Mirvac Group · ASX:MGR
Mirvac — Macquarie Australia Conference 2017
17 slides from Mirvac's conference presentation, May 2, 2017
Slide 1: Macquarie Australia Conference – Everything's connected
For personal use only 2 M AY 2 0 1 7 MACQUARIE AUSTRALIA RESIDENTIAL CONFERENCE OFFICE INDUSTRIAL RETAIL EVERYTHING’S connected
Slide 2: Mirvac is extremely well positioned
Mirvac is extremely well positioned For personal use only > Clearly defined purpose > Sustainable business model with strong leadership team > $8.7bn high quality investment portfolio delivering leading metrics > Focused development pipeline delivering vastly improved returns > Excellent earnings vi
Slide 3: Why is Mirvac unique? Urban asset specialist with Sydney & Melbourne overweight
Why is Mirvac unique? Urban asset specialist with Sydney & Melbourne overweight For personal use only > 76% of the Group’s invested capital weighted to Sydney and Melbourne R DE GE V Group invested capital A Sydney & Melbourne: 76% EL Asset Brisbane, Perth and MAN OPER Canberra: 24% creation capabil
Slide 4: Disciplined approach to allocating capital and driving returns
Why is Mirvac unique? Disciplined approach to allocating capital and driving returns For personal use only Urban Strategy (Sydney/Melbourne overweight) 75-80% Investment 20-25% Development Secure yield – underpins Group distribution Disciplined growth $8.7bn $2.1bn OFFICE & INDUSTRIAL RETAIL RESIDEN
Slide 5: In-house capability across project lifecycle
Why is Mirvac unique? In-house capability across project lifecycle For personal use only > Fully integrated business creates value for our customers and securityholders Property Sales & Acquisition Design Construction Development Leasing & facilities marketing management Mirvac’s unique end-to-end i
Slide 6: Focused urban strategy delivering strong results
Focused urban strategy delivering strong results FY17 TARGET For personal use only >15% Operating EPS Residential ROIC 1 15 cents 15% FY17 EPS 11 14.4c 14 21% % over 3 years GROWTH 13 13.0c ON FY16 10 12.3c 12 11.9c 11 FY14 FY15 FY16 FY17 Guidance 5 DPS 10.5 cents 10.4c FY17 DPS 5% 16% 10.0 over 3 y
Slide 7: High quality office and industrial portfolio
High quality office and industrial portfolio For personal use only $5.5bn OFFICE AND INDUSTRIAL PORTFOLIO 99.5% 97.6% Industrial occupancy Office occupancy 6.7yrs Office 6.37% WALE Industrial cap rate 5.96% 12 .7yrs Average 93% Weighted to Office age cap rate Sydney and Melbourne 95% 81% Weighted to
Slide 8: Urban focused retail portfolio delivering transformed results
Urban focused retail portfolio delivering transformed results For personal use only $2.9bn RETAIL PORTFOLIO 99.5% $9,934/sqm Occupancy Total sales 5.95% productivity Retail cap rate 14.9% Specialty occupancy cost ratio $9,749/sqm Total specialty sales productivity 32% growth since Jun 13 All informa
Slide 9: Office, Industrial and Retail market overview
Office, Industrial and Retail market overview For personal use only Tightening vacancy outlook in Sydney & Melbourne Urban capital cities stand to benefit from the fast growing international education sector Office vacancy rate by CBD market Distribution of international students in Australia 2015 3
Slide 10: Committed office and industrial pipeline will continue to strengthen the portfolio
Committed office and industrial pipeline will continue to strengthen the portfolio For personal use only > $2bn committed office and industrial development pipeline supports future high quality income FY18: 664 COLLINS ST FY20: 477 COLLINS ST, 76% MELBOURNE MELBOURNE Pre-leased FY20/21: ATP, SYDNEY
Slide 11: Retail portfolio resilient for future
Retail portfolio resilient for future For personal use only > Strong catchments, retail mix and our ability to optimise productivity through development and repositioning underpins future performance Completed 1H17 Strategically evolving retail mix for future growth Food catering 11% 19% Non-retail,
Slide 12: Residential market overview
Residential market overview For personal use only EASTBOURNE, MELBOURNE HAROLD PARK, SYDNEY TULLAMORE, MELBOURNE WOODLEA, MELBOURNE GREEN SQUARE, SYDNEY BRIGHTON LAKES, SYDNEY MIRVAC MACQUARIE AUSTRALIA CONFERENCE 2 MAY 2017 11
Slide 13: Residential business continues to perform solidly
Residential business continues to perform solidly For personal use only > Solid sales activity in 3Q17 driven by new project On track launches and continued sales at existing strongly to achieve >15% performing projects >15% > Maintained high level of pre-sales contracts at $3.0bn 1 FY17 target > Ex
Slide 14: High quality residential pipeline set to benefit from the growth of our cities
High quality residential pipeline set to benefit from the growth of our cities For personal use only > 31,000 lot pipeline evenly balanced between MPC and apartments (by value) > Strong embedded margins with 50% of lots with expected margins of 25%+ Sydney – average annual dwelling projections Melbo
Slide 15: What you can expect from us?
What you can expect from us? For personal use only > Continue to execute our urban strategy > Deliver on our FY17 targets > Continue to respond to the cycle and prudently manage business risks > Disciplined capital deployment > Maintain a strong balance sheet with capacity for new opportunities > Ma
Slide 16: Important Notice
Important Notice For personal use only Mirvac Group comprises Mirvac Limited (ABN 92 003 280 699) and Mirvac Property Trust (ARSN 086 780 An investment in Mirvac stapled securities is subject to investment and other known and unknown risks, 645). This presentation (“Presentation”) has been prepared
Slide 17: Thank you
For personal use only THANK YOU RESIDENTIAL OFFICE INDUSTRIAL RETAIL EVERYTHING’S connected