Mirvac Group · ASX:MGR
Mirvac — Shareholder Meeting (November 2007)
36 slides from Mirvac's shareholder meeting presentation, Nov 16, 2007
Slide 1: Presentations to Mirvac Group's Annual General/General Meetings
For personal use only 16 November 2007 PRESENTATIONS TO MIRVAC GROUP’S ANNUAL GENERAL/GENERAL MEETINGS. In accordance with Listing Rule 3.13.3 I attach the Chairman’s Address and presentation slides to be delivered to today’s Annual General/General Meetings of the Mirvac Group. Michael Smith Group C
Slide 2: Chairman's Address: Financial Performance
Mirvac Limited ABN: 92 003 280 699 and Mirvac Funds Limited For personal use only ABN: 70 002 561 640 (as responsible entity for Mirvac Property Trust ARSN: 086 780 645) 2007 Annual General Meeting / General Meeting 16 November 2007 Chairman’s Address Financial Performance Mirvac Group produced anot
Slide 3: Chairman's Address: Divisional Performance
delivered in the last financial year. The performance is attributable to Mirvac’s many business units working together to deliver a stable stream of resiliant earnings for the Group. For personal use only Whilst there were no significant changes in the state of affairs of Mirvac; during the year the
Slide 4: Pursuing our Strategy
Pursuing our Strategy Mirvac has a well promulgated strategy of:- For personal use only - creating an integrated property platform; - diversifying our development business; and - expanding recurring earnings, to increase profits and returns by making our business less vulnerable to economic and prop
Slide 5: Pursuing our Strategy (continued)
A$400m. One property has already been acquired adjacent to the site of the 2012 Olympics and other opportunities are being For personal use only investigated. ii) We have opened a London office, and a senior executive, Adrian Harrington, re located to oversee an expanding overseas presence for Mirva
Slide 6: Pursuing our Strategy (continued)
the PFA Diversified Property Trust, a listed trust which owns a portfolio of Australian investment grade assets valued at almost For personal use only $700m. Both of these acquisitions are a good fit with Mirvac’s current business and bring more diversity and specialist management skills to Mirvac’s
Slide 7: Industrial acquisition and non-residential projects
This acquisition will utilise Mirvac’s integrated skills to create For personal use only high quality industrial investment grade assets which can be placed into funds to be managed by Mirvac to further increase our stream of recurring income, as well as expanding our presence in the industrial sect
Slide 8: 2007/8 Year
Sydney’s CBD and we are expanding the Orion Springfield Town Centre here in Queensland. For personal use only 2007/8 Year Mirvac has commenced the current year well and first quarter performance is on budget. This year Directors have increased the distribution to 32.9c per security for the full year
Slide 9: Distribution policy and development pipeline
Mirvac’s distribution policy will continue to be prudently managed so we can deliver appropriate returns to investors whilst at the same time For personal use only retaining sufficient funds to reinvest optimally in Mirvac’s future growth. Mirvac’s performance over the next 5-10 years will be suppor
Slide 10: Developments and sub-prime crisis impact
Despite recent increases in interest rates, Mirvac has experienced minimal defaults, reflecting our superior position in the market. Work is For personal use only proceeding on schedule on our prime residential development sites at Newcastle (NSW), Leighton Beach (WA), Waverley Park and Yarra’s Edge
Slide 11: Quadrant and remuneration practices
default. In fact Quadrant is benefiting from increased returns due to widening spreads in the CMBS market coupled with an increase in For personal use only wholesale loan market volumes as investors seek quality product in these times of uncertainty and volatility. Greg Paramor will provide you with
Slide 12: Remuneration policy
Board’s Human Resources Committee chaired by Peter Hawkins, whose mandate is to ensure their nexus with the Group’s performance. For personal use only Australia’s unprecedented period of resources demand lead economic growth has lead to a shortage of skilled labour in some professional and trade dis
Slide 13: Remuneration and securityholder questions
returns expected by our investors. To the best of my knowledge all the independent governance organisations have commented favorably on For personal use only our remuneration policies, whilst at the same time opining that Mirvac’s executive salaries on the whole remain below the level paid by our pe
Slide 14: Auditors and AGM locations
Thanks to all of you who have submitted questions – I have answered virtually all of them in what I have said today other than two queries on For personal use only our auditors and advisors: PWC as well as being our auditors provide taxation and regulatory advice to us. On our website we have publis
Slide 15: Thank you's
“Thank you’s” As I conclude, I would like to take this opportunity to thank my fellow For personal use only Board members for their contributions and support during the year, and commend Greg Paramor, Mirvac’s management team and their people for their continued dedication and their achievements. Mo
Slide 16: Mirvac brand
For personal use only Greg Paramor Managing Director Waterline, Bulimba 2007 Mirvac Group Annual General / General Meetings Waterline, Bulimba, Qld Mirvac brand > A leading brand for 35 years > Listed on ASX for 20 years > Diversified real estate platform > Financial strength > Global reach > Listed
Slide 17: Staff, diversity and share price performance
Over 5,500 staff across 4 countries For personal use only Australia-wide diversity with increasing global reach Internal Funds Management Development External Funds Management Hotels and Resorts 2007 Mirvac Group Annual General / General Meetings MGR v ASX LPT 200 MGR Share Price ASX LPT 200 140 135
Slide 18: Mirvac platform delivers growth
Mirvac platform delivers growth For personal use only > Strong full year performance above market guidance > Restructured divisions into 2 integrated operating units: - Funds Management: internal & external - Development: residential, commercial, retail & industrial > Recycling of capital delivered
Slide 19: Operational highlights and financial performance
Operational highlights For personal use only To 30 June 2007 > Acquired $1.124bn1 of assets from Walker and purchased a $328.3m1 hotel portfolio from Carlton Crest > External funds management: - Established $655.5m of new wholesale funds - Renewed AustralianSuper mandate through to June 2010 > Mirva
Slide 20: Capital management
Capital management For personal use only Jun 07 Jun 06 S&P rating BBB BBB Total interest bearing debt $2,552m $2,326m % hedged 79.6% 70.5% Weighted average hedge 4.5 yrs 4.5 yrs maturity Average borrowing rate1 6.79% 6.38% Gearing2 35.3% 38.0% 1. Includes margins & line fees. 2007 Mirvac Group 2. In
Slide 21: Sustainability leader
Sustainability leader For personal use only > Continued as a leading sustainable real estate group > Maintained strong commitment to sustainability through - Delivering enhanced financial performance for securityholders - Creating a more secure future for customers and the community > Continued exte
Slide 22: Funds Management: Overview of Results
For personal use only Funds Management Overview of Results Orion Springfield Town Centre, QLD Orion Springfield Town Centre, Qld 2007 Mirvac Group Annual General / General Meetings Funds Management Internal $4.2bn External $9.1bn1 Assets: $3.8bn Equity funds: $4.8bn 22 commercial buildings Debt fund
Slide 23: Key achievements: internal and external management
Key achievements For personal use only Internal Management > MPT delivered $1.1bn growth through asset acquisitions, development completions, revaluations, co-investment in external funds > Re-balanced portfolio through $340.5m disposal of non-core assets > Acquired 5 industrial sites covering 565ha
Slide 24: MPT development pipeline
MPT development pipeline For personal use only No. of Area sqm Transfer value $m projects Commercial 0 0 0 Industrial 1 9,709 13 Retail 4 76,875 229 Completions 5 86,584 2421 Commercial 1 19,250 150 Industrial 2 47,650 46 Retail 3 58,244 133 Current 6 125,144 3292 Commercial 2 74,622 340 Industrial
Slide 25: External funds and listed external funds
External funds For personal use only 30 Jun 07 $9.1bn1 FUM by Market Segment Equity funds 52% Listed 24% Debt funds 39% Retail 14% Infrastructure 9% Wholesale 21% Mandates 41% 2007 Mirvac Group 1. Funds under management before adjusting for joint venture interests. Annual General / General Meetings
Slide 26: Hotel Management
For personal use only Hotel Management Sea Temple, Palm Cove, QLD 2007 Mirvac Group Annual General / General Meetings Delivering consistent growth Average Room Rate $198 $184 Number of Hotels under Management $176 FY05 FY06 FY07 42 25 27 Rooms under Management FY05 FY06 FY07 5,439 2,750 3,124 FY05 F
Slide 27: Funds Management strategy
Funds Management strategy For personal use only > A suite of entities to satisfy investor needs and facilitate balance sheet activity > Expand retail product offerings > Cement existing investor relationships > Identify suitable international partners to expand Mirvac’s offer > Complete integration
Slide 28: Development: Key achievements
Key achievements For personal use only Continued re-stocking with acquisitions of 11,903 residential lots and expanded non residential development pipeline to $1.9bn - The Royal at Newcastle NSW - Leighton Beach WA - Gainsborough Greens QLD - Waverley VIC - Walker & industrial land bank non-resident
Slide 29: Residential market outlook
Residential market outlook For personal use only Underlying factors are positive - High immigration, low unemployment - Dwelling supply below underlying demand - Rental market tightened in all capital cities – rents rising - Investors and first home buyers returning to the market Issues - Affordabil
Slide 30: Divisional outlook
Divisional outlook For personal use only > $680m exchanged contracts > Re-stocking across all sectors > Continue to focus on major integrated developments > Residential pipeline strong > Expansion of commercial, industrial, retail and hotel continues > New projects released in FY08 across all market
Slide 31: Orion Springfield Town Centre and Tennyson Riverside
Orion Springfield Town Centre For personal use only Project Value: $155 Million One of Australia’s most environmentally friendly shopping centres – 42% saving in power use – 62% saving in potable water use – 5,000 tonnes less Greenhouse gas emissions > 8 awards won since opening in March 2007 > Loca
Slide 32: Mariner's Peninsula and Gainsborough Greens
Mariner’s Peninsula For personal use only Project Value: $155 Million Mixed residential development comprising: - Waterfront apartments and beach homes - Uninterrupted panoramic views across the Bay to Magnetic Island - Direct access to The Strand foreshore, pathways & public park land Expected comp
Slide 33: Mirvac in QLD
Mirvac in QLD For personal use only Total activities under control $4.8bn Retail $762m Commercial $389m Non - residential Industrial $208m Hotel $191m Development $666m Residential $2.6bn Staff 1,200 2007 Mirvac Group Annual General / General Meetings Outlook and Group Strategy 2007 Mirvac Group Ann
Slide 34: The economy
The economy For personal use only Economic outlook remains positive - GDP growth to accelerate in FY08 - Inflation pressures to persist - Another interest rate rise a strong possibility - Labour markets extremely strong – recruitment & retention strategies essential - Business investment and non-res
Slide 35: Group strategy and FY08 guidance
Group strategy For personal use only > Business well placed with resilient earnings and appropriate debt levels > Strong balance sheet capacity to manage risk and capitalise on opportunities > Further successful asset recycling – assets and development to Funds Management (Mirvac’s second balance sh
Slide 36: Mirvac Group
Mirvac Group For personal use only > Mirvac has become a fully integrated business with a diversity of earnings > Focused on delivering strong results for securityholders over the long term > Cautious approach in turbulent global markets, yet see significant opportunities > Strength of Mirvac brand