Slide 1: FY14 additional information
For personal use only FY14 additional information 21 AUGUST 2014
Slide 2: Contents
CONTENTS For personal use only FINANCIAL RESULTS INDUSTRIAL 3 FY14 statutory to operating profit reconciliation 32 Industrial snapshot 4 FY13 statutory to operating profit reconciliation RESIDENTIAL 5 FY14 operating profit by segment 6 FY13 operating profit by segment 34 Project pipeline – apartment
Slide 3: Financial results
For personal use only financial results MIRVAC I FY14 ADDITIONAL INFORMATION I 21 AUGUST 2014 I 2
Slide 4: FY14 statutory to operating profit reconciliation
FY14 STATUTORY TO OPERATING PROFIT RECONCILIATION 1 For personal use only INVESTMENT INVESTMENT MANAGEMENT DEVELOPMENT UNALLOCATED ELIMINATION TAX CONSOLIDATED FULL YEAR ENDED 30 JUNE 2014 $M $M $M $M $M $M $M Profit/(loss) attributable to the stapled securityholders of Mirvac 438.1 5.8 112.0 (89.8)
Slide 5: FY13 statutory to operating profit reconciliation
FY13 STATUTORY TO OPERATING PROFIT RECONCILIATION 1 For personal use only TOTAL INC. INVESTMENT DISCONTINUED INVESTMENT MANAGEMENT DEVELOPMENT UNALLOCATED ELIMINATION TAX OPERATIONS FULL YEAR ENDED 30 JUNE 2013 $M $M $M $M $M $M $M Profit/(loss) attributable to the stapled security holders of Mirvac
Slide 6: FY14 operating profit by segment
FY14 OPERATING PROFIT BY SEGMENT For personal use only INVESTMENT INVESTMENT MANAGEMENT DEVELOPMENT UNALLOCATED ELIMINATION TOTAL FULL YEAR ENDED 30 JUNE 2014 $M $M $M $M $M $M Revenue from continuing operations Investment properties rental revenue 632.9 5.8 — — — 638.7 Investment management fee rev
Slide 7: FY13 operating profit by segment
FY13 OPERATING PROFIT BY SEGMENT For personal use only INVESTMENT INVESTMENT MANAGEMENT DEVELOPMENT UNALLOCATED ELIMINATION TOTAL FULL YEAR ENDED 30 JUNE 2013 $M $M $M $M $M $M Revenue from continuing operations Investment properties rental revenue 560.8 5.0 — — — 565.8 Investment management fee rev
Slide 8: Mirvac FFO and AFFO based on PCA guidelines
MIRVAC FFO AND AFFO BASED ON PCA GUIDELINES For personal use only PCA FFO AND AFFO FULL YEAR ENDED 30 JUNE 2014 $M Profit attributable to the stapled securityholders of Mirvac 447.3 A Investment property and inventory Losses from sales of investment property 6.0 Fair value gain on investment propert
Slide 9: Finance costs
FINANCE COSTS For personal use only FY14 ($M) FY13 ($M) % CHANGE Interest and finance charges paid/payable net of provision release 135.7 113.7 19.3 Amount capitalised (35.9) (62.0) (42.1) Interest capitalised in current and prior periods expensed this period net of provision release 38.4 32.2 19.3
Slide 10: Group overhead costs
GROUP OVERHEAD COSTS For personal use only FY14 ($M) FY13 ($M) % CHANGE Employee benefits expenses 1 98.6 92.8 6.3 Selling and marketing expenses 1 31.0 21.9 41.6 Other expenses 1 47.3 51.0 (7.3) Total overhead expenses 1 176.9 165.7 6.8 Total assets 9,921.7 9,246.4 7.3 Overhead expenses as a percen
Slide 11: MPT operating EBIT
MPT OPERATING EBIT For personal use only DETAILED BREAKDOWN OF MPT OPERATING EBIT FY14 ($M) FY13 ($M) Increase in Office net property income Net property income 1 due to GE acquisition, 367 Collins Street, Melbourne and 477 Collins Street, Office 308.4 253.1 Melbourne Retail 109.2 117.3 Decrease in
Slide 12: Liquidity profile
LIQUIDITY PROFILE For personal use only FACILITY LIMITS DRAWN AMOUNT AVAILABLE LIQUIDITY 30 JUNE 2014 ($M) ($M) ($M) Total facilities maturing < 12 months 200.0 200.0 0.0 Total facilities maturing > 12 months 3,033.0 1 2,620.0 1 413.0 Total 3,233.0 2,820.0 413.0 Cash on hand 97.8 Total liquidity 510
Slide 13: Debt and hedging profile
DEBT AND HEDGING PROFILE For personal use only FACILITY DRAWN LIMIT AMOUNT FY14 HEDGING AND FIXED INTEREST PROFILE 1 ISSUE / SOURCE MATURITY DATE $M $M 2,000 MTN III March 2015 200.0 200.0 4.48% 4.44% 4.42% Bank facilities September 2015 448.2 270.3 1,500 MTN IV September 2016 225.0 225.0 4.15% USPP
Slide 14: Investment
For personal use only investment MIRVAC I FY14 ADDITIONAL INFORMATION I 21 AUGUST 2014 I 13
Slide 15: Sector and geographic diversification
SECTOR AND GEOGRAPHIC DIVERSIFICATION 1 For personal use only SECTOR DIVERSIFICATION 1 60.0% Office 60.4% 26.3% Retail 25.0% 6.0% Industrial 6.7% LPT/unlisted funds 6.2% /development 6.4% 1.5% Other 1.5% FY14 2 FY13 0% 10% 20% 30% 40% 50% 60% 70% GEOGRAPHIC DIVERSIFICATION 3 59.4% NSW 60.5% 18.1% VI
Slide 16: MPT portfolio snapshot
MPT PORTFOLIO SNAPSHOT For personal use only FY14 FY13 MPT — LEASE EXPIRY PROFILE 5,6 Properties owned 1 61 6 68 40% 37.2% NLA 1 1,348,505sqm 6 1,433,098sqm Book value 2 $6,716.5m 6 $6,776.6m 30 WACR 7 7.14% 6 7.48% Net property income 3 $493.7m $439.8m 20 Like-for-like NOI growth 7 3.1% 3.5% 15.2%
Slide 17: Schedule of acquisitions
SCHEDULE OF ACQUISITIONS For personal use only FY14 SCHEDULE OF ACQUISITIONS 1 ACQUISITION PASSING ACTUAL PRICE YIELD SETTLEMENT PROPERTY STATE SECTOR STATUS OCCUPANCY $M (PRE-COSTS) DATE 477 Collins Street VIC Office Settled 40.9% 72.0 5.0% Nov 2013 367 Collins Street VIC Office Settled 100.0% 2 22
Slide 18: Schedule of disposals
SCHEDULE OF DISPOSALS For personal use only FY14 SCHEDULE OF DISPOSALS PREVIOUS GROSS PROCEEDS ACTUAL BOOK VALUE SALE PRICE ABOVE BOOK SETTLEMENT PROPERTY STATE SECTOR STATUS $M $M VALUE $M 1 DATE Non-core asset disposals Manning Mall NSW Retail Settled 31.8 32.6 0.8 Jul 2013 Logan Mega Centre QLD R
Slide 19: Development
For personal use only development MIRVAC I FY14 ADDITIONAL INFORMATION I 21 AUGUST 2014 I 18
Slide 20: Invested capital – development reconciliation
INVESTED CAPITAL – DEVELOPMENT RECONCILIATION For personal use only ITEMS EXCLUDED FUND THROUGH FOR DEVELOPMENT ADJUSTMENTS DEFERRED LAND DEVELOPMENT RECONCILIATION TO DEVELOPMENT INVESTED CAPITAL (DEFERRED REVENUE) ADJUSTMENTS INVESTED CAPITAL INVESTED CAPITAL $M $M $M $M $M Cash and cash equivalen
Slide 21: Invested capital – development reconciliation
INVESTED CAPITAL – DEVELOPMENT RECONCILIATION For personal use only RESIDENTIAL > Apartments: 66.0% DEVELOPMENT INVESTED CAPITAL 85.5% > Masterplanned communities: 34.0% $1,632m COMMERCIAL > Office: 78.6% > Industrial: 15.7% 14.5% > Retail: 5.7% DEVELOPMENT INVESTED CAPITAL BY STRUCTURE BY STATE 100
Slide 22: Gross development margin
GROSS DEVELOPMENT MARGIN For personal use only DEVELOPMENT COST OF PROPERTY GROSS GROSS AND CONSTRUCTION DEVELOPMENT AND DEVELOPMENT DEVELOPMENT REVENUE CONSTRUCTION MARGIN MARGIN $M $M $M % FY14 Residential projects adjusted for zero margin settlements 632.7 (449.8) 182.9 28.9 Residential provision
Slide 23: Development operating EBIT analysis
DEVELOPMENT OPERATING EBIT ANALYSIS For personal use only FY14 FY13 $M $M % CHANGE Development and construction revenue — non recharge projects 1,100.3 707.5 Development and construction revenue — recharge projects 68.1 113.3 Total development and construction revenue 1,168.4 820.8 Cost of property
Slide 24: Office
For personal use only office MIRVAC I FY14 ADDITIONAL INFORMATION I 21 AUGUST 2014 I 23
Slide 25: Office snapshot
OFFICE SNAPSHOT For personal use only FY14 FY13 OFFICE LEASE EXPIRY PROFILE 3,4 Properties owned 31 4 32 40% 38.5% NLA 724,892sqm 4 695,076sqm Book value 1 $4,025.0m 4 $4,094.1m 30 WACR 7.33% 4 7.52% 20 18.4% Net property income $308.4m $253.1m Like-for-like NOI growth 3.4% 3.9% 10.6% 11.3% 10 8.7%
Slide 26: Office development pipeline
OFFICE DEVELOPMENT PIPELINE For personal use only % CONSTRUCTION PROJECT COMPLETED %PRE LEASED OWNERSHIP FY15 FY16 FY17 FY18 $87.1m 1, 8.4% 2 Aug 12 to Jun 15 Treasury Building, WA 37.9% 98.0% 50% $45.6m 1, 7.2% 2 Aug 13 to May 15 699 Bourke Street, VIC 30.5% 100.0% 50% $193.7m 1, 7.8% 2 Jan 13 to M
Slide 27: Commercial development hypothetical fund through
COMMERCIAL DEVELOPMENT HYPOTHETICAL FUND THROUGH For personal use only PROFILE OF COMMERCIAL DEVELOPMENT INDICATIVE GENERIC CASHFLOW PROFILE – COMMERCIAL DEVELOPMENT – SINGLE COMMERCIAL TOWER DMA FOR JV (MPT AND PARTNER) > Mirvac has a unique competitive advantage 80% Cumulative cash flow through it
Slide 28: Commercial development hypothetical fund through
COMMERCIAL DEVELOPMENT HYPOTHETICAL FUND THROUGH For personal use only TYPICAL COMMERCIAL DEVELOPMENT TRANSACTION > Mirvac development seek an anchor tenant > Land acquired and held in MPT 50% and 50% by capital partner > MPT and 3rd Party enter into Development Management Agreement (DMA) with Mirva
Slide 29: Retail
For personal use only retail MIRVAC I FY14 ADDITIONAL INFORMATION I 21 AUGUST 2014 I 28
Slide 30: Retail snapshot
RETAIL SNAPSHOT For personal use only FY14 FY13 COMPARABLE COMPARABLE RETAIL SALES TOTAL MAT MAT GROWTH MAT GROWTH Properties owned 15 5 19 BY CATEGORY FY14 $M FY14 % FY13 % NLA 307,938sqm 5 390,651sqm Non-food majors $244.2m (1.9%) (0.5%) Book value 1 $1,769.6m 5 $1,696.0m Food majors $810.1m 1.6%
Slide 31: Retail development pipeline
RETAIL DEVELOPMENT PIPELINE For personal use only PROJECT STATUS FY15 FY16+ Kawana Shoppingworld (Stage 4) $17.9m 1, 7.0% 2 Jul 12 to Sep 14 Buddina, QLD (100%) Redevelopment near completion Stanhope Village (Stage 4) $15.7m 1, 7.1% 2 Feb 14 to May 15 Stanhope Gardens, NSW (100%) Redevelopment under
Slide 32: Industrial
For personal use only industrial MIRVAC I FY14 ADDITIONAL INFORMATION I 21 AUGUST 2014 I 31
Slide 33: Industrial snapshot
INDUSTRIAL SNAPSHOT For personal use only FY14 FY13 INDUSTRIAL LEASE EXPIRY PROFILE 3,4 Properties owned 11 4 13 70% NLA 315,277sqm 4 346,972sqm 60 59.1% Book value 1 $405.6m 4 $452.9m 50 WACR 7.43% 4 7.93% 40 Net property income $35.7m $36.6m 30 Like-for-like NOI growth 4.0% 5.9% 20 16.0% Maintenan
Slide 34: Residential
For personal use only residential MIRVAC I FY14 ADDITIONAL INFORMATION I 21 AUGUST 2014 I 33
Slide 35: Project pipeline – apartments
PROJECT PIPELINE – APARTMENTS For personal use only PROFIT RECOGNITION PROFILE 1 SETTLEMENTS % PROFIT APARTMENTS PROJECT PIPELINE ANALYSIS PROJECT STAGE COMMENCING PRE-SOLD ENTITLEMENT FY15 FY16 FY17 FY18 FY19 Harold Park, NSW Precinct 1 1H15 100.0% 100% 298 lots % of total FY15 expected provision l
Slide 36: Project pipeline – masterplanned communities
PROJECT PIPELINE – MASTERPLANNED COMMUNITIES For personal use only PROFIT RECOGNITION PROFILE 1 SETTLEMENTS PROFIT MASTERPLANNED COMMUNITIES PROJECT PROJECT STAGE COMMENCING TYPE ENTITLEMENT FY15 FY16 FY17 FY18 FY19 PIPELINE ANALYSIS Elizabeth Point, NSW All stages 1H15 Land 100% 58 lots % of total
Slide 37: FY14 activity detail
FY14 ACTIVITY DETAIL For personal use only 2,482 lot settlements consisting of: MASTERPLANNED TOTAL APARTMENTS COMMUNITIES SETTLEMENT BY LOTS LOTS % LOTS % LOTS % NSW 1,627 65.6% 527 21.2% 1,100 44.3% QLD 331 13.3% 89 3.6% 242 9.8% WA 302 12.2% 9 0.3% 293 11.8% VIC 222 8.9% 29 1.2% 193 7.8% Total 2,
Slide 38: FY14 settlements
FY14 SETTLEMENTS For personal use only Mirvac’s FY14 settlements KEY FY14 SETTLEMENTS BY PRODUCT PRODUCT TYPE LOTS Googong, NSW Masterplanned communities 319 Mirvac average price: Chatswood, NSW Apartments 294 > House $480k > Land $284k Pinnacle, NSW Apartments 233 > Apartments $1,037k Elizabeth Hil
Slide 39: Pre-sales outlook FY15 and beyond
PRE-SALES OUTLOOK FY15 AND BEYOND PROFIT SETTLEMENT LOTS REVENUE For personal use only RELEASED PROJECT STATE STAGE STATUS ENTITLEMENT PERIOD LOTS PRE-SOLD $M 1 Jane Brook WA Stages 5-6 Settlements commenced 100% FY15-FY16 39 15.4% 70.7 Elizabeth Hills NSW All stages Settlements commenced 100% F
Slide 40: Diversification of residential lots/revenue
DIVERSIFICATION OF RESIDENTIAL LOTS/REVENUE For personal use only 30,538 lots under control FORECAST FUTURE REVENUE BY PRODUCT LOTS UNDER CONTROL BY STRUCTURE SHARE OF FORECAST REVENUE BY STATE Masterplanned 100% Mirvac inventory 43.8% NSW 35.1% communities 49.3% MWRDP 3.2% VIC 36.7% Apartments 50.7
Slide 41: Capitalised interest
CAPITALISED INTEREST For personal use only > Capitalised interest now represents 10.4% of gross inventory, down from 12.4% at FY13 > Capitalised interest is 5.0% as a percentage of gross inventory for non-provisioned projects, and 26.1% for provisioned projects > 64.5% of the capitalised interest ba
Slide 42: Provisions – roll off
PROVISIONS – ROLL OFF 1 For personal use only ENGLOBO UPDATE PRODUCT LINE UPDATE Spring Farm, NSW (stages 4 and 5) Masterplanned Communities Sold Hope Island, QLD Masterplanned Communities Sold Brookwater, QLD Masterplanned Communities Sold Belmont Aero, NSW Commercial Sold Mackay, QLD (stages 2 and
Slide 43: Hypothetical profit making development project – treatment of capitalised costs
HYPOTHETICAL PROFIT MAKING DEVELOPMENT PROJECT – TREATMENT OF CAPITALISED COSTS For personal use only PROJECT METRICS TOTAL Sales revenue 120 Land (20) Cost of property development and construction (60) Sales & marketing expenses (10) Interest costs (10) Total project return 20 Cash Flow Year 1 Year
Slide 44: Hypothetical provisioned development project – treatment of capitalised costs
HYPOTHETICAL PROVISIONED DEVELOPMENT PROJECT – TREATMENT OF CAPITALISED COSTS For personal use only PROJECT METRICS TOTAL Sales revenue 100 This is the same project but it has suffered from a 2 year delay in Land (25) construction, increasing interest costs and resulting in a negative project Cost o
Slide 45: Residential development high density = apartments
RESIDENTIAL DEVELOPMENT HIGH DENSITY = APARTMENTS For personal use only PROFILE OF HIGH DENSITY GENERIC PROFILE — SINGLE STAGE, 200 UNIT APARTMENT PROJECTS > High barriers to entry Month 6 Month 12 Month 15 Month 35 DA submitted DA approved Construction commences Practical completion > Acceptable ri
Slide 46: Residential development low density = masterplanned communities
RESIDENTIAL DEVELOPMENT LOW DENSITY = MASTERPLANNED COMMUNITIES For personal use only PROFILE OF LOW DENSITY GENERIC PROFILE — MULTI STAGE, 1,000 LOT MASTERPLANNED COMMUNITY > Lower capital commitment Month 6 DA submitted Month 24 DA approved Month 36 First settlement > Smoother earnings 80.0% > Del
Slide 47: Health and safety
For personal use only health and safety MIRVAC I FY14 ADDITIONAL INFORMATION I 21 AUGUST 2014 I 46
Slide 48: Health and safety
HEALTH AND SAFETY 1 For personal use only AVERAGE TIME LOST THROUGH INJURY IN DAYS From FY10 to FY14 average time lost through injury FY14 2 days days has reduced by 90.5% FY13 6.5 days FY12 7 days FY11 8 days FY10 21 days NUMBER OF INJURIES RESULTING IN WORKERS COMPENSATION CLAIMS From FY10 to FY14
Slide 49: Calendar
For personal use only calendar MIRVAC I FY14 ADDITIONAL INFORMATION I 21 AUGUST 2014 I 48
Slide 50: Calendar
CALENDAR 1 For personal use only UPCOMING CONFERENCE ATTENDANCE: EVENT LOCATION DATE Private roadshow Sydney 26 August 2014 Private roadshow Melbourne 27 August 2014 Private roadshow Netherlands 4-5 September 2014 Private roadshow London 8-9 September 2014 Bank of America Merrill Lynch Global Real E
Slide 51: Glossary
GLOSSARY For personal use only TERM MEANING TERM MEANING 1H First half JV Joint Venture A-REIT Australian Real Estate Investment Trust LPT Listed Property Trust AFFO Adjusted Funds from Operations MAT Moving Annual Turnover BP Basis Points MGR Mirvac Group ASX code CBD Central Business District MPT
Slide 52: Disclaimer and important notice
DISCLAIMER AND 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 p
Slide 53: Thank you
For personal use only thank you FOLLOW US MIRVAC MIRVAC ON TWITTER INVESTOR RELATIONS FY14 PROPERTY @MIRVACIR WEBSITE COMPENDIUM