Mirvac Group · ASX:MGR
Mirvac — Debt Investor Presentation (October 2003)
29 slides from Mirvac's debt investor presentation, October 2003
Slide 1: Mirvac Group Commercial Mortgage-Backed Securitisation Issue
cmbs issue october 2003 Mirvac Group Commercial Mortgage-Backed Securitisation Issue Series 2003-1 and Series 2003-2 October 2003 1 1
Slide 2: Agenda
cmbs issue october 2003 Agenda 1. Transaction Summary 2. Mirvac Overview 3. Property Market Update 4. Transaction Details 5. Structural Features 6. Timetable 2 2
Slide 3: 1. Transaction Summary
cmbs issue october 2003 1. Transaction Summary 3 3
Slide 4: Transaction Summary
cmbs issue october 2003 Transaction Summary • Two Separate CMBS Issues: 1. Series 2003-1: $138.0m of 5 year notes • 5 year notes supported by 9 properties independently valued at $302m 2. Series 2003-2: $120.0m of 2 year notes • 2 year notes supported by 7 properties independently valued at $265m 4
Slide 5: 2. Mirvac Overview
cmbs issue october 2003 2. Mirvac Overview 5 5
Slide 6: Mirvac Overview
Mirvac Overview • Continuation of Mirvac CMBS program which cmbs issue october 2003 commenced in June 2001 AAA $500m June 2001 AA $90m May 2002 A $100m May 2002 • Fifth largest Australian Listed Property Trust • Top 50 on Australian Stock Exchange with Market Cap of $2.8b and part of MSCI Index • To
Slide 7: Financial Highlights
cmbs issue october 2003 Financial Highlights Mirvac Group 2003 2002 2001 Revenue $1,074.0m $1,027.0m $814.3m Net Profit After $223.3m $170.0m $160.4m Tax Net Assets $2,034.0m $1,729.0m $1,659.8m Mirvac is on track to continue its current rate of growth in 2004. 7 7
Slide 8: Financial Highlights (cont.)
Financial Highlights (cont.) Trust cmbs issue october 2003 2003 2002 Total Assets $2,016m $1,794m Interest Bearing $385m $412m Debt Gearing 19.0% 23.0% Net Profit $121.4m* $107.0m Percentage of Total 61.1% 62.7% * excluding accounting treatment of simplification 8 8
Slide 9: Asset Portfolio Growth
Asset Portfolio Growth Total Investment Asset Portfolio by Value cmbs issue october 2003 2.50 2.00 $Billion 1.50 1.00 0.50 0.00 1997 1998 1999 2000 2001 2002 2003 Size of combined Mirvac Property Trust and Mirvac Commercial Trust portfolios at June each year 9 9
Slide 10: 3. Property Market Update
cmbs issue october 2003 3. Property Market Update 10 10
Slide 11: Commercial Vacancy Rates - Market Comparison
Commercial Vacancy Rates - Market Comparison Mirvac Market* cmbs issue october 2003 Sydney CBD 6.7% 8.6% North Sydney 0.0% 12.0% Chatswood 21.5% 13.9% Parramatta 0.0% 7.7% St Kilda Road 0.0% 9.9% Southbank 3.4% 5.7% Canberra 1.9% 4.7% Brisbane “Near City” 2.1% 11.1% * Source PCA 11 11
Slide 12: 4. Transaction Details
cmbs issue october 2003 4. Transaction Details 12 12
Slide 13: Series 2003-1: 5 Year Notes
Series 2003-1: 5 Year Notes i Issuer: Mirvac Capital Pty Limited cmbs issue october 2003 i A$138.0m issue comprising: - A$102,000,000 AAA - Class 1 Notes; - A$18,000,000 AA - Class 2 Notes; and - A$18,000,000 A - Class 3 Notes. i Rated by Standard & Poors i Scheduled Maturity: 5 years from the Issue
Slide 14: Series 2003-1: 5 Year Notes (cont.)
cmbs issue october 2003 Series 2003-1: 5 Year Notes (cont.) • Weighted Average Lease Maturity exceeds 5.7 years • 126,099m2 of total lettable area containing approximately 66 tenants throughout the portfolio • Occupancy rate of 91.3% • Liquidity facility of $6.7m or 4.9% of the Issue Size 14 14
Slide 15: Series 2003-1: 5 Year Notes (cont.)
cmbs issue october 2003 Series 2003-1: 5 Year Notes (cont.) S&P Independent Variance Values Values Valuation $262.2m $302.1m 13.2% AAA AA A Class 1 Class 2 Class 3 LVR 39.0% 46.0% 55.0% DSCR* 2.4x 2.1x 1.7x Max Debt $102.0m $18.0m $18.0m * refinance constant of 9.5% 15 15
Slide 16: Series 2003-1: Diversification by Value
cmbs issue october 2003 Series 2003-1: 5 Year Notes (cont.) Diversification by Value Sector Diversification Geographic Diversification Retail QLD Industrial 10% 15% 12% NSW 49% Carpark 6% VIC Office 36% 72% 16 16
Slide 17: Series 2003-1: Lease Expiry Profile by Area
Series 2003-1: 5 Year Notes (cont.) Lease Expiry Profile by Area cmbs issue october 2003 50% 25% 45% 40% 20% 35% 30% 15% 25% 20% 10% 15% 10% 5%5% 0% 0% 2004 2005 2006 2007 2008 2009+ Vacancy FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 Beyond 17 17
Slide 18: Series 2003-2: 2 Year Notes
Series 2003-2: 2 Year Notes i Issuer: Mirvac Capital Pty Limited cmbs issue october 2003 i A$120.0m issue comprising: - $88,000,000 AAA - Class 1 Notes; - $16,000,000 AA - Class 2 Notes; and - $16,000,000 A - Class 3 Notes. i Rated by Standard & Poors i Scheduled Maturity: 2 years from the Issue Dat
Slide 19: Series 2003-2: 2 Year Notes (cont.)
cmbs issue october 2003 Series 2003-2: 2 Year Notes (cont.) • Weighted Average Lease Maturity exceeds 4.3 years • 226,000m2 of total lettable area containing approximately 209 tenants throughout the portfolio • Occupancy rate of 98.2% • Liquidity facility of $5.8m or 4.8% of the Issue Size 19 19
Slide 20: Series 2003-2: 2 Year Notes (cont.)
cmbs issue october 2003 Series 2003-2: 2 Year Notes (cont.) S&P Independent Variance Values Values Valuation $227.6m $265.4m 14.2% AAA AA A Class 1 Class 2 Class 3 LVR 39.0% 46.0% 55.0% DSCR* 2.4x 2.1x 1.7x Max Debt $88.0m $16.0m $16.0m * refinance constant of 9.5% 20 20
Slide 21: Series 2003-2: Diversification by Value
cmbs issue october 2003 Series 2003-2: 2 Year Notes (cont.) Diversification by Value Sector Diversification Geographic Diversification QLD 14% Office 44% Retail VIC NSW 56% 29% 57% 21 21
Slide 22: Series 2003-2: Lease Expiry Profile by Area
Series 2003-2 2 Year (cont.) Lease Expiry Profile by Area cmbs issue october 2003 35% 25% 30% 20% 25% 20% 15% 15% 10% 10% 5% 5% 0% 0% 2004 2005 2006 2007 2008 2009+ Vacancy FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 Beyond 22 22
Slide 23: 5. Structural Features
cmbs issue october 2003 5. Structural Features 23 23
Slide 24: Structural Features
cmbs issue october 2003 Structural Features • Liquidity Facility A Liquidity Facility has been sized to support payments due by the Issuer under the Notes as well as certain expenses of the Issuer if there is a shortfall on any Payment Date. • DSCR If the Debt Service Coverage Ratio falls below 2.0x
Slide 25: Structural Features (cont.)
cmbs issue october 2003 Structural Features (cont.) • Insurance All Properties are insured for public liability, damage and destruction for 100% of the reinstatment value and for loss of rental due to business interruption with a suitably rated insurer. • Capital The Responsible Entity is required t
Slide 26: Structural Features (cont.)
cmbs issue october 2003 Structural Features (cont.) • Security First ranking fixed & floating charge over assets of the Issuer plus the benefit of first ranking mortgage over the properties. • Deal in To operate effectively the Properties Responsible Entity is permitted to buy and sell properties su
Slide 27: Structural Features (cont.)
Structural Features (cont.) Noteholders cmbs issue october 2003 Liquidity Facility Provider Swap Counterparty Class 1 Notes Class 2 Notes Issuer Class 3 Notes Security Trustee Manager Treasury No 2 and No 3 Treasury No 2 Loan Note Subscription And No 3 Charge Agreement Debenture Borrower Trustee Sec
Slide 28: 6. Timetable
cmbs issue october 2003 6. Timetable 28 28
Slide 29: Timetable
cmbs issue october 2003 Timetable hRoadshow: Week of 7 October 2003 hPricing Date: 17 October 2003 hSettlement Date: 22 October 2003 29 29
Mirvac Group — Debt Investor Presentation (October 2003) on 6ix