Slide 1: Mirvac Group Annual Results August 2005
Mirvac Group Annual Results August 2005 MIRVAC:
Slide 2: Managing Director Greg Paramor
Coes: cM Hn Mn ani iii a ZA HELTER ET anaes iniaae fanaging Director Greg Paramor
Slide 3: Agenda
Agenda Overview FY05 Results Divisional Strategy Market Outlook Summary Slide 3
Slide 4: Overview
Overvie Integration of James Fielding Group now complete Challenging twelve months as residential market slowed Premium brand in residential projects Strong residential & non-residential development pipeline Expanding recurrent earnings through investments and funds management Experienced management
Slide 5: Mirvac business at a glance
Bai MIRVAC eee | finds vie | Management Tropelly mee) - Residential - 3 owned: - Listed Trusts ommercia (18,697 lots under control) - The Como - Unlisted Funds Industrial Retail - Sydney Marriott Retail . - Cairns International ~ Debt Funds 7 Hotels - Commercial - Manage: ~ Property securities - Ind
Slide 6: Financial Highlights
Bai MIRVAC Financial Hig ° Net profit of $233.3m — $2.3m above the May 05 guidance . Distribution of 33.80 cents - 5% increase from FY04 ° Retained profits - currently $127.7m + Increase in total assets from $4.3bn to $5.5bn ° Asset revaluation of $59.3m across the investment portfolio te NTA is $3.
Slide 7: Chief Financial Officer Tim Regan
: nancial Officer Ti im Regan
Slide 8: Key per-security metrics
MIRVAC EPS DPS NTA per security Total assets 29.86c 33.80c $3.26 $5,524m Slide 8 FY04 36.67¢ 32.20c $3.12 $4,306m Change (18.6%) 5.0% 4.5% 28.3%
Slide 9: Profit and Loss
Total revenue’ 1,468.7 EBITDA 373.7 Net profit after tax 233.3 Total distributions 266.4 Retained earnings 127.7 1. Includes share of profits of joint ventures & associates Slide 9 Profit and Loss FY04 > $m 1,400.4 392.8 252.7 222.9 157.3 Change 4.9% (4.9%) (7.7%) 19.5% (18.8%)
Slide 10: Distributions and payout ratio
200 150 $millions 100 Payout ratio 95% gg) ee a OO eg rowth ee oe Lae ae Slide 10 FYOS 114%
Slide 11: Net Profit after Tax by division
Net Profit after Tax b Net profit after tax 233.3 7. Excludes Trust investments in hotels and funds management products 2. James Fielding Group acquired on 7 January 2005 Slide 14 % . 7 split Investments! 64.9 Developments 85.4 36.6 Hotels 11.8 5.0 Funds Management? 5.1 2.2 Unallocated (20.4) (8.7)
Slide 12: Annual results by entity
ANNUAL RES U Company $126.9mi 50% y y Ly _ Trust Trust $156.4m $125.8m 67% 50% FY04 1. After consolidation adjustments Slide 12
Slide 13: Balance sheet
5 30 Jun 04 Change Assets Investments Development Hotels Funds Management Other Total assets Liabilities Borrowings Other Total liabilities Net assets NTA NTA per Security $m 2,917 2,435 19.8% 1,899 1,372 38.4% 165 160 2.5% 443 - - 100 339 (70.5%) 5,524 4,306 28.3% 2,085 1,654 26.1% 458 4412 11.2% 2
Slide 14: Debt and gearing
3 MIRVAC Total net debt Total hedged Fixed interest maturity Average borrowing rate (including margin) Gearing’ - Group Gearing’ - Trust 1. Interest bearing liabilities less cash / total assets less cash Slide 14 FY05 $2,029m 77.0% 4.1 yrs 6.33% 37.1% 22.3% FYO4 $1,322m 86.8% 3.9 yrs 6.30% 33.3% 20.
Slide 15: Introduction of AIFRS
Introduction of F Required to adopt AIFRS for the year ended 30 June 06 First reporting period is half year to 31 December 05 The adoption of AIFRS will not impact: * net cash flows * business fundamentals * strategic direction Key impacts to profit & loss statement: * investment property revaluatio
Slide 16: Impact of AIFRS
Impact of Al FY05 Net Profit under AGAAP — Depreciation of owner occupied properties Write-back of goodwill amortisation Cash distributions on employee EIS securities Investment property revaluation increment : Reversal of UIG53 profits Adjustment for income tax expense . - © Pro-forma impact of AIF
Slide 17: Investments - Nicholas Collishaw
_ Holden HO, Victoria Nicholas Collishaw
Slide 18: Investments Highlights
ENVWESTMENTS INVEST JES Highlights * Investment division net profit after tax of $151.4m', an 11.6% increase on FY04 ¢ Investment portfolio grown to $2.9bn through acquisition of James Fielding, internal developments and revaluations * Acquisitions completed during the year: - Nexus Industry Park, L
Slide 19: Diversification of Investment Portfolio
Sm Fa Diversification by AS £ nent Portfolio 3m Gro Hotel/ LPT/ Car infra Parking 6% 3% Retail on 26% = NSW 2. 56% > Zi : . a Indust/Other ones Lt. 10% a Sector Diversification Geographic Diversification 1. Geographic diversification graph excludes LPTiInfrastructure Slide 19
Slide 20: Commercial and Industrial Portfolio
SHIN ENE ANNAN vr
Slide 21: Commercial and Industrial Highlights
Commercial and Industria Highlights Commercial and industrial portfolio net income increased 3.7% (like for like) Stable commercial portfolio occupancy at 97.2% improving industrial portfolio occupancy at 99.1% (up from 96.4%) Total of 149,000 sqm (26.1%) commercial / industrial space leased Strong
Slide 22: Nexus Industry Park and Darling Island
MIRVAC Nexus Industry Park, Liverpool -15 year pre-commitment to Atlas Holdings for 13,000 sqm — construction commenced - Commitments from major users likely to fill Park in the near term Darling Island, Pyrmont - Interest frorn corporate tenants seeking large floor plates at competitive rents incre
Slide 23: Retail Portfolio
2 : Retail Portfolio
Slide 24: Retail Performance
VES TMENTS INVEST Retail Perforn Neighbourhood and regional centres owned’ 16 Occupancy 99.1% Like for like actual net income has grown 5.4% MAT growth - total centres 2.5% Speciality sales? $8,415 per sqm MAT growth - specialty shops 2.3% Speciality occupancy cost 11.1% (average total portfolio) 1.
Slide 25: Extension, development and planning
‘tension | development and 4 lanning Waverley Gardens » Stage 1 works 95% complete and finished areas fully leased * Stage 2 DA lodged for new DDS and specialties Hinkler Central * Construction well advanced with opening due early 2006 » 60% leased Ballina Central * Construction and leasing commence
Slide 26: Orion Town Centre and other retail projects
Orion Town Centre ; (Stage 1) * Piling works commenced Leasing commenced with scheduled opening early 2007 Stanhope Gardens (Stage 2) * DA lodged for new DDS and specialties ANNUAL RES St Marys Village * Refurbishment substantially complete * Planning for future expansion
Slide 27: Current development projects and status
Est. Value 7 Projects > ~ - Status ($m) -~ Waverley Gardens | 52 Estimated completion Sept 2005 Waverley Gardens I] 25 Estimated completion end 2007 Hinkler Central -. Bundaberg AR Construction commenced Feb 2005.Completion expected Mar 2006 Orion Town Centre Stage 1(66%) 410 Piling works commenced
Slide 28: Portfolio in very good shape
Portfolio in very good shape: WALE: commercial 3.9 years, retail - 6.1 years, industrial - 5.0 years Significant development projects — retail, commercial and industrial — in place over next 5 years identified asset sales to commence prior to Jan 2006 to improve portfolio Seeking investment and co-i
Slide 29: Hotels Division
Hotels Division
Slide 30: Hotels Highlights
“HOTELS HOTELS HOTT Highlight Profit after tax increase of 30.2% to $11.8m Mirvac Hotels and Resorts awarded Best Hotels Accommodation Chain in Australia, New Zealand and South Pacific’ Additions to management portfolio: Quay West Resort Bunker Bay, WA - Sea Temple Resort & Spa Palm Cove, QLD - The
Slide 31: Hotels profit by region and rooms
MIRVAC nz Qld 14% cit (ii tt Strata 39% vic 25% Total number of rooms 2,750 Profit by Region Slide 31
Slide 32: Expand hotels under management
Continue to expand hotels under management from 2,750 to more than 3,300 rooms Open The Sebel Trinity Wharf Tauranga (NZ), Sea Temple Resort & Spa Port Douglas, The Sebel Harbour Lights Cairns, and Quay West Resort Magenta Shores. Refurbish Quay Grand Suites Sydney and The Sebel Reef House & Spa Pal
Slide 33: SRS
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Slide 34: Funds Management Highlights
MANAGEMENT Highlight: * Net profit after tax of $5.1m (6 months to June 2005) * Funds under management increased by 66% to $2.5bn' » JF Meridian Trust assets increased by 41% to $924m ° Launched: ~ JF US Industrial Trust ~ James Fielding Infrastructure Growth Fund ~ JF AQUA Income and High Income Fu
Slide 35: Funds under management breakdown
Bn di MIRVAC . JF Direct Domaine 5 PEA 3% 10% JFUSIT 7% 5% ee JF Capital 4% JF Infra 10% 38% 1. After adjusting for joint venture interests Slide 35
Slide 36: Funds under management forecast to increase to $3.5bn
Funds under management forecast to increase to $3.5bn Continue to launch selected new funds in areas of infrastructure, property debt and unlisted property funds Provide new sources of third party capital for Mirvac Facilitate new investment/development opportunities for Mirvac Leverage off enhanced
Slide 37: Development Division
win ment Di
Slide 38: Major Developments - NSW
Epica, Chatswood Acquired: Aug 1998 Total project value: $170m Project period: 2003 — 2005 Total lots: 228 Magenta Shores, Magenta Acquired: Sept 2002 Total project value: $530m Project period: 2004 ~ 2010 Total lots: 5714 Towns Place, Walsh Bay! Acquired: Oct 1997 Total project value: $100m Project
Slide 39: Major Developments - QLD
4h at Major Developments - QLD: Waterline, Bulimba Acquired: Jun 2002 Total project value: $138m Project period: 2004 ~ 2008 Total lots: 144 Ephraim Island, Gold Coast! Acquired: Nov 2002 Total project value: $545m Project period: 2003 ~ 2008 Total lots: 383 Cutters Landing, Brisbane Acquired: Jun 2
Slide 40: Major Developments - VIC
Major Developments - | Beacon Cove, Port Melbourne’ Acquired: 1995 Total project value: $130m (Stage 2) Project period: 2003 — 2006 (Stage 2) Total lots: 108 (Stage 2) Yarra’s Edge - 15, Docklands Acquired: Mar 2002 Total project value: $191m Project period: 2002 ~ 2005 Total lots: 191 Waverley Park
Slide 41: Major Developments - WA
Major Developments Peninsula, Burswood! Acquired: Apr 2003 Total project value: $800m+ Project period: 2002 ~ 2015 Total lots: 1,000+ Eden Springs, Mandurah Acquired: Aug 2003 Total project value: $14m+ Project period: 2003 ~ 2006 Total lots: 30 Hollywood & Swanbourne High Schools’ Nedlands & Swanbo
Slide 42: NSW Housing
iSW Housing Mornington, Holsworthy Acquired: Nov 2002 Total project value: $90m Project period: 2002 — 2007 Total lots: 255 Major Developments - Glenfield Road, Casula Acquired: Jun 2001 Total project value: $250m Project period: 2001 ~ 2008 Total lots: 615 Edgewood, Woodcroft! Acquired: Apr 2003 To
Slide 43: Development Results
ke Development R Settlements FY 05: * House & land lots — 1,687 * Medium density lots - 480 Wa WA o% Vic 25% vic NSW Devel 32% NSW Devel 19% QLD 13% NSW Housing NSW Housing 24% 23% FY04 - $1,052.9m Slide 43
Slide 44: Lots Under Control
he hg Lots Under Control Total No. of Houses/Land - 14,150 Forecast revenue from lots currently Total No. of Med. Density -_ 4,547 controlled ~- $8.5bn' over 10 years Total No. of Lots 18,697 NSW $4.2bn Forecast Revenue 1. No escalation. Slide 44
Slide 45: Development strategy
* Focus on major integrated developments « Expand number of lifestyle developments ¢ Residential sales pipeline - exchanged contacts of $877 million (at 30 June) *« Expanded non-residential development team with mandate to acquire development opportunities primarily in commercial and industrial Slid
Slide 46: LLL
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Slide 47: Market Outlook - Residential macro environment
MAREE T OUTLOOK Residential — Macro Enviror * Interest rates on hold * International migration — close to record high ¢ Labour market ~ Wages growth strong (+5%) ~ Unemployment low (5%) — Participation rate record high * Cost pressures easing as housing market cools Slide 47
Slide 48: Market Outlook - Residential market environment
Pow : M A REET OU TLOOK pe Residential — Market Envire ¢ Approvals ~ Houses ~ back on long-term trend - Apartments — still below long-term trend * Home lending rose through 2005 * First home buyers returning to market * Vacancy rates five-year lows, rents rising e« Apartment over-supply localised an
Slide 49: Market Outlook - Non-Residential
he Ld Non - Resider ¢ Retail and industrial sector to remain strong * Office sector recovering * Hotels strong on back of improving tourism sector * Strong competition for assets * Yields to remain firm * Rental growth positive across all sectors Slide 49
Slide 50: Summary
Summa * Grow recurrent earnings e Leverage off integrated property platform * Maintain position as leading residential brand in Australia * Continue to optimise MPT’s portfolio e Experienced and focused management team in place * Strong pipeline of assets under control Slide 50