Mirvac Group · ASX:MGR
Mirvac — Macquarie Australia Conference 2019
18 slides from Mirvac's conference presentation, Apr 30, 2019
Slide 1: Macquarie Australia Conference: Reimagine Urban Life
Reimagine Urban Life 30.04.2019 MACQUARIE For personal use only AUSTRALIA CONFERENCE
Slide 2: Mirvac's disciplined approach to allocating capital driving returns
Macquarie Australia Conference MIRVAC'S DISCIPLINED APPROACH TO ALLOCATING CAPITAL DRIVING RETURNS For personal use only URBAN STRATEGY (SYDNEY/MELBOURNE OVERWEIGHT) 85-90% Investment 10-15% Development Secure yield – underpins Group distribution Disciplined growth $10.9bn $1.8bn Office & Industrial
Slide 3: Focused urban asset creation capability driving longer term growth
Macquarie Australia Conference FOCUSED URBAN ASSET CREATION CAPABILITY DRIVING LONGER TERM GROWTH For personal use only >> Asset creation capability improving portfolio quality and recurring earnings EXECUTED STRATEGY TO SELL REGIONAL/NON-CORE ASSETS >> Investing incremental capital in the creation
Slide 4: Our purpose: to reimagine urban life
Macquarie Australia Conference OUR PURPOSE: TO REIMAGINE URBAN LIFE For personal use only Shaping the future of Australia’s cities & urban areas TRAMSHEDS, SYD WOODLEA, MEL GREEN SQUARE, SYD 664 COLLINS STREET, MEL CALIBRE, SYD ATP, SOUTH EVELEIGH, SYD We leave a legacy of sustainable, connected & v
Slide 5: Australia's first Indigenous rooftop farm at South Eveleigh
Macquarie Australia Conference AUSTRALIA’S FIRST INDIGENOUS ROOFTOP FARM AT SOUTH EVELEIGH For personal use only 30 APRIL 2019 4
Slide 6: Investing in our people
Macquarie Australia Conference INVESTING IN OUR PEOPLE For personal use only 90% WORK SAFE stay safe 2019 Engagement Score 1 1. Undertaken by Willis Towers Watson. 30 APRIL 2019 5
Slide 7: Award winning quality since 1972
Macquarie Australia Conference AWARD WINNING QUALITY SINCE 1972 For personal use only Over 600 awards for industry excellence1 CIBSE – 2019 PCAA – 2018 UT – 2017 AIA – 2017 AIA – 2017 AIA – 2017 NTNSW – 2017 NAWC – 2017 International Project Best Commercial Commercial Sir Arthur G. Stephenson Award
Slide 8: 3Q19 residential results remain solid in a challenging market
Macquarie Australia Conference 3Q19 RESIDENTIAL RESULTS REMAIN SOLID IN A CHALLENGING MARKET For personal use only $2.0bn Pre-sales secured 1 1,290 lots settled to date >2,500 FY19 Lot Settlement Target >900 lots released to date The Eastbourne, Melbourne (artist impression) 1. As at 31 March 2019 a
Slide 9: Continual focus on quality, location and customer in current conditions
Macquarie Australia Conference CONTINUAL FOCUS ON QUALITY, LOCATION AND CUSTOMER IN CURRENT CONDITIONS For personal use only Residential outlook remains challenging MIRVAC HISTORICAL ACQUISITIONS VS RESIDENTIAL PRICES >> Average prices and volumes are falling in many corridors – 12,000 Lots acquired
Slide 10: Strategy focused on long term urbanisation
Macquarie Australia Conference STRATEGY FOCUSED ON LONG TERM URBANISATION For personal use only >> Strategic weighting to NSW and VIC representing 74% of residential lots PRECONDITIONS FOR NEXT CYCLE UNDERWAY AS DWELLING COMPLETIONS >> In the 10 years to 2028, Australia’s population is projected to
Slide 11: Strong office & industrial performance continues in 3Q19
Macquarie Australia Conference STRONG OFFICE & INDUSTRIAL PERFORMANCE CONTINUES IN 3Q19 For personal use only OFFICE INDUSTRIAL $6.4bn Portfolio Value 1 $0.9bn Portfolio Value 1 97.9% Occupancy 2 99.7% Occupancy2 6.5yrs WALE 3 7.8yrs WALE 3 $5.3bn Development Pipeline 4 $0.9bn Development Pipeline 4
Slide 12: Building resilient recurring income
Macquarie Australia Conference BUILDING RESILIENT RECURRING INCOME For personal use only ADDITIONAL HIGH-QUALITY INCOME FROM OFFICE & INDUSTRIAL DEVELOPMENTS 1 $3.1bn ACTIVE DEVELOPMENT PIPELINE NOI GROWTH >$95m Potential additional annual NOI 100 ($m) NOI by FY23 from FY19 from active 74% 90 commit
Slide 13: Retail metrics remain positive in 3Q19
Macquarie Australia Conference RETAIL METRICS REMAIN POSITIVE IN 3Q19 For personal use only $3.4bn Portfolio Value 1 99.2% Occupancy2 2.6% Specialty Sales Growth3 >$10,000/sqm Specialty Sales Productivity 4 Kawana Shoppingworld, Sunshine Coast Tramsheds, Sydney 1. As at 31 December 2018. 2. By area,
Slide 14: Urban and metropolitan portfolio positioned for performance
Macquarie Australia Conference URBAN AND METROPOLITAN PORTFOLIO POSITIONED FOR PERFORMANCE For personal use only Inner and middle ring Growth corridor and satellite High barriers to entry for urban retail >> High household wealth >> Strong population growth >> Deep employment bases >> Investment in
Slide 15: Future opportunities underpinned by robust balance sheet
Macquarie Australia Conference FUTURE OPPORTUNITIES UNDERPINNED BY ROBUST BALANCE SHEET For personal use only >> Well positioned to fund existing development pipeline and growing distribution >> Gearing of 24.4% and $570m of cash and undrawn 4.5% 24.4% 6.1YRS A3/A- Average Gearing 2 Average Debt Mat
Slide 16: FY19 guidance reaffirmed
Macquarie Australia Conference FY19 GUIDANCE REAFFIRMED For personal use only DPS 12.0 cents 1 11.6 AGR r DPS C a FY19 guidance 6 ye FY19 guidance 5% 5% 3-4% 11.0 11.0 DPS growth 10.4 10.0 9.9 9.4 EPS growth (16.9-17.1 cpss) 9.0 9.0 8.7 8.0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Guidance 1. Period of FY
Slide 17: Important notice
Macquarie Australia Conference IMPORTANT NOTICE For personal use only Mirvac Group comprises Mirvac Limited (ABN 92 003 280 699) and Mirvac Property Trust (ARSN 086 780 645). An investment in Mirvac stapled securities is subject to investment and other known and unknown risks, some of This presentat
Slide 18: Thank you
For personal use only THANK YOU