MIRVAC GROUP — Annual Report 2008

Aug 25, 2008

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26 August 2008

MIRVAC GROUP RELEASES 2008 FINANCIAL YEAR RESULTS

In connection with Mirvac Group’s 2008 results release please find attached:

• ASX Announcement

• FY08 Results Presentation

• Appendix 4E

• Mirvac Group Statutory Accounts

• Mirvac Property Trust Statutory Accounts

• Property Compendium

A results presentation is being held at 10am today (Sydney time). Webcast details may be found at the homepage of Mirvac’s website at www.mirvac.com.au .

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Michael Smith

Group Company Secretary

Mirvac is a leading ASX-listed, integrated real estate group with approximately $27.2 billion of activities under control across the real estate investment and development spectrum.

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26 August 2008

MIRVAC GROUP RELEASES FULL YEAR RESULTS

FINANCIAL HIGHLIGHTS

The following table summarises the key financials for the 12 months ended 30 June 2008:

• Net profit after tax of $171.8 million

• Operating profit after tax of $352.2 million

• AIFRS earnings of 16.58 cents per stapled security

• Operating earnings of 33.44 cents per stapled security

• Full year distribution of 32.9 cents per stapled security

• NTA per stapled security of $3.77

• Exchanged contracts of $1.02 billion for residential development

• Raised $300 million via a private placement with cornerstone investor, Nakheel

Mirvac’s statutory net profit after tax of $171.8 million was impacted by the previously announced asset impairments totalling $400.1 million. Due to the sustained deterioration in market conditions Mirvac prudently reassessed the value of its residential and non-residential developments, intangible values and co-investments in managed listed funds.

Operating profit after tax (profit before specific non-cash and significant items) was $352.2 million, an increase of 10.4 per cent.

Full year distributions to securityholders of 32.9 cents per stapled security represented a 3.1 per cent increase on the previous 12 months.

Capital Management

Mirvac continues to comply with all its debt covenants and as at 30 June 2008 had borrowings of $2,453 million, representing gearing of 32.5 per cent. Mirvac has no market capitalisation covenants and Mirvac maintains its S&P BBB credit rating.

Post year end, Mirvac disclosed its new distribution policy to reflect the underlying nature of Mirvac’s activities. Distributions now include 100 per cent of Trust earnings and up to 80 per cent of Corporate earnings, depending on future capital requirements and opportunities.

OVERVIEW

On delivering his final results for the Group, Mr Greg Paramor, said, “Despite turbulent markets, our Investment and Development divisions were able to produce stable income streams, demonstrating the quality of the investment portfolio and the strong demand for our leading residential products.

“While we are in a constrained residential market across Australia, investors and homebuyers are continuing to support quality residential developments, as evidenced by our record sales achievements in Queensland and Western Australia.

“Our results and recent announcements to the market show that Mirvac is a robust organisation that is able to adapt to changed market conditions.

“We have reviewed our strategy and have implemented a more simplified operating platform. I am confident that the direction Mirvac is heading will ensure our investors receive long term sustainable earnings growth.”

Mirvac Managing Director designate, Mr Nick Collishaw, said "These results serve as a clear example of the underlying potential of Mirvac and the significant benefits our integrated platform has the capacity to deliver.”

DIVISIONAL RESULTS

Investment

As at 30 June 2008, the Investment Division (comprising Mirvac Property Trust and Mirvac Asset Management) had a total portfolio value of $4.1 billion, with investments in 56 properties, covering the commercial, retail, industrial and hotel sectors as well as investments in a number of Mirvac’s other managed funds.

The Investment Division achieved a net profit before tax of $404.0 million and an operating profit before tax of $298.2 million, a 22.0 per cent increase. In light of the trading volatility experienced by listed property trusts, Mirvac Property Trust reduced the carrying value in its indirect real estate investments in Mirvac Industrial Trust [ASX: MIX] and Mirvac Real Estate Investment Trust [ASX: MRZ] by $76.1 million, as previously announced.

The Mirvac Property Trust portfolio was strengthened during the year with sustained leasing activity of over 175,913sqm leased, representing 17.6 per cent of the total portfolio (commercial: 89,079sqm, retail: 49,382sqm, industrial: 37,452sqm), providing a total portfolio occupancy rate of 98.3 per cent.

The Trust recognised an increase of $181.8 million in gross asset revaluations, with a weighted average capitalisation rate across the portfolio of 6.55 per cent.

The development pipeline continued to deliver product with completions of an industrial warehouse (Nexus Industry Park) and a bulky goods centre (Lake Haven Mega Centre).

Mr Collishaw said, “The Division remains well placed with a strong, core domestic property portfolio and secure tenant covenants. Through active asset management the portfolio will continue to deliver stable, sustainable returns to the broader Group.”

Development

At 30 June 2008, the Group’s Development Division had $15.9 billion of activities under control. Development comprises two principal areas; Residential (housing, apartments, and land sub-division) with $12.9 billion activities under control and a future pipeline of 31,295 lots; and non-residential with $3.0 billion activities under control.

Operating profit before tax was $154.1 million, representing a 10.0 per cent increase on the previous 12 months.

The Group's Development Division’s net loss before tax was $65.8 million. The Division’s results were impacted by the previously announced $219.9 million impairment to the carrying value of its inventory. Residential developments have been exposed to the continuing poor sentiment, affordability and mortgage related stress, which adversely impacted some development values. Mirvac reviewed its portfolio of residential developments and adjusted the carrying value of some of its inventory, particularly in NSW. Mirvac also adjusted the value of some of its non-residential developments after a review of key metrics including capitalisation rates, development time frames and costs.

Residential

The Development Division continued to deliver quality residential products resulting in the settlement of 2,089 lots, at projects such as Ephraim Island, QLD (19 lots, $30 million), Burswood, WA (105 lots, $115 million) and Yarra’s Edge, VIC (19 lots, $27 million).

The Division also continued to secure income with $1.02 billion of exchanged contracts (including Mirvac share of JV interest and Mirvac managed funds) with strong pre-sales at:

• Tennyson Reach , QLD (136 lots, $220 million) – Stage one and stage two riverfront apartments sold out

• Beachside Leighton , WA (60 lots, $190 million) – oceanfront luxury apartments sold out of stage one release; and

• Yarra’s Edge River Homes , VIC (39 homes and marina berths, $92 million) – successful sales with 27 homes sold out for $60 million in the first 24 hours of release.

Non-Residential

Mirvac continued to deliver on its strategy of diversifying into non-residential development across the commercial, industrial and retail sectors, with key projects including:

• Hayles Wharf , Townsville, QLD - acquisition of mixed-use site, with proposed development plans comprising 19,000sqm of commercial space, 1,600sqm of retail space, an 84-room hotel and 97 apartments, with an expected end value of $211 million

• 664 Collins Street , VIC - completed acquisition and planning approvals for a CBD, landmark 47,000sqm commercial office building, to be developed in joint venture with AustralianSuper, and has an expected end value of $319 million; and

• Section 63 , Canberra, ACT - acquisition of a mixed use development site in joint venture with Leighton Properties. The proposed development will total 128,000sqm in space with an expected end value of $755 million.

”The outlook for the Division is positive with over $1.02 billion of pre-sales to underpin divisional profit for the next few years as well as the exciting opportunities that exist with our global strategic partners in the UAE and Gulf states,” Mr Collishaw said.

Funds Management

As at 30 June 2008, Mirvac’s Funds Management business unit had $7.2 billion in funds under management on behalf of more than 36,000 institutional and retail investors across listed, unlisted and wholesale funds and joint ventures, both domestically and internationally.

Funds Management was adversely affected by the deterioration in the real estate markets with the value of certain assets being written-down by $104 million including infrastructure investments (Lane Cove Tunnel and River City Motorway) and intangible assets (Mirvac Domaine, Mirvac Equity Funds and JF Infrastructure). Funds Management’s net loss before tax was $93.9 million, and operating profit before tax was $9.5 million, a decrease of 59.9 per cent.

Commenting on the strategy for Funds Management, Mr Collishaw said, “We will continue to rationalise our funds management business with a focus on core, scaleable and sustainable funds management activities. We will utilise our funds management capabilities to align the two core activities of Mirvac – Investment and Development.

“We are already seeing the benefits of this strategy through our wholesale platform with the Mirvac Wholesale Hotel Fund, delivering 17.1 per cent total investor return for the year and the continued success of the Mirvac Wholesale Residential Development Partnership.

“We have established an industrial development partnership with Nakheel to develop a 196 hectare site in Bromelton, Queensland, into a multi-modal industry park comprising warehousing and manufacturing precincts.

Hotels

The Group’s Hotels business unit, which manages 40 hotels and resorts across Australasia, achieved an operating profit before tax of $15.3 million, a 43.5 per cent increase on the corresponding period.

Mr Collishaw said, “The strength of the Mirvac Hotels brand was acknowledged during the year with the signing of nine management contracts and a joint venture agreement with Abu Dhabi-based, Al Badie Group for Mirvac to provide hotel management in the Middle East.

“There is enormous capacity in Abu Dhabi and the Middle East for premium hotel management and it is our intention to create significant value in the region.”

OUTLOOK

Mr Collishaw said, “Mirvac is committed to being Australia’s leading developer of residential real estate and proving quality returns through our Investment portfolio.

“Our focus going forward will be to continue to drive the core platform - investment and development - through the use of our funds management capabilities, and continue our growth in our key markets.”

Mirvac reaffirmed its EPS guidance range of 23-25 cents per stapled security and DPS guidance of 20 cents per stapled security for the FY09 year.

For more information:

Adam Crowe Group Investor Relations +61 2 9080 8652

Justin Mitchell Chief Financial Officer + 61 9080 8807

For media enquiries:

Kate Lander Group Communications Manager +61 2 9080 8397

Mirvac is a leading ASX-listed, integrated real estate group with approximately $27.2 billion of activities under control across the real estate investment and development spectrum.

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The information made available through this presentation and appendices, including any expression of opinion or forecast, has been obtained from or based on sources believed by Mirvac Group to be reliable. Mirvac Group does not warrant the accuracy, completeness or currency of the information or that the information is suitable for your intended use, and should not be relied upon by you in substitution of you obtaining independent advice. Mirvac Group and its related companies will not be liable for any

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FY08 Results Presentation 26 August 2008

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Agenda

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Market conditions & group positioning

Financial results

Divisional performance

Strategy

Market conditions

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• Mirvac has operated through many market cycles since 1972 and its continued success is attributable to its ability to adapt to changed market conditions:

• scarcity and the increased cost of debt, coupled with an uncertain asset price outlook, means the maintenance of a strong balance sheet is paramount

• the cyclical nature and the capital requirements of development, means distributions need to reflect the underlying nature of corporate activities

• global repricing of risk, means corporate activity needs to align with the organisation’s core competencies

• deterioration of the REIT sector’s market capitalisation, means transparency and the timely dissemination of information to the market restores confidence

Mirvac – realistically responding to market conditions

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Prudent actions taken:

Announcement to market:

Realistic assessment of carrying values: $400m of impairments 20 June 08 Change of distribution policy:100% Trust, up to 80% Corporation 22 July 08 Refocusing on core competencies: Investment and Development 22 July 08 Primacy of balance sheet: capital raising and underwriting of DRP 1 February/25 July 08

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Justin Mitchell

Financial results

Platform delivering earnings in volatile environment

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Headline financial result

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Statutory	FY08	FY07
NPAT	$171.8m	$556.1m
EPS1	16.58c	58.65c
NTA1	$3.77	$3.80

Operating performance

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Operating	FY08	FY07	Change
Operating profit1	$352.2m	$319.1m	10.4%
EPS
	33.44c	32.97c	1.4%
DPS
	32.90c	31.90c	3.1%

Development

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Operating	FY08	FY07	Change
Operating profit before tax1	$154.1m	$140.1m	10.0%
EBIT2	$217.8m	$213.3m	2.1%
Settlements	2,089 lots	1,958 lots	6.7%
Exchanged contracts	$1,018m	$689m	47.7%
Gross margin on revenue (residential)3	25.9%	22.6%

1. Operating profit excluding specific non-cash and other significant items, before tax and minority interest.

Investment[1]

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Operating	FY08	FY07	Change
Operating profit before tax2	$298.2m	$244.3m	22.0%
EBIT3	$342.1m	$289.3m	18.3%
Portfolio value	$4,102.5m	$4,162.5m	(1.4%)
Net income growth (like for like)	4.2%	3.7%
Gross revaluations4	$181.8m	$245.1m

1. Includes Mirvac Property Trust, Parking and Mirvac Asset Management. 2. Operating profit excluding specific non-cash and other significant items, before tax and minority interest.

Funds Management[1]

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Operating	FY08	FY07	Change
Funds operating profit before tax2	$9.5m	$23.8m	(59.9%)
Hotels operating profit before tax2	$15.3m	$10.7m	43.5%
EBIT3	$30.3m	$35.8m	(15.3%)
FUM4	$7.2bn	$7.0bn	2.9%
Hotels	40	40

1. Includes Hotels and Funds Management.

2. Operating profit excluding specific non-cash and other significant items, before tax and minority interest.

Capital management

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	Jun 08	Jun 07
S&P rating	BBB	BBB
Total interest bearing debt	$2,338m	$2,552m
Avg borrowing rate1	7.07%	6.79%
Wtd avg debt maturity	3.8 yrs	4.5 yrs
% hedged	79.7%	78.6%
Wtd avg hedged maturity	4.4 yrs	4.5 yrs
Gearing2	32.5%	35.3%
See-through gearing	35.2%
Undrawn debt facility	$1,200m

Debt maturity profile[1]

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Weighted average expiry: 3.8yrs

Debt covenants

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MGR has two main debt covenants:

1. gearing ratio (total liabilities/total tangible assets or debt/total tangible assets)

• limited to Mirvac balance sheet, no look through covenants

• significant head room post write down of $381.1m of inventory and co-investment impairments ($400m including intangibles)

2. interest cover ratio (EBITDA/interest)

• 12 month rolling calculation

• adjusted EBITDA divided by interest expense as per Profit and Loss statement + lease expenses

• only 20% of debt is exposed to interest rate movements

Mirvac’s FY09 low range earnings guidance complies with all debt covenants Mirvac maintains its S&P BBB credit rating

Mirvac has no market capitalisation covenants

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Adrian Fini

Development

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Australia’s premium built-form developer

Development

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Settlements

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> 2,089 total lot settlements

• continued work out of Western Sydney projects

• sales experienced across the board slowdown post 5 March 08 RBA target cash rate rise, affordability continues to impact consumers with owner occupiers and investors paused

• the success of the wholesale funds platform reduced $623m[1 ] of future capital expenditure

State	House/land settlements2	Apartment settlements2	Total settlements2
	(YR to 30 JUN 08)	(YR to 30 JUN 08)	(YR to 30 JUN 08)
NSW	56.9%	61.4%	57.9%
VIC	7.9%	8.8%	8.1%
QLD	12.8%	4.9%	11.0%
WA	22.5%	24.9%	23.0%
Total	1,623	466	2,089

Secured residential sales

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> $1.02bn exchanged contracts[1]

• achieved record Queensland sale price of $14.25m for an apartment at Newstead River Park

• achieved record sale prices of between $1m - $5.35m (39 homes) at Yarra’s Edge, VIC

• stage 1 sold out with sale prices of between $1.4m - $9.0m (48 apartments, 12 penthouses) at Beachside Leighton, WA

State	Exchanged contracts as at 30 Jun 08		Settlement date	Percentage of exchange contracts realised
NSW	$81m		FY09	49%
VIC	$171m		FY10	27%
QLD	$270m		FY11	24%
WA	$496m

Lots under control[1]

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Residential activities under control

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Mirvac non-residential development pipeline[1]

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> Non-residential development pipeline, providing Development earnings diversity

• flexible pipeline, allowing for projects to be activated when appropriate

• delivering forecast $1.1bn of quality commercial and industrial assets[2]

• Mirvac’s integrated model allows for sale to third parties, managed funds or mandates

Profile of completions by forecast cost	FY09	FY10	FY11	FY12	FY13	Pipeline weighting
Commercial	$152.7m	$0.0m	$138.9m	$270.2m	$0.0m	49.6%
Industrial	$119.3m	$158.2m	$0.0m	$61.1m	$231.6m	50.4%
Total	$272.0m	$158.2m	$138.9m	$331.3m	$231.6m

Residential market outlook

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> Underlying factors remain positive

• high immigration and population growth plus low unemployment should lead to higher demand

• dwelling supply (147,200[1 ] pa) below underlying demand (185,000 pa)

• rental market tightening in all capital cities – rents rising

• first home buyers remain active (especially in NSW)

• prospect of falling mortgage rates in FY09

> Issues:

• investors discouraged by two latest Cash Rate hikes

• affordability likely to be a long term hurdle to ownership – implies growth in rental market

• market diverse – some sectors strong eg. high quality apartments

> Housing market construction activity outlook FY09

• moderate: WA, SA, VIC, QLD

• poor: NSW - still below long-term trend through FY09

Development strategy

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> Utilise our diverse in-house expertise to adapt to changing markets

• reputation for built-form quality and excellence will become increasingly important in a slowing residential market, ensuring market share maximisation as a flight to quality occurs

• premium brand continues to attract pre-sales of $1.02bn[1] , securing future income

• focused acquisition approach will centre on markets where brand has currency

• expansion into the UAE with Nakheel will be focused on capital structure and risk adjusted return

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Nick Collishaw

Investment

Income generated from 56 quality assets, providing income security

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Investments

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Mirvac Property Trust valuation

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> All properties have been valued in the 6 months to 30 June 2008[1]

• portfolio weighted average capitalisation rate (WACR) has expanded by 15 basis points

• rental growth has offset any overall reduction in total portfolio asset value

Sector	Value	WACR 30 JUN 08	WACR 31 DEC 07
Commercial	$1,648	6.54%	6.37%
Retail	$1,615	6.42%	6.29%
Industrial	$284	7.38%	7.16%
Portfolio	$4,1022	6.55%	6.40%

In the 6 months to 30 June 08, internal valuations (Director valuations) were performed on the 36 assets representing 65% of portfolio by number and 76% by number and 76% by book value. In the 6 months to 30 June 08, external

Valuation outlook

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Direct and listed real estate markets are more similar than they are different

• prudent managers cannot rely solely upon income growth to protect

• balance sheets

• direct market valuations and implicit equity market pricing will continue to converge

• required rates of return that reflect scarcity of debt and equity will drive discount rates up

• institutional grade real-estate will be less impacted by cap rate decompression

Secure income

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• Mirvac Property Trust is forecast to contribute between 62.7% and 60.0% of the Group’s profit before tax[1]

• portfolio secured by strong lease covenants with reversionary upside

Top tenants3	30 JUN 08
ASX listed	42.9%
Multi national	8.1%
Government	8.5%

• minimal lease expiry in FY09, 91.0% of

portfolio income is secured

Portfolio expiry profile

• commercial portfolio is 5.7%[2 ] under

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rented 60%
50%
- retail portfolio’s occupancy cost is 11.8%,
supports existing rents 40%
30%
20%
10%
0%
1. Profit before corporate overhead tax and eliminations. Vacant FY09 FY10 FY11 FY12 FY13 Beyond
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1. Profit before corporate overhead tax and eliminations.
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Sector diversification[1]

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Investment strategy

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• Investment Division is the core earnings platform of Mirvac and will remain focused on Australian investment grade assets:

• active asset management will continue to ensure stability and security of income; protecting value

• growth of MPT’s recurring revenue streams continues to be primary goal

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Funds management

Facilitating the flow of capital to two core Divisions

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Funds management performance

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> Funds management impacted adversely by one-offs in FY08:

• write-downs of $104m, representing infrastructure investments (Lane Cove Tunnel and River City Motorway) and intangible values (Mirvac Domaine, JF Direct, JF Infrastructure)

• a relatively small contributor to Group operating earnings

• contributes significantly to the operating earnings of Investments and Developments and the Group’s capital management

Funds Management performance

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Funds Management has continued to build on successful

wholesale model throughout FY08:

• MWRDP[1 ] - Fund acquired two further developments from Mirvac

realising $37.6m of inventory with a total future development cost of $315m[2]

• established Industrial Development Partnership with Nakheel

• first asset Bromelton multi-modal development – controlling a total project revenue of $720m

Funds Management outlook

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• Funds Management will continue to facilitate interaction of Mirvac’s

two core divisions; Investment and Development with long term capital partners

• continued success of the partnership model of capital refreshment in a period of scarcity ($3.5bn[1 ] of forecast total project value)

• focus on ‘through the cycle’ wholesale developments funds that align with Mirvac’s core competencies; delivering Developments the ability to replace cyclical earnings with predictable fees

• continued investor demand will lead to further product creation (MWRDP II)

Hotel Management

> Expansion through brand and IP leverage

• management model limits capital commitment

• strategic expansion of hotel brands in existing markets

• secured management contracts that will deliver 8 hotels over next 4 years - joint venture agreement with Al Badie Group in Abu Dhabi will further expand hotel management into the Middle East North Africa region

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Mirvac Hotels & Resorts Brand	Number of hotels as at 30 JUN 08
The Sebel	22
Quay West Suites	6
Citigate	6
Sea Temple Resorts	2
Sydney Marriott	1
The Como	1
Quay Grand Suites	1
Cairns International	1
Total	40

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Nick Collishaw

Reaffirming guidance and group strategy

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FY09 Guidance by division

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Division	Key variables	PBT range $M
Investment	No asset sales assumed	235 - 240
(Mirvac Property Trust)	Reduction of overhead cost
	Achieve rent review targets and let up assumptions
	Performance of co-investments
Funds Management(Funds	Acquisition and advisory fees	20 - 25
Management and Hotel	Reduction of overhead cost
Management)	Establishment of wholesale funds (e.g. residential, hotel and industrial)
	Complete consolidation and exit non-core businesses and funds
Development	Project completion and settlement timing	120 - 135
	Reduction of overhead cost
	Achievement of forecast sales rates
	Recycle development assets into managed funds

Corporate overheads, tax and eliminations[1]

(107) – (108)

Reaffirming FY09 guidance

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– Mirvac strategy a simplified approach

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Investment

• grow secure, recurring income through active management of Australian investment grade assets

Development

• focused acquisition approach will centre on the mid to high end market

• concentrating on urban renewal and major generational projects, moving with the markets changing dynamic in areas we excel

• establishing offices in UAE in conjunction with strong local partners

Dubai to partner with Nakheel (residential, serviced apartments and mixed-use)

Abu Dhabi to partner with Al Badie Group (hotel and serviced apartments)

Funds Management

• consolidate and exit non-core and unscaleable businesses this financial year

• ensure new funds align with Mirvac’s core competencies

• expanding hotel management in existing markets, and the UAE with Al Badie Group

Group

• challenge existing processes and procedures to generate greater efficiency of operations,

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Our strategy is realistic and brings simplicity to our model, focusing on our two core divisions, Investment and Development with Funds Management facilitating capital interaction. Mirvac is moving towards more recurring revenue streams, over the medium term, and a more focused approach in the areas we excel.

Mirvac has operated through many market cycles since 1972 and its continued success is attributable to its ability to adapt to changed market conditions. The direction of today ensures the strength of the business into the future.

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Group Annexure

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FY08 AIFRS reconciliation

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$m	INV	FM	HOT	DEV	CORP	TAX & MI	TOTAL
NPAT (AIFRS)	404.0	(93.9)	13.6	(65.8)	(105.4)	19.3	171.8
Investment property revaluations	(181.8)	(1.2)	-	-	36.8	-	(146.2)
Unrealised gains on financial instruments	(19.1)	-	0.4	-	(32.6)	-	(51.3)
Expensing share based payments	-	-	-	-	7.1	-	7.1
Lease straight lining	(0.7)	-	-	-	-	-	(0.7)
Depreciating owner occupied properties	-	-	1.3	-	5.6	-	6.9
Amortising lease incentives	8.2	-	-	-	-	-	8.2
Net gains included in share of associates	11.5	0.6	-	-	-	-	12.1
Impairment	76.1	104.1	-	219.9	-	-	400.1
AIFRS included in OEI	-	-	-	-	-	(0.2)	(0.2)
Tax effect of AIFRS adjustments	-	-	-	-	-	(55.5)	(55.5)
Operating profit (excl. non-cash AIFRS items)	298.2	9.5	15.3	154.1	(88.5)	(36.4)	352.2
Tax expense	-	-	-	-	-	32.6	32.6
Interest expense	44.0	4.9	0.6	63.7	7.4	-	120.6
EBIT (excl. non-cash AIFRS items)	342.1	14.4	15.9	217.8	(81.1)	(3.8)	505.4

FY07 AIFRS reconciliation

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$m	INT FM HOT DEV CORP TAX & MI TOTAL
NPAT (AIFRS) Investment property revaluations Unrealised gains on financial instruments Expensing share based payments Depreciating owner occupied properties Amortising lease incentives Net gains included in share of associates AIFRS included in OEI Tax effect of AIFRS adjustments Operating profit(excl. non-cash AIFRS items) Tax expense Interest expense EBIT(excl. non-cash AIFRS items)	515.1 24.6 9.5 140.1 (91.2) (42.0) 556.1 (245.8) - - - 6.3 - (239.5) (38.7) - - - 14.2 - (24.5) - - - - 2.3 - 2.3 - - 1.2 - 5.2 - 6.5 6.7 - - - - - 6.7 7.0 (0.9) - - - - 6.1 - - - - - 9.5 9.5 - - - - - (4.1) (4.1)
	244.3 23.8 10.7 140.1 (63.0) (36.6) 319.1 - - - - - 34.8 34.8 45.0 1.3 - 73.3 13.5 - 133.1
	289.3 25.1 10.7 213.3 (49.6) (1.8) 487.0

FY09 Guidance by division

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Division EBIT range $M Investment 263 - 268 (Mirvac Property Trust) Funds Management 33 - 38 (Funds Management and Hotel Management) Development 247 - 264 Corporate overheads, tax and eliminations[1] (275) – (278)

Impairments - Development

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|||||
|---|---|---|---|
|NSW|HOMES|QLD|VIC|
|Greenacre|Panorama|Nambour|Doreen|
|Endeavour House|Riverstone|Ormeau|Lorne|
|Magenta|Spring Farm|Victor Harbour|
|Wahroonga|
|Gillieston|
|Ashgrove|
|Chelsea Gardens|
|Aberglassyn Display|
|Homeworld Display|
|Warnervale Display|

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||||
|---|---|---|
|($55.4m)|($106.7m)|($9.0m)|
|($48.7m)|

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Impairments - Investment/Funds Management

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(MPT) Co-investments	Infrastructure	Management Rights
MIX PRICE - 46cpu	JF Infrastructure - LCT	Domain management rights
MREIT PRICE - 93cpu	JF Infrastructure - RCM	Mirvac Equity Funds management rights
Old Wallgrove Road		JF Infrastructure management rights
($76.1m)	($85.2m)	($18.9m)

Hedging Profile as at 30 Jun 08

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Interest reconciliation

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$m	FY08 FY07
Net borrowing costs Less: capitalised interest Capitalised interest expense to COGS Borrowing costs amortised Net interest expense	178.2 167.5 (77.9) (75.2) 37.0 49.4 2.5 5.4
	139.9 147.1

Intercompany loan (MPT to Mirvac Ltd)

850.0

900.0

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Investment Annexure

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MPT FY09 rental review structure by gross income

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Review Types	Percentage
CPI Linked	21.3%
Fixed Reviews	72.2%
Market Reviews	6.1%
Other/Miscellaneous Reviews	0.4%

MPT top ten tenants by gross income

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Rank	Tenant	Percentage
1	Government	8.5%
2	Coles Group	5.4%
3	Woolworths Limited	4.0%
4	Fairfax Holdings Limited	3.0%
5	GM Holden Limited	2.4%
6	United Group	1.8%
7	NRMA Insurance Limited	1.5%
8	Genworth Financial	1.1%
9	Telstra Corporation Limited	1.0%
10	Reuters Australia	0.9%

Stable earnings platform

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MPT acquisitions

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Acquisitions Acquisition Date	Total Acquisition Costs Yield on Cost
Pratt Boulevard, Chicago, IL Dec 07 Glass House, 9 Furzer Street, ACT Jul 07 Total	$46.5m 6.9% $77.2m 6.2% $123.7m
Development Completions Transfer Date	Book Value1
Nexus Industry Park – Building 3, NSW Jul 07 Lakehaven Mega Centre, Lakehaven, NSW Jul 07 Total	$25.3m $42.3m $67.5m

MPT disposals

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$m	Book value	Disposal proceeds	Proceeds above BV1
40 Macquarie Street , Barton, ACT	19.0	24.3	4.9
127 Creek Street, Brisbane, QLD	89.0	133.0	41.9
101 Miller Street, North Sydney, NSW	124.9	154.1	28.5
Greenwood Plaza, North Sydney, NSW	62.6	76.0	12.8
Mirvac Wholesale Hotel Fund	12.8	12.8	0.0
Total	308.3	400.2	88.1

Commercial overview

Properties owned NLA Asset value Gross revaluation Net income growth Occupancy Occupancy (excluding 101 Miller Street vacancy)

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20 333,466 sqm $1,648.3m $142.9m 4.4% (like for like) 97.4% 98.7%

Commercial performance

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Leasing transactions

Tenant rent reviews WALE (area) WALE (income)

89,079sqm (26.7% of portfolio) 207 (157,474 sqm)

6.49 yrs 6.31 yrs

Commercial market

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• Underlying conditions positive but moderating – white collar employment growth positive but slowing

• Supply increasing in most markets but no near-term threat to rental growth -ageing office stock and rising tenant aspirations implies high level of obsolescence in existing secondary stock

• CBD office markets the strong performer in FY08 (especially Sydney CBD) -we expect this trend to continue in FY09

• Prime yields to remain stable - modest decompression offset by rental growth; secondary grade assets likely to be under pressure

• Sydney CBD a notably strong performer in medium term due to limited supply, strong demand for high quality space

• Office market our “top pick” for FY09

Commercial lease expiry

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60%
50%
40%
30%
20%
10%
0%
Vacant FY09 FY10 FY11 FY12 FY13 Beyond
lettable area sqm
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Industrial overview

Properties owned

NLA Asset value Gross revaluation Net income growth Occupancy

11 213,240 sqm $284.1m $12.7m 2.1% (like for like) 97.2%

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Industrial performance

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Leasing transactions

Tenant rent reviews

37,452 sqm (17.6% of portfolio) 25 (118,299 sqm)

WALE (area) WALE (income)

5.4 yrs

5.3 yrs

Industrial market

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• Steady demand for modern, well-located facilities – rising fuel prices and higher cost of capital increases demand for efficient well located facilities near markets and transport routes

• Positive fundamentals: Strong A$ increases import volumes, stock-to-sales ratio in long-term decline, import-to-sales ratio rising steadily

• Supply pipeline will limit rental growth in some markets – look for reduction in development activity through FY09

• Yield compression phase over – look for lower investment returns; tenants and investors more discriminating on location, tenant quality, lease expiry – “back to basics”

• Real estate a small component in overall distribution cost calculation for most companies – tenants willing to pay for location and efficient purpose-built facilities

Industrial lease expiry

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70%
60%
50%
40%
30%
20%
10%
0%
Vacant FY09 FY10 FY11 FY12 FY13 Beyond
lettable area sqm
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Retail overview

Retail centres owned

GLA Asset value Gross revaluation Net income growth Occupancy[2 ] MAT Specialty sales[1 ]

21

450,519 sqm $1,615.1m $23.3m

4.1% (like for like) 98.7% 4.3% (like for like) $7,964 per sqm

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Retail performance

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Leasing transactions 49,382sqm (11.0% of portfolio) Tenant rent reviews 1010 (297,769 sqm) Occupancy costs 11.8% WALE (area) 6.5 yrs WALE (income) 4.9 yrs

Retail market

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• Retail spending slowdown under impact of rising fuel prices and high interest rates - discretionary spending (homeware, restaurants, services) likely to remain weak through 2008

• Positives: tax cuts, wages growth and employment, expectation of interest rate cuts

• Construction and new supply a factor in some markets but look for sharp slowdown in development activity through FY09

• Yield decompression a risk factor for smaller centres especially in less well-located areas

• Rental growth to remain positive for regionals and CBD markets

• Focus on management, centre performance and competitive strategies

Retail lease expiry

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50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Vacant FY09 FY10 FY11 FY12 FY13 Beyond
lettable area sqm
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MPT development pipeline

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	No. of projects	Area sqm	Transfer value1 $m
Commercial	1	19,000	161
Industrial	2	41,500	34
Retail	2	30,374	82
Current	5	90,847	278
Commercial	1	37,000	500
Industrial	4	55,346	169
Retail	5	105,051	312
Future	10	197,397	981
Total (current and future)	15	288,271	1,258

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Development Annexure

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Gross margin

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Revenue ($m) Costs ($m) Margin ($m) Margin (%)
Group P&L $1,211,000 (959,658) 251,342 20.8%
-
Development management fees ($30,491) ($30,491)
-
Cost recovery activities ($327,541) 327,541
Adjusted
852,968 (632,117) 220,851 25.9%
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Residential pipeline – 31,295 lots under control

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Residential pipeline - lots under control[1]

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	Houses/Land	% split	Apartments	%split	Total	%split
NSW	5,614	21%	1,112	23%	6,726	21%
VIC	9,118	34%	906	19%	10,024	32%
WA	8,102	31%	1,474	31%	9,576	31%
QLD	3,052	12%	1,318	27%	4,370	14%
SA	599	2%	-	-	599	2%
Total	26,485	100%	4,810	100%	31,295	100%

Residential pipeline - forecast revenue[1]

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	Houses/Land	% split	Apartments	% split	Total	% split
NSW	$1,474m	31%	$629m	13%	$2,166m	22%
VIC	$1,179m	25%	$805m	16%	$1,983m	20%
WA	$1,132m	24%	$2,266m	44%	$3,398m	34%
QLD	$930m	19%	$1,397m	27%	$2,328m	23%
SA	$73m	2%	-	-	$73m	1%
Total	$4,788m	100%	$5,160m	100%	$9,948m	100%

Non-residential development pipeline[1]

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	No of projects	Forecast value
Commercial	9	$1,198m
Industrial	4	$695m
Retail	9	$82m
Current2	22	$1,975m
Commercial	1	$500m
Industrial	4	$169m
Retail	5	$312m
Future	10	$981m
Total current and future pipeline	32	$2,956m

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Funds Management Annexure

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Funds management

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Funds management

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Fund management

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Hotel revenue source summary

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Hotel segment note	FY08 $m
Hotel room revenue Management fees Food and beverage Cost recoveries Other revenue Total revenue	$24.0 $25.9 $49.1 $53.1 $14.9
	$166.9

FY08 Recycling into funds/mandates

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Profit before tax

2 residential developments into MWRDP[2]

$50.2m