Slide 1: 1H17 Results
For personal use only 1 6 F E B R UA RY 2 0 1 7 1H17 Results RESIDENTIAL OFFICE INDUSTRIAL RETAIL EVERYTHING’S connected
Slide 2: Agenda
Agenda For personal use only Overview Susan Lloyd-Hurwitz, CEO and Managing Director Financial Shane Gannon, Chief Financial Officer Office & Industrial Campbell Hanan, Head of Office & Industrial Retail Susan MacDonald, Head of Retail Residential Brett Draffen, CIO and Acting Head of Residential Su
Slide 3: Overview
For personal use only Susan Lloyd-Hurwitz, CEO and Managing Director OVERVIEW MIRVAC 1H17 RESULTS 16 FEBRUARY 2017 02
Slide 4: Reimagine urban life
Reimagine urban life For personal use only Continued to redefine landscapes in 1H17, creating more sustainable, connected and vibrant urban environments 2 RIVERSIDE QUAY, MELBOURNE UNISON, BRISBANE BROADWAY, SYDNEY TRAMSHEDS, SYDNEY BONDI, SYDNEY TULLAMORE, MELBOURNE BRIGHTON LAKES, SYDNEY GREENWOOD
Slide 5: Expect to deliver 9-11% EPS growth in FY17
Expect to deliver 9-11% EPS growth in FY17 For personal use only Positive first Continued half results and Maintained strong targeting upper strong financial operational end of previous position performance guidance > 1H17 operating EPS 6.2cpss > 98.6% portfolio occupancy and > Gearing of 25.8% (up
Slide 6: Financial
For personal use only Shane Gannon, Chief Financial Officer FINANCIAL MIRVAC 1H17 RESULTS 16 FEBRUARY 2017 05
Slide 7: Group financial results in line with expectations
Group financial results in line with expectations For personal use only Operating results Increased development contribution offsetting impact 1H17 1H16 of FY16 asset sales $m $m Office & Industrial 166 162 2% Contribution from acquisitions Retail 81 57 42% and development completions Residential 69
Slide 8: Strong line of sight of future cashflows
Strong line of sight of future cashflows For personal use only — Residential pre-sales will generate net cashflow (after construction and other costs) of over $1.8bn by FY21 1 — Strong operating cashflows expected in 2H17 driven by the timing of residential settlements — ~$1bn 1 of settlements expec
Slide 9: Record development pipeline
Record development pipeline For personal use only Office, Industrial & Retail committed pipeline $1bn 14%TARGET AVERAGE IRR RETURNS cost to complete 1 AUSTRALIAN TECHNOLOGY PARK, SYDNEY 477 COLLINS STREET, MELBOURNE BIRKENHEAD POINT, SYDNEY Residential committed pipeline >$1bn 18%TARGET cost to comp
Slide 10: Solid platform to generate future earnings
Solid platform to generate future earnings For personal use only — Strong capital position 4 .7% — Gearing within target range 20-30% — 81% of capital allocated to investment portfolio 25.8% — Average debt maturity extended by over 2 years since AVERAGE BORROWING COST 2 31 Dec 15 to 6.4 years 5.0% F
Slide 11: Office & Industrial
For personal use only Campbell Hanan, Head of Office & Industrial OFFICE & INDUSTRIAL MIRVAC 1H17 RESULTS 16 FEBRUARY 2017 10
Slide 12: Continued to strengthen the quality of income
Continued to strengthen the quality of income For personal use only — Maintained leading portfolio metrics 5.96% 97.2% 6.9 yrs OFFICE — Strong valuation uplift of 4.6% 1 supported by strategic CAP RATE overweight to prime Sydney and Melbourne assets 6.23% FY16 OFFICE WALE OFFICE 6.5 YRS FY16 — 62% o
Slide 13: Asset creation model important at this point of the cycle
Asset creation model important at this point of the cycle For personal use only SUPERIOR RETURNS 7.1% BLENDED YIELD ON COST 2 Riverside Quay Calibre, Building 1 Value (100%) $225m GROWING Value (100%) $23m 2 Ownership50% INCOME Ownership100% Cap rate 5.50% 40,210 sqm Cap rate 6.50% Previous office N
Slide 14: Modern, resilient portfolio supported by future high quality income
Modern, resilient portfolio supported by future high quality income For personal use only — Recent completions and $2bn committed development pipeline has the potential to deliver >$70m of additional NOI by FY21 1 — FY17 NOI impacted by $788m of asset sales in FY16 — 2H17 NOI positively impacted by
Slide 15: Retail
For personal use only Susan MacDonald, Head of Retail RETAIL MIRVAC 1H17 RESULTS 16 FEBRUARY 2017 14
Slide 16: On track to achieve FY17 targets
On track to achieve FY17 targets For personal use only $9,897/sqm — Completed >$100m of developments across three assets — Completed $155m acquisition of East Village TOTAL SALES PRODUCTIVITY 99.7% — Net property income growth of 37% — Maintained high occupancy and like-for-like growth of 3.2% $9,66
Slide 17: Improving portfolio quality both organically and via selective acquisitions
Improving portfolio quality both organically and via selective acquisitions 100% ~7% For personal use only INTRODUCED Completed 1H17 37 NEW RETAILERS LEASED ON BLENDED YIELD ON COMPLETION TO MIRVAC COST RECOGNISED AS BEST NEW PRECINCT BY CONCRETE PLAYGROUND TRAMSHEDS, SYDNEY BROADWAY, SYDNEY GREENWO
Slide 18: Defensive earnings driven by urban footprint and retail composition
Defensive earnings driven by urban footprint and retail composition For personal use only — High quality assets in catchments with strong fundamentals Strategically evolving retail mix for future growth expected to support outperformance Food catering 11% 19% — 64% of portfolio weighted to Sydney No
Slide 19: Residential
For personal use only Brett Draffen, CIO and Acting Head of Residential RESIDENTIAL MIRVAC 1H17 RESULTS 16 FEBRUARY 2017 18
Slide 20: FY17 Residential earnings expected to be up >45% on pcp with ROIC >15%
FY17 Residential earnings expected to be up >45% on pcp with ROIC >15% For personal use only — Expect to achieve >45% Residential earnings growth in FY17 Strong residential performance $300m EBIT 30% — On track to achieve >3,300 lot settlements (>15% growth) Target >45% growth — Completed 977 settle
Slide 21: High quality product supports settlement profile
High quality product supports settlement profile For personal use only — Secured a record $3.1bn of pre-sales $3.1bn pre-sales by geography — Settlements supported by well-priced, well-located product NSW: 44% VIC: 40% — 84% weighted to Sydney and Melbourne QLD: 12% WA: 4% — 2% default rate to 31 Ja
Slide 22: Strong momentum of MPC activity supports increased EBIT contribution
Strong momentum of MPC activity supports increased EBIT contribution For personal use only — Strong MPC sales momentum expected to continue, MPC momentum supported by the release of >2,000 MPC lots over the next 3,000 lots Cumulative Expected 18 months, driven by Melbourne projects activity upcoming
Slide 23: Committed apartment exposure substantially pre-sold
Committed apartment exposure substantially pre-sold For personal use only $1.1bn capital invested in apartment projects with 78% relating to committed projects Committed exposure NSW VIC QLD WA — Harold Park, Precinct 5 — Bondi, Moreton 91% — Yarra’s Edge, Tower 10 — The Eastbourne 76% — Waterfront,
Slide 24: High quality pipeline to continue to add value
High quality pipeline to continue to add value For personal use only — >31,000 lot pipeline supports above through-cycle target High quality residential pipeline gross margins (18%-22%) in the near term Expected margins of lots under control 1 — 50% of lots have expected margins greater than 25% 25%
Slide 25: Summary and Guidance
For personal use only Susan Lloyd-Hurwitz, CEO and Managing Director SUMMARY AND GUIDANCE MIRVAC 1H17 RESULTS 16 FEBRUARY 2017 24
Slide 26: High quality income and growth underpinned by urban strategy
High quality income and growth underpinned by urban strategy For personal use only Urban Strategy Secure yield Disciplined growth POTENTIAL — $8.7bn modern investment — Proven development 9%+ TO DELIVER portfolio track record — High portfolio occupancy — Superior returns — Long average lease terms 3
Slide 27: Well positioned to deliver on our FY17 promises
Well positioned to deliver on our FY17 promises For personal use only FY17 EPS FY17 DPS 9-11 % 3-5% GROWTH GROWTH ON FY16 ON FY16 Operating EPS DPS 15 cents 10.5 cents 10.2-10.4c 14.2-14.4c 13-16% over 3 years 14 10.0 9.9c (1H16 guidance: 9.7-9.9c) 19-21% over 3 years 13.0c 9.4c (1H15 guidance: 9.2-
Slide 28: 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 29: Thank You
For personal use only THANK YOU RESIDENTIAL OFFICE INDUSTRIAL RETAIL EVERYTHING’S connected