Mirvac Group · ASX:MGR
Mirvac — Investor Day (October 2024)
70 slides from Mirvac's investor day presentation, Oct 14, 2024
Slide 1: 2024 Investor Day: Living and Logistics
2024 Investor Day For personal use only Living and Logistics 14 October 2024 Harbourside, Sydney (artist impression, final design may differ)
Slide 2: Acknowledgement of Country
2024 Investor Day 14 October 2024 For personal use only Acknowledgement of Country Mirvac acknowledges Aboriginal and Torres Strait Islander peoples as the Traditional Owners and Custodians of the lands and waters of Australia, and we offer our respect to their Elders past and present. School art pr
Slide 3: Agenda
2024 Investor Day 14 October 2024 Agenda For personal use only 02 Overview Campbell Hanan | Group CEO & Managing Director 05 Strong fundamentals supporting strategic allocation Courtenay Smith | Chief Financial Officer 15 Living - Build to Sell Stuart Penklis | CEO, Development 36 Living - Build to
Slide 4: Overview
2024 Investor Day 14 October 2024 Overview For personal use only Campbell Hanan Group CEO & Managing Director 2
Slide 5: Our unique competitive advantage
2024 Investor Day 14 October 2024 Our unique competitive advantage For personal use only UNDERPINNED BY BALANCE SHEET, UNIQUE CREATION CULTURE AND CAPABILITY ADVANTAGE Unique alignment model with deep capital partnerships LEADERS IN LIVING Secure balance sheet position Proven >50 year track record,
Slide 6: Positioned for future earnings growth
2024 Investor Day 14 October 2024 Positioned for future earnings growth ri vers of growth over time Multiple d For personal use only Olderfleet, Melbourne LIV Anura, Brisbane1 Riverlands, Sydney1 55 Pitt Street, Sydney1 Resilient investment portfolio Funds management growth Residential completions a
Slide 7: Strong fundamentals supporting strategic allocation
2024 Investor Day 14 October 2024 Strong fundamentals supporting strategic allocation For personal use only Courtenay Smith Chief Financial Officer Highforest, Sydney (artist impression, final design may differ) 5
Slide 8: Balanced capital allocation
2024 Investor Day 14 October 2024 Balanced capital allocation For personal use only S E T C R E AT I O AS elopment N Dev Development EBIT NTA Uplift E T C U R AT I O <30% >70% Delivers new S sustainable assets AS N Investment Development Investment New recurring high quality rental income New recurr
Slide 9: To optimise performance, we sharpened our focus
2024 Investor Day 14 October 2024 To optimise performance, we sharpened our focus For personal use only LEAD THE INCREASE OUR SHARPEN OFFICE FOCUS HOLD AND LIVING SECTORS INDUSTRIAL EXPOSURE TO PREMIUM CBD OPTIMISE RETAIL > Aligned with existing capability > Strong cash flow returns > Bifurcated mar
Slide 10: Why expand living sectors offering?
2024 Investor Day 14 October 2024 Why expand living sectors offering? For personal use only Artist impression, final design may differ. Artist impression, final design may differ. Artist impression, final design may differ. ALIGNED WITH DRIVING VALUE ATTRACTIVE MARKET PROVIDING AFFORDABLE CAPITAL PA
Slide 11: Asset creation capability driving value
2024 Investor Day 14 October 2024 Asset creation capability driving value Our integrated platform driving superior returns For personal use only DEVELOPMENT INVESTMENT Residential SUPPORTED BY SS ET C R E AT IO N 97.1% 5.3 star >170 bps Carbon A Dev elopment portfolio NABERS MPT Investment positive
Slide 12: Cash flow resilient investment portfolio delivering outperformance
2024 Investor Day 14 October 2024 Cash flow resilient investment portfolio delivering outperformance For personal use only Mirvac portfolio quality driving consistent outperformance1 Based on compound average annual returns 10.0% CONTINUE TO INCREASE CASH FLOW >170bps RESILIENCE OF INVESTMENT PORTFO
Slide 13: Structural tailwinds for Living & Logistics supported by peaking rates
2024 Investor Day 14 October 2024 Structural tailwinds for Living & Logistics supported by peaking rates Strong population growth Capital flowing to Living & Logistics Lower capex required in Living/ Logistics Interest rate expectations peaked U.S. Investors' Sector Preference in 2024 For personal u
Slide 14: Overseas migrants driving demand
2024 Investor Day 14 October 2024 Overseas migrants driving demand Strong population growth forecast Apartment rental demand benefiting from migration Australia – net visa arrivals vs net overseas migration rolling annual Overseas arrivals to Greater Sydney — Tenure type by year of arrival For perso
Slide 15: Supply remains constricted despite surge in population
2024 Investor Day 14 October 2024 Supply remains constricted despite pickup surge in population Extended period of low supply ahead Apartment supply remains constrained Forecast detached housing supply Forecast attached housing supply For personal use only 70,000 90,000 80,000 60,000 70,000 50,000 6
Slide 16: Shifting behaviours: renting for longer & apartment living
2024 Investor Day 14 October 2024 Shifting behaviours — renting for longer & greater acceptance of apartment living Relative affordability of renting has increased Greater acceptance of apartment living CBA: Average Housing Costs (Index = 100 March 2019) Renters - Families with kids For personal use
Slide 17: Living: Build to Sell
2024 Investor Day 14 October 2024 LEADERS IN LIVING Build to Sell For personal use only Stuart Penklis CEO, Development Harbourside, Sydney (artist impression, final design may differ) 15
Slide 18: The Mirvac difference
2024 Investor Day 14 October 2024 LEADERS IN LIVING The Mirvac difference Pre-sales heavily skewed to upgraders > 52-year track record of developing through cycles MIRVAC CONSTRUCTION > Integrated development, design and construction capability For personal use only > Multi-sector development capabi
Slide 19: Unique offering across product types and locations
2024 Investor Day 14 October 2024 LEADERS IN LIVING Unique offering across product types and locations Residential development ~$2.0bn ~28,000 ~$19.3bn ~$1.3bn For personal use only capital employed pipeline lots expected future pre-sales2 revenue1 OPTIONALITY ACROSS STATES, PRODUCT TYPE AND LOCATIO
Slide 20: Consistent profit to securityholders over time
2024 Investor Day 14 October 2024 LEADERS IN LIVING Consistent profit to securityholders over time OVER THE PAST 10 YEARS RESIDENTIAL HAS DELIVERED For personal use only >$2BN >26,500 2,200-3,400 24% 20% ~2% EBIT lots settled annual lot Gross margin 1 EBIT margin 1 Default rate2 settlement range Res
Slide 21: Signs of stabilisation in construction costs
2024 Investor Day 14 October 2024 LEADERS IN LIVING Signs of stabilisation in construction costs For personal use only Selected Apartment projects which commenced during Construction industry insolvencies well above historical levels Construction costs stabilising after significant increases FY21/22
Slide 22: Integrated model provides competitive advantage in managing challenges
2024 Investor Day 14 October 2024 LEADERS IN LIVING Integrated model provides competitive advantage in managing challenges For personal use only Design > Leverage experience & capability - iterative learning across platform INTEGRATED MODEL PROVIDES COMPETITIVE > Real-time response to market trends
Slide 23: Apartments remain a fundamental element of our offering
FY24 Investor Day 14 October 2024 LEADERS IN LIVING Apartments remain a fundamental element of our offering FY14 FY16 FY17 FY21 FY24/25 For personal use only MARGIN IMPACTED UNISON, WATERFRONT, BRS GREEN SQUARE, STAGE 1, SYD >20% GROSS MARGINS >20% GROSS MARGINS NINE, WILLOUGHBY, SYD ERA, CHATSWOOD,
Slide 24: Apartments address affordability in undersupplied market
2024 Investor Day 14 October 2024 LEADERS IN LIVING Apartments address affordability in undersupplied market Restricted apartment supply outlook Record apartment price differential to houses Sydney, Melbourne & Brisbane market high density apartment completions For personal use only 60,000 apartment
Slide 25: Actively restocked on capital efficient terms
2024 Investor Day 14 October 2024 LEADERS IN LIVING Actively restocked on capital efficient terms ~8,400 lots1 Monarch Glen, QLD Opportunistically restocking development pipeline & Mulgoa, NSW For personal use only 10,000 lots 200 8,000 160 6,000 120 4,000 80 2,000 40 0 0 FY11 FY12 FY13 FY14 FY15 FY
Slide 26: Ramp up in new MPC launches in coming months
2024 Investor Day 14 October 2024 LEADERS IN LIVING Ramp up in new MPC launches in coming 18 months Approx. total Expected settlement profile (lots)2 project value For personal use only Major projects State Ownership Type (incl. GST)1 Pre-FY25 FY25 FY26 FY27 FY28 FY29 Post-FY29 Georges Cove NSW PDA
Slide 27: Unlocking value – Mulgoa, Western Sydney
2024 Investor Day 14 October 2024 LEADERS IN LIVING Unlocking value – Mulgoa, Western Sydney ~$1.2BN ~1,200 First sales launch +5 YEARS 100% Aggregated site from Successful For personal use only 12 landowners rezoning total project end value1 Land & housing lots1 targeted for mid-2025 of pipeline to
Slide 28: Iconic waterfront living – Harbourside, Sydney
2024 Investor Day 14 October 2024 LEADERS IN LIVING Iconic waterfront living – Harbourside, Sydney Targeting a Targeting a ~$2.2BN ~260 48 levels Sales launch Premium All electric For personal use only Resort style 5 star 7 star Green Star waterfront with rooftop total project end value 1 luxury apa
Slide 29: Harbourside - construction update
2024 Investor Day 14 October 2024 LEADERS IN LIVING Harbourside - construction update For personal use only 27
Slide 30: Unique Creation Advantage
2024 Investor Day 14 October 2024 UNIQUE CREATION ADVANTAGE Unique For personal use only Creation Advantage Riverlands, Sydney (artist impression, final design may differ) 28
Slide 31: Unique in-house design capability
2024 Investor Day 14 October 2024 UNIQUE CREATION ADVANTAGE Unique in-house design capability > Mirvac Design has operated as Mirvac’s in-house architectural practice since inception – core part of Mirvac’s DNA For personal use only > ~100 creative professionals across architecture, urban design, Mu
Slide 32: Benefits of Mirvac Design
2024 Investor Day 14 October 2024 UNIQUE CREATION ADVANTAGE Benefits of Mirvac Design For personal use only Quality Flexibility/Agility > Iterative learning, recycled into design > Customisation and amalgamation > Reputation, evidenced by high repeat sales & brand with low friction > Consistency – l
Slide 33: Expansive design capabilities
2024 Investor Day 14 October 2024 UNIQUE CREATION ADVANTAGE Expansive design capabilities For personal use only Urban design Architecture Interior design Digital engineering Graphic design Services & landscaping Artist impression, Artist impression, final design may differ final design may differ “
Slide 34: Quality & Care in every detail
2024 Investor Day 14 October 2024 UNIQUE CREATION ADVANTAGE Quality & Care in every detail > Established materials testing guidelines and procedures For personal use only > Continuous learning embedded across platform > Flexibility to adapt to changing market or regulatory backdrop > Delivers high-q
Slide 35: Standardisation of design in modular construction
2024 Investor Day 14 October 2024 UNIQUE CREATION ADVANTAGE0mm Standardisation SMALL of design in modular 100mm construction 2 0mm 1950 2200 2500 2700 3000 3200 SMALL Benefits of modular construction: For personal use only Reduced Reduced Improved Reduced Maintain time waste safety defects quality &
Slide 36: Utilising digital engineering
2024 Investor Day 14 October 2024 UNIQUE CREATION ADVANTAGE Utilising digital engineering For personal use only BIM MODEL Design Coordination Construction Planning Visualisation Quantification and Cost planning Risk Management & data tracking Asset Management Prefabrication Sustainability 34
Slide 37: Designing for longevity - meeting demand for Sustainability
2024 Investor Day 14 October 2024 Designing for longevity - meeting customer and capital demand for Sustainability TARGET1 For personal use only 2030 100% Energy 100% Renewable Recycle Investigate Measure carbon Electric buildings Solar PV efficiency electricity waste & water alternative materials i
Slide 38: Living: Build to Rent
2024 Investor Day 14 October 2024 LEADERS IN LIVING Build to Rent For personal use only Angela Buckley Fund Manager — BTR Sector Lead LIV Aston, Melbourne l Image credit – Scott Burrows 36
Slide 39: Shifting behaviours — Renting for longer & apartment living
2024 Investor Day 14 October 2024 LEADERS IN LIVING Shifting behaviours — Renting for longer & greater acceptance of apartment living Significant growth in renters Strong increase of 20-50 age group in major cities Past 15-year compound average growth rate (CAGR) Volume of renters by age cohort (Gre
Slide 40: Mirvac's committed BTR portfolio leads the domestic market
2024 Investor Day 14 October 2024 LEADERS IN LIVING Mirvac’s committed BTR portfolio leads the domestic market1 Australian Build to Rent market1 For personal use only 27 NU ALBERT 2,500 apartments LIV A RA LIV operating assets 2,000 498 25 396 25 in Australia CY FY UN UN IT IT TE TE S S S | S | C O
Slide 41: Significant market scope for growth in Australia
2024 Investor Day 14 October 2024 LEADERS IN LIVING Significant market scope for growth in Australia Professionally managed housing stock as % of total stock Penetration rates in Australia remain low vs established global BTR markets For personal use only 12% Institutional Share of Private Rented Ho
Slide 42: LIV – Australia's most progressed BTR portfolio
2024 Investor Day 14 October 2024 LEADERS IN LIVING LIV – Australia’s most progressed BTR portfolio, poised for growth Seed portfolio Commitment to grow to at least More than Strong $1.8bn 1 5,000 1,400 ESG For personal use only ~2,200 apartments apartments residents today credentials and targets Ge
Slide 43: Delivering attractive returns & operational performance
2024 Investor Day 14 October 2024 LEADERS IN LIVING Delivering attractive returns & operational performance Strong occupancy1 FY24 Net Low average Strong sector Resilient valuations ~94% +4.3% re‑leasing spreads2 downtime population growth For personal use only (FY23: 72%)1 +7.8% (FY23: +7.9%) 23 DA
Slide 44: Operating metrics compare favourably vs established BTR markets
2024 Investor Day 14 October 2024 LEADERS IN LIVING Operating metrics compare favourably vs established BTR markets Australian BTR operating metrics compare favourably vs established markets Australian apartment rent growth remains elevated For personal use only AU US 5 40% Occupancy ~94%1 94.1% 30
Slide 45: LIV Aston, Melbourne completed and leasing well
2024 Investor Day 14 October 2024 LEADERS IN LIVING LIV Aston, Melbourne completed and leasing well For personal use only 474 APARTMENTS COMPLETED & LEASING COMMENCED ~28% JULY 2024 leased1 >3,500 SQM OF AMENITY POOL & SPA PRIVATE DINING ROOMS PET PARK YOGA DECK 135 CO-WORKING SPACE leases1 UTILISIN
Slide 46: Living: Land Lease
2024 Investor Day 14 October 2024 LEADERS IN LIVING Land Lease For personal use only Stephen Gould General Manager — Land Lease Thyme Evans Head, NSW (artist impression, final design may differ) 44
Slide 47: Compelling investment asset class
2024 Investor Day 14 October 2024 LEADERS IN LIVING Compelling investment asset class SUPPORTIVE MACRO TRENDS For personal use only > Ageing population - ~7.5 million Australian population >55 years – expected to grow to ~14m by 20631 with ~2.0% CAGR next 10 years > Increased demand for affordable h
Slide 48: Compelling customer proposition
2024 Investor Day 14 October 2024 LEADERS IN LIVING Compelling customer proposition For personal use only > Low maintenance homes, with high security > Release of equity from sale of family home – to fund > Access to community amenity to encourage a healthy and purchase and lifestyle choices connect
Slide 49: Significant scope for sector to grow
2024 Investor Day 14 October 2024 LEADERS IN LIVING Significant scope for sector to grow Land Lease delivering attractive returns in US Significant scope for growth as penetration rate increases & retiree population grows For personal use only Index of US Sector capital values Annual supply required
Slide 50: Attractive investor returns
2024 Investor Day 14 October 2024 LEADERS IN LIVING Attractive investor returns pital at attrac rese t with new te cle ca tive e nan cy re as t re Le For personal use only to tu rns lity Abi Rele ase e t Cr of en om ap m lop ea inc c ita e tion e l to v of valuable passiv future fund de INVESTOR RET
Slide 51: Capital light development model – self funding, value creation
2024 Investor Day 14 October 2024 LEADERS IN LIVING Capital light development model – self funding, value creation For personal use only CASH RECYCLED INTO FUTURE DEVELOPMENT OPPORTUNITIES WITH LAND RETAINED PLANNING PHASE PRODUCTION PHASE STABILISED PHASE > Thorough opportunity screening and assess
Slide 52: Serenitas has a deep operational platform with scope for growth
2024 Investor Day 14 October 2024 LEADERS IN LIVING Serenitas has a deep operational platform with scope for growth Platform for immediate scale and growth Affordable homes designed to appeal to a large customer segment where demand is stable over time For personal use only > One of Australia’s larg
Slide 53: Serenitas is one of Australia's leading land lease operators
2024 Investor Day 14 October 2024 LEADERS IN LIVING Serenitas is one of Australia’s leading land lease operators ONE OF THE LARGEST OPERATIONAL PORTFOLIOS IN AUSTRALIA1 STRATEGIC OVERWEIGHT TO STRONGEST RESIDENTIAL MARKETS IN AUSTRALIA For personal use only Strong Western Development sites expands A
Slide 54: Active restocking driving ramp up in launch program
2024 Investor Day 14 October 2024 LEADERS IN LIVING Active restocking driving ramp up in launch program Expected settlement profile (lots)1 Community For personal use only Facilities Major projects State Completed4 Pre-FY25 FY25 FY26 FY27 FY28 FY29 Post-FY29 Vibe Baldivis Lifestyle Village WA 297 20
Slide 55: Serenitas portfolio delivering strong operating metrics
2024 Investor Day 14 October 2024 LEADERS IN LIVING Serenitas portfolio delivering strong operating metrics Occupancy1 Communities Occupied sites Growth opportunity Settlements2 Sales3 Contracts on hand4 Affordable offering 100% 30 6 4,587 1,872 409 361 215 ~$500,000 For personal use only developmen
Slide 56: Attractive new sites secured for development
2024 Investor Day 14 October 2024 LEADERS IN LIVING Attractive new sites secured for development For personal use only SPRING LAKES RESORT, AVOCA QLD FORMER PARADISE PALMS GOLF COURSE, KEWARRA BEACH QLD Acquired May 2024 Acquired 59 occupied lots October 2024 144 development lots 361 development l
Slide 57: Affordable product in sought after locations – Hervey Bay
2024 Investor Day 14 October 2024 LEADERS IN LIVING Affordable product in sought after locations Case study – Hervey Bay 166 First settlements in Affordable luxury Community amenity December For personal use only 2021 settlements to date1 Average Acquired sales price November 2019 ~$590k 333 2 total
Slide 58: Interview with Rob Nichols
2024 Investor Day 14 October 2024 LEADERS IN LIVING Interview with Rob Nichols For personal use only Rob Nichols Stephen Stephan Gould Gould Serenitas Founder & CEO General GeneralManager, Manager, Land Lease Land Lease Communities Moderator Moderator Thyme Evans Head, NSW (artist impression, final
Slide 59: Best-in-class Industrial
2024 Investor Day 14 October 2024 CASH FLOW RESILIENT INVESTMENTS Best-in-class Industrial For personal use only Richard Seddon CEO, Investment Aspect Industrial Estate, Sydney 57
Slide 60: Industrial outlook remains structurally supported
2024 Investor Day 14 October 2024 CASH FLOW RESILIENT INVESTMENTS Industrial outlook remains structurally supported Industrial vacancy remains tight Sydney supply outlook restricted by elevated economic rents For personal use only 6% $350/sqm 4 300 $297 2 $272 250 $248 0 Nov-19 May-20 Nov-20 May-21
Slide 61: Industrial strategy differentiation
2024 Investor Day 14 October 2024 CASH FLOW RESILIENT INVESTMENTS Industrial strategy differentiation Target to grow Industrial to For personal use only ~20% capital allocation Clear pathway ~20% 20% to growth through ~$1.9bn remaining development pipeline1 Artist impression, final design may differ
Slide 62: Concentrated high-quality Sydney portfolio
2024 Investor Day 14 October 2024 CASH FLOW RESILIENT INVESTMENTS Concentrated high-quality Sydney portfolio ~$1.5bn1 Industrial investment portfolio providing resilient income Sub-market6 Grade6 For personal use only 12 5.46% 99.3% 6.1 yrs 577,529 sqm 100% 86% Prime/Super assets 1 WACR Occupancy WA
Slide 63: Multiple drivers of growth & value creation
2024 Investor Day 14 October 2024 CASH FLOW RESILIENT INVESTMENTS Multiple drivers of growth & value creation For personal use only M2 M1 Develop to core pipeline Why Sydney? ASPECT: PENRITH centred around FIRST BLACKTOWN PARRAMATTA COMPLETION SWITCHYARD major transport 3Q24 COMPLETED > Tighter yiel
Slide 64: Strategically located development sites secured at right time
2024 Investor Day 14 October 2024 CASH FLOW RESILIENT INVESTMENTS Strategically located development sites secured at right time Industrial land secured on attractive terms 1 T, KEMPS CRE For personal use only $1,600/sqm PEC EK HYARD, AUBU 10% AS ITC RN SW 1,200 7.5 E, EASTERN CR LIBR EE 800 CA K 5 P
Slide 65: Industrial development driving strong portfolio NOI growth
2024 Investor Day 14 October 2024 CASH FLOW RESILIENT INVESTMENTS Industrial development driving strong portfolio NOI growth Industrial developments driving strong 18% NOI growth in FY24 For personal use only $80m NOI +46% INCREASE 70 NOI contribution FY28+ Elizabeth Enterprise, Badgerys Creek1 Cali
Slide 66: Setting the benchmark for next generation premium industrial space
2024 Investor Day 14 October 2024 CASH FLOW RESILIENT INVESTMENTS Setting the benchmark for next generation premium industrial space FUTURE PROOFED COMPLETED ASSETS For personal use only CALIBRE, EASTERN CREEK SWITCHYARD, AUBURN ASPECT, KEMPS CREEK Architectural benchmark for industrial, 5 buildings
Slide 67: Pipeline to benefit from Sydney's new 24-hour airport
2024 Investor Day 14 October 2024 CASH FLOW RESILIENT INVESTMENTS Pipeline to benefit from Sydney’s new 24-hour airport UPCOMING DEVELOPMENTS For personal use only Building on the success of Calibre and Switchyard, further emphasis on quality, flexibility, technology and sustainability ~188ha across
Slide 68: Q&A session
2024 Investor Day 14 October 2024 Q&A session For personal use only Campbell Hanan Courtenay Smith Stuart Penklis Richard Seddon Gavin Peacock Group CEO & Chief Financial Officer CEO, Development CEO, Investment General Manager, Managing Director Investor Relations Moderator Highforest, Sydney (arti
Slide 69: Important notice
2024 Investor Day 14 October 2024 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, For personal use only AFSL
Slide 70: Thank you
2024 Investor Day 14 October 2024 Thank you For personal use only CONTACT Gavin Peacock, CFA | General Manager Investor Relations investor.relations@mirvac.com AUTHORISED FOR RELEASE BY The Mirvac Group Continuous Disclosure Committee MIRVAC GROUP Level 28, 200 George Street, Sydney NSW 2000 ‘Reimag