Mirvac Group · ASX:MGR
Mirvac — Mirvac Real Estate Investment Trust — H1 2009 Earnings Presentation
32 slides from Mirvac's earnings presentation, Feb 17, 2009
Slide 1: Mirvac Real Estate Investment Trust Results Presentation 1H09
For personal use only Mirvac Real Estate Investment Trust Results Presentation 1H09 17 February 2009 Mirvac Real Estate Investment Trust Page 1 Results 1H09
Slide 2: Agenda
Agenda For personal use only > Overview > Financial results > Capital management > Portfolio update Commercial Retail Industrial Other assets > Strategy > EPU/DPU guidance > Appendices Mirvac Real Estate Investment Trust Page 2 Results 1H09
Slide 3: Overview
Overview For personal use only > 1H09 earnings – 3.67 cpu > 1H09 distribution paid – 3.25 cpu > New $625.0m debt facility completed > Disposed of A-REITs and equities portfolios – $61.2m realised > Disposed of $42.6m in assets: 423 Pennant Hills Road $27.3m Birkdale Fair $15.3m > Exchanged contracts
Slide 4: Post December 2008 Update
Post 31 December 2008 For personal use only Update > Significant progress on debt reduction: Completed the sale of $37.6m in assets o Mt Sheridan Plaza and adjoining land, Cairns, QLD for $26.3m o 90 Ashford Avenue, Milperra, NSW for $11.3m Exchanged contracts to sell: o Alexandra Hills Shopping Cen
Slide 5: Financial results: Operating earnings
Financial results For personal use only Operating earnings 1H09 1H08 Change% Headline net profit ($’000) (158,139) 41,653 (479.7) Operating income ($’000) 50,922 50,756 0.3 - Borrowing costs ($’000) (23,355) (17,861) 30.8 - Other expenses ($’000) (4,573) (5,065) (9.7) Operating earnings ($’000) 22,9
Slide 6: Financial results: Segment operating income
Financial results For personal use only Segment operating income 1H09 1H08 1H09 1H08 Change ($’000) ($’000) % Commercial 17,656 16,727 5.6 Retail 16,853 15,840 6.4 Industrial 8,341 7,812 6.8 Travelodge 5,295 5,241 1.0 MWHF 1,115 1,051 6.1 A-REITs/Equities/Trafalgar/Other1 1,662 4,085 -59.3 Operating
Slide 7: Capital management: Overview
Capital management For personal use only Overview Dec 08 Jun 08 Total debt facility ($m) 625.0 700.0 Total interest bearing debt (drawn) ($m) 560.0 641.0 Weighted average debt maturity (years) 2.2 0.4 Hedged ratio (%) 90.2 71.0 Weighted average hedged rate (%) 6.34 6.49 Weighted average hedged matur
Slide 8: Capital management: Upcoming capital requirements FY10
Capital management For personal use only Upcoming capital requirements FY10 Sources of funds Undrawn debt capacity $142.0m1 Total $142.0m Capital requirements Capital expenditure works (Bond Street) $15.0m2 Acquisition of Furzer Street, Woden $91.0m3 Total $106.0m NET POSITION $36.0m 1. Based on pro
Slide 9: Portfolio update: Key statistics
Portfolio update For personal use only Key statistics 1H09 1H08 Number of properties1 40 41 Book value ($m) 1,272.6 1,374.5 Occupancy rate2 (%) 96.0 98.6 WALE by area (yrs) 5.1 5.3 Weighted average cap rate (%) 7.54 6.97 Total area leased (sqm) 17,945 14,684 Change in like-for-like net income2 (%) ▼
Slide 10: Portfolio update: Valuations
Portfolio update For personal use only Valuations Sector Dec 08 Jun 08 Movement WACR (%)¹ WACR (%) (%) Commercial 7.01 6.89 0.12 Retail 7.30 6.88 0.42 Industrial 7.63 7.10 0.53 Hotels 9.14 8.69 0.45 Portfolio 7.54 7.15 0.39 Portfolio ex-Hotels 7.26 6.93 0.33 > Like for like weighted average cap rate
Slide 11: Portfolio update: Rent review outlook
Portfolio update For personal use only Rent review outlook (by gross rent) > 191 Rent reviews during 1H09, with a tenant retention rate of 71% > 97% of 2H09 rent reviews fixed or CPI1 – security of income 1. Excluding Macquarie Bank and GHD. Mirvac Real Estate Investment Trust Page 11 Results 1H09
Slide 12: Portfolio update: Lease expiry profile
Portfolio update For personal use only Lease expiry profile (by area)1 1. Excludes assets under redevelopment. Mirvac Real Estate Investment Trust Page 12 Results 1H09
Slide 13: Portfolio update: Diversification
Portfolio update For personal use only Diversification (by book value) Mirvac Real Estate Investment Trust Page 13 Results 1H09
Slide 14: Commercial portfolio: Key statistics
Commercial portfolio For personal use only Key statistics Item 1H09 1H08 Number of properties 7 8 Book value ($m) 397.1 448.4 Portfolio weighting (%) 31 33 Occupancy rate (%) 98.1 97.5 WALE1 by area (yrs) 4.9 4.2 Weighted average cap rate (%) 7.01 6.67 Change in like-for-like net income (%) ▲2.1 1.
Slide 15: Commercial portfolio: Highlights
Commercial portfolio For personal use only Highlights > Completed 17 rent reviews in 1H09 with 91% fixed, 7% market and 2% CPI > Key leasing activity: 591 Doncaster Road, VIC – 10 year lease from Aug 09 4,037 sqm, 22% increase on passing rental > Purchased development site in Woden, ACT for $23m. De
Slide 16: Retail portfolio: Key statistics
Retail portfolio For personal use only Key statistics Item 1H09 1H08 Number of properties 12 13 Book value ($m) 490.8 535.9 Portfolio weighting (%) 38 39 Occupancy rate1 (%) 93.6 99.3 Like for like MAT1 ($m) 524 ▲7.0 Specialty occupancy costs (%) 11.4 10.7 WALE1 by area (yrs) 6.1 6.5 Weighted averag
Slide 17: Retail portfolio: Highlights
Retail portfolio For personal use only Highlights > Completed 159 rent reviews, with 86% fixed, 4% CPI and 10% other > New Spotlight lease at Morayfield 4,214 sqm Expiry 2018, with 6+6 options and CPI reviews > Achieved ranks in 2008 Top Mini Guns nationwide survey1 Cherrybrook Village Shopping Cent
Slide 18: Industrial portfolio: Key statistics
Industrial portfolio For personal use only Key statistics Item 1H09 1H08 Number of properties 8 8 Book value ($m) 211.5 232.8 Portfolio weighting (%) 17 17 Occupancy rate (%) 97.0 98.9 WALE1 by area (yrs) 4.3 5.1 Weighted average cap rate (%) 7.63 6.93 Change in like-for-like net income (%) ▲0.1 1.
Slide 19: Industrial portfolio: Highlights
Industrial portfolio For personal use only Highlights > Completed 15 rent reviews, with 63% CPI, 18% fixed and 19% market. Key leasing: > 108-120 Silverwater Road, Silverwater, NSW 2 lease renewals with existing tenants for 5,620 sqm, approx 32% of building’s GLA Strong commencement rental > 12 Juli
Slide 20: Other assets: Highlights
Other assets For personal use only Highlights Australian A-REITs portfolio > Sold down Aug 08 for $26.0m Australian equities portfolio > Sold down Aug 08 for $35.2m Travelodge Group1 > Book value $173.2m > Weighted average cap rate – 9.14% (8.39% Dec 07) Trafalgar Corporate Group (TGP)2 > Marked to
Slide 21: Strategy
Strategy For personal use only > Target gearing below 40%: Execute selective non-core asset sales Change frequency of distributions to half yearly Re-instate Distribution Reinvestment Plan – effective 30 Jun 09 > Maximise income returns from property Focus on rent reviews and tenant retention Target
Slide 22: EPU / DPU guidance
EPU / DPU guidance For personal use only > Re-affirm FY09 earnings guidance of between 6.6 cpu and 6.9 cpu Sensitive to impact of further asset sales, rent reviews and leasing > Re-affirm FY09 Distribution estimate of 6.5 cpu Change in distribution policy to half yearly payments Mirvac Real Estate I
Slide 23: Appendices
Appendices For personal use only Mirvac Real Estate Investment Trust Page 23 Results 1H09
Slide 24: Acquisitions and disposals
Acquisitions and disposals For personal use only Price Acquisitions Type Date ($m) DOHA development site, Woden, ACT Office 23.0 Jul 2008 Price Disposals Type Date ($m) 423 Pennant Hills Road, Pennant Hills, NSW Office 27.3 Dec 2008 Birkdale Fair Shopping Centre, Birkdale, QLD Retail 15.3 Dec 2008 M
Slide 25: Movement in NTA
Movement in NTA For personal use only ($ per unit) Mirvac Real Estate Investment Trust Page 25 Results 1H09
Slide 26: Operating earnings
For personal use only Operating earnings 1H09 1H08 1H09 1H08 $000s $000s CPU CPU Net (statutory) profit (158,139) 41,653 (25.21) 6.64 Add back non-cash, non-operating items: Revaluation of properties 76,307 (10,672) 12.16 (1.70) Gain/(loss) from sale of assets 1,864 (6,096) 0.30 (0.97) ‘Marked to ma
Slide 27: Profit and loss
Profit and loss For personal use only 1H09 1H08 Change $’000 $’000 (%) Net property income 38,487 35,786 Distribution income 2,113 4,622 Interest & other income 1,680 1,606 Income from JV’s & associates 8,642 8,742 Finance costs (23,355) (17,861) Administration & other costs (4,573) (5,065) Net oper
Slide 28: Balance sheet
Balance sheet For personal use only 1H09 1H08 Change $’000 $’000 (%) Cash 16,163 14,751 A-REITs/Equities/Trafalgar/MWHF 26,499 98,071 JVs & associates 213,880 226,819 Managed properties - 27,150 Investment properties 1,005,078 1,060,511 Derivatives - 19,336 Other assets 6,037 33,357 ASSETS 1,267,657
Slide 29: Hedging profile
Hedging profile For personal use only Mirvac Real Estate Investment Trust Page 29 Results 1H09
Slide 30: 1H09 External valuations
1H09 External valuations For personal use only Property Valuation Book value Revaluation Cap Previous ($m) pre-revaluation gain/loss rate cap rate ($m) ($m) (%) (%) Commercial 12 Cribb Street, Milton, QLD 18.5 19.0 -0.5 8.25 7.25 591-609 Doncaster Road, Doncaster, VIC 21.8 22.0 -0.2 8.00 7.50 Retail
Slide 31: 1H09 Internal valuations
1H09 Internal valuations For personal use only Property Valuation Book value Revaluation Cap Previous ($m) pre-revaluation gain/loss rate cap rate ($m) ($m) (%) (%) Commercial 10-20 Bond Street, Sydney, NSW (50%) 137.0 150.1 -13.1 6.25 5.88 3 Rider Boulevard, Rhodes, NSW 75.8 77.9 -2.1 7.25 7.00 340
Slide 32: For personal use only
For personal use only The information made available through this presentation and appendices, including any expression of opinion or forecast, is provided by Mirvac REIT Management Limited (ABN 70 002 060 228) (AFSL 233 787) as responsible entity for Mirvac Real Estate Investment Trust (ARSN 089 53
Mirvac Real Estate Investment Trust — H1 2009 Earnings Presentation on 6ix