results by mirvac 22 february 2011 tower 8, y arra ’s edge, docklands, VIc
agenda MIrV ac group and strategy 2 key 1h11 achIeVeMents 5 fInancIal resul ts 8 InVestMent – Mpt 10 deVelopMent 16 capItal ManageMent 25 corporate responsIbIlIty and sustaInabIlIty 28 Queensland update 30 suMMary and guIdance 33 MIrV ac half year resul ts present a tIon 22 february 2011 page 1
MIrV ac group and stra tegy woolworths dIstrIbutIon centre, hoXton park, sydney , nsw MIrV ac half year resul ts present a tIon 22 february 2011 page 2
MIrV ac group 80% Office – 57 .2% 2 MIrV ac property trust – Mpt ret ail – 30.6% 2 Invested capital – $5,805m 1 Other – 12.2% 3 target operating 20% npat — through cycle ap artments – 41.7% resIdentIal $1,463.2m masterplanned cOmmunities – 39.8% deVelopMent 81.0% integra ted hOusing – 18.5% Invested capital – industrial – 68.8% $1,806m 4 coMMercIal $342.3m Office – 21.1% 19.0% ret ail – 10.1% 1) by book value, including assets under development and indirect investments. 2) by book value, excluding assets under development and indirect investments. 3) by book value, includes industrial, indirect investments, carparks and a hotel. 4) development division’s total inventories, investments and loans in associates and JVs. MIrV ac half year resul ts present a tIon 22 february 2011 page 3
MIrV ac stra tegy Investment — Mpt drIVers outcoMe optimise asset performance actively weight sector Market leading australian positions to maximise diversifjed property trust divest non aligned assets total returns development drIVers outcoMe redeploying capital from Maximise commercial Market leading australian non performing projects and residential commercial and development returns residential developer restock in core markets > Mirvac remains focused on maximising its security price by increasing the development division’s return on invested capital and optimising Mpt’s earnings > Mirvac continues to consider an asset sale funded security buyback if highest and best use of capital MIrV ac half year resul ts present a tIon 22 february 2011 page 4
key 1h11 achIeVeMents rIVer hoMes, y arra ’s edge, docklands, VIc MIrV ac half year resul ts present a tIon 22 february 2011 page 5
key 1h11 achIeVeMents > progressIon of stra tegy > QualIty portfolIo outperforMance > growth on track group > Increased weighted average debt maturity to 4.2 from 2.6 years 1 via $1.85bn debt refjnance > Maintained conservative balance sheet gearing at 27 .3% 2 > continued diversifjcation of debt sources with $200m Mtn issuance 1) excludes wop associated cMbs which is fully cash collateralised. 2) net debt after ccIr swaps excluding leases/(total tangible assets – cash). MIrV ac half year resul ts present a tIon 22 february 2011 page 6
key 1h11 achIeVeMents Investment division – Mpt > achieved 4.2% like-for-like net operating income growth > Increased occupancy from 96.7% (1h10) to 98.2% 1 > Increased development pipeline to $1,408.3m > confjrmed asset valuations via disposal of $149.9m of Mpt assets at a 1.3% premium to carrying value 2 development division > recovery commenced – improved ebIt and gross margin > restocking commenced – acquired 2,7 49 lots (65.3% apartments, 34.7% house and land) 3 > 19.5% increase in exchanged contracts – $841.0m 4 > contribution from commercial developments sales to third parties from 2h11 5 eps guidance range tightened upwards: > 11.8% – 14.0% Implied earnings growth > 10.4 – 10.6cpss 1) by area, excluding assets under development. 2) Includes lake haven Megacentre, nsw, settled 2 february 2011. 3) Includes harold park, hamilton, hoxton park residential, Middleton grange and new brighton golf course. 4) total exchanged contracts, adjusted for Mirvac share of JV interest and Mirvac managed funds. 5) unconditionally exchanged surplus land at hoxton park. MIrV ac half year resul ts present a tIon 22 february 2011 page 7
fInancIal resul ts 8 chIfley sQuare, sydney , nsw MIrV ac half year resul ts present a tIon 22 february 2011 page 8
fInancIal resul ts 1 1h11 ($m) 1h10 ($m) % change divisional operating eBit Investment 203.1 136.0 49.3 development 37 .8 13.1 188.5 other 14.2 10.3 37 .9 unallocated (30.0) (24.4) (23.0) elimination 2.8 (5.5) t otal operating eBit 227 .9 129.5 76.0 less interest 32.9 2.2 add tax benefjt 5.4 3.9 Operating npat attributable to group securityholders 2 200.1 129.4 54.6 statutory npat attributable to group securityholders (12.7) 47 .2 (126.9) distribution 136.6 116.0 17 .8 Operating eps 3 5.9 cpss 4.6 cpss 29.6 dps 4.0 cpss 4.0 cpss — nta 4 $1.60 $1.66 (3.6) 1) for further detail refer to 31 december 2010 fjnancial statements. 2) excludes ncI 1h11 ($0.3m) and 1h10 ($1.8m). 3) diluted eps excluding specifjc non-cash items, signifjcant items and related taxation. 4) nta per stapled security, based on ordinary securities excluding eIs securities. MIrV ac half year resul ts present a tIon 22 february 2011 page 9
InVestMent – Mpt artIst’s IMpressIon, 10-20 bond street , sydney , nsw MIrV ac half year resul ts present a tIon 22 february 2011 page 10
InVestMent dIVIsIon Office – 57 .2% 2 MIrV ac property trust – Mpt ret ail – 30.6% 2 Invested capital – $5,805m 1 Other – 12.2% 3 achievements 1h11 MPT outperformance MPT total return vs IPD benchmark > achieved 4.2% like-for-like net operating 12 MPT outperformance (Sep 10) IPD (Sep 10) 11.3% income growth 10 > Increased occupancy from 96.7% (1h10) to 98.2% 4 3.9% 8 > Increased development pipeline to $1,408.3m 7 .2% 0.8% > confjrmed asset valuations via disposal 6 of $149.9m of Mpt assets at a 1.3% premium 7 .4% 6.4% 4.0% to carrying value 5 4 1.4% 2 2.6% 0 1 YR 3 YR 4 YR 1) by book value, including assets under development and indirect investments. 2) by book value, excluding assets under development and indirect investments. Source: IPD and Mirvac research. 3) by book value, includes industrial, indirect investments, carparks and a hotel. 4) by area, excluding assets under development. 5) Includes lake haven Megacentre, nsw, settled 2 february 2011. MIrV ac half year resul ts present a tIon 22 february 2011 page 11
portfolIo hIghlIghts – offIce > strong 1h11 like-for-like net operating income growth of 4.0% > Increased occupancy from 96.8% (1h10) to 98.0% 1 > repositioned and upgraded portfolio quality with 88.8% of Mpt now premium or a grade 2 > achieved 32.6% 3 occupancy at 10-20 bond street, sydney > offjce portfolio valuations increased 2.6% compared to total Mpt portfolio at 1.8% > 96.2% of fy11 rent review contracts fjxed or cpI like-for-like Book value income growth 1h11 Wacr 1h10 Wacr Mpt offjce portfolio $3,211.2m 2 4.0% 7 .50% 7 .93% MPT office outperformance Lease expiry profile 1 MPT total return vs IPD office benchmark 80% 12.0 MPT office outperformance (Sep 10) IPD office benchmark (Sep 10) 6.7yrs WALE 1 65% 9.9% 9.6% 10.0 60 3.0% 8.0 3.3% 5.1% 40 6.0 2.5% 6.9% 6.3% 4.0 20 3.4% 2.0 8% 8% 8% 2.9% 7% 1.7% 0 3% 2% 0 -0.4% -2.0 V ACANT FY11 FY12 FY13 FY14 FY15 BEYOND 1 YR 2 YR 3 YR 4 YR 1) by area, excluding assets under development. Source: IPD and Mirvac research 2) by book value, excluding assets under development. 3) occupancy for 10-20 bond street comprised of 23.6% signed leases and 9.0% heads of agreement. MIrV ac half year resul ts present a tIon 22 february 2011 page 12
portfolIo hIghlIghts – ret aIl > strong 1h11 like-for-like net operating income growth of 5.4% > Increased occupancy from 96.9% (1h10) to 98.9% 1 > sustainable occupancy cost of 13.4% > 83.3% 1 of portfolio weighted to centres driven by non discretionary spend 2 > 56.9% reduction in 2h11 lease expiry > 92.7% of fy11 rent review contracts fjxed or cpI like-for-like Book value income growth 1h11 Wacr 1h10 Wacr Mpt retail portfolio $1,716.5m 3 5.4% 7 .45% 7 .64% Lease expiry profile 1 MPT retail outperformance MPT total return vs IPD retail benchmark 80% 13.4% IPD retail benchmark (Sep 10) 14.0 6.4yrs WALE 1 60 12.0 MPT retail outperformance (Sep 10) 58% 5.5% 10.0 5.3% 8.0 40 4.0% 6.0 3.4% 7 .9% 20 4.0 1.0% 6.6% 2.0 9% 9% 10% 10% 3% 2.9% 3.5% 1% 0 0 -0.1% -1.4% V ACANT FY11 FY12 FY13 FY14 FY15 BEYOND -2.0 1 YR 2 YR 3 YR 4 YR 1) by area, excluding assets under development. Source: IPD and Mirvac research 2) sub regional and neighborhood centres. 3) by book value, excluding assets under development. MIrV ac half year resul ts present a tIon 22 february 2011 page 13
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