Australia Conference. Macquarie Securities 6 MAY 2015

Transcription

1 Australia Conference Macquarie Securities 6 MAY 2015

2 agenda GROUP OVERVEW OPERATNG OVERVEW SUMMARY MRVAC AUSTRALA CONFERENCE, MACQUARE SECURTES 6 MAY

3 group overview MRVAC AUSTRALA CONFERENCE, MACQUARE SECURTES 6 MAY

4 MRVAC S STRATEGY SETTNG THE STANDARD AS A WORLD-CLASS AUSTRALAN PROPERTY GROUP THAT ATTRACTS THE BEST NTEGRATED Leveraging our integrated model to create, own, manage DVERSFED Maintaining an appropriate balance of passive and active invested capital through cycles, retaining capability across four sectors FOCUSED Deploying capital with discipline and in alignment with our directional mandates OFFCE CREATE AND BUY RETAL UNLOCK VALUE NDUSTRAL CREATE RESDENTAL CREATE AND SELL > Prime grade CBD (development + repositioning + passive) > Prime grade non-cbd (development + repositioning) > Neighbourhood > Sub-regional > CBD / mixed use > nfill ring repositioning and up-zoning > Urban edge tenant driven development > Apartments inner ring > Apartments metropolitan activity centres > Masterplanned communities infill ring > Masterplanned communities urban edge MRVAC AUSTRALA CONFERENCE, MACQUARE SECURTES 6 MAY

5 MRVAC S VALUE PROPOSTON Mirvac s business model provides investors with a balance of: Stable ncome > 75-80% of invested capital > Over $7bn capital invested in office, retail & industrial sectors > High quality diversified portfolio of passive assets > ntegrated management capability > Underpins group distributions + Focused Growth > 20-25% of invested capital > ~$1.7bn capital invested in residential & commercial sectors > Core development capability > ntegrated delivery model MRVAC AUSTRALA CONFERENCE, MACQUARE SECURTES 6 MAY

6 CAPTAL MANAGEMENT > Gearing of 25.0%; within target range of 20% to 30% > BBB+ credit rating > Liquidity of $768 million > Diversified sources of debt > Average debt maturity of 4.3 years > Average borrowing cost of 5.6% > CR of 4.1x > Strong focus on capital partnering relationships CAPTAL MANAGEMENT METRCS DEC 14 JUN 14 Balance sheet gearing % 27.8% Look-through gearing 25.6% 28.5% CR 2 4.1x 4.2x Total interest bearing debt 3 $2,518.1m $2,820.0m Average borrowing cost 4 5.6% 5.6% Average debt maturity 4.3 yrs 4.3 yrs S&P credit rating BBB+ BBB+ Hedged percentage 64% 58% Average hedge maturity 4.1 yrs 4.3 yrs DRAWN DEBT SOURCES USPP 40% MTN 33% Syndicated loans and bank facilities 27% USPP and MTN 73% 1) Net debt (at foreign exchange hedged rate) excluding leases/(total tangible assets cash). 2) Adjusted EBTDA/finance cost expense. 3) Total interest bearing debt (at foreign exchange hedged rate) excluding leases. 4) ncludes margins and line fees. MRVAC AUSTRALA CONFERENCE, MACQUARE SECURTES 6 MAY

7 operating overview MRVAC AUSTRALA CONFERENCE, MACQUARE SECURTES 6 MAY

8 OFFCE > $4.1bn investment portfolio > 31 properties over 700,000 square metres > Solid occupancy of 95.5% 1 and WALE of 4.3 years 2 > Portfolio income supported by asset positioning and solid portfolio metrics 82% of portfolio located in the core markets of Sydney and Melbourne and over 90% Premium or A-Grade Limited near term expiry in Brisbane and Perth Embedded rental growth: 1H15 average rent reviews of 3.8% Quality tenant covenant: 77% of income from Government, ASX listed and multinational companies Negligible arrears, <0.3% of portfolio income > Continue to focus on improving portfolio quality with FY15 asset sale program underway OFFCE GEOGRAPHC DVERSTY 3 OFFCE LEASE EXPRY PROFLE 2 45% % 4% 11% 10% Sydney 58% Melbourne 24% Brisbane 3% ACT 9% Perth 6% Vacant 4Q15 FY16 FY17 FY18 FY19 FY20+ Sydney / Melbourne Brisbane / Perth / Canberra 9% 20% 41% 1) By area as at 31 March ) By income as at 31 March ) By portfolio value. MRVAC AUSTRALA CONFERENCE, MACQUARE SECURTES 6 MAY

9 OFFCE N DEVELOPMENT 699 BOURKE STREET, MELBOURNE, VC > ntegrated model capability supporting asset development and repositioning $3.4bn office development pipeline $1.3bn committed and underway with an expected average yield on cost of over 7% Committed projects significantly de-risked with 87% pre-leased AREA % ESTMATED EXPECTED OFFCE DEVELOPMENT PPELNE SQM PRE-LEASED END VALUE 1 COMPLETON 699 Bourke St, VC 19, % $146m 2H15 Treasury Building, WA 30,800 99% $330m 1H George St, NSW 39,200 74% $625m FY16 2 Riverside Quay, VC 21,000 82% $212m FY17 Sub Total 110,300 87% $1,313m TREASURY BULDNG, PERTH, WA Proposed 664 Collins St, VC 25,000 $197m FY17 Potential future developments 55 Pitt St, 477 Collins St, Perth City Link, Green Square Total Pipeline $1,855m $3.4bn 1) Represents 100% of expected end value of office developments. MRVAC AUSTRALA CONFERENCE, MACQUARE SECURTES 6 MAY

10 RETAL > Substantial transformation over the past 24 months driving improved portfolio performance nvestment in key urban markets, with over $560m in Sydney Disposed of over $370m 1 of non-aligned assets Completed $115m of retail expansions > Consistent total return outperformance of Mirvac s metropolitan assets over the last four years > Broadway Shopping Centre, Sydney ranked number one in Shopping Centre News Big Guns Award 2015 for MAT/sqm for the third year in a row MRVAC S ASSETS: METROPOLTAN RETURN v s REGONAL 2 1 Year 2 Year 3 Year 4 Year 0 6.4% 6.9% 7.1% 8.1% Metropolitan 10.7% 10.2% 10.0% 10.4% 11% Regional 1) ncludes assets held for sale at 31 December ) PD total returns as at 30 September 2014, excluding assets under development. BROADWAY SHOPPNG CENTRE, SYDNEY NSW MRVAC AUSTRALA CONFERENCE, MACQUARE SECURTES 6 MAY

11 RETAL CONTNUED > $2.1bn investment portfolio > Strong occupancy of 99.1% 1 > Total comparable MAT growth of 3.4% and comparable speciality sales growth of 3.2% 2 > Specialty sales productivity of $8,530 with occupancy cost ratio of 16.3% 2 > Portfolio expected to continue to benefit from its solid metrics and geographical positioning Leasing spreads >4% over last three HY/FY reporting periods 80% of portfolio positioned in key metropolitan markets Ownership and management of ~200,000sqm in Sydney > Continue to unlock value from existing portfolio Stanhope Village (Stage 4) extension completed 3Q15 (100% leased) Development and repositioning pipeline across 13 of the total 15 portfolio assets RETAL DEVELOPMENT AND REPOSTONNG PPELNE Underway Masterplanning Phase Future Orion Springfield Central Broadway Shopping Centre Stanhope Village Greenwood Plaza Kawana Shoppingworld Rhodes Waterside MetCentre Harbourside Cooleman Court Cherrybrook Village Shopping Centre St Mary s Village Centre Como Centre Birkenhead Point Outlet Centre 1) By area as at 31 March 2015, excludes assets held for sale. 2) As at 31 March STANHOPE VLLAGE, NSW MRVAC AUSTRALA CONFERENCE, MACQUARE SECURTES 6 MAY

12 NDUSTRAL > $631m investment portfolio > Strong portfolio metrics Occupancy of 99.6% 1 WALE of 7.8 years 2 > 90% of portfolio located in Sydney 3 > $121m development pipeline 4 located in Sydney NDUSTRAL LEASE EXPRY PROFLE 2 70% % 10 12% 8% 12% 0 1% 2% Vacant 4Q15 FY16 FY17 FY18 FY19 FY20+ 4% NDUSTRAL DVERSFCATON BY GEOGRAPHY 3 NSW: 90% VC: 3% USA: 7% NEXUS NDUSTRAL PARK, PRESTONS NSW 1) By area as at 31 March ) By income as at 31 March ) By value. 4) Represents 100% of expected end value of industrial developments. MRVAC AUSTRALA CONFERENCE, MACQUARE SECURTES 6 MAY

13 RESDENTAL > Over 31,000 lots under control evenly balanced between masterplanned communities and apartments > Overweight exposure to largest markets of Sydney and Melbourne > ~50% of pipeline in JV s and PDA s > High level of exchanged pre-sales contracts, valued at $1.6bn 1 LOTS UNDER CONTROL SHARE OF FORECAST FUTURE REVENUE BY PRODUCT LOTS UNDER CONTROL SHARE OF FORECAST FUTURE REVENUE BY GEOGRAPHY Masterplanned communities: 51% Apartments: 49% NSW: 38% VC: 36% QLD: 17% WA: 9% 1) As at 31 March 2015 and adjusted for Mirvac s share of JVA and Mirvac managed funds. ARTSTS MPRESSON OF MORETON, BOND, NSW MRVAC AUSTRALA CONFERENCE, MACQUARE SECURTES 6 MAY

14 RESDENTAL PPELNE EMERGENCE Existing pipeline supports over 10,000 potential lot settlements over the next four years 1 Major projects between FY16 FY19 NSW VC QLD WA > Bondi > Gledswood Hills > Green Square > Googong > Harold Park > Marsden Park > Moorebank > New Brighton > Sydney Olympic Park > Waterloo > Cheltenham > Dallas Brooks Centre > Donnybook > Eastern Golf Club > Harcrest > Rockbank > Smith s Lane > Yarra s Edge > Art House > Darien Street > Gainsborough Greens > Waterfront > Baldivis > Claremont > Meadow Springs > Osprey Waters > West Swan MORETON, BOND, NSW YARRA S EDGE, VC ART HOUSE, BRSBANE, QLD CLAREMONT, WA 1) Subject to planning approvals. Note: All images are artists impressions. MRVAC AUSTRALA CONFERENCE, MACQUARE SECURTES 6 MAY

15 RESDENTAL OUTLOOK On track to deliver FY15 targets > Well positioned to achieve >2,200 lot settlements for FY15 1,533 lots settled as at 31 March 2015 > Taking advantage of positive residential conditions with >2,700 major project releases by end of FY15 Weighted to Sydney and apartment product FY15 sales and marketing expenses expected to be higher than FY14, reflecting an increase in apartment releases > Remain focussed on maintaining normalised residential gross margin of 18-22% FY15 MAJOR APARTMENT RELEASE SCHEDULE Project State Completed releases to 3Q15 4Q15 expected releases 1 Green Square NSW 238 lots 224 lots Harold Park NSW 244 lots 241 lots Art House QLD 189 lots Waterfront, Unison QLD 279 lots Yarra's Edge, Bolte VC 246 lots Bondi NSW 190 lots Claremont WA 138 lots Leighton Beach, Stage 2 WA 113 lots ARTSTS MPRESSON OF ALTVOLO, HAROLD PARK, SYDNEY NSW 1) Upcoming releases are an estimate only and may be adjusted depending on market demand and the receipt of planning approvals. MRVAC AUSTRALA CONFERENCE, MACQUARE SECURTES 6 MAY

16 summary MRVAC AUSTRALA CONFERENCE, MACQUARE SECURTES 6 MAY

17 SUMMARY ARTST MPRESSON OF OVO, GREEN SQUARE, NSW > Continue to maintain ~80/20% split between passive and active capital > Strong balance sheet > 100% Australian exposure > Allocate capital in line with our market outlook and strategic mandates nvestment portfolio: more focus on retail than office Retail: concentrate on urban markets Office and ndustrial: target Sydney and Melbourne assets with income in place and potential for repositioning Residential: focus on Sydney market as well as inner and middle ring Melbourne > On track to deliver operating earnings and distribution growth in FY15 Operating earnings guidance of cpss Full-year distribution guidance of cpss > Focus on driving development ROC towards 12% by FY17 MRVAC AUSTRALA CONFERENCE, MACQUARE SECURTES 6 MAY

18 thank you

19 DSCLAMER & MPORTANT NOTCE Mirvac Group comprises Mirvac Limited (ABN ) and Mirvac Property Trust (ARSN ). This presentation ( Presentation ) has been prepared by Mirvac Limited and Mirvac Funds Limited (ABN , AFSL number ) as the responsible entity of Mirvac Property Trust (collectively Mirvac or the Group ). Mirvac Limited is the issuer of Mirvac Limited ordinary shares and Mirvac Funds Limited is the issuer of Mirvac Property Trust ordinary units, which are stapled together as Mirvac Group stapled securities. All dollar values are in Australian dollars (A$). The information contained in this Presentation has been obtained from or based on sources believed by Mirvac to be reliable. To the maximum extent permitted by law, Mirvac, its affiliates, officers, employees, agents and advisers do not make any warranty, express or implied, as to the currency, accuracy, reliability or completeness of the information in this Presentation or that the information is suitable for your intended use and disclaim all responsibility and liability for the information (including, without limitation, liability for negligence). This Presentation is not financial advice or a recommendation to acquire Mirvac stapled securities and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision prospective investors should consider the appropriateness of the information in this Presentation and the Group s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange having regard to their own objectives, financial situation and needs and seek such legal, financial and/or taxation advice as they deem necessary or appropriate to their jurisdiction. To the extent that any general financial product advice in respect of the acquisition of Mirvac Property Trust units as a component of Mirvac stapled securities is provided in this Presentation, it is provided by Mirvac Funds Limited. Mirvac Funds Limited and its related bodies corporate, and their associates, will not receive any remuneration or benefits in connection with that advice. Directors and employees of Mirvac Funds Limited do not receive specific payments of commissions for the authorised services provided under its Australian Financial Services License. They do receive salaries and may also be entitled to receive bonuses, depending upon performance. Mirvac Funds Limited is a wholly owned subsidiary of Mirvac Limited. An investment in Mirvac stapled securities is subject to investment and other known and unknown risks, some of which are beyond the control of Mirvac, including possible delays in repayment and loss of income and principal invested. Mirvac does not guarantee any particular rate of return or the performance of Mirvac nor do they guarantee the repayment of capital from Mirvac or any particular tax treatment. This Presentation contains certain forward looking statements. The words anticipated, expected, projections, forecast, estimates, could, may, target, consider and will and other similar expressions are intended to identify forward looking statements. Forward looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements including projections, indications or guidance on future earnings or financial position and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. There can be no assurance that actual outcomes will not differ materially from these statements. To the full extent permitted by law, Mirvac Group and its directors, officers, employees, advisers, agents and intermediaries disclaim any obligation or undertaking to release any updates or revisions to the information to reflect any change in expectations or assumptions. Past performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. Where necessary, comparative information has been reclassified to achieve consistency in disclosure with current year amounts and other disclosures. This Presentation also includes certain non-frs measures including operating profit after tax. Operating profit after tax is profit before specific non-cash items and significant items. t is used internally by management to assess the performance of its business and has been extracted or derived from Mirvac s financial statements ended 31 December 2014, which has been subject to review by its external auditors. This Presentation is not an offer or an invitation to acquire Mirvac stapled securities or any other financial products and is not a prospectus, product disclosure statement or other offering document under Australian law or any other law. t is for information purposes only. The information contained in this presentation is current as at 31 December 2014, unless otherwise noted and should be read in conjunction with 31 December 2014 Financial Statements and Additional nformation and 3Q15 Operational Update. MRVAC AUSTRALA CONFERENCE, MACQUARE SECURTES 6 MAY