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MIRVAC GROUP — AGM Information 2007
Nov 15, 2007
65328_rns_2007-11-15_4c80b66c-c42c-4070-934a-367ce345d705.pdf
AGM Information
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16 November 2007
PRESENTATIONS TO MIRVAC GROUP’S ANNUAL GENERAL/GENERAL MEETINGS.
In accordance with Listing Rule 3.13.3 I attach the Chairman’s Address and presentation slides to be delivered to today’s Annual General/General Meetings of the Mirvac Group.
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Michael Smith Group Company Secretary
Mirvac is a leading ASX-listed, integrated real estate group with more than $26.3 billion of activities under control across the real estate funds management and development spectrum.
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Mirvac Limited ABN: 92 003 280 699 and Mirvac Funds Limited ABN: 70 002 561 640 (as responsible entity for Mirvac Property Trust ARSN: 086 780 645 )
2007 Annual General Meeting / General Meeting 16 November 2007
Chairman’s Address
Financial Performance
Mirvac Group produced another strong performance in the 2006/7 year building on the strong results achieved in the prior year. Revenues increased by 23% to $2,220.9m and net profit after tax increased by 26% to $556.1m. Operating profit increased by 16.3% to $319.1m. However EPS growth at 4.2% was constrained by the issue of
approximately 124 million new securities predominately through a capital raising and operation of the DRP throughout the year. The quality of this overall result should not be underestimated considering the challenging conditions Mirvac continues to face in some market segments, and it remains a testament to the management skills of Greg Paramor and his team across the whole organisation that improved results were again
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delivered in the last financial year. The performance is attributable to Mirvac’s many business units working together to deliver a stable stream of resiliant earnings for the Group.
Whilst there were no significant changes in the state of affairs of Mirvac; during the year the former separate operating divisions, Funds Management, Investment and Hotels were merged into one divisional unit, Funds Management, headed by Nick Collishaw. The Division achieved a 47.4% increase in net profit for the year, with approximately $13.3 billion of activities under control.
As well, the former disparate state based development businesses were consolidated during the year into a unified Development Division under the leadership of Adrian Fini. Despite subdued conditions in some markets, particularly NSW which historically has been Mirvac’s largest market, the Division also increased its profits from the prior year.
Through this integrated platform, Mirvac has actively managed its balance sheet activity and recycled capital efficiently to deliver a steady stream of long-term fee based income and superior returns to our investors.
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Pursuing our Strategy
Mirvac has a well promulgated strategy of:-
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creating an integrated property platform;
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diversifying our development business; and
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expanding recurring earnings,
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to increase profits and returns by making our business less
vulnerable to economic and property cycles through geographic and
sector diversification thus moving away from being a purely Australian based residential property developer.
Consistent with this strategy, since 30 June we have:-
- i) Launched our first UK property joint venture, City Regeneration
Fund, to invest in residential property re-development
opportunities in London & the south-east of the UK. A major
global financial institution head-quartered in London has
committed to invest 75% of the fund’s financial requirements
with Mirvac funding the balance. The target size of this Fund is
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A$400m. One property has already been acquired adjacent to
the site of the 2012 Olympics and other opportunities are being
investigated.
- ii) We have opened a London office, and a senior executive,
Adrian Harrington, re located to oversee an expanding overseas presence for Mirvac. We believe the Pan-European market will offer Mirvac excellent growth opportunities over the short to
medium term. The establishment of this office, in conjunction with our existing joint venture with Chantrey, provides Mirvac
with a unique access to opportunities in this market.
- iii) We have enhanced our funds under management by exercising
options to acquire the 50% not previously owned in Domaine
Property Funds Limited and Property Funds Australia Limited.
Domaine currently has $750 million under management across
five unlisted property trusts. Property Funds Australia manages
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the PFA Diversified Property Trust, a listed trust which owns a
portfolio of Australian investment grade assets valued at almost
$700m.
Both of these acquisitions are a good fit with Mirvac’s current
business and bring more diversity and specialist management
skills to Mirvac’s existing suite of products.
- iv) We have increased our diversity into the non-residential
development sector through the agreement to acquire five
strategically located industrial sites in Queensland, comprising
some 565 hectares in total.
Two sites were acquired for immediate development, with the
remainder to be developed over the next ten years, by Mirvac in conjunction with our subsidiary company Industrial Commercial Property Solutions (ICPS).
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This acquisition will utilise Mirvac’s integrated skills to create high quality industrial investment grade assets which can be
placed into funds to be managed by Mirvac to further increase
our stream of recurring income, as well as expanding our presence in the industrial sector and strengthening relationships with major logistics and transport organisations.
The acquisitions will also create a ten year work book for ICPS who will deliver the projects and manage the completed buildings on a fee for service basis.
Prior to our industrial acquisition, we had 29 non residential projects either in progress or in the planning stage at a total value of approximately $2 billion, including the complete
refurbishment and redevelopment of the Goodsell Building in
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Sydney’s CBD and we are expanding the Orion Springfield
Town Centre here in Queensland.
2007/8 Year
Mirvac has commenced the current year well and first quarter
performance is on budget.
This year Directors have increased the distribution to 32.9c per security
for the full year. The first quarter’s distribution of 8.225 cents per security was paid on 27 October 2007. This distribution was paid
entirely from the Mirvac Property Trust as, given the composition of Mirvac’s earnings and the timing of when we pay tax, Mirvac Limited did not have the franking credits to pay a fully franked dividend. As you would expect, our franking account is closely monitored to ensure that
credits are passed on to securityholders expeditiously.
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Mirvac’s distribution policy will continue to be prudently managed so we can deliver appropriate returns to investors whilst at the same time retaining sufficient funds to reinvest optimally in Mirvac’s future growth.
Mirvac’s performance over the next 5-10 years will be supported by the residential re-stocking program undertaken in the last year which has delivered us a future development pipeline of some 29,000 lots with the end value of $11 billion spread evenly over Mirvac’s states of operation.
I believe Mirvac continues to enjoy both a strong corporate reputation and enviable brand positioning for developing quality residential products as well as leading edge non residential developments. This was reflected in the continued strong pre-sales we achieved on our residential developments, with some $689 million in exchanged contracts as at 30 June. Approximately 50% of these contracts will settle this year giving a strong boost to revenues.
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Despite recent increases in interest rates, Mirvac has experienced minimal defaults, reflecting our superior position in the market. Work is proceeding on schedule on our prime residential development sites at Newcastle (NSW), Leighton Beach (WA), Waverley Park and Yarra’s
Edge (VIC) and Tennyson and Gainsborough Greens here in
Queensland.
As we are all aware, financial markets around the world are experiencing
significant turmoil in the wake of the sub-prime mortgage market crisis emanating from the USA.
While Mirvac has no direct exposure to this market, the melt down in that market is in fact creating opportunities for Mirvac’s Quadrant joint venture business in the US. Quadrant manages real estate debt
investments on behalf of major US pension funds and life insurance
offices. Credit quality within Quadrant’s portfolio remains sound and with more than A$3.0 billion in funds under management not one loan is in
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default. In fact Quadrant is benefiting from increased returns due to widening spreads in the CMBS market coupled with an increase in wholesale loan market volumes as investors seek quality product in these times of uncertainty and volatility.
Greg Paramor will provide you with prospective detail on all Mirvac’s businesses and their performance in his presentation after the conclusion of this meeting.
Remuneration Practices in Australia
We are all aware that there has been extensive press comment on the
so called excessive level of executive salaries in this country. No criticism has been directed at Mirvac’s remuneration practices.
Our remuneration policies have been clearly laid out in the Group’s
Annual Report in the excessive detail required. You will be asked to endorse these policies later in this meeting. They are the domain of the
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Board’s Human Resources Committee chaired by Peter Hawkins, whose mandate is to ensure their nexus with the Group’s performance.
Australia’s unprecedented period of resources demand lead economic growth has lead to a shortage of skilled labour in some professional and trade disciplines, a shortage which remains unaddressed by public
policy.
The resulting competitive global pressures have meant salaries and
wages have increased for talented people – the type of people we need
to deliver superior returns to corporations and their shareholders.
Mirvac has a transparent remuneration policy which has been well
communicated both inside and outside the Group. We are obviously not
immune to the pressures from the economy in which we are operating,
and mindful of our responsibilities, indeed the absolute requirement to retain our people to protect and grow our businesses to deliver the
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returns expected by our investors. To the best of my knowledge all the independent governance organisations have commented favorably on our remuneration policies, whilst at the same time opining that Mirvac’s executive salaries on the whole remain below the level paid by our
peers. Notwithstanding we are continuing to introduce initiatives to ensure our people are motivated to perform by more than the level of their monthly pay packet.
This year, to improve the efficiency of this meeting and most importantly ensure we have appropriate time for our Managing Director to address the prospective, we invited securityholders to submit questions in
advance. This initiative has been well received by you and I expect it will certainly lead to a more efficiently run and effectively informative
meeting.
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Thanks to all of you who have submitted questions – I have answered
virtually all of them in what I have said today other than two queries on
our auditors and advisors:
PWC as well as being our auditors provide taxation and regulatory advice to us. On our website we have published our policies and
practices to ensure PWC remain independent. Our Board Audit Risk and Compliance Committee closely monitors the scope of non-audit work undertaken by PWC to ensure compliance with these policies and procedures.
It remains Mirvac’s desire to interact and meet with as many of our
28,000 securityholders as possible, and as a result the Board has
decided to continue the rotation of future AGM locations through the
capital cities in which we operate.
Next year we intend to hold the AGM in Melbourne.
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“Thank you’s”
As I conclude, I would like to take this opportunity to thank my fellow Board members for their contributions and support during the year, and commend Greg Paramor, Mirvac’s management team and their people for their continued dedication and their achievements.
Most importantly I want to thank you our security holders for your continuing support and confidence. I trust your investment in Mirvac will continue to be rewarding.
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Greg Paramor
Managing Director
Waterline, Bulimba
2007 Mirvac Group
Annual General / General Meetings
Waterline, Bulimba, Qld
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Mirvac brand
> A leading brand for 35 years
> Listed on ASX for 20 years
> Diversified real estate platform
> Financial strength
> Global reach
> Listed in “Top 30 Global
Property Brands” [1]
2007 Mirvac Group
Annual General / General Meetings 1. Brand Finance Institute report released 30 October 2007.
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Over 5,500 staff across 4 countries
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Australia-wide diversity
with increasing global reach
Internal Funds Management
Development
External Funds Management
Hotels and Resorts
2007 Mirvac Group
Annual General / General Meetings
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MGR v ASX LPT 200
MGR Share Price ASX LPT 200
140
135
130
125
120
115
110
105
100
95
90
Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07
Index (November 2006 = 100)
2007 Mirvac Group
Source: Bloomberg
Annual General / General Meetings
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Mirvac platform delivers growth
> Strong full year performance above market guidance
> Restructured divisions into 2 integrated operating units:
- Funds Management: internal & external
- Development: residential, commercial, retail & industrial
> Recycling of capital delivered growth across divisions
> Scaleable funds management enhanced stable recurrent earnings stream
> Businesses produced resilient earnings
2007 Mirvac Group
Annual General / General Meetings
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$26.3bn activities under control
Funds Management $13.3bn Development $13.0bn
Internal: $4.2bn Residential: $11.1bn [2] , 29,016 lots
55 investment grade assets Housing
Indirect property investment Medium & high density
Land subdivision
External: $9.1bn [1]
Equity funds Non-residential: $1.9bn
Debt funds Commercial
Infrastructure funds Retail
5,439 rooms across 42 hotels Industrial
Hotel
2007 Mirvac Group 1. Funds under management before adjusting for joint venture interests.
2. Activities under control, including lots not held on balance sheet.
Annual General / General Meetings
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Operational highlights
To 30 June 2007
> Acquired $1.124bn [1] of assets from Walker and purchased a $328.3m [1]
hotel portfolio from Carlton Crest
> External funds management:
- Established $655.5m of new wholesale funds
- Renewed AustralianSuper mandate through to June 2010
> Mirvac Property Trust delivered growth through $1.1bn of acquisitions,
development completions and revaluations
> Restocked development pipeline with 11,903 residential lots - end value
of $3.7bn
> Delivered examples of outstanding sustainable development
2007 Mirvac Group 1. Total transaction value before adjusting for
Annual General / General Meetings JV interests and Mirvac managed entities.
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Strong financial performance
$319.1m 32.97c $7.4bn $3.80
16.3% 4.2% 20.8% 12.5%
Operating [1] EPS [1] Total NTA
Profit Assets
2007 Mirvac Group 1. Operating profit after tax excluding non-cash AIFRS adjustments.
Annual General / General Meetings
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Capital management
Jun 07 Jun 06
S&P rating BBB BBB
Total interest bearing debt $2,552m $2,326m
% hedged 79.6% 70.5%
Weighted average hedge
4.5 yrs 4.5 yrs
maturity
Average borrowing rate [1] 6.79% 6.38%
Gearing [2] 35.3% 38.0%
2007 Mirvac Group 1. Includes margins & line fees.
2. Interest bearing liabilities (hedged foreign currency debt) less cash
Annual General / General Meetings / total assets less cash.
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Operational highlights
Post 30 June 2007
Expanded international platform
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Launched UK property JV Fund – City Regeneration Fund
- Relocated Senior Executive to London office
Continued to diversify business
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Acquired $255m industrial land banks across 5 strategic sites in QLD
Enhanced funds under management
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Exercised option to acquire remaining 50% interest in boutique property funds
management teams: PFA, Domaine
Strengthened development pipeline
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Acquired in JV with AustralianSuper landmark Melbourne CBD site for $30m
2007 Mirvac Group
Annual General / General Meetings
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Sustainability leader
> Continued as a leading sustainable real estate group
> Maintained strong commitment to sustainability through
- Delivering enhanced financial performance for securityholders
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Creating a more secure future for customers and the community
> Continued external recognition
- Winner: 2007 Banksia Climate Award; 2007 HIA-Boral Greensmart Estate of the
Year for Magenta Shores
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Continued listing on the FTSE4Good, the Australian SAM Sustainability Index &
included in the Climate Disclosure Leadership Index – Australia & New Zealand
> Comprehensive strategic planning process
- Established 6 sustainability priority areas, objectives and performance targets
2007 Mirvac Group
Annual General / General Meetings
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2007 awards
Summary of major awards
Organisation Award
Banksia Environmental Foundation Climate Award - GridX MiniGrid Trigeneration System at Mirvac - Vision Estate, Glenfield
NSW Development Excellence Award for Sustainable Development - Magenta Shores
Urban Taskforce NSW Deal of the Year - Walker Corp Acquisition
QLD Awards for Excellence - Orion Town Centre
WA Awards for Excellence - High Density Development - Allegro, The Peninsula Burswood
Environment Protection Authority Sustainability in Urban Development or the Built Environment - Orion Town Centre
HIA/Boral Greensmart Awards Estate of the Year - Magenta Shores
PCA Excellence in Property Awards Masterplanned Development Award - Beacon Cove
Australian Institute of Building NSW Professional Excellence in Building Awards -Residential Construction $100 million + -Magenta Shores
RAIA QLD Architecture Awards - Ephraim Island Villas
NSW Environmental Management - Housing $500K + - Magenta Shores Houses (Stage 1)
NSW Design & Construct - House up to $500K- Magenta Shores Houses (Stage 1)
Master Builders Association NSW Townhouses or Villas / Dual Occupancy, $250 - $400K Magenta Shores Villas (Stage 1)
NSW Integrated Housing - Mirvac Homes for Glenfield
QLD Excellence in Workplace Health and Safety - Waterline
Australian Hotels Association (NSW) OHS Hotel of the Year - Quay West Suites Sydney
HM Magazine Awards Hotelier of the Year - Andrew Turner
Front Office Dept Member - Angus Muffet Quay Grand Suites Sydney
2007 Mirvac Group
Annual General / General Meetings
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Funds Management
Overview of Results
Orion Springfield Town Centre, QLD
Orion Springfield Town Centre, Qld
2007 Mirvac Group
Annual General / General Meetings
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Funds Management
Internal $4.2bn External $9.1bn1
Assets: $3.8bn Equity funds: $4.8bn
22 commercial buildings Debt funds: $3.5bn
9 industrial facilities Infrastructure: $0.8bn
20 retail centres
3 parking stations
1 hotel
Indirect property investments: $0.4bn
Mirvac Real Estate Services
Hotel Management - 5,439 rooms across 42 hotels
Parking Management
2007 Mirvac Group 1. Funds under management before adjusting for joint venture interests.
Annual General / General Meetings
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Key achievements
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Internal Management > MPT delivered $1.1bn growth through asset acquisitions, development completions, revaluations, co-investment in external funds
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Re-balanced portfolio through $340.5m disposal of non-core assets > Acquired 5 industrial sites covering 565ha strategically positioned throughout QLD’s major growth corridors[1]
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External Management > 2 wholesale funds launched: - Mirvac Wholesale Residential Development Partnership (MWRDP)
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- Mirvac Wholesale Hotel Fund (MWHF)
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AustralianSuper mandate renewed through to June 2010, $100m p.a > Successfully completed capital raising for City Regeneration Fund – 1st unlisted property fund / joint ventures in UK[1]
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Rationalisation of non-core funds continued > Number of hotel rooms across 42 hotels increased to 5,439 2007 Mirvac Group 1. Post 30 June 2007.
-
Annual General / General Meetings
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Internal Funds Management
1 Darling Island, Sydney, NSW
Principal
investment
realising growth
2007 Mirvac Group
Annual General / General Meetings
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| 2007 Mirvac Group Annual General / General Meetings MPT development pipeline 0 0 0 Commercial 13 9,709 1 Industrial 229 76,875 4 Retail 3292 125,144 6 Current 7412 218,297 11 Future 2421 86,584 5 Completions $1,070m 343,441 17 Total (current and future) 219 77,137 4 Retail 133 58,244 3 Retail 340 74,622 2 Commercial 181 66,538 5 Industrial 150 19,250 1 Commercial 46 47,650 2 Industrial Transfer value $m No. of projects Area sqm 1. Transfer value for completed developments is Mirvac’s share of total costs excluding existing land and assets. 2. Transfer value for current and future developments is Mirvac’s share of forecast valuation excluding existing land and assets. |
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External Funds Management
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Platform delivering
growth through
diversified funds
2007 Mirvac Group
Annual General / General Meetings
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External funds
30 Jun 07 $9.1bn [1] FUM by Market Segment
Equity funds 52% Listed 24%
Debt funds 39% Retail 14%
Infrastructure 9% Wholesale 21%
Mandates 41%
2007 Mirvac Group 1. Funds under management before adjusting for joint venture interests.
Annual General / General Meetings
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Listed external funds
Strong FY07 results
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MRZ MIX
Total return 17.8% Distribution delivered 9.75 cpu
Distribution increased 11.30 cpu, up 9.7% Earnings delivered 10.32 cpu
Crystallised profits Sell down resulted in $13.5m Strong balance sheet Retained earnings balance of 0.83 cpu
from LPT portfolio profit realised
External revaluation 78m Whole business approach Enhanced earnings by managing
uplift Trust expenses
Active asset Acquired major retail & commercial Active asset management Leased 2.5 million square feet
management sites Strong occupancy at 91%
Strong occupancy at 98.9% High tenant retention - 90.4% [1] since IPO
Leased 50,800sqm
Positive outlook Continuing rationalisation program of non
Positive outlook Leading diversified externally core assets
managed listed trust Prudent management of foreign exchange
Strong balance sheet for growth income hedging profile
Enhance portfolio quality Intensive management of debt profile
Maximise returns through Deal flow characterised by total return not
development and repositioning yield
opportunities
2007 Mirvac Group
Annual General / General Meetings 1. As at 29/8/07
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Hotel Management
Sea Temple, Palm Cove, QLD
2007 Mirvac Group
Annual General / General Meetings
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Delivering consistent growth
Average Room Rate
$198
$184
Number of Hotels under Management $176
FY05 FY06 FY07
42
25 27
Rooms under Management
FY05 FY06 FY07
5,439
2,750 3,124
FY05 FY06 FY07
2007 Mirvac Group
Annual General / General Meetings
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Funds Management strategy
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A suite of entities to satisfy investor needs and facilitate balance sheet activity
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Expand retail product offerings
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Cement existing investor relationships
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Identify suitable international partners to expand Mirvac’s offer
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Complete integration of Domaine & PFA 2007 Mirvac Group Annual General / General Meetings
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Development
Re-stocking for
future growth
2007 Mirvac Group
Annual General / General Meetings
Ephraim Island, QLD
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Key achievements
Continued re-stocking with acquisitions of 11,903 residential lots and
expanded non residential development pipeline to $1.9bn
- The Royal at Newcastle NSW
- Leighton Beach WA
- Gainsborough Greens QLD
- Waverley VIC
- Walker & industrial land bank non-residential developments
$689m exchanged contracts has secured income for FY08
1,958 residential settlements
2007 Mirvac Group
Annual General / General Meetings
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Development
Residential $11.1bn 1 Non Residential $1.9bn
29,016 lots Commercial $0.7bn
Housing Retail $0.5bn
Medium & high density Industrial $0.7bn
Land subdivision
2007 Mirvac Group
Annual General / General Meetings 1. Activities under control including lots not held on balance sheet.
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Residential market outlook
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Underlying factors are positive
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High immigration, low unemployment - Dwelling supply below underlying demand - Rental market tightened in all capital cities – rents rising - Investors and first home buyers returning to the market
-
Issues - Affordability low, but likely to improve in the medium term - Cost and delays in bringing product to market
-
Housing market construction activity through FY08 - Strong: VIC - Stabilising: WA - Accelerating:NSW, QLD
-
2007 Mirvac Group Annual General / General Meetings
Non-residential development pipeline[1]
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No of projects Project value
Commercial 5 $362m
Industrial 8 $478m
Retail 5 $291m
Current [2] 18 $1,130m
Commercial 2 $340m
Industrial 5 $181m
Retail 4 $219m
Future 11 $741m
Total current and future pipeline 29 $1,871m
2007 Mirvac Group 1. Includes MPT developments.
Annual General / General Meetings 2. Individual projects included in 30 June 2007 Property Compendium.
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Divisional outlook
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$680m exchanged contracts
> Re-stocking across all sectors
> Continue to focus on major integrated developments
> Residential pipeline strong
> Expansion of commercial, industrial, retail and hotel continues
> New projects released in FY08 across all markets
2007 Mirvac Group
Annual General / General Meetings
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Mirvac in QLD
2007 Mirvac Group
Annual General / General Meetings
Orion Springfield Town Centre, QLD
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Orion Springfield Town Centre
-
Project Value: $155 Million
-
One of Australia’s most environmentally friendly shopping centres – 42% saving in power use – 62% saving in potable water use – 5,000 tonnes less Greenhouse gas emissions
-
8 awards won since opening in March 2007
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Located in new masterplanned city of Springfield
-
Planning for future stages underway
-
2007 Mirvac Group Annual General / General Meetings
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Tennyson Riverside Development
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Project Value: $604 Million
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The proposed new development
will comprise:
- Premium range of north facing
apartments, pavilions and
penthouses on Brisbane River
- An international-standard
State Tennis Centre
-
Extensive public landscaped
park lands, bikeways and
pathways for jogging and walking
Expected completion: Jan 2012
2007 Mirvac Group
Annual General / General Meetings
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Mariner’s Peninsula
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Project Value: $155 Million
Mixed residential development
comprising :
- Waterfront apartments and
beach homes
- Uninterrupted panoramic views
across the Bay to Magnetic Island
- Direct access to The Strand foreshore,
pathways & public park land
Expected completion: Nov 2010
2007 Mirvac Group
Annual General / General Meetings
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Gainsborough Greens
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Project Value: $950 Million
Masterplanned residential
community:
- 2,300 lots across 489 ha
- Designed around 18 hole
championship golf course
- Retained vegetation &
parklands
Construction commencement:
mid 2008
2007 Mirvac Group
Annual General / General Meetings
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Mirvac in QLD
Total activities under control $4.8bn
Retail $762m
Commercial $389m
Non - residential Industrial $208m
Hotel $191m
Development $666m
Residential
$2.6bn
Staff
1,200
2007 Mirvac Group
Annual General / General Meetings
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Outlook and Group Strategy
2007 Mirvac Group
Annual General / General Meetings
Artist’s Impression Mariner's Peninsula, Townsville, QLD
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The economy
Economic outlook remains positive
-
GDP growth to accelerate in FY08
- Inflation pressures to persist
- Another interest rate rise a strong possibility
- Labour markets extremely strong – recruitment & retention strategies
essential
- Business investment and non-residential construction to remain strong
Inter-state outlook
- All states likely to match or better FY07 growth performance in FY08
- Convergence - NSW to accelerate due to infrastructure spending,
stronger population growth
- Residential construction to gain momentum as rental market tightens in all
states
- NSW residential recovery on track but slower due to latest rate rise - look to
second half 2008
2007 Mirvac Group
Annual General / General Meetings
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Financial outlook
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Another interest rate rise should be factored in
-
US subprime impact - repricing of risk means short-term pain for long term gain
-
- No flow- through to local housing market from non-bank mortgage lender problems
-
Decline in bond yields a positive for commercial sector valuations - Flight to quality and demand for liquidity to benefit premium grade assets and funds
Impact on Mirvac
-
No change to long term strategy - diversification, efficient use of capital, focus on quality assets and growth sectors
-
- Look for opportunities as market adjusts to wider credit spreads
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2007 Mirvac Group
Annual General / General Meetings
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Group strategy
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Business well placed with resilient earnings and appropriate debt levels
> Strong balance sheet capacity to manage risk and capitalise on
opportunities
> Further successful asset recycling – assets and development to Funds
Management (Mirvac’s second balance sheet)
> Seek further co-investment with JV partners
> Continue to investigate opportunities in key global markets
> Maintain a strong commitment to sustainability
2007 Mirvac Group
Annual General / General Meetings
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FY08 guidance
EPS 34.3 cents (+4%)
DPS 32.9 cents (+3%)
Composition: Funds Management 70-75%
Development 25-30%
2007 Mirvac Group
Annual General / General Meetings
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Mirvac Group
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Mirvac has become a fully integrated business with a diversity of earnings
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Focused on delivering strong results for securityholders over the long term
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Cautious approach in turbulent global markets, yet see significant opportunities
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Strength of Mirvac brand and quality of product will help underpin growth
-
Committed to sustainable practices - create a legacy in our communities
2007 Mirvac Group Annual General / General Meetings
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Greg Paramor
Managing Director
Waterline, Bulimba
2007 Mirvac Group
Annual General / General Meetings
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