Mirvac Group · ASX:MGR
Mirvac — Macquarie Australia Conference 2018
19 slides from Mirvac's conference presentation, May 1, 2018
Slide 1: Macquarie Australia Conference
MACQUARIE For personal use only AUSTRALIA CONFERENCE01.05.2018 08 FEBRUARY 2018 1
Slide 2: Mirvac's disciplined approach to allocating capital and driving returns
Macquarie Australia Conference MIRVAC'S DISCIPLINED APPROACH TO ALLOCATING CAPITAL AND DRIVING RETURNS For personal use only URBAN STRATEGY (SYDNEY/MELBOURNE OVERWEIGHT) 75-80% Investment 20-25% Development Secure yield – underpins Group distribution Disciplined growth $9.4bn $2.0bn Office & Industr
Slide 3: Our urban strategy & integrated capabilities delivering results
Macquarie Australia Conference OUR URBAN STRATEGY & INTEGRATED CAPABILITIES DELIVERING RESULTS For personal use only Strong Integrated Urban Strategy 7.0-7.4% Capabilities >> Strong ongoing population 5yr EPS >> Proven development capabilities growth in Sydney and Melbourne CAGR1 across office, indu
Slide 4: Investing in our people
Macquarie Australia Conference INVESTING IN OUR PEOPLE For personal use only 88% 2017 Engagement Score 1 1. Undertaken by Willis Towers Watson. 01 MAY 2018 4
Slide 5: Reimagine urban life
Macquarie Australia Conference REIMAGINE URBAN LIFE For personal use only Continuing to make a significant contribution to Australia's urban landscape, creating more sustainable, connected and vibrant environments THE HARRY AIB No. 1 Concrete SEIDLER AWARD BIG GUNS Playground's AWARD for Excellence
Slide 6: Office & Industrial 3Q18 update
Macquarie Australia Conference OFFICE & INDUSTRIAL 3Q18 UPDATE For personal use only OFFICE INDUSTRIAL $5.2bn Portfolio Value 1 $0.8bn Portfolio Value 1 97.1% Occupancy 2 Australian Technology Park, Sydney 98.0% Occupancy 2 6.6yrs WALE 3 6.9yrsWALE 3 $3.8bn Development Pipeline 4 $1.3bn Development
Slide 7: Mirvac well positioned to benefit from office and industrial market conditions
Macquarie Australia Conference MIRVAC WELL POSITIONED TO BENEFIT FROM OFFICE AND INDUSTRIAL MARKET CONDITIONS For personal use only Office Industrial >> Vacancy to tighten further in major CBD's >> Increasing tenant need for well located, prime grade facilities VACANCY RATES - SYDNEY AND MELBOURNE C
Slide 8: High future earnings visibility from committed development pipeline
Macquarie Australia Conference HIGH FUTURE EARNINGS VISIBILITY FROM COMMITTED DEVELOPMENT PIPELINE For personal use only ADDITIONAL HIGH QUALITY INCOME FROM OFFICE AND INDUSTRIAL DEVELOPMENTS 1 90 ($m) NOI RECENT COMPLETIONS $2.3BN ACTIVE DEVELOPMENT PIPELINE 56% 8 committed NOI GROWTH ~$60m >$200m
Slide 9: Retail 3Q18 update
Macquarie Australia Conference RETAIL 3Q18 UPDATE For personal use only $3.1bn Portfolio Value 1 99.3% Occupancy 2 4.5% Specialty Sales Growth 3 >$10,000/sqm Specialty Sales Productivity 4 2.8% Foot Traffic Growth 5 1. As at 31 December 2017. 2. By area, as at 31 March 2018. 3. On a comparable basis
Slide 10: Urban exposure driving outperformance in a challenging retail environment
Macquarie Australia Conference URBAN EXPOSURE DRIVING OUTPERFORMANCE IN A CHALLENGING RETAIL ENVIRONMENT For personal use only >> Retail sales growth has been below long term ~70% OF MIRVAC’S RETAIL PORTFOLIO IS LOCATED IN HIGHLY DENSE AREAS OF SYDNEY averages, but the major eastern urban cities are
Slide 11: Not all retail is created equal
Macquarie Australia Conference NOT ALL RETAIL IS CREATED EQUAL Delivers Outperformance For personal use only Stay relevant, stay productive 3 YEAR AVG. COMPARABLE TOTAL SALES GROWTH6 Management >> Active adapting mix, over 170 new retail brands introduced in past 18 months via development and remixi
Slide 12: Residential market conditions have stabilised as expected, fundamentals remain strong
Macquarie Australia Conference RESIDENTIAL MARKET CONDITIONS HAVE STABILISED AS EXPECTED, For personal use only FUNDAMENTALS REMAIN STRONG >> Housing market activity has eased but location, MIGRATION-SUM OF NET OVERSEAS & NET INTERSTATE (ROLLING ANNUAL) quality and understanding of customer are key
Slide 13: Residential 3Q18 update
Macquarie Australia Conference RESIDENTIAL 3Q18 UPDATE For personal use only $2.8bn Pre-sales Secured 1 ~3,400 FY18 Lot Settlement Target 98%of FY18 top EBIT contributors lots secured 2 >95% Expected Residential EBIT Secured For FY18 2 1. As at 31 March 2018 includes Mirvac share of JVA and Mirvac M
Slide 14: Sydney and Melbourne urbanisation to drive future residential earnings
Macquarie Australia Conference SYDNEY AND MELBOURNE URBANISATION TO DRIVE FUTURE RESIDENTIAL EARNINGS For personal use only >> Mirvac’s urban footprint benefiting from $118bn of government infrastructure spend in Sydney and Melbourne EXPECTED RESIDENTIAL EBIT CONTRIBUTION FY18-20 2 SHOWGROUND STATIO
Slide 15: High quality product and pipeline
Macquarie Australia Conference HIGH QUALITY PRODUCT AND PIPELINE 72% For personal use only Strategic locations, quality product and brand strength exposed to will continue to drive outperformance NSW and VIC 1 Strong embedded margins >> Control 28,207 lots with an overweight exposure to NSW and VIC
Slide 16: Conservative balance sheet underpins earnings growth
Macquarie Australia Conference CONSERVATIVE BALANCE SHEET UNDERPINS EARNINGS GROWTH For personal use only Continued execution of capital management strategy 4.8% 23.8% 6.8yrs >> Strong capital position and flexible balance sheet >> Upgraded credit rating to A3 from Baa1 by Moody's and upgraded outlo
Slide 17: Reaffirmed FY18 guidance
Macquarie Australia Conference REAFFIRMED FY18 GUIDANCE For personal use only FY18 EPS FY18 DPS 6-8% 6% Growth Growth on FY17 on FY17 OPERATING EPS DPS 15.3-15.6c 16.0 cents 12.0 cents R 1 14.4c FY18 guidance PS CAG 5 year E 11.0c 7.0-7.4% (FY17 guidance: 2 14.0-14.4c) AGR PS C FY18 guidance 13.0c e
Slide 18: 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 (ARSN 086 780 645). An investment in Mirvac stapled securities is subject to investment and other known and unknown risks, some of This presentat
Slide 19: Thank you
THANK For personal use only YOU 01.05.2018 08 FEBRUARY 2018 19