Mirvac Group · ASX:MGR
Mirvac — Investor Day (May 2012)
33 slides from Mirvac's investor day presentation, May 1, 2012
Slide 1: Investor Day 1 May 2012
For personal use only INVESTOR DAY 1 MAY 2012 275 KENT STREET, SYDNEY, NSW
Slide 2: Mirvac Property Trust (MPT) and Sustainability
For personal use only MIRVAC PROPERTY TRUST (MPT) AND SUSTAINABILITY MPT Strategic Overview Andrew Butler, CEO — Investment > MPT > Office > Retail Integrated Model > Acquisitions and Development > Leasing and Marketing > Portfolio Management > Property and Facilities Management Chris Luscombe, Gene
Slide 3: MPT Strategic Overview
For personal use only MPT STRATEGIC OVERVIEW ANDREW BUTLER CEO — INVESTMENT INVESTOR DAY 1 MAY 2012 PAGE 2
Slide 4: Mirvac Group: Investment 80% and Development 20%
MIRVAC GROUP For personal use only INVESTMENT — MPT 80% > Focus on high quality assets: > Office > Retail > Internal portfolio management: > Sector overweights DEVELOPMENT 20% > Continuous portfolio upgrade > High quality residential developments: > Active asset management > Apartments > Masterplann
Slide 5: MPT's Mandate
MPT’S MANDATE For personal use only MPT’s mandate: To provide high quality secure income > underpinning the Group’s earnings Invested capital $5,850.1m 1 Retail 27.5% Office 58.7% Other 13.8% 1) By book value as at 31 December 2011, including assets under development and indirect investments. INVEST
Slide 6: MPT Transformation
MPT TRANSFORMATION For personal use only Mirvac has engineered a significant uplift in MPT’s asset quality over the past five years due to strategic decisions and active asset management MPT portfolio snapshot 1H07 1H12 Peer ranking 1 Occupancy 2 95.4% Like-for-like NOI growth 2.7% 97.8% 3 2nd WALE
Slide 7: Office — Strategic Decisions
For personal use only OFFICE — STRATEGIC DECISIONS ANDREW BUTLER CEO — INVESTMENT INVESTOR DAY 1 MAY 2012 PAGE 6
Slide 8: Office — Strategic Decisions: Portfolio Level
OFFICE — STRATEGIC DECISIONS For personal use only PORTFOLIO LEVEL Mirvac made the strategic decision to increase portfolio Office weight: > Office oversold during the GFC compared to other sectors > Office construction subdued during GFC > supply outlook benign Outcomes: > IPD data shows Office out
Slide 9: Office — Strategic Decisions: Asset Level
OFFICE — STRATEGIC DECISIONS For personal use only ASSET LEVEL The Office team has focused on two primary objectives: 1) Improve asset quality through the development pipeline 2) Grow and secure passive income Outcomes: > Development pipeline delivery: — 10-20 Bond Street, Sydney, NSW — 8 Chifley Sq
Slide 10: Retail — Strategic Decisions
For personal use only RETAIL — STRATEGIC DECISIONS ANDREW BUTLER CEO — INVESTMENT INVESTOR DAY 1 MAY 2012 PAGE 9
Slide 11: Retail — Strategic Decisions: Portfolio Level
RETAIL — STRATEGIC DECISIONS For personal use only PORTFOLIO LEVEL Mirvac made the strategic decision to increase portfolio Sub-regional weight: > Sub-regional centres focus on food and value retailers > less risk to consumer confidence and online shopping Outcomes: > MPT holds the highest weight in
Slide 12: Retail — Strategic Decisions: Asset Level
RETAIL — STRATEGIC DECISIONS For personal use only ASSET LEVEL The Retail team has focused on two primary objectives: 1) Improve asset quality through the re-development pipeline and sale of non-core assets 2) Grow and secure passive income Outcomes: > Non-core asset sales > $296.8m sold at or above
Slide 13: MPT Future Strategic Direction
MPT FUTURE STRATEGIC DIRECTION For personal use only INVESTOR DAY 1 MAY 2012 PAGE 12
Slide 14: Integrated Model
For personal use only INTEGRATED MODEL ANDREW BUTLER CEO — INVESTMENT INVESTOR DAY 1 MAY 2012 PAGE 13
Slide 15: Integrated Model: Mirvac's Competitive Advantage
INTEGRATED MODEL For personal use only Integrated model > Mirvac’s competitive advantage ACQUISITION AND LEASING AND PORTFOLIO PROPERTY AND DEVELOPMENT MARKETING MANAGEMENT FACILITIES MANAGEMENT Mirvac’s unique end-to-end in-house capability provides: > Cost benefits > Quality control > Enhanced ret
Slide 16: Integrated Model: Acquisition and Development
INTEGRATED MODEL For personal use only Integrated model > Mirvac’s competitive advantage ACQUISITION AND LEASING AND PORTFOLIO PROPERTY AND DEVELOPMENT MARKETING MANAGEMENT FACILITIES MANAGEMENT > Acquisition and development teams identify opportunities via market intelligence and relationship manag
Slide 17: Integrated Model: Leasing and Marketing
INTEGRATED MODEL For personal use only Integrated model > Mirvac’s competitive advantage ACQUISITION AND LEASING AND PORTFOLIO PROPERTY AND DEVELOPMENT MARKETING MANAGEMENT FACILITIES MANAGEMENT Mirvac’s Office and Retail leasing team coordinate leasing to maximise rents, minimise downtime and achie
Slide 18: Integrated Model: Portfolio Management
INTEGRATED MODEL For personal use only Integrated model > Mirvac’s competitive advantage ACQUISITION AND LEASING AND PORTFOLIO PROPERTY AND DEVELOPMENT MARKETING MANAGEMENT FACILITIES MANAGEMENT > Partnerships focus of part share asset sell down > Capital expenditure deployed strategically to enhanc
Slide 19: Property and Facilities Management
For personal use only PROPERTY AND FACILITIES MANAGEMENT CHRIS LUSCOMBE GENERAL MANAGER — MIRVAC ASSET MANAGEMENT INVESTOR DAY 1 MAY 2012 PAGE 18
Slide 20: Integrated Model: Property and Facilities Management
INTEGRATED MODEL For personal use only Integrated model > Mirvac’s competitive advantage ACQUISITION AND LEASING AND PORTFOLIO PROPERTY AND DEVELOPMENT MARKETING MANAGEMENT FACILITIES MANAGEMENT Focus on value add to maximise returns to MPT > Mirvac’s internal Property and Facilities Management capa
Slide 21: Property and Facilities Management services
INTEGRATED MODEL For personal use only Property and Facilities Management Office and Industrial Retail Property Management Tenancy Management Centre Management Leasing Management Leasing Management Capital Expenditure Management Marketing Lease Administration Lease Administration Engineering and Ope
Slide 22: An owner's approach towards managing assets
INTEGRATED MODEL For personal use only An owners approach towards managing assets > One team — strategically aligned with a sense of ownership > Provide operational design and end user input to Development Division > In-house management is cost effective and flexible > Staff are the face of Mirvac t
Slide 23: Driving asset performance for environmental benefits
INTEGRATED MODEL For personal use only Driving asset performance for environmental benefits NABERS energy assessments > 68 assets to date > On target for an average Office energy rating of 4 Star by December 2012 Building Energy Efficiency Disclosure (BEED) assessments > 22 assessments to date > 100
Slide 24: Driving asset performance for environmental benefits (EEO, emissions)
INTEGRATED MODEL For personal use only Driving asset performance for environmental benefits Energy Efficiency Opportunities (EEO) assessments Tonnes of CO2 > 82 assets to date 300,000 > Over 80% of Mirvac’s load 280,697 234,257 207,731 > 100% of Mirvac’s reporting requirement 200,000 100,000 Key ach
Slide 25: Summary
SUMMARY For personal use only INVESTOR DAY 1 MAY 2012 PAGE 24
Slide 26: Sustainability at Mirvac
For personal use only SUSTAINABILITY AT MIRVAC ALICIA MAYNARD MANAGER — SUSTAINABILITY INVESTOR DAY 1 MAY 2012 PAGE 25
Slide 27: Sustainability at Mirvac: commitment
SUSTAINABILITY AT MIRVAC For personal use only Mirvac’s commitment to Sustainability is outcomes-based, innovative and founded on the belief that we have a wider responsibility for the impact of our operations on the community and the environment Outcomes based Sustainability Wider responsibility In
Slide 28: Sustainability at Mirvac: Outcomes based
SUSTAINABILITY AT MIRVAC For personal use only Outcomes based Deliver measurable results > MPT targeting 4 Star NABERS Office energy rating by December 2012 > 23% reduction in Mirvac Group’s carbon emissions through our energy efficiency program > Annual Corporate Responsibility & Sustainability rep
Slide 29: Sustainability at Mirvac: Innovative
SUSTAINABILITY AT MIRVAC For personal use only Innovative Recognised leader > A history of “firsts”: — 2000: First Solar Suburb — Newington, NSW — 2007: First 6 Star Green Star Shopping Centre — Orion, QLD — 2009: First Carbon Zero Home — Harmony 9, VIC > 8 Chifley Square awarded 6 Star Green Star D
Slide 30: Sustainability at Mirvac: Wider responsibility
SUSTAINABILITY AT MIRVAC For personal use only Wider responsibility Creating lasting legacy > Launched second cohort of Mirvac Masters of Real Estate (Sustainable Development) with Bond University > Signatory to City of Sydney: Better Buildings Partnership > Major Climate Partner with The Climate In
Slide 31: by mirvac
by mirvac For personal use only 275 KENT STREET, SYDNEY, NSW INVESTOR DAY 1 MAY 2012 PAGE 30
Slide 32: Glossary
GLOSSARY For personal use only Term Meaning BEED Building Energy Efficiency Disclosure CDLI Carbon Disclosure Leadership Index CFX CFS Retail Property Trust CPLI Carbon Performance Leadership Index CQR Charter Hall Retail REIT CRF Centro Retail Australia EEO Energy Efficiency Opportunities GFC Globa
Slide 33: 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 An investment in Mirvac stapled securities is subject to investment and other known and ARSN 086 780 645. This presentation (“Presentation”) has been prepared by M