYD-HURWITZ CEO & MANAGING DIRECTOR GROUP FINANCE CHIEF INVESTMENT OFFICER HEA
Slide 4: Overview
Overview Susan Lloyd-Hurwitz CEO & Managing Director Interchange Pavilion, South Eveleigh, Sydney 12 FEBRUARY 2021 — 3
Slide 5: The ongoing importance and evolution of cities
1H21 RESULTS The ongoing importance and evolution of cities As Australia recovers from the pandemic, cities and urban environments will evolve but retain their importance as hubs for high-value knowledge jobs and social connection ECONOMIC GROWTH AND JOBS ECONOMIC ACTIVITY INDEX OF GROSS REGIONAL PR
Slide 6: Mirvac well positioned to meet needs of changing cities
1H21 RESULTS Mirvac well positioned to meet needs of changing cities > Cities will retain importance, but they will change - citizens want better Mixed-Use: Waterloo Metro Quarter, Sydney (artist impression) amenity, connectivity and convenience > Mirvac will continue to adapt to the continued evolu
Slide 7: Asset creation capability delivering solid results despite pandemic
1H21 RESULTS Asset creation capability delivering solid results despite pandemic $276m 1H21 OPERATING PROFIT $364m 1H21 EBIT $450m OPERATING CASHFLOW +10% ON 2H20 +8% ON 2H20 +346% ON 2H20 7.0c 21.4% ~$24bn 1H21 EPS GEARING 2 +11% ON 2H20 -140bp ON FY20 4.8c $2.58 ASSETS UNDER MANAGEMENT +4% ON FY20
Slide 8: Momentum continued and positioned for opportunities
1H21 RESULTS Momentum continued and positioned for opportunities RESTOCKED ACTIVE RESPONSE RESIDENTIAL PIPELINE Sold Commenced PROGRESSED OVER 1H21 EXECUTED REZONING & 3 DEVELOPMENT COMPLETIONS 340 ADELAIDE STREET, BRISBANE 157 construction 1,171 lots DEVELOPMENT APPROVALS SECURED ~$2.4bn LEASING DE
Slide 9: Capital partnering delivering growth and returns
1H21 RESULTS Capital partnering delivering growth and returns > Award-winning asset creation capability providing core assets for long-term ownership for the Group and capital partners > Mirvac typically co-owns a significant stake alongside our capital partners, creating aligned interests in our cu
Slide 10: How we do what we do
1H21 RESULTS How we do what we do RESOURCES REIMAGINED CONTINUED MOMENTUM IN ESG PERFORMANCE > Installed three 100kW solar PV systems across the industrial portfolio, eliminating over > Maintained a AAA rating in the MSCI ESG Index 310 tonnes of carbon emissions per year > A+ ratings from the Princi
Slide 11: Financial Results
Financial 1H21 RESULTS Results Stephen Gould Group Finance The Fabric, Altona North, Melbourne (artist impression) 12 FEBRUARY 2021 — 10
Slide 12: 1H21 financial results
1H21 RESULTS 1H21 financial results 1H20 2H20 1H21 1H21 OFFICE & INDUSTRIAL $M $M $M ON 2H20 > NOI growth from recently completed asset developments and lower COVID-19 rental relief, plus additional asset and funds management income offset by lower development earnings Office & Industrial 251 233 24
Slide 13: Prudent balance sheet to support resilience through cycle
1H21 RESULTS Prudent balance sheet to support resilience through cycle A3/A- CREDIT RATINGS 21.4% GEARING 1 $1.3bn CASH & UNDRAWN 6.8 yrs AVERAGE DEBT MOODY’S / FITCH FACILITIES MATURITY PROFILE 3.7% AVERAGE No significant debt maturities $450m 1H21 OPERATING Access to diverse capital sources BORROW
Slide 14: Commercial & Mixed-Use Asset Creation
1H21 RESULTS Commercial & Mixed-Use Asset Creation Brett Draffen Chief Investment Officer Waterloo Metro Quarter, Sydney (artist impression) 12 FEBRUARY 2021 — 13
Slide 15: Track record of value creation in Commercial & Mixed-Use
1H21 RESULTS Track record of value creation in Commercial & Mixed-Use > Unlocking longer-term value through our ability to create quality assets > Over the last six years, delivered over $900m of value creation, comprising $367m of development EBIT and $546m of development revaluation gain (NTA), an
Slide 16: Value creation case studies: South Eveleigh and Olderfleet
1H21 RESULTS Value creation case studies: South Eveleigh and Olderfleet SOUTH EVELEIGH, SYDNEY OLDERFLEET, 477 COLLINS STREET, MELBOURNE COMBINED END VALUE ~$1.9bn 1 COMBINED VALUE CREATION ~$430m Completion/capitalisation FY20-21 Completion/capitalisation FY21 2 End value (100%): $1.1bn 1 End value
Slide 17: ~$28bn development pipeline key to future value
1H21 RESULTS ~$28bn development pipeline key to future value OFFICE / MIXED-USE INDUSTRIAL BUILD TO RENT RESIDENTIAL ~$8.8bn 1 ~$1.5bn 1 ~$1.4bn 1 ~$16.0bn 1 Locomotive Workshops, Voyager, Yarra’s Edge, 80 Ann Street, Switchyard, Auburn, LIV Munro, Aspect, Kemps LIV Newstead, 7 Spencer Street / Eliz
Slide 18: Commercial Property
1H21 RESULTS Commercial Property EY Centre, 200 George Street, Sydney Campbell Hanan Head of Commercial Property 12 FEBRUARY 2021 — 17
Slide 19: Streamlining operations into one Commercial division
1H21 RESULTS Streamlining operations into one Commercial division > Commercial Property combines the recurring income focussed asset portfolios into one group > Operations, finance, leasing, customer experience and asset management have been streamlined with end-to-end management of assets within on
Slide 20: Cash collection improving across portfolio
1H21 RESULTS Cash collection improving across portfolio > 93% of rent collected in 1H211, with Office and Industrial sectors maintaining high levels > Retail cash collection rates improving as stores reopen and foot traffic increases > Tenant rent waivers and provisions expensed and reflected in ope
Slide 21: Modern Office buildings with long WALE and limited near term expiries
1H21 RESULTS Modern Office buildings with long WALE and limited near term expiries RESILIENT OFFICE PORTFOLIO LIMITED NEAR TERM LEASE EXPIRIES 5 > Office NOI up 2% on pcp to $180m, including like-for-like NOI growth of 0.5% including COVID-19 impacts 70.0% 67% > Increased WALE to 6.7 1 years from 6.
Slide 22: High-quality Industrial portfolio with development upside
1H21 RESULTS High-quality Industrial portfolio with development upside HIGH-QUALITY AND RESILIENT PORTFOLIO Switchyard, Auburn, Sydney (artist impression) ~$260m > High occupancy of 99.7% 1 and maintained attractive WALE of 7.3 years 2 EXPECTED END VALUE 4 > Industrial NOI up 3.6%, including like-fo
Slide 23: Retail stabilising for recovery
1H21 RESULTS Retail stabilising for recovery MULTI-SPEED RECOVERY CONTINUES MONTHLY PHYSICAL SALES GROWTH: BY CENTRE LOCATION > Steady improvement in foot traffic, sales and basket sizes across the portfolio 20% > Majority of categories recovering, however services, entertainment and dining continue
Slide 24: Continuing to progress Build to Rent strategy
1H21 RESULTS Continuing to progress Build to Rent strategy > Completed construction of LIV Indigo, Sydney, with first customers moving in during September 2020 LIV INDIGO, SYDNEY > 48% leased 1, with revenue in-line with expectations of >4.5% YoC > Expected stabilisation 12-18 months MIRVAC STRATEGI
Slide 25: Residential
Residential 1H21 RESULTS Stuart Penklis Head of Residential Green Square, Sydney (artist impression) 12 FEBRUARY 2021 — 24
Slide 26: Strong results sustained
1H21 RESULTS Strong results sustained Capitalised on opportunities despite uncertainty to leverage the Mirvac brand and produce strong results 1H21 MAJOR SETTLEMENTS PROJECT LOTS STRONG SALES ACROSS LOCATIONS AND PRICE POINTS Pavilions, NSW 163 1,076 > Successfully launched three new projects – Port
Slide 27: Capitalising on stimulus driven demand
1H21 RESULTS Capitalising on stimulus driven demand > $946m of Residential pre-sales, with a net increase of $155m in masterplanned IMPROVING SALES PROFILE communities (MPC) pre-sales > Released over 1,200 lots, including an acceleration of over 750 MPC lots 400 lots in response to stimulus demand >
Slide 28: Product diversification to meet diverse customer needs
1H21 RESULTS Product diversification to meet diverse customer needs INNER RING MIDDLE RING OUTER RING Green Square, Sydney (artist impression) Georges Cove, Sydney (artist impression) Woodlea, Melbourne INNER RING MIDDLE RING OUTER RING ~3,600 lots ~3,600 lots ~20,600 lots ~$4.9bn ~$3.0bn ~$5.8bn EX
Slide 29: Residential positioned to capture demand
1H21 RESULTS Residential positioned to capture demand > On track to release four new projects in the 2H21: Willoughby, MAJOR PROJECT SETTLEMENT PROFILE 3 NSW, Quay Waterfront, QLD, Tullamore Apartments, VIC, and FY21 FY22 FY23 FY24 FY25+ Menangle, NSW Olivine VIC I MPC I 3,913 lots > Diversified pro
Slide 30: Summary & Guidance
Summary & Guidance Susan Lloyd-Hurwitz CEO & Managing Director WeShow, East Village, Sydney 12 FEBRUARY 2021 — 29
Slide 31: Positioned to capitalise on recovery
1H21 RESULTS Positioned to capitalise on recovery FY21 GUIDANCE EPS 13.1-13.5 cpss DPS 9.6-9.8 cpss Tullamore, Melbourne (artist impression) 12 FEBRUARY 2021 — 30
Slide 32: Important Notice
1H21 RESULTS Important Notice Mirvac Group comprises Mirvac Limited (ABN 92 003 280 699) and Mirvac Property Trust (ARSN 086 780 An investment in Mirvac stapled securities is subject to investment and other known and unknown risks, 645). This presentation (“Presentation”) has been prepared by Mirvac
Slide 33: Thank you
Thank Reimagine Urban Life you Olderfleet, 477 Collins Street, Melbourne CONTACT MIRVAC GROUP Bryan Howitt: General Manager, Investor Relations & Capital Allocation | investor.relations@mirvac.com Level 28, 200 George Street, Sydney NSW 2000