Slide 1: 1H14 results
For personal use only 1H14 results 20 February 2014
Slide 2: Agenda
20 bond street, NSW For personal use only Agenda 1H14 snapshot FY14 strategy 1H14 financial Operational Summary and scorecard results and capital update guidance progress update management mirvac I 1H14 results I 20 February 2014 I 01
Slide 3: 1H14 snapshot
pinnacle, NSW For personal use only 1H14 snapshot mirvac I 1H14 results I 20 February 2014 I 02
Slide 4: 1H14 snapshot
1H14 snapshot 8 CHIFLEY, NSW For personal use only > 1H14 operating EPS of 5.5cpss (statutory earnings of 6.7cpss) 1,2 and DPS of 4.4cpss > Narrowed FY14 EPS guidance to 11.8 to 12.0cpss (8.3% to 10.1% growth) following 92.2% of FY14 expected Development EBIT 3 now secured > $698.4m of strategic acq
Slide 5: FY14 strategy scorecard progress update
artist’s impression of Harold park, NSW For personal use only FY14 strategy scorecard progress update mirvac I 1H14 results I 20 February 2014 I 04
Slide 6: Mirvac's vision
Mirvac’s vision For personal use only Setting the standard as a world-class Australian property group that attracts the best Integrated Leveraging our integrated model to create, own, manage Diversified Maintaining an appropriate balance of passive and active invested capital through cycles, retaini
Slide 7: FY14 strategy scorecard
FY14 strategy scorecard For personal use only FY14 action 1H14 achievements Office > Target continued IPD outperformance > Outperforming IPD on 3 and 5 year basis 1 > Substantially complete leasing balance of 8 Chifley, NSW > 8 Chifley, NSW 97.0% leased > Restock in line with acquisition mandate > S
Slide 8: FY14 strategy scorecard
FY14 strategy scorecard For personal use only FY14 action 1H14 achievements Residential > $100m to $140m in provision release for FY14 > $24.5m released; on track for $100m to $140m in FY14 > De-risk forward earnings through pre-sales > Record $1.5bn of residential exchanged pre-sales contracts deve
Slide 9: FY14 strategy scorecard
FY14 strategy scorecard For personal use only FY14 action 1H14 achievements Operational > Continuous process re-engineering through Business Transformation Office > 5 projects completed and 16 projects underway excellence > HSE and Sustainability strategy implementation > HSE refined and approved st
Slide 10: 1H14 financial results and capital management
yarra’s edge, vic For personal use only 1H14 financial results and capital management mirvac I 1H14 results I 20 February 2014 I 09
Slide 11: 1H14 financial results
1H14 financial results 1 For personal use only 1H14 ($m) 1H13 ($m) % change Statutory profit after tax attributable to Group securityholders 246.1 55.2 345.8% Statutory EPS 6.7cpss 1.6cpss Includes: Investment property revaluations (including IPUC) 67.1 67.9 Impairment of loans, investments and inve
Slide 12: 1H14 financial results: segmented operating EBIT
1H14 financial results For personal use only 1H14 TO 1H13 SEGMENTED OPERATING EBIT 1 > 13.1% increase in Group $280m Operating EBIT in 1H14 270 23.0 (3.7) (10.1) from 1H13 > Strong contribution from 260 254.9 Investment through like‑for‑like NOI growth 250 21.3 (1.0) and asset purchases 240 > Develo
Slide 13: Capital management update
Capital management update For personal use only 1H14 capital management strategic progress 1H14 FY13 3 > S&P credit rating upgraded to BBB+ from BBB Balance sheet gearing 4 28.8% 23.6% Covenant gearing 5 36.9% 35.2% > Increased and extended syndicated bank facility to $1.7bn Look-through gearing 29.
Slide 14: Operational update
yarra’s edge, vic For personal use only Operational update mirvac I 1H14 results I 20 February 2014 I 13
Slide 15: MPT
MPT For personal use only > MPT continues to outperform IPD index over three and five years 1 > Strong like‑for-like NOI growth of 3.3% > Occupancy remained high across the portfolio at 97.8% 2 Strong MPT > Group earnings underpinned with a solid WALE of 5.0 years 3 metrics underpin > 222 leasing de
Slide 16: Office — Passive
Office — Passive For personal use only > Office portfolio continues to outperform IPD index over three and five years 1 > Strong like-for-like NOI growth of 3.4% Mirvac’s office > Occupancy high at 96.1% 2 portfolio > Portfolio de-risked by WALE of 5.0 years 3 continues to deliver > Acquisitions of
Slide 17: Office — Passive: conditions and response
Office — Passive For personal use only Office CONDITIONS Mirvac’s response > Vacancy rates have increased across most CBD markets > Mirvac’s internal leasing team focused on: > Office supply remains below historical averages in — Maintaining effective rent growth; incentives remain below Melbourne a
Slide 18: Office — In development
Office — In development For personal use only > 1H14 Commercial Development EBIT of $25.1m 1; major contribution from 8 Chifley, NSW > Projects under construction de-risked; 87.9% pre-leased > Office development pipeline increased to $3.1bn 2 from $2.2bn 2 via income producing strategic restocking >
Slide 19: Case study: 8 Chifley, NSW
Case study 8 Chifley, NSW OFFICE DEVELOPMENT 8 CHIFLEY, NSW For personal use only MIRVAC’S flagship office development complete and ahead of Feasibility Project results: > $23.8m profit delivered to Development Division; $11.9m profit delivered to the Group > $333.5m value on completion > 8.0% yield
Slide 20: Retail — Passive
Retail — Passive For personal use only > Retail portfolio outperforming IPD index over one and three years 1 > 2.1% like-for-like NOI growth Strategy > Increased occupancy to 99.6% 2 > Specialty occupancy costs manageable at 15.9% 3 (15.2% on a like-for-like portfolio basis) underway to drive > Deli
Slide 21: Retail — Passive: conditions and response
Retail — Passive For personal use only Retail CONDITIONS Mirvac’s response > Retail conditions continue to be challenging, however > Mirvac’s retail team has been focused on repositioning improving household wealth is resulting in less caution and uplifting the portfolio quality by: on discretionary
Slide 22: Retail — In development
Retail — In development For personal use only Unlocking value via $800m 1 retail development pipeline > 35% of development pipeline completed and underway Stanhope Village, NSW Orion springfield central, QLD Kawana Shoppingworld, QLD projects Underway GLA increase 3,100sqm GLA increase: Padsites 5,1
Slide 23: Case study: Stanhope Village, NSW
Case study Stanhope Village, NSW — Stage 3 Retail development For personal use only The first project in Mirvac’s $800m 1 retail development pipeline complete Stanhope Village, NSW and ahead of feasibility Project results: > Prior to development asset valued at $73.8m 2 > Spend of $14.8m delivering
Slide 24: Industrial — Passive
Industrial — Passive For personal use only > Industrial portfolio outperforming IPD index over one year 1 > Occupancy strong at 99.5% 2 > 5.2% like-for-like NOI growth > Strong portfolio WALE of 9.3 3 years Industrial portfolio > Acquisition of 60 Wallgrove Road, NSW; strategic income producing asse
Slide 25: Industrial — Passive: conditions and response
Industrial — Passive For personal use only Industrial CONDITIONS Mirvac’s response > Leasing demand for industrial is currently stable, however > 92.2% of Mirvac’s industrial exposure is held in strongest improvements expected in line with business and consumer markets Sydney and Melbourne confidenc
Slide 26: Residential — 1H14 activity
Residential — 1H14 activity For personal use only > 1H14 Residential EBIT of $44.2m 1; settlement of 1,032 lots > Record $1.5bn 2 of residential exchanged pre-sales contracts; $670.2m secured in 1H14 > 1,097 lots released in 1H14 with 87.5% pre-sold Residential pipeline > Strategic acquisitions of >
Slide 27: Development — FY14 expectations
Development — FY14 expectations Chatswood, Era, NSW For personal use only > On track to achieve >10% Development ROIC and normalised gross margin within target of 18% to 22% > 92.2% of FY14 expected Development EBIT 1 secured > Strong price growth and sales volume in MPC north west and south west co
Slide 28: Residential — Market outlook
Residential — Market outlook 1 For personal use only > Fundamentals underpinning the housing market remain supportive of both prices and volumes > Construction activity continues to remain strong across Melbourne and Sydney > Affordability, weak labour market conditions and consumer caution will mak
Slide 29: Residential — Mirvac's outlook
Residential — Mirvac’s outlook For personal use only > FY15 expected Development EBIT 56.6% secured > $453m new exchanged pre-sales contracts to be settled in FY15 and FY16: — Harold Park, Precinct 3, NSW (82.9% pre-sold) — Yarra’s Edge, Array, VIC (78.5% pre-sold) > Recent pre-sales success provide
Slide 30: Summary and guidance
8 CHIFLEY, SYDNEY, NSW For personal use only Summary and guidance mirvac I 1H14 results I 20 February 2014 I 29
Slide 31: Summary and guidance
Summary and guidance For personal use only GuidanceFY14 Group operating profit $432 – $443m Operating EPS 11.8 – 12.0cpss DPS 8.8 – 9.0cpss Weighted average securities 3,673m Target Development ROIC in FY14 >10% mirvac I 1H14 results I 20 February 2014 I 30
Slide 32: 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 33: Thank you
For personal use only THANKYOU Follow us Mirvac Investor Mirvac 1H14 on twitter relations Property @MirvacIR website compendium