Mirvac Group · ASX:MGR
Mirvac — H1 2012 Earnings Presentation
28 slides from Mirvac's earnings presentation, Feb 21, 2012
Slide 1: 1H12 results
by mirvac 1H12 results 21 february 2012 artist impression of harold park, Glebe, nsw
Slide 2: Agenda
agenda mirvac’s strategy Key 1H12 Achievements Financial Highlights and capital management Corporate Responsibility and Sustainability Two Core Divisions Summary and Guidance results By Mirvac 21 february 2012 page 1
Slide 3: Mirvac's strategy
mirvac’s strategy Investment — MPT 80% Development 20% Target average asset unlevered Target average project unlevered IRR of >11% IRR of >18% > Focus on high quality assets: > High quality residential > Office developments: > Retail > Apartments > Internal portfolio management: > Masterplanned comm
Slide 4: Key 1H12 achievements
Key 1h12 achievements Group > Business simplification largely complete > entered into sale contract for Hotel assets 1 > Established strategic partnerships with Aviva Investors and K-REIT Asia to release $251.8m 2 in capital > Maintained low gearing of 27.4% 3 Investment Division — MPT > Achieved so
Slide 5: Financial highlights and capital management
FINANCIAL HIGHLIGHTS AND CAPITAL MANAGEMENT 8 chifley square, Sydney, NSW results By Mirvac 21 february 2012 page 4
Slide 6: Financial highlights
FINANCIAL HIGHLIGHTS 1 1H12 ($m) 1H11 ($m) % change Statutory EPS 5.2 (0.4) Statutory profit after tax attributable to Group security holders 176.6 (12.7) Net movement from fair value on: > Investment properties (including IPUC) (60.9) (28.0) > Derivative financial instruments and associated foreign
Slide 7: Group overhead costs
group overhead costs Overhead cost reduction is a continued focus 1H12 ($m) 1H11 ($m) % change Employee benefit expense 1 33.6 36.5 (7.9%) Selling and marketing expense 1 15.1 10.9 38.5% Other expenses 1 15.2 22.8 (33.3%) Total overhead expense 1 63.9 70.2 (9.0%) Total assets 2 8,431.2 8,659.3 (2.6%
Slide 8: Capital management
capital management Maintaining a strong capital position > No debt maturities in CY12 > $140.0m maturing in 2H13 > Extended $150.0m bilateral debt facility from April 2013 to November 2014 > Repaid $505.0m CMBS > A security buyback is subject to receipt of funds from asset sales and commensurate deb
Slide 9: Capital management
capital management Mirvac continues to have a self funding model Net Sources Uses of cash of cash position FY12 > Positive forecast > Distribution > Positive operating cash flow after interest > Maintenance capex cash flow 1 > MPT non-core asset sales + Funding headroom circa $500m 2 1) Does not inc
Slide 10: Corporate responsibility and sustainability
corporate responsibility and sustainability artist impression of 8 chifley square, Sydney, NSW results By Mirvac 21 february 2012 page 9
Slide 11: Corporate responsibility and sustainability
corporate responsibility and sustainability Mirvac’s focus on environmental, social and economic responsibilities continues to deliver results > Increased NABERS rating: Continued progress in HSE including: > 3.8 Star Average Office NABERS rating > Reduction in number and costs of claims > On track
Slide 12: Mirvac's two core divisions
MIRVAC’S TWO CORE DIVISIONS artist impression of era, Chatswood, NSW results By Mirvac 21 february 2012 page 11
Slide 13: Investment division — MPT
investment division — MPT Strong performance delivered Invested capital > $5,850.1m 4 by Mirvac’s portfolio management > Achieved solid like-for-like NOI growth of 3.3% Office 58.7% Retail 27.5% > Portfolio occupancy 1 of 96.4% Other 13.8% > committed 98.1% 2 > 1.4% 3 net valuation uplift for 1H12 >
Slide 14: MPT — office highlights
MPT — office Highlights High quality office portfolio delivering results > Strong 1H12 like-for-like NOI growth of 4.2% > Occupancy 1 remains solid at 96.3% > committed 97.3% 2 > Maintained robust 6.0 year WALE 1 > Delivered 1.7% net valuation uplift for 1H12 3 > Secured first leasing deal for 42.0%
Slide 15: Case study: 10-20 Bond Street, Sydney
CASE STUDY 10-20 BOND STREET, sydney Mirvac’s integrated model working to deliver superior returns 16.7% project IRR 1 $27.5m valuation uplift Project details: > $60.0m office refurbishment repositioning to A grade > New premium services throughout including tri-generation and active chilled beam >
Slide 16: MPT — retail highlights
MPT — retail Highlights Non-discretionary focused centres remain resilient Domestic retail trade seasonally adjusted (January 2005 = 100) 150 Food Non-food > Solid 1H12 like-for-like NOI growth of 2.9% 140 > Increased occupancy to 99.2% 1 130 120 > Delivered 0.9% 2 net valuation uplift for 1H12 110
Slide 17: Development — 1H12 activity
development — 1H12 activity Development Division on track for 2014 FY12 target Achieved in 1H12 Target 1,800 settlements On track with 849 residential lots settled Build stronger pre-sales $1,008.1m 1 in exchanged pre-sales contracts > 19.9% increase over 1H11 Continue to improve gross margin Increa
Slide 18: Development — 1H12 activity
development — 1H12 activity Development Division FY12 target Achieved in 1H12 Englobo non-core sales program Continued momentum with disposal of Magenta Shores, NSW and securing unconditional exchange on The Royal, Newcastle, NSW (Stages 1C & 2) Strategic acquisitions Acquired 7,881 lots at Googong,
Slide 19: Development — 2H12 outlook
development — 2H12 OUTLOOK Focused on forward visibility and de-risking > 68.5% of 2H12 forecast development operating EBIT 1 already secured > FY12 operating EBIT overweight in stronger markets of NSW and VIC Forecast FY12 operating Top 7 2H12 operating EBIT 1 contributors EBIT composition 1 % 2H12
Slide 20: Case study: Harold Park, Glebe
CASE STUDY Harold Park, Glebe Mirvac’s integrated model delivering speed to market Project details: > 10.6ha site located in Sydney’s Inner West, approximately 2.5km from CBD > NSW State Government approved the Harold Park LEP > planning consents > Council assessing two residential precinct DA’s > A
Slide 21: Right product, price and location
right product, price and location Residential development business strategic positioning > Positioning towards mid price point in apartments and masterplanned communities > Even split between apartments and masterplanned communities > Development Division product line organisational structure drives
Slide 22: Right product, price and location
right product, price and location Forecast operating EBIT by geographic location 1 FY13 FY14 FY15 NSW 31.4% NSW 80.4% NSW 31.2% VIC 45.2% VIC 0.7% VIC 19.0% QLD 17.3% QLD 13.7% QLD 16.0% WA 6.1% WA 5.2% WA 33.8% Overweight in NSW and VIC Overweight in NSW Re-weighting to even distribution > Elizabet
Slide 23: Development drivers to 2014
DEVELOPMENT DRIVERS TO 2014 Development business forecast to deliver target ROIC by 2014 FY11 FY12 FY13 FY14 Acquisitions: > Harold Park, NSW Acquisitions of “on strategy” projects Fast track projects due for completion: 10-12% > Eastern Golf Course, VIC Englobo non-core Englobo non-core asset sales
Slide 24: Summary & guidance
SUMMARY & GUIDANCE hoxton distribution park, hoxton park, Sydney, NSW results By Mirvac 21 february 2012 page 23
Slide 25: Summary
SUMMARY Business simplification largely complete Quality portfolio delivering strong performance Development remains on track for 2014 Maintaining a robust capital position Defensive Active core upside $1,977.0m 2 Delivers across business cycles $5,850.1m 1 1) By book value, including assets under d
Slide 26: Guidance
GUIDANCE Guidance FY12 Forecast Group operating profits $360 – $364m 1 Forecast operating EPS 10.5 – 10.6cpss 1 Forecast DPS 8.2 – 8.4cpss Forecast weighted average securities 3,417.8m 1) Assumes full year contribution from Mirvac Hotel and Resorts and associated assets. results By Mirvac 21 februar
Slide 27: Disclaimer and important notice
DISCLAIMER AND IMPORTANT NOTICE 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 Mirvac unknown risks, s
Slide 28: by mirvac
by mirvac 275 kent street, Sydney, NSW