Mirvac Group · ASX:MGR
Mirvac — H1 2015 Earnings Presentation
27 slides from Mirvac's earnings presentation, Feb 12, 2015
Slide 1: 1H15 results
For personal use only 1H15 results 12 FEBRUARY 21 AUGUST 2015 2014 ARTISTS IMPRESSION OF TREASURY BUILDING, WA
Slide 2: Agenda
For personal use only agenda 1H15 RESULTS 1H15 GROUP OPERATING RESULTS OUTLOOK & GROUP OVERVIEW FINANCIAL RESULTS AND UPDATE GUIDANCE MIRVAC I 1H15 RESULTS I 12 FEBRUARY 2015 I 1
Slide 3: 1H15 results overview
For personal use only 1H15 results overview MIRVAC MIRVAC I I 1H15 1H15 RESULTS RESULTS I I 1212FEBRUARY FEBRUARY 2015 2015 I 2
Slide 4: 1H15 results overview
1H15 RESULTS OVERVIEW For personal use only On track to deliver operating earnings and distribution growth in FY15 > Delivered 1H15 operating EPS of 6.3cpss 1, up 15% (1H15: Statutory earnings of 7.6cpss) > 1H15 DPS of 4.5cpss > Maintained strong capital position — Gearing of 25.0%, within target ra
Slide 5: 1H15 results overview (continued)
1H15 RESULTS OVERVIEW (CONTINUED) For personal use only Office > Portfolio like-for-like NOI growth of 3.8% > Sale of a 50% interest in 2 Riverside Quay to ISPT, with fund through structure, and secured PwC as a major tenant > $1.3bn committed development pipeline on track Retail > Portfolio total c
Slide 6: Sustainability and people
SUSTAINABILITY AND PEOPLE For personal use only Sustainability > Improvement in Global Real Estate Sustainability Benchmark (GRESB) 2014: — Increased overall score by 22% from 2013 to a score of 73/100 (peer group average is 64) — Improved global ranking from 107 to 54 out of 637 participants > This
Slide 7: 1H15 group financial results
For personal use only 1H15 group financial results MIRVAC I 1H15 RESULTS I 12 FEBRUARY 2015 I 6
Slide 8: 1H15 financial results and key operating metrics
1H15 FINANCIAL RESULTS AND KEY OPERATING METRICS For personal use only 1H15 1H14 Strong first half result in line with expectations 1H15 FINANCIAL RESULTS $M $M > Statutory profit of $279.0m, including a revaluation gain of $50.8m Investment 238.9 237.6 > Operating profit up 15.5%, from $200.2m to $
Slide 9: Capital management
CAPITAL MANAGEMENT For personal use only Maintained strong capital position $1.4bn SYNDICATED BANK FACILITY PROFILE > Restructured the Group’s $1.4bn syndicated bank facility from three $500m tranches to four 400 — Reduced FY18 & FY19 expiries 300 — Extended facility expiry to FY20 200 — Group weigh
Slide 10: Operating results and update
For personal use only operating results and update MIRVAC MIRVAC I I 1H15 1H15 RESULTS RESULTS I I 1212FEBRUARY FEBRUARY 2015 2015 I 9
Slide 11: Office: 1H15 results
OFFICE: 1H15 RESULTS For personal use only > Office portfolio outperformed IPD index on a three and five year basis PORTFOLIO RESULTS 1H15 FY14 1H14 — Delivered a 7.8% one year un-geared total return Portfolio value $4,083.2m $4,025.0m $4,598.7m > Strong like-for-like NOI growth of 3.8% Net valuatio
Slide 12: Office: market overview
OFFICE: MARKET OVERVIEW For personal use only > Tenant demand in Sydney and Melbourne showed signs of recovery CBD VACANCY RATES in the second half of 2014 18% — Tenant demand in other major markets remains weak 15 > Vacancy rates and incentives remain elevated nationally 12 > Vacancy levels expecte
Slide 13: Office: positioning & outlook
OFFICE: POSITIONING & OUTLOOK For personal use only > Portfolio income supported by asset positioning and solid portfolio metrics OFFICE LEASE EXPIRY PROFILE 1 — 82% of portfolio located in the core markets of Sydney and Melbourne 45% and 92% premium or A-Grade 41% — Limited near term expiry in Bris
Slide 14: Retail: 1H15 results
RETAIL: 1H15 RESULTS For personal use only > Retail portfolio outperformed IPD index on a one, three and five year basis PORTFOLIO RESULTS 1H15 FY14 1H14 — Delivered a 9.1% one year un-geared total return Portfolio value $2,093.2m $1,769.6m $1,685.5m > Maintained strong occupancy of 99.2% Net valuat
Slide 15: Retail: market overview
RETAIL: MARKET OVERVIEW For personal use only > Mixed conditions nationally with NSW the only state recording strong performance JOBS: SYDNEY v’s REST OF NSW > Household net worth increasing, supporting retail spend 115 Index Dec 04 = 100 — House price growth, falling oil prices, low interest rates
Slide 16: Retail: positioning & outlook
RETAIL: POSITIONING & OUTLOOK For personal use only > Substantial transformation over the past 24 months driving improved MIRVAC’S ASSETS: METROPOLITAN RETURN v’s REGIONAL 2 portfolio performance 10.7% — Investment in key urban markets, with over $560m in Sydney 1 Year 6.4% — Disposed of over $370m
Slide 17: Industrial: 1H15 results
INDUSTRIAL: 1H15 RESULTS For personal use only > Industrial portfolio outperformed IPD index on a one, three and 1H15 PROFORMA WITH PORTFOLIO RESULTS ALTIS ACQUISITION 1H15 FY14 1H14 five years basis — Delivered a 9.7% one year un-geared total return Portfolio value $630.5m $416.6m $405.6m $460.5m N
Slide 18: Industrial: market overview
INDUSTRIAL: MARKET OVERVIEW For personal use only > Tenant demand encouraging, however tenants remain cautious VOLUME OF FREIGHT MOVED IN NSW > Outlook for demand supported by: 800m tonnes — Fall in oil prices reducing transport and other business costs 600 — Positive outlook for consumer spending 4
Slide 19: Industrial: positioning & outlook
INDUSTRIAL: POSITIONING & OUTLOOK For personal use only > Portfolio income supported by geographic positioning and strong INDUSTRIAL DIVERSIFICATION BY GEOGRAPHY 1 portfolio metrics NSW: 90% — 90% of portfolio located in Sydney 1 VIC: 3% USA: 7% — High occupancy and long WALE — Embedded rental growt
Slide 20: Residential: 1H15 results
RESIDENTIAL: 1H15 RESULTS For personal use only > 1H15 lot settlements up 20% on pcp from 1,032 to 1,251 including: SALES ACTIVITY BY LOTS 2 — Harold Park, NSW (479 lots) 1,800 lots — Elizabeth Hills, NSW (167 lots) 1,500 — Harcrest, VIC (66 lots) 1,200 > Delivered strong 1H15 residential gross marg
Slide 21: Residential: market overview
RESIDENTIAL: MARKET OVERVIEW For personal use only > Monetary policy continues to be effective: FINANCE FOR OWNER OCCUPIERS — Dwelling activity and housing finance up in all four major states $12bn $3bn — Overall housing credit growth to continue modest pace in response to low rates > Above historic
Slide 22: Residential: pipeline emergence
RESIDENTIAL: PIPELINE EMERGENCE For personal use only Pipeline increased to over 31,000 lots providing visibility of future earnings 1H15 ACQUISITIONS > Secured nine new projects totalling ~3,350 lots Product Expected Project State Lots 1 type project duration — 73% of lots in Sydney Alex Avenue NSW
Slide 23: Residential: outlook
RESIDENTIAL: OUTLOOK For personal use only On track to deliver FY15 targets FY15 MAJOR APARTMENT RELEASE SCHEDULE > Well positioned to achieve >2,200 lot settlements for FY15 1H15 completed 2H15 expected Project State releases releases 1 — 80% of FY15 lot settlements expected to be from profit gener
Slide 24: Outlook & group guidance
For personal use only outlook & group guidance MIRVAC I 1H15 RESULTS I 12 FEBRUARY 2015 I 23
Slide 25: Outlook & group guidance
OUTLOOK & GROUP GUIDANCE For personal use only > Continue to maintain ~80/20% split between passive and active capital > Allocate capital in line with our market outlook and strategic mandates — Residential: focus on Sydney market as well as inner and middle ring Melbourne — Investment portfolio: mo
Slide 26: Disclaimer & important notice
DISCLAIMER & IMPORTANT NOTICE For personal use only Mirvac Group comprises Mirvac Limited (ABN 92 003 280 699) and Mirvac Property Trust (ARSN 086 An investment in Mirvac stapled securities is subject to investment and other known and unknown 780 645). This presentation (“Presentation”) has been pre
Slide 27: Thank you
For personal use only thank you FOLLOW US MIRVAC MIRVAC ON TWITTER INVESTOR RELATIONS 1H15 PROPERTY @MIRVAC WEBSITE COMPENDIUM