MIRVAC GROUP — Annual Report 2019

Aug 7, 2019

Reimagine Urban Life

FY19 Results 8 August 2019

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FY19 RESULTS

Agenda

Financial Capital Office & Summary & Overview Retail Residential Results Allocation Industrial Guidance Susan Lloyd-Hurwitz Shane Gannon Brett Draffen Campbell Hanan Susan MacDonald Stuart Penklis Susan Lloyd-Hurwitz CEO & MANAGING DIRECTOR CHIEF FINANCIAL OFFICER CHIEF INVESTMENT OFFICER HEAD OF OFFICE & INDUSTRIAL HEAD OF RETAIL HEAD OF RESIDENTIAL CEO & MANAGING DIRECTOR 2 10 15 20 24 28 34 a force for good

8 AUGUST 19 1

8 AUGUST 19 2

FY19 RESULTS

Making a positive contribution to Australia’s urban landscape

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8 AUGUST 19 3

FY19 RESULTS

Another year of delivering on our promises

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Delivered at 11.6
cpss 10.1%
top end of EPS FY19 DPS
GROUP ROIC
& DPS guidance 5% GROWTH
SINCE FY13
5% p.a. DPS
$631m 17.1cpss 13.0% 2
8% p.a. EPS
OPERATING PROFIT FY19 EPS
4% GROWTH 4% GROWTH TOTAL RETURN [ 1] 8% p.a. NTA
Compound annual growth rate
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Highly visible and secure cash flows, sustainable distribution growth and attractive ROIC

1. Total return from distribution and NTA growth over the last 12 months. 2. FY18 Restated in line with FY19 definition of operating profit which includes share based payments expense and excludes the amortisation of all lease incentives and leasing costs.

8 AUGUST 19 4

FY19 RESULTS

Proven track record through the cycle, well placed for FY20

OVER THE PAST SIX YEARS MIRVAC HAS MANAGED THE PROPERTY CYCLE WELL

FOCUSED URBAN STRATEGY DELIVERING

• Delivered eight new modern office buildings and five industrial buildings with an end value of $2.7bn[ 1] , creating $215m of new recurring income, $345m of development EBIT and 34% total return[ 2]

• Sold $2.9bn of secondary and non-core assets and harnessed >$7bn of 3rd party capital

• Re-stocked the residential business at the right time and in the right place between FY11-FY15, delivering attractive ROIC as the cycle has matured

• PROGRESSING $3.1BN[ 1] ACTIVE COMMERCIAL PIPELINE UNDER CONSTRUCTION

• Significantly de-risked through 90%[ 3] tenant pre-commitments

• $90m additional annual recurring NOI expected by FY23[ 4]

• Expected to deliver over $130m of development EBIT[ 5] and $200m of fair value uplift between FY20 – FY22[ 6]

TIMELY RESTOCKING OF THE RESIDENTIAL PIPELINE IN FY19

• Prudently increased levels of residential restocking in FY19 securing an additional 3,072 MPC lots

• Expect to deliver greater than 2,500 residential settlements in FY20, supported by solid residential pre-sales of $1.7bn and 79% of residential EBIT secured

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Strong, visible and secure cash flows

Sustainable distribution growth

Targeting rolling average ROIC exceeding Mirvac’s cost of capital

1. Represents 100% of expected end value.

2. Total return based on commercial development profit and fair value uplift (Mirvac share) between FY13-FY19.

3. Includes Heads of Agreement.

4. Expected NOI from both active development projects and recently completed developments by FY23 including rental growth.

5. Expected future development EBIT from developments partially sold-down to capital partners (477 Collins Street, South Eveleigh and 80 Ann Street).

6. Expected fair value uplift based for 477 Collins Street, South Eveleigh, Locomotive Workshop and 80 Ann Street.

8 AUGUST 19 5

FY19 RESULTS

Transition continues to high-quality passive earnings

GROWING THE PASSIVE PORTFOLIO

• Our high-quality investment portfolio will increasingly drive overall group results with consistent strong distribution growth

• Passive invested capital has increased 14% to $11.5bn and now represents 87% of total capital

• Remain on track to deliver 5% growth p.a in passive earnings over FY19-21 on average

CAREFUL MANAGEMENT OF ACTIVE PORTFOLIO

• Remain on track to deliver the expected ~$1bn of active EBIT over FY19-21

• Future active earnings will be more variable in timing and weighted more to masterplanned communities (MPC) and commercial development over the next three years

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5%
p.a. average growth
in passive earnings
FY19-21
87%
of group capital invested
in passive assets
~$1bn
active EBIT
expected FY19-21
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477 Collins Street, Melbourne (artist impression)

8 AUGUST 19 6

FY19 RESULTS

Pipeline of additional opportunities secured in FY19

LEVERAGING THE INTEGRATED MODEL AND ASSET CREATION CAPABILITIES

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Office Residential Industrial Future
> > pipeline opportunities
$2bn 3,000 $1.2bn
end value [ 1] new lots end value [ 1]
Melbourne office
Exclusive due diligence;
~40,000 sqm
Sydney middle-ring residential
Exclusive due diligence on two sites;
>750 lots
Sydney mixed-use
Short-listed (1 of 2), final bid submitted
Large scale inner urban opportunity
55 Pitt St, Sydney (artist impression) Altona North, Melbourne (artist impression) Elizabeth Enterprise, Sydney (artist impression) for ~70,000 sqm GFA
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OFFICE

LOTS TO SELL

BUILD-TO-RENT

INDUSTRIAL

80 Ann Street, BNE Menangle, SYD Munro, MEL 55 Pitt Street, SYD Altona North, MEL Walker Street, NTH SYD Wantirna South, MEL 383 La Trobe Street, MEL Henley Brook, PER

Elizabeth Enterprise, Badgery’s Creek, SYD Kemps Creek, SYD Auburn, SYD

8 AUGUST 19 7

1. Represents 100% of expected end value of uncommitted future developments, subject to planning.

FY19 RESULTS

Building culture as a source of competitive advantage

HEALTH AND SAFETY

INNOVATION – HATCH & TECHNOLOGY

DIVERSITY, INCLUSION & FLEXIBILITY

• Refined and streamlined HSE Management system Achieved Office of the Federal Safety Commissioner (OFSC) accreditation

• Three start-ups created by intrapreneurs – construction-tech, agri-business and co-working

• 25% of the workforce trained in the Hatch methodology Extended Mirvac’s Business Intelligence platform and capabilities

Awarded the Workplace Gender Equality Agency (WGEA) Employer of Choice citation for the fifth consecutive year Zero like-for-like gender pay gap for three consecutive years Winner of the 2018 Australian Human Resource Institute (AHRI) Diversity Award

• Introduced Critical Incident Frequency Rate (CIFR) and incident review boards to strengthen learnings and focus on key risks

• Maintained 50/50 gender balance on Board

• CIFR of 0.91 and reduced LTIFR again this year to 1.02, another record low

• 43% women in senior management

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another record low
Flexibility – 75% of employees have some form of flexible
work arrangement, including ‘My Simple Thing’
SECOND YEAR
IN A ROW 2019 EMPLOYEE ENGAGEMENT COMPARISON
90%
3%
85
90% 10%
2019 Employee
Engagement
Score [ 1] 80
75
Mirvac Global high performing norm Australian national norm
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• Flexibility – 75% of employees have some form of flexible work arrangement, including ‘My Simple Thing’

2019 EMPLOYEE ENGAGEMENT COMPARISON[ 1]

8 AUGUST 19 8

1. Willis Towers Watson

FY19 RESULTS

Progress on ‘This Changes Everything’

SOCIAL AND ENVIRONMENTAL SUSTAINABILITY BECOMING INCREASINGLY EMBEDDED

Natural resources

Climate change

• Net positive (water) and

• zero waste to landfill by 2030

Net positive carbon by 2030

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Diverted 96% of construction waste from landfill

• Released Planet Positive, our plan Diverted 96% of construction to reach net positive carbon waste from landfill

• Released our first Task Force on ClimateDiverted 69% of operational related Financial Disclosures (TCFD) report waste from landfill

• 5 x 5.5+ star NABERS Energy ratings

• 4 x 6 star Green star ratings Received first 5.5 star NABERS Indoor Environment Quality rating

• Installed 1MW solar (total 2MW now installed)

Awarded the CIBSE International Project of the Year award for EY Centre, 200 George Street

Awarded ‘Best Sustainable Existing Development’ by PCA for 23 Furzer Street, ACT

Our communityy Social inclusion Triple community $100m directed to investment by 2022 social sector by 2030

Our communityy

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• Directed $4.8m towards social procurement (+60% from FY18)

Met our community investment target early: increased by >800% from FY17

• Developed a community engagement standard

• Implemented an unlimited volunteer leave policy

• Released our first Social Return on Investment report

Delivered our fifth National Community Day, with >800 Mirvac employees participating across 51 projects in FY19

Defined our social goal: Build Strong Bonds (physical and relational)

Completed our first Reconciliation Action Plan

Announced a partnership with Homes for Homes to help address the need for more social and affordable housing in Victoria

Our people Trusted partnerpartnerartner Highly engaged, capable Most trusted owner and diverse workforce & developer

Trusted partnerpartnerartner

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Rated high performing as a trusted partner by key stakeholders

• Maintained high employee engagement at 90%

• Refined our HSE management system

• Continued to report transparently

• Implemented simple and effective HSE minimum Maintained excellence in requirements ESG reporting indices

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Awarded ‘Best Sustainable New Development’ by PCA for EY Centre, 200 George Street

8 AUGUST 19 9

8 AUGUST 19 10

FY19 RESULTS

Continuing to deliver a strong financial trajectory

STATUTORY PROFIT

OPERATING EPS

NTA PER SECURITY

DPS

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$1,400 million 17.5 cents $2.70 12.0 cents
17.1c
11.6c
1,200 $1,164m 16.5 16.4c 2.50 $2.50 11.5
$1,089m
1,000 $1,033m $1,019m 15.5 11.0 11.0c
2.30 $2.31
800 14.5 14.4c 10.5 10.4c
$2.13
2.10
600 $610m 13.5 10.0 9.9c
$447m 13.0c 1.90 $1.92
400 12.5 12.3c 9.5 9.4c
11.9c $1.74
200 11.5 1.70 $1.66 9.0 9.0c
$140m $1.62
10.9c 8.7c
0 10.5 1.50 8.5
FY13 FY14 FY15 FY16 FY17 FY18 [1] FY19 FY13 FY14 FY15 FY16 FY17 FY18 [1] FY19 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY13 FY14 FY15 FY16 FY17 FY18 FY19
>$1bn 4% 8% 5%
Statutory profit EPS growth NTA per security DPS growth
4th year in a row on FY18 growth on FY18 on FY18
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8 AUGUST 19 11

1. FY18 Restated in line with FY19 definition of operating profit which includes share based payments expense and excludes the amortisation of all lease incentives and leasing costs.

FY19 RESULTS

Strong financial results in line with expectations

OPERATING RESULTS FY19 $m FY18 $m 1 Ofice & Industrial 518 411 Retail 168 162 Residential 201 298 Corporate (38) (36) Operating EBIT 849 835 Operating profit after tax 631 608 Adjusted funds from operations (AFFO) 570 528 Statutory profit after tax 1,019 1,089	26% 4% 6% 2% 4% 8% 33% 6%

OFFICE AND INDUSTRIAL

Higher EBIT contribution driven by strong NOI growth of 12%, significant development EBIT from Calibre, 477 Collins Street and South Eveleigh and higher fees from growth in assets under management to $15bn

RETAIL

Solid 2.6% LFL NOI growth, rental income from recently completed South Village, development EBIT from Kawana offset by loss of NOI from the 50% divestment of Kawana in December 2017

RESIDENTIAL

Lower EBIT contribution in line with expectations, driven by lower apartment lot settlements in FY19 compared to FY18. Achieved 2,611 lot settlements, higher than the >2,500 lot settlement target

CORPORATE

Property NOI from our Tuckerbox JV (Travelodge Hotels) investment was $2m less than FY18 given competitive market conditions, corporate overheads remained relatively flat

OPERATING PROFIT AFTER TAX

Delivered earnings growth at the top end of guidance

AFFO

Strong growth in AFFO reflects our continued operating earnings growth together with lower maintenance capex, and tenant incentives across our investment portfolio

8 AUGUST 19 12

1. FY18 Restated in line with FY19 definition of operating profit which includes share based payments expense and excludes the amortisation of all lease incentives and leasing costs.

FY19 RESULTS

Capital management to support growth through cycle

• Well positioned to fund development pipeline and growing distribution

• Successfully completed a fully underwritten $750m institutional placement and security purchase plan

• Executed our longest dated debt transaction for 20.25 years as part of a $665m US Private Placement

• Received an A- rating with a stable outlook from Fitch Ratings and maintained A3 rating from Moody’s

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4.8% 8.5 yrs A3/A-
Average Average Debt Moody’s/Fitch
Borrowing Cost [ 2] Maturity Credit ratings
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20.5%
Gearing [ 1]
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ROBUST BALANCE SHEET TO SUPPORT FUTURE GROWTH THROUGH CYCLE

• Reduced gearing to 20.5%[ 1] , at the low end of the target range of 20-30%

• Increased liquidity to $1.4bn in cash and committed undrawn bank facilities

• Stable average borrowing costs at 4.8%[ 2]

EXTENDED DRAWN DEBT MATURITY

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$600m
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500
400
300
200
100
0
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FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 FY39 FY40
MTN USPP EMTN
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1. Net debt (at foreign exchanged hedged rate) excluding leases (total tangible assets-cash). 2. Including margins and fees.

8 AUGUST 19 13

FY19 RESULTS

Recurring income supporting distribution growth

• Distributions continue to be funded from operating cash flows

DISTRIBUTION COMFORTABLY FUNDED BY OPERATING CASH FLOWS

• FY19 operating cash flows lower than FY18 due to construction in progress and residential inventory restocking. 1H20 cash flow expected to benefit from residential settlements at The Eastbourne, St Leonards Square and Marrick & Co

• Future distribution growth supported by increasing passive NOI from recent development completions

• Recurring income boosted by asset creation and third-party capital

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$700m
$663m
600
500 $509m $513m $518m
$413m
400 $399m
$386m
300
200
100
0
FY13 FY14 FY15 FY16 FY17 FY18 FY19
Operating cash flow Full year distribution
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Payout ratio – Operating Earnings

Payout ratio – Adjusted Funds from Operations (AFFO)

8 AUGUST 19 14

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Capital
Allocation
Brett Draffen
Chief Investment Officer
Therry Street, Melbourne (artist impression) 8 AUGUST 19 15
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FY19 RESULTS

Capital allocation focused on urbanisation of gateway cities

~~80% OF GROUP CAPITAL ALLOCATED TO SYDNEY AND MELBOURNE~~

Australia’s largest populations with strong growth

Australia’s largest & deepest employment markets

Australia’s largest and most important Main contributors to Australia’s Australia’s key Largest beneficiaries of Australia’s knowledge economies GDP and GDP growth gateway cities net overseas migration

~~$22BN TOTAL ASSETS UNDER MANAGEMENT~~

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OFFICE
$6.7bn of office assets,
85% Syd/Mel,
95% A/Prime grade,
WACR 5.43%
INDUSTRIAL
$11.5bn $0.9bn of Sydney industrial
assets, WACR 5.72%
Passive Invested
Capital RETAIL
$3.4bn urban portfolio,
68% Syd, WACR 5.41%
RESIDENTIAL & OTHER
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RESIDENTIAL DEVELOPMENT $1.6bn of residential inventory valued at the lower of cost and net realisable value $1.7bn ~28,000 pipeline lots with Active Invested an average vintage of 7 years Capital COMMERCIAL DEVELOPMENT

10.1% FY19 Group ROIC

OFFICE & INDUSTRIAL RETAIL RESIDENTIAL OTHER $8.7bn External Assets Under Management

OFFICE & INDUSTRIAL 12.5% RETAIL 6.7% RESIDENTIAL 12.6%

TARGETING 3 YR ROLLING AVERAGE ROIC GREATER THAN 9%

8 AUGUST 19 16

FY19 RESULTS

Growing value and recurring income through asset creation

• Asset creation capability delivering high-quality passive assets as development pipeline completes

• $11.5bn passive invested capital provides highly visible and secure cash flows that underpin future distribution growth

• Successful capital partnering driving external AUM to $8.7bn, growing asset and funds management fees

• Maintaining an appropriate level of active development capital within stated range of 10-15% of total balance sheet capital

STRONG GROWTH IN PASSIVE ASSETS AND EXTERNAL AUM

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$14.0bn
12.0
$11.5
Passive
10.0 $10.1 Invested Capital
$9.2 1 1% CAGR
$8.7
8.0 $8.0 FY15-19
$7.7
$7.5
$6.3
6.0 $5.8
External
AUM Growth
4.0
3 3% CAGR
$2.8 FY15-19
2.0
$1.6 $1.8 $1.8 $1.7 $1.7
0
FY15 FY16 FY17 FY18 FY19
Passive Invested Capital External Assets Under Management Active Invested Capital
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8 AUGUST 19 17

FY19 RESULTS

Strong visibility of future pipeline

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MAJOR CONTRIBUTORS [ 1]
FY20 90% FY21 Future Pipeline
pre-let
DEVELOPMENT PROFITS & FAIR VALUE UPLIFTS [2] DEVELOPMENT PROFITS & FAIR VALUE UPLIFTS [ 2] DEVELOPMENT PIPELINE
developments [ 3]
477 Collins Street, MEL 80 Ann Street, BNE 80 Ann Street, BNE
South Eveleigh, SYD Locomotive Workshops, South Eveleigh, SYD 75 George Street, Parramatta, SYD
80 Ann Street, BNE 55 Pitt Street, SYD
Office &
383 La Trobe Street, MEL
Industrial NOI GROWTH NOI GROWTH Walker St/Pacific Hwy, NTH SYD
South Eveleigh, SYD – Buildings 1 & 3 – part year South Eveleigh, SYD – Buildings 1 & 3 – full year Elizabeth Enterprise, Badgerys Creek, SYD
477 Collins Street, MEL – part year 477 Collins Street, MEL – full year Kemps Creek, SYD
Auburn Industrial, SYD
Calibre, SYD – B2 to 5 – full year Locomotive Workshops, South Eveleigh, SYD – part year
South Village, SYD – full year Toombul development, BNE – full year Harbourside, SYD
Retail Kawana development, Sunshine Coast – full year Birkenhead Point, SYD
Toombul development, BNE – part year Broadway, SYD
MPC Apartments MPC Apartments MPC Apartments
Tullamore, MEL St Leonards Square, SYD Tullamore, MEL Pavilions, SYD Olivine, MEL Green Square, SYD
Woodlea, MEL The Eastbourne, MEL Woodlea, MEL Marrick & Co, SYD Woodlea, MEL Pavilions, SYD
Olivine, MEL Marrick & Co, SYD Olivine, MEL Smiths Lane, MEL Yarra’s Edge – Voyager, MEL
Crest, SYD Pavilions, SYD Crest, SYD Everleigh, BNE Ascot Green, BNE
Residential Gainsborough Greens, BNE Gainsborough Greens, BNE Googong, SYD Coonara Ave, SYD [ 4]
Smiths Lane, MEL The Fabric, MEL [ 5] 505 George Street, SYD
Googong, NSW Tullamore, MEL Harbourside, SYD
Illuma, PER Henley Brook, PER
Wantirna South, MEL
+ Australian Build-to-Rent Club + Australian Build-to-Rent Club
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1. Based on Mirvac internal forecasts, subject to planning approvals and market demand. 2. Development profit recognised progressively over the life of the project.

8 AUGUST 19 18

1. Percentage pre-let of committed development pipeline including HoA. 4. Site owned by Mirvac, progressing re-zoning opportunities. 5. Held under share sale agreement.

FY19 RESULTS

Continuing to progress Build-to-rent strategy

• Delivery of seed asset at Sydney Olympic Park is on program with leasing in FY20 and first customers moving in during September 2020

• Secured the second BTR asset as part of the City of Melbourne’s $250m renewal of the Queen Victoria Markets

• Progressing development of Mirvac’s BTR operating platform, combining on-site management, technology and design

• Potential for BTR to grow to a portfolio of 5,000 apartments over the medium term, funded through a combination of balance sheet and third party capital

• The investment strategy for BTR will focus on the core markets of Sydney, Melbourne and Brisbane with an opportunistic allocation to other major cities. Key investment criteria include:

• Minimum scale of 200 apartments

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LIV Munro (artist impression)
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LIV Indigo (artist impression)
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• 2 FIGTREE DRIVE, SYDNEY OLYMPIC PARK, NSW THERRY STREET, MELBOURNE, VIC

• Close to non-road based transport

• Clearly identifiable target demographics

• Non-discretionary retail within walking distance (integrated with the BTR asset is preferred)

• Proximity to education or key worker precinct (e.g. health, government etc.)

Investment highlights		Investment highlights
Expected completion date	Sep 2020	Expected completion date	Jun 2022
Location	Sydney, NSW	Location	Melbourne, VIC
Apartments	315	Apartments	~490
Car parking	258	Car parking	136
Expected total cost	$210m	Expected total cost	$333m
Expected unlevered IRR	>7.5%	Expected unlevered IRR	>7.5%
Expected yield on cost	>4.5%	Expected yield on cost	>4.5%

8 AUGUST 19 19

Office & Industrial

Campbell Hanan Head of Office & Industrial

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8 AUGUST 19
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20

South Eveleigh (Axle), Sydney

FY19 RESULTS

Creating modern office buildings that improve the quality of income

STRATEGIC OVERWEIGHT SYDNEY AND MELBOURNE DELIVERING EXCEPTIONAL RESULTS

Strong leasing with 82 deals covering ~96,400 sqm of NLA

• 23% effective rental growth through 16.6% leasing spreads and lower incentives of 15.6%

• Occupancy increased to 98.2% from 97.5% at FY18[ 1]

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5.7% 16.6% $392m
like-for-like leasing Net valuation
NOI growth spreads uplift
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98.2%
occupancy [ 1]
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• Maintained long WALE of 6.4 years[ 2]

• Office NOI growing 12% to $338m, including 5.7% like-for-like NOI growth

• Total office net valuation gains of $392m, reflecting a cap rate of 5.43% (-26bps)[ 3]

• Modern office portfolio requiring operational capex of only $19m (0.28% of asset value)

ASSET CREATION AND CAPITAL PARTNERING DELIVERING DEVELOPMENT PROFITS, EXTERNAL AUM AND FEE INCOME

• Successful completion of South Eveleigh, B1 & B3 and continued progress on 477 Collins Street supported FY19 development EBIT

Assets under management increased to $15.0bn, increasing O&I asset and funds management EBIT by 29% to $19m

1. By area, including investments in joint ventures and excluding assets held for development.

STRONG GROWTH IN O&I AUM AND FUM EBIT

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$16.0bn Assets Under Management Asset and FUM EBIT $20.0m
12.0 15.0
8.0 10.0
4.0 5.0
0 0
FY17 FY18 FY19
O&I Balance Sheet Assets (LHS) O&I External Assets Under Management (LHS)
O&I Asset & funds management EBIT (RHS)
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1. By income, including investments in joint ventures and excluding assets held for development.

8 AUGUST 19 21

1. Including share of valuation gains from joint ventures.

FY19 RESULTS

Disciplined industrial strategy focusing on strong Sydney market

SYDNEY FOCUS AND DEVELOPMENTS UNDERPIN PORTFOLIO PERFORMANCE

SYDNEY INDUSTRIAL ASSETS AND DEVELOPMENT PIPELINE

• Strategic positioning of industrial portfolio to Sydney, benefiting from e-commerce and continued urbanisation

• Strong NOI growth of 13% including like-for-like NOI growth of 7.8%

• ~91,700 sqm of leasing activity including developments with incentives reducing to 9.4%

• Attractive WALE of 7.7 years[ 1] and high occupancy of 99.7%[ 2]

• Valuation uplift of $50m reflecting a WACR of 5.72%

LEVERAGING DEVELOPMENT CAPABILITY TO DELIVER SYDNEY INDUSTRIAL ASSETS

• Strategy to develop prime industrial assets rather than acquire stabilised assets on market

• Delivered prime industrial in Calibre development: $250m end value[ 3] , 100% leased – sold 50% interest to the Mirvac Industrial Logistics Partnership (MILP)

• Secured future Sydney industrial developments at Auburn, Kemps Creek and Elizabeth Enterprise with an expected end value of $1.2bn[ 4]

• By income.

• By area (NLA).

• 100% value.

Shared heavy / dedicated freight rail Major road Mirvac asset Mirvac future development

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Major road
Mirvac asset
Mirvac future development
Lane Cove Road
Calibre Huntingwood Rydalmere
St Leonards
PROPOSED Auburn
M12 MOTORWAY Kemps Smithfield
Elizabeth Creek
Enterprise
WESTERN
SYDNEY
AIRPORT BANKSTOWN
AIRPORT
Hoxton Park MILPERRA
Padstow
PORT
AIRPORTSYDNEY PRECINCTBOTANY
PRECINCT
Nexus
Smeaton Grange
$1.2bn
expected
end value [ 3]
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22

1. Represents 100% of expected end value of committed and uncommitted future developments subject to planning.

8 AUGUST 19

FY19 RESULTS

Asset creation capability driving future income and returns

TRACK RECORD OF RETURNS

$215m New recurring NOI from development FY13-FY19

$345m O&I development EBIT between FY13-FY19

34%

Total return generated from O&I Developments FY13-FY19[ 1]

ADDITIONAL HIGH-QUALITY INCOME FROM OFFICE & INDUSTRIAL DEVELOPMENTS[ 1]

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$3.1bn ACTIVE DEVELOPMENT PIPELINE NOI GROWTH
100 ($m) NOI
90 74% [5]
committed
80
70 87% [5]
committed
90%
60 Committed [ 5]
50 94% [5]
committed
40
30
100%
committed
20 100%
committed
YEAR 1 FULLY LET NOI
10
100%
committed
0
FY18–19 FY19 FY20 FY20 FY21 FY22 Cumulative NOI
Calibre B2-5 South Eveleigh, South Eveleigh, 477 Collins Street Locomotive Workshops, 80 Ann Street by FY23 [ 4]
SYD SYD B1 and 3 [ 6] SYD B2 MEL South Eveleigh, SYD BNE
Committed [ 5] Uncommitted
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1. Based on 100% occupancy and 50% ownership, other than South Eveleigh at 33.3% ownership and Locomotive Workshops, South Eveleigh at 100% ownership.

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EXPECTED FUTURE
RETURNS
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$90m Potential additional annual NOI by FY23 from active development pipeline[ 4]

$200m Potential fair value uplift between FY20-22[ 2]

$130m Potential development EBIT between FY20-22[ 3]

1. Expected NOI from both active development projects and recently completed developments by FY23 including rental growth.

2. Expected future development EBIT from developments partially sold-down to capital partners (477 Collins Street, South Eveleigh and 80 Ann Street).

3. Expected fair value uplift based for 477 Collins Street, South Eveleigh, Locomotive Workshop and 80 Ann Street.

4. Includes Heads of Agreement.

5. South Eveleigh B1&3 PC in FY19 & income contribution from FY20.

8 AUGUST 19 23

Susan MacDonald Head of Retail

24

Tramsheds, Sydney

8 AUGUST 19

FY19 RESULTS

Strategic overweight to urban growth markets driving performance

PORTFOLIO PERFORMING WELL IN A COMPETITIVE OPERATING ENVIRONMENT

Strong leasing across 396 deals covering ~61,900 sqm of NLA

• Positive leasing spreads of 1% overall, with 3.4% for new and 0.1% for renewals

• Strong occupancy maintained at 99.2%[ 1]

• Increased WALE to 4.1 years from 3.8 years at FY18[ 2]

• 36 deals in office taking total deal count to 432 across Mirvac’s portfolio

Delivered solid 2.6% like-for-like income growth

Valuation uplift of $74m or 2.2% reflecting a cap rate of 5.41% (8bps compression)

Comparable MAT sales growth of 2.7%[ 3] and comparable specialty sales growth of 2.0%

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TOTAL RELATIVE RETURN (EASTERN METRO VS NON-METRO)
1.10 Relative return vs Total Retail
5% cumulative
1.05 outperformance
1.00
0.95
0.90
11% cumulative
0.85 underperformance
Mar 15 Mar 16 Mar 17 Mar 18 Mar 19
Source: MSCI 2019, Mirvac Eastern Metro Non-metro Total Australian retail
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Strong specialty sales productivity of >$10,000/sqm

• Specialty occupancy costs of 15.5%

SOLID 3 YEAR SALES GROWTH SUPPORTING CONTINUED INCOME GROWTH

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3.7% 2.9% 2.2%
Avg specialty Avg like-for-like Avg leasing
sales growth income growth spreads
FY17-19 FY17-19 FY17-19
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3.7%
Avg total
sales growth
FY17-19
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1. By area.

2. By income.

8 AUGUST 19 25

1. Total Comparable MAT sales growth would equate to approximately 2% adjusting for major Supermarkets and DDS categories reporting 53 weeks of sales.

FY19 RESULTS

Portfolio well positioned for generational shift in consumer behaviours

ADAPTING OUR ASSETS TO REMAIN ENGAGING IN THE FUTURE

Remixing of categories well underway

• Increase in non-retail, entertainment and food catering

• Significant decrease in ‘baby boomers & Gen X’ preferences of department stores, jewellery and homewares

Portfolio in quality urban locations suits ‘new retail’ paradigm

GENERATIONAL SHIFT

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70%
66% TIPPING POINT 2024
61%
60 59%
53%
50
47%
40
41%
39%
30 34%
2013 2018 2022 2032
Source: ABS and McCrindle % Gen X, Boomers, pre-boomers % Gen Y, Gen Z, Alpha
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URBAN PORTFOLIO POSITIONED FOR CHANGE Department
stores
57%
STANHOPE VILLAGE
CHERRYBROOK
Jewellery
42% Food catering
83%
RHODES WATERSIDE REMIXING
GREENWOOD PLAZA FY13-19
BIRKENHEAD POINT Homewares
MET CENTRE
TRAMSHEDS HARBOURSIDE 47%
BROADWAY SYDNEY
EAST VILLAGE
Entertainment
84%
20-39 AGE GROUP [ 1]
0–1,854
1,854–3,682
SOUTH VILLAGE
3,682–5,755
5,755–8,933
8,933–15,781 Non-retail
Mirvac Assets 140%
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8 AUGUST 19 26

1. Census 2016, Count of Persons, Place of usual residence.

FY19 RESULTS

Investing in connected communities via delivering recreational infrastructure

TARGETED DEVELOPMENT SPEND, ENHANCING RETURNS, WITH MINIMAL ADDITIONAL GLA

TOOMBUL, BRISBANE

MOONEE PONDS CENTRAL, MELBOURNE

ORION SPRINGFIELD CENTRAL, BRISBANE

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(artist impression)
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Pre-leased 85% Yield on cost >6% Project cost $43m Incremental GLA 1,600 sqm Development GLA 4,500 sqm Target Completion Mid FY20	Entertainment & Dining Precinct Target customer: afluent, aspirational, cultural pioneers	Pre-leased 63% (artist impression)
		Yield on cost 6.5%
		Project cost $9m
		Incremental GLA 0 sqm
		Development GLA 600 sqm
		Target Completion End FY20

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Pre-leased	95%
Yield on cost	>5%
Project cost	$11m
Incremental GLA	1,500 sqm
Development GLA	2,900 sqm
Target Completion	End FY20

8 AUGUST 19 27

1. Roy Morgan Helix Personas

Residential

Stuart Penklis Head of Residential 8 AUGUST 19 28

Tullamore (Folia), Melbourne (artist impression)

FY19 RESULTS

FY19 targets delivered in a challenging macro environment

FY19 TARGETS DELIVERED

• Mirvac’s residential brand, track record and high-quality product continues to produce strong results

• Exceeded target of >2,500 lot settlements

• Gross margins remain above through-cycle target of 18-22%

• Strong contributions from MPC reflecting differentiated product in solid locations

• Defaults remained below 2%

SOLID SALES DESPITE LOWER RELEASES

• Achieved over 1,700 sales in FY19 despite releases down 29% on pcp

• Over 90% of exchanges in FY19 were domestic with continued demand from owner-occupiers

	2,611 Lot settlements 27% Gross margins <2% Defaults
	FY19 MAJOR SETTLEMENTS Project Product Type Lots Woodlea, VIC Masterplanned Communities 626 Olivine, VIC Masterplanned Communities 225 Googong, NSW Masterplanned Communities 199 Hope Street, QLD Apartments 161 The Finery, NSW Apartments 132 Claremont, WA Apartments 126 Hydeberry, QLD Masterplanned Communities 124 Crest, NSW Masterplanned Communities 93 Tullamore, VIC Apartments 87

8 AUGUST 19 29

FY19 RESULTS

Creating exceptional places to live

TRUSTED BRAND & PARTNER

• 47 years of experience

• Legacy projects and communities

RESIDENTIAL BY MIRVAC

• Integrated business model with in-house design and construction

• Quality and care in every little detail

• Early investment in infrastructure and amenity

• High levels of repeat purchasers

• End-to-end customer service

INNOVATION, TECHNOLOGY & SUSTAINABILITY

• My Ideal House – raising the standard of sustainable project homes

• Extended the ‘House with No Bills’ trial project

• Trialling smart solar solutions for new apartments using SOLSHARE technology

• Targeting 7 Star NatHERS rating at our new residential community in Altona North > Quantifying the Social Return on Investment (SROI) at our residential projects

• Over $11m invested back into residential communities in FY19

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The Fabric, Altona North (artist impression)

2019 AWARD WINNING DESIGN & PLACEMAKING

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Greater Sydney Commission Planning Award

Great New Place to Live & Work, Harold Park

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Good Design Award

Best in Class in Architectural Design, Commercial & Residential, Harold Park

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Australian Institute of Architects

Lloyd Rees Award for Urban Design, Harold Park The Lord Mayor’s Prize, Harold Park My Ideal House, An award for Sustainable Architecture

Urban Development Institute of Australia NSW

Award for Excellence in Greenfield Development, Brighton Lakes Excellence for High Density Development Award, Ovo, Green Square

8 AUGUST 19 30

FY19 RESULTS

Delivering the Mirvac difference

258 Apartments with an Successful Design, planning Premium lobby and East Melbourne, Project Delivery 100% sold Minimum 5 star and end value of ~$460m. relationship with approval, construction, concierge service, Fitzroy Gardens, Agreement with 80% average exceeding 140 customised Freemasons to sales and marketing, Masters club, 20m boasting spectacular owner occupiers 6 star NatHERs floorplates, extensive unlock value settlement, leasing, pool and gym facility, views of the CBD rating for apartments; use of stone materials after sales care business lounge, Energy efficient LED cinema, dining and lighting and Solar lounge facility with Photovoltaic (PV) system; (artist impression) outdoor courtyard High performance double glazing The Eastbourne APARTMENTS, EAST MELBOURNE DESIGN TRUSTED INTEGRATED SUPERIOR AMENITY EXCEPTIONAL CAPITAL EFFICIENT CUSTOMER SUSTAINABILITY ~~MIRVAC SUCCESS FACTORS~~ Olivine EXCELLENCE PARTNER MODEL & PLACEMAKING LOCATIONS STRUCTURES FOCUS & ENVIRONMENT MASTERPLANNED COMMUNITY, VICTORIA Smart planning and Investing in early Existing tree preservation, internal design. $1.3bn Extended Design, planning amenity including Located in 30% protected expected end value successful approval, sales and Hume Anglican Melbourne’s Combination biodiversity areas across more than relationship marketing, settlement, Grammar School fast-growing of balance Strong owner including wetlands and 4,000 lots[ 1] with Boral after sales care and Gumnut Park northern corridor sheet and PDA occupier demand creek restoration

8 AUGUST 19 31

1. Subject to market conditions and planning.

FY19 RESULTS

Restocking at the right time and in the right structures

STRATEGIC LOCATIONS AND TIMING DRIVING PERFORMANCE

RESIDENTIAL RESTOCKING VS RESIDENTIAL PRICE CHANGE[ 1]

• Around 28,000 pipeline lots with an average vintage of 7 years, 75% NSW/VIC

• High projected margins given pipeline age and location

RESTOCKING MPC

• Added over 3,000 new lots to our MPC pipeline including another agreement with Boral at Wantirna South in Victoria for ~1,700 lots

• Sydney middle-ring residential: Exclusive due diligence on two sites with potential for >750 lots

PRUDENT APPROACH TO FUTURE RESTOCKING

• Well placed with a strong balance sheet to take advantage of emerging opportunities

• Prudently targeting a maximum ~$2bn of balance sheet capital allocation to residential and engaging in capital partnering

• Focused on the right product in the right location on acceptable returns where Mirvac can deliver a differentiated product

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12,000 Residential lots 12%
8,000 8%
4,000 4%
0 0
(4%)
(8%)
(12%)
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Residential lots acquired (LHS) ABS Residential price change YoY (RHS)
~28,000 7 yr 64% 75%
Pipeline lots Average lots vintage Lots in capital Lots in NSW & VIC
efficient structures
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8 AUGUST 19 32

1. ABS 6416.0 – Residential Property Price Indexes: Eight Capital Cities, Mar 2019, Table 1. Residential Property Price Index, Index Numbers and Percentage Changes. FY19 data represents annual change to March 31 2019.

FY19 RESULTS

High-quality pipeline supports through-cycle earnings

RESIDENTIAL MARKET STABILISING

• Price declines in Sydney and Melbourne have stabilised

• Lending conditions have improved for purchasers

• Expect subdued conditions through 2020 with sales volume recovering ahead of price growth

MEDIUM TERM FLEXIBILITY

• Capacity to release a significant number of new projects and stages in the near-term when early market indicators are favourable including Green Square, Smith’s Lane, Altona North, Woodlea and Olivine

• Pre-sales of $1.7bn will continue to reduce due to higher MPC contribution (shorter sale to settlement timeframe)

• Capital efficient structures support flexibility

FY20 OUTLOOK

• Expect to achieve > 2,500 lot settlements in FY20

• Gross margins to remain above through cycle target of 18-22%

SHIFTING TO A GREATER PROPORTION OF EBIT GENERATED FROM MASTERPLANNED COMMUNITIES

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FY14-19
Apartments: 51%
MPC: 49%
FY20-22 FORECAST
Apartments: 39%
MPC: 61%
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EXPECTED RESIDENTIAL EBIT CONTRIBUTION FY20–22

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VIC & NSW MPC: 49% NSW Apartments: 25% VIC Apartments: 13% WA: 7% QLD: 6%

• 79% of FY20 EBIT secured

8 AUGUST 19 33

Summary & Guidance

Susan Lloyd-Hurwitz CEO & Managing Director

8 AUGUST 19 34

FY19 RESULTS

FY20 Guidance

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FY20 guidance
-
3 4%
EPS growth
(17.6 – 17.8 cpss)
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DPS
13 cents
12 FY20 guidance 12.2c
11.6c
5%
11.0
DPS growth
11.0c
10.4c
10.0
9.9c
9.4c
9.0
9.0c
8.7c
8.0
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Guidance
5% 7 year DPS CAGR 1
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8 AUGUST 19 35

1. Period of FY13 (DPS 8.7 cpss) to FY20, including guidance of 5% DPS growth in FY20.

FY19 RESULTS

Important Notice

Mirvac Group comprises Mirvac Limited (ABN 92 003 280 699) and Mirvac Property Trust (ARSN 086 780 645). This presentation (“Presentation”) has been prepared by Mirvac Limited and Mirvac Funds Limited (ABN 70 002 561 640, AFSL number 233121) 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 does it guarantee the repayment of capital from Mirvac or any particular tax treatment.

This Presentation contains certain “forward looking” statements. The words “expected”, “forecast”, “estimates”, “consider” 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-IFRS measures including operating profit after tax. Operating profit after tax is profit before specific non-cash items and significant items. It is used internally by management to assess the performance of its business and has been extracted or derived from Mirvac’s financial statements ended 30 June 2019, which has been subject to audit 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. It is for information purposes only.

The information contained in this presentation is current as at 30 June 2019, unless otherwise noted.

8 AUGUST 19 36

Reimagine Urban Life

Thank you

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