Mirvac Group · ASX:MGR
Mirvac — FY2024 Earnings Presentation
32 slides from Mirvac's earnings presentation, Aug 8, 2024
Slide 1: FY24 Results
FY24 Results 8 AUGUST 2024 Highforest, Sydney (artist impression, final design may differ)
Slide 2: Agenda
FY24 Results 8 August 2024 Agenda 03 Overview Campbell Hanan Group CEO & Managing Director 09 Financial Performance Courtenay Smith Chief Financial Officer 12 Investment Richard Seddon CEO, Investment 19 Funds Scott Mosely CEO, Funds Management 21 Development Stuart Penklis CEO, Development 27 Summa
Slide 3: Acknowledgement of Country
FY24 Results 8 August 2024 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 project for Wongin Park Henley
Slide 4: Overview
FY24 Results 8 August 2024 Overview Campbell Hanan Group CEO & Managing Director C R E AT SET IO AS elopment N Dev Development EBIT NTA Uplift Delivers new T C U R AT I sustainable assets SE ON AS tm Inves ent New recurring high quality rental income New recurring asset & funds management fees F u n
Slide 5: Delivering on our strategic objectives in FY24
FY24 Results 8 August 2024 Delivering on our strategic objectives in FY24 Retain balance sheet Increase cash flow resilience Leverage integrated Expand funds Continued focus on flexibility of Investment portfolio development capability management offering sustainability and culture 367 Collins Stree
Slide 6: FY24 results highlights
FY24 Results 8 August 2024 FY24 results highlights FY24 GROUP EBIT FY24 OPERATING PROFIT FY24 EPS FY24 DPS1 FY24 STATUTORY RESULT NTA2 GEARING3 $860m $552m 14.0c 10.5c ($805m) $2.36 26.7% +12% on pcp (5%) on pcp (5%) on pcp flat on pcp (11%) on FY23 THIRD-PARTY CAPITAL INVESTMENT PORTFOLIO4 DEVELOPM
Slide 7: Driving value for our securityholders
FY24 Results 8 August 2024 Driving value for our securityholders 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, integrated platform CASH
Slide 8: Progressing towards invested capital targets
FY24 Results 8 August 2024 Progressing towards invested capital targets FY23 FY24 Invested Capital Long-term Invested Capital target % $bn % % Strategy & execution Investment 77% ~$10.6bn 75% >70% Office 66% ~$6.3bn 59% ~40% Tighten focus on low capex, modern, Premium CBD assets: ~$0.9bn non-core of
Slide 9: Continued focus on sustainability and culture
FY24 Results 8 August 2024 Continued focus on sustainability and culture Sustainalytics’ 2024 ESG Top Recycling waste: 96% construction 16 of our office assets have a #1 #2 ~$66M 87% TOP 10 45% Concluded our second Rated Companies waste & 66% 5 Star NABERs AFR Property Best Australian since FY18 in
Slide 10: Financial Performance
FY24 Results 8 August 2024 Financial Performance Courtenay Smith Chief Financial Officer C R E AT SET IO AS elopment N Dev Development EBIT NTA Uplift Delivers new T C U R AT I sustainable assets SE ON AS tm Inves ent New recurring high quality rental income New recurring asset & funds management fe
Slide 11: FY24 earnings drivers
FY24 Results 8 August 2024 FY24 earnings drivers FY24 FY23 Investment ($m) ($m) > +3.0% LFL growth driving property NOI, growth in contributions from co-investment stakes across MWOF, BTR and Investment Serenitas, income from development completions at Switchyards and Heritage Lanes, offset by non-c
Slide 12: Solid balance sheet position & visibility
FY24 Results 8 August 2024 Solid balance sheet position & visibility > Headline gearing at 26.7%1, within our target range of 20-30% Actively raising capital to maintain balance sheet flexibility > Headroom to financial covenants > Average borrowing cost of 5.6%2 > ~$1.4bn of available liquidity > A
Slide 13: Investment
FY24 Results 8 August 2024 Investment Richard Seddon CEO, Investment C R E AT SET IO AS elopment N Dev Development EBIT NTA Uplift Delivers new T C U R AT I sustainable assets SE ON AS tm Inves ent New recurring high quality rental income New recurring asset & funds management fees F u nd s As s e t
Slide 14: Investment focused on cash flow resilient sectors with positive structural tailwinds
FY24 Results 8 August 2024 Investment focused on cash flow resilient sectors with positive structural tailwinds Mirvac portfolio quality driving consistent outperformance1 Based on compound average annual returns 10.0% CONTINUE TO INCREASE CASH FLOW >170BPS OF RESILIENCE OF INVESTMENT PORTFOLIO OUTP
Slide 15: Office: Premium performing strongly with low expiry risk
FY24 Results 8 August 2024 OFFICE Premium performing strongly with low expiry risk Resilient occupancy1 WALE2 Elevated FY24 leasing Gross leasing spreads Sustainable portfolio High quality Asset valuations3 WACR 95.1% (FY23: 95.0%) 5.9 YRS (FY23: 5.7yrs) ~77,300 SQM (FY23: ~61,700 sqm) +1.2% (FY23:
Slide 16: Industrial: 100% Sydney portfolio benefiting from development completions
FY24 Results 8 August 2024 INDUSTRIAL 100% Sydney portfolio benefiting from development completions Strong High occupancy1 WALE2 Leasing deals Gross leasing Rental upside Asset valuations3 WACR 99.3% 6.1 YRS ~23,900 SQM ~19% -7.2% 5.46% income growth spreads +18% FY24 NOI growth (FY23: 100%) (FY23:
Slide 17: Retail: Urban focused assets proving resilient
FY24 Results 8 August 2024 RETAIL Urban focused assets proving resilient Stable occupancy1 Leasing deals Gross leasing spreads MAT growth Occupancy cost2 Specialty sales3 Asset valuations4 WACR 98.0% (FY23: 97.5%) ~61,700 SQM (FY23: ~91,000 sqm) -0.8% +0.4% Ex Greenwood Plaza 1.1% (FY23: 17.3%) 14.2
Slide 18: Living: BTR portfolio capturing strong rental demand
FY24 Results 8 August 2024 LIVING BTR portfolio capturing strong rental demand Unrivalled experience LIV apartments1 3 Growing customer Strong occupancy2 FY24 Net Low average Strong sector Resilient valuations >7 YEARS 1,279 ~94% +4.3% proposition re‑leasing spreads3 downtime population growth in BT
Slide 19: Living: Land Lease portfolio delivering strong operating metrics
FY24 Results 8 August 2024 LIVING Land Lease portfolio delivering strong operating metrics Occupancy1 Communities Occupied sites Growth opportunity Settlements2 Sales3 Contracts on hand4 Affordable offering 3 NEW 100% 28 4,587 1,872 Development pipeline sites 409 new homes 361 new homes 215 as at 30
Slide 20: Funds
FY24 Results 8 August 2024 Funds Scott Mosely CEO, Funds Management C R E AT SET IO AS elopment N Dev Development EBIT NTA Uplift Delivers new T C U R AT I sustainable assets SE ON AS tm Inves ent New recurring high quality rental income New recurring asset & funds management fees F u nd s As s e t
Slide 21: ~$15.4bn established third-party platforms and partnerships
FY24 Results 8 August 2024 ~$15.4bn established third-party platforms and partnerships OVER ~$11BN OF NEW THIRD-PARTY CAPITAL RAISED IN LAST 2 YEARS WITH 5 NEW CAPITAL PARTNERS ESTABLISHED PLATFORMS FOR FUTURE GROWTH LIVING INDUSTRIAL OFFICE Progressing BTR venture Growing Industrial venture with Au
Slide 22: Development
FY24 Results 8 August 2024 Development Stuart Penklis CEO, Development C R E AT SET IO AS elopment N Dev Development EBIT NTA Uplift Delivers new T C U R AT I sustainable assets SE ON AS tm Inves ent New recurring high quality rental income New recurring asset & funds management fees F u nd s As s e
Slide 23: Progressed CMU development pipeline – unlocking value & providing earnings visibility
FY24 Results 8 August 2024 Progressed CMU development pipeline – unlocking value & providing earnings visibility FY24+ COMMITTED DEVELOPMENTS TO GENERATE >$90M OF RECURRING NOI1 LIVING INDUSTRIAL OFFICE LIV ASTON, MELBOURNE ASPECT INDUSTRIAL ESTATE, SYDNEY 55 PITT STREET, SYDNEY 474 ESTIMATED END VA
Slide 24: Utilising competitive advantage across diverse CMU development pipeline
FY24 Results 8 August 2024 Utilising competitive advantage across diverse CMU development pipeline Mixed-Use: ~$3.2bn1 Build to Rent: ~$1.1bn2 Office: ~$3.3bn1 Industrial: ~$2.5bn1 Committed: ~$0.2bn 1 Committed: ~$1.1bn 2 Committed: ~$2.6bn1 Committed: ~$0.6bn 1 Status: Status: Status: Status: Stat
Slide 25: Residential results solid with strong sales in under supplied pockets
FY24 Results 8 August 2024 Residential results solid with strong sales in under supplied pockets > 2,401 settlements (FY23: 2,298), with Green Square 97% settled. Defaults in line with long term averages at 2.3%1 FY24 key sales highlights > 17% gross margin2. FY24-25 margins temporarily below throug
Slide 26: Market fundamentals primed for recovery
FY24 Results 8 August 2024 Market fundamentals primed for recovery Restricted apartment supply outlook Market MPC land sales well below history in most states Sydney, Melbourne & Brisbane market high density apartment completions Upside potential supported by persistent strong population growth 60,0
Slide 27: Restocked pipeline well placed to benefit from normalisation in sales activity
FY24 Results 8 August 2024 Restocked pipeline well placed to benefit from normalisation in sales activity ~8,400 lots1 Monarch Glen, QLD Restocked pipeline Multiple growth drivers Opportunistically restocking development pipeline & Mulgoa, NSW > >28,000 lot restocked pipeline grown by 23% > Well pos
Slide 28: Summary & Guidance
FY24 Results 8 August 2024 Summary & Guidance Campbell Hanan Group CEO & Managing Director C R E AT SET IO AS elopment N Dev Development EBIT NTA Uplift Delivers new T C U R AT I sustainable assets SE ON AS tm Inves ent New recurring high quality rental income New recurring asset & funds management
Slide 29: FY25 guidance
FY24 Results 8 August 2024 FY25 guidance Assumes: > Non-core asset sales of >$500m > FY25 Residential settlements of 2,000-2,500 > Lower Apartment margins on FY25 settlements > Execution of capital partnering initiatives across development Mirvac is targeting1: > Weighted average cost of debt of ~5.
Slide 30: Positioned for future earnings growth
FY24 Results 8 August 2024 Positioned for future earnings growth drivers of growth over time Multiple Olderfleet, Melbourne LIV Anura, Brisbane3 Riverlands, Sydney3 55 Pitt Street, Sydney3 Investment portfolio Funds management Residential completions and margin recovery Development pipeline Resilien
Slide 31: Important notice
FY24 Results 8 August 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, AFSL number 233121) as the respons
Slide 32: 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 ‘Reimagining Country’ by Riki Salam (Mualgal, Kaurareg, Kuku Yalanji), We are 27 Creative