Mirvac Group · ASX:MGR
Mirvac — H1 2025 Earnings Presentation
29 slides from Mirvac's earnings presentation, Feb 14, 2025
Slide 1: 1H25 Results
1H25 Results 14 FEBRUARY 2025 r) ffe di ay m g n si de al f in o n, si es pr m ti is rt (a n ey yd e ,S id u rs r bo Ha
Slide 2: Agenda
1H25 Results 14 February 2025 Agenda Financial Overview Performance Investment 3 7 11 Campbell Hanan Courtenay Smith Richard Seddon Group CEO & Managing Director Chief Financial Officer CEO, Investment ) er di ff Ha ay rb m ou n rsi ig de es , Sy f in al d dne y (ar tist impression, Summary Funds De
Slide 3: Acknowledgement of Country
1H25 Results 14 February 2025 e. t iv ea Cr 27 e ar e W of j i) l an Ya k u Ku g, re u ra Ka l, l ga ua (M l am Sa ki Ri by d te r ea ’, c ry u nt Co ng i ni ag m ei ‘R Acknowledgement of Country Mirvac acknowledges Aboriginal and Torres Strait Islander peoples as the Traditional Owners and Custodia
Slide 4: Overview
1H25 Results 14 February 2025 R S E T C E AT I O AS elopm ent N Dev Development EBIT NTA Uplift U R AT Delivers new S ET C IO sustainable assets AS Inves tment N New recurring high quality rental income New recurring asset & funds management fees Funds Ass e t m a n a g e m e nt Overview ne ur bo el
Slide 5: Setting the business up to return to growth
1H25 Results 14 February 2025 Setting the business up to return to growth Expanding living exposure – BTR and Land Lease development completions and development sites secured Strengthened balance sheet – progressed disposal program, redeploying capital towards higher returns Best in class investment
Slide 6: 1H25 results highlights
1H25 Results 14 February 2025 1H25 results highlights 1H25 Group EBIT 1H25 Operating Profit 1H25 EPS 1H25 DPS NTA1 Pro forma headline gearing2 $361m $236m 6.0c 4.5c $2.31 1H24: $372m 1H24: $252m 1H24: 6.4c 1H24: 4.5c FY24: $2.36 26.3% FY24 26.7% Cash flow resilient investments Leaders in living Uniq
Slide 7: Strong Culture and Sustainability focus
1H25 Results 14 February 2025 Strong Culture and Sustainability focus TARGETS1 2030 Net positive for Environment Workforce & Community Governance carbon (Scope 1, 2 & 3) and water ZERO WASTE Net positive 5.4 NABERS average TO LANDFILL carbon Energy office portfolio 2024 5 star Scope 1&2 17 buildings
Slide 8: Financial Performance
1H25 Results 14 February 2025 R S E T C E AT I O AS elopm ent N Dev Development EBIT NTA Uplift U R AT Delivers new S ET C IO sustainable assets AS Inves tment N New recurring high quality rental income New recurring asset & funds management fees Funds Ass e t m a n a g e m e nt Financial Performanc
Slide 9: Strong execution driving 1H25 result
1H25 Results 14 February 2025 Strong execution driving 1H25 result Investment 1H25 1H24 > Growth in Living and Industrial NOI offset by lost income on non-core disposals across ($m) ($m) Office and Retail Investment Funds Investment 309 315 (2%) > Funds management EBIT impacted by lower asset valuat
Slide 10: Strong balance sheet position & funding visibility
1H25 Results 14 February 2025 Strong balance sheet position & funding visibility Strong balance sheet position Active capital raising initiatives have maintained balance sheet flexibility > Pro forma headline gearing 26.3%1 within our target range of 20-30% > ~$1.0bn of available liquidity ~$2.6bn ~
Slide 11: Improved earnings growth visibility into FY26+
1H25 Results 14 February 2025 Improved earnings growth visibility into FY26+ FY25 FY26 FY27 FY28+ New Investment income1 & FUM growth from development completions ~$100m new NOI2 BTR LIV Aston LIV Anura LIV Albert (Mirvac NOI share) INDUSTRIAL Aspect SEED (Badgerys Creek) OFFICE 7 Spencer St 55 Pitt
Slide 12: Investment
1H25 Results 14 February 2025 R S E T C E AT I O AS elopm ent N Dev Development EBIT NTA Uplift U R AT Delivers new S ET C IO sustainable assets AS Inves tment N New recurring high quality rental income New recurring asset & funds management fees Funds Ass e t m a n a g e m e nt Investment y Ba y ve
Slide 13: Quality portfolio underpins continued outperformance
1H25 Results 14 February 2025 Quality portfolio underpins continued outperformance > Focus on modern, high quality, low capex investments that drive resilient cash flow growth > NOI growth outlook supported by development completions and opportunity to capture positive rent reversions > Valuations c
Slide 14: Office outlook improving
1H25 Results 14 February 2025 Office Office outlook improving Key highlights Outlook > Quality Modern office portfolio: 5.4 Star NABERS rating, > Signs of tightening incentives and vacancy in core markets 94% developed by Mirvac, >50% Premium4 > Sustainability requirements driving tenant demand $5.4
Slide 15: Strategic allocation to Sydney paying off
1H25 Results 14 February 2025 Industrial Strategic allocation to Sydney paying off Key highlights Outlook > Modern, 100% Sydney portfolio, 67% developed by Mirvac, > Robust Sydney industrial demand supported by infrastructure focus 87% Prime/Super Prime Grade3 https://www.vogue.co.kr/ upgrades inclu
Slide 16: Positive releasing spreads supported by catchment growth
1H25 Results 14 February 2025 Retail Positive releasing spreads supported by catchment growth Key highlights Outlook > Quality urban focused portfolio supported by strong catchment metrics > Population growth and restricted future supply supporting outlook $2.2bn > Improved occupancy to 98.5% , 1.3%
Slide 17: Established Living platforms with strong growth outlook
1H25 Results 14 February 2025 Living Established Living platforms with strong growth outlook BTR – new completions leasing well Land Lease – expanded pipeline Average 1,280 +4% +1% +8% weekly rent Valuation uplift $0.7bn Apartments Leasing spreads1 Valuation uplift2 Average settlement price4 +6% +3%
Slide 18: Funds
1H25 Results 14 February 2025 R S E T C E AT I O AS elopm ent N Dev Development EBIT NTA Uplift U R AT Delivers new S ET C IO sustainable assets AS tm Inves ent N New recurring high quality rental income New recurring asset & funds management fees Funds Ass et management Funds ey n yd ,S ce Scott Mo
Slide 19: Established platforms positioned to grow
1H25 Results 14 February 2025 Established platforms positioned to grow Unique alignment of interest model In-house D&C capabilities creator and owner in growth sectors Benefiting from robust capital demand for modern Living, Logistics & Premium Office Premium Living Industrial BTR VENTURE MIV Office
Slide 20: Development
1H25 Results 14 February 2025 R S E T C E AT I O AS elopm ent N Dev Development EBIT NTA Uplift U R AT Delivers new S ET C IO sustainable assets AS tm Inves ent N New recurring high quality rental income New recurring asset & funds management fees Funds Ass et management r) ffe di ay m gn si de al D
Slide 21: Commercial & Mixed Use derisking future earnings
1H25 Results 14 February 2025 Commercial & Mixed Use derisking future earnings Expected timing of CMU profit contribution FY24 FY25 FY26 FY27 FY28 Progress Update: 55 Pitt St Pre-leasing Partnering End value1: ~$2bn | >6% yield on cost ~35% pre-leased (AFL) 67% Mitsui Fudosan 7 Spencer St Office ~16
Slide 22: Improved Residential exchanges driving higher pre-sales
1H25 Results 14 February 2025 Improved Residential exchanges driving higher pre-sales Positive sales growth over 1H25 and leads remains elevated 1,200 Lots Leads 16,000 ~$1.9bn 947 +36% 685 ~19% 12,000 800 8,000 Pre-sales1 Unconditional New Leads Lot settlements Gross margins 400 (Highest exchanges
Slide 23: Supply conditions remain constrained
1H25 Results 14 February 2025 Supply conditions remain constrained Forecast apartment settlements well below history Market land sales activity well below historical levels in NSW/VIC 70,000 Completions Population additions 400,000 3,000 Lots 300,000 200,000 35,000 1,500 100,000 0 0 (100,000) 0 '18
Slide 24: Well positioned for ramp up in new projects on improved margins
1H25 Results 14 February 2025 Well positioned for ramp up in new projects on improved margins Residential segment to benefit from 1 Recovering market volumes 2 Improved margins 3 New major project releases / settlements FY25 FY26 FY27 FY28+ VIC – Woodlea, Smiths Lane, Olivine NSW – Cobbitty & Googon
Slide 25: Summary & Guidance
1H25 Results 14 February 2025 R S E T C E AT I O AS elopm ent N Dev Development EBIT NTA Uplift U R AT Delivers new S ET C IO sustainable assets AS Inves tment N New recurring high quality rental income New recurring asset & funds management fees Funds Ass e t m a n a g e m e nt r) ffe di ay m Summa
Slide 26: Multiple drivers of earnings growth & value creation
1H25 Results 14 February 2025 Multiple drivers of earnings growth & value creation Setting business up to return to growth in FY26+ NAV growth EPS and Funds & Capital Partnering Unlocking commercial > ~$2.4bn of FUM growth Development pipeline secured and underway in Residential recovery > ~$650m of
Slide 27: FY25 guidance
1H25 Results 14 February 2025 FY25 guidance , Sy dn ey NE NI Guidance Mirvac is targeting1: Operating EPS of 12.0-12.3c | Distribution of 9.0c Assumes: > Non core asset sales >$500m > FY25 Residential settlements of 2,000-2500 > Lower Apartment margins on FY25 settlements > Executing capital partner
Slide 28: Important notice
1H25 Results 14 February 2025 Important notice Mirvac Group comprises Mirvac Limited (ABN 92 003 280 699) and Mirvac Property Trust (ARSN 086 780 645). This presentation (“Presentation”) has been prepared by Mirvac Limited and Mirvac Funds Limited (ABN 70 002 561 640, AFSL number 233121) as the resp
Slide 29: Thank You
Thank You CONTACT Gavin Peacock, CFA | General Manager, Investor Relations | investor.relations@mirvac.com AUTHORISED FOR RELEASE BY The Mirvac Group Board MIRVAC GROUP Level 28, 200 George Street, Sydney NSW 2000