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MIRVAC GROUP Interim / Quarterly Report 2013

Feb 13, 2013

65328_rns_2013-02-13_1076dd1e-c221-41af-91b3-ccb07e3bdb77.pdf

Interim / Quarterly Report

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by mirvac 1H13 results 14 february 2013

Agenda

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1H13 results I 14 February 2013 I page 1
by mirvac
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n 1H13 key outcomes

n CEO & MD observations and opportunities

n Finance Director observations and opportunities

n 1H13 financial results and capital management

n Operational update

n Summary and guidance

1H13 results by mirvac

1H13 results I 14 February 2013 I page 2

1H13 key outcomes

by mirvac

  • n 1H13 statutory profit after tax of $55.2m[1] (net of previously disclosed provision of $273.2m)

  • n 1H13 operating profit after tax of $194.2m[ 2]

  • n FY13 operating EPS guidance of 10.7 to 10.8cpss maintained

  • n Gearing remained within target range at 23.8%[ 3]

  • n Maintained strong MPT portfolio metrics: – 3.5% like-for-like NOI growth

  • 9.9% un-geared total return[ 4]

  • n On track to achieve >10% Development ROIC in FY14

  • n Expected Development EBIT already secured[5] :

– FY13 = 78.3%

  • FY14 = 57.0%

  • n Continued success on commercial developments:

  • 200 George Street, NSW: secured E&Y for 10 year lease and Stage 2 DA; demolition commenced

  • AGL Heads of Agreement for lease achieved at 699 Bourke Street, VIC

  • 1) For further details refer to 31 December 2012 financial statements.

  • 2) Operating profit after tax is a non-IFRS measure. Operating profit after tax is profit before specific non-cash items and significant items. Operating profit after tax is used internally by management to assess the performance of its business and has been extracted or derived from Mirvac’s half year ended 31 December 2012 financial statements, which has been subject to review by its external auditors.

  • 3) Net debt (at foreign exchange hedged rate) excluding leases/(total tangible assets – cash). 4) Measured as at 30 September 2012. Source: IPD.

  • 5) Commercial and residential EBIT before overheads and selling and marketing costs.

On track to achieve FY13 operating EPS guidance

1H13 results I 14 February 2013 I page 3

CEO & MD observations and opportunities

by mirvac

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Observations Opportunities
Total securityholder Underperformance versus AREIT sector n Embed focus on delivering total securityholder
return over three and five years return throughout the Group
Development returns n ROIC of 10% on a risk adjusted basis n Prioritise ROIC in all decision making
still not acceptable n Assess inventory levels and determine target levels,
n Underperforming legacy projects and capital commitment
a drag on returns n Increase focus on cash repatriation
Capital allocation Capital allocation decision making n Established a centralised process to assess and
split by Investment and Development approve capital allocation
divisions n Created a capital acquisitions and divestments
function that sits across the Group
n Robust framework based on risk and reward
Capital Partnerships Beginnings of a strategy to use Capital n Accelerate this to better manage the release and
Partnerships to recycle capital investment of capital
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Embed focus on delivering total securityholder return

1H13 results I 14 February 2013 I page 4

CEO & MD observations and opportunities

by mirvac

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Observations Opportunities
MPT portfolio metrics n Strong metrics n Maintain these metrics and improve where possible
n High quality portfolio of assets n Continue to acquire and divest assets to further
n Focus on sustainability improve portfolio
Integrated model ‘Two core divisions’ approach created n Drive thinking by sector – developments and
silos investments combined
n Increase focus on sectors where we have scale and
competitive advantage
n Further articulate our service offering in each sector
Operational expertise Clear focus on operational excellence n Keen to maintain this focus and grow our key areas
of strength
n Supplement more rigour around cost of
doing business to embed continuous process
re-engineering
People Passionate and committed to quality n Introduce leadership programs to further
enhance capability deeper within the organisation
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Embed focus on delivering total securityholder return

1H13 results I 14 February 2013 I page 5

finance and capital management

by mirvac

1H13 results I 14 February 2013 I page 6

Finance Director observations and opportunities by mirvac

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Observations Opportunities
Capital management Balance sheet position is robust n Continue to diversify debt sources and extend
Weighted Average Debt Maturity
n Exploring the potential for S&P upgrade to BBB+
Cash management Stronger cash management n Improve cash flow forecasting systems
focus needed
n Drive working capital harder
n Maximise cashflows from impaired projects
n Less reliance on liquidity buffer
Accounting policies Conservative and prudent n Maintain current standards and rigour
and interest
capitalisation practices
People Passionate, expert, thorough n Leverage people skills to maximise opportunities
across the Group
n Embed strong governance for capital
partnering model
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Financial strength, increasing focus on cash management

1H13 results I 14 February 2013 I page 7

[1] 1H13 financial results

by mirvac

~~1H13 ($m)~~
~~1H12 ($m)~~
Statutory proft after tax attributable to Group securityholders
55.2
176.6
StatutoryEPS
1.6cpss
5.2cpss
Includes:
Investment properties (including IPUC)
67.9
60.9
Provision for loss on inventories, loans and investments
(273.2)
(31.5)
Derivative fnancial instruments and associated foreign exchange movements
(8.5)
(52.3)
Operating proft after tax attributable to stapled securityholders of Mirvac 2
194.2
201.5
Operating EPS3
5.7cpss
5.9cpss
Includes:
Tax beneft
4.8
1.7
Net interest expense
(36.0)
(52.1)
Net cashfow from operating and investing activities
99.1
3.7
Total operating EBIT
225.4
251.9
DPS
4.2cpss
4.0cpss
NTA4
$1.64
$1.63

  • 1) For further details refer to 31 December 2012 financial statements and Additional Information. 2) Operating profit after tax is a non-IFRS measure. Operating profit after tax is profit before specific non-cash items and significant items. Operating profit after tax is used internally by management to assess the performance of its business and has been extracted or derived from Mirvac’s half year ended 31 December 2012 financial statements, which has been subject to review by its external auditors.

  • 3) Diluted EPS excluding specific non-cash and significant items and related taxation.

  • 4) NTA per stapled security, based on ordinary securities including EIS securities.

On track to achieve FY13 operating EPS guidance

Capital management update

1H13 results I 14 February 2013 I page 8 by mirvac

n Gearing within target range of 20-25% at 23.8%[ 1] ; look through basis 24.6%

n Completed 5 year $150m MTN issuance

n S&P maintained BBB rating; updated to positive outlook

~~1H13~~
~~FY12~~
Balance sheet gearing1
23.8%
22.7%
Covenant gearing2
32.0%
31.8%
Look-through gearing
24.6%
23.6%
ICR3
>4.0x
>3.5x
Total interest bearing debt4
$2,014.8m
$1,950.9m
Average borrowing cost5
6.4%
7.6%
Average debt maturity
3.2yrs
3.5yrs
S&P rating
BBB
BBB
Hedgedpercentage
61.3%
79.4%
Average hedge maturity
4.2yrs
4.4yrs

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Drawn debt maturities as at 1H13
$700m USPP MTN Bank
$600m
$500m
$400m
$300m
$200m
$100m
$0m
FY13 FY14 FY15 FY16 FY17 FY18 FY19
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  • 1) Net debt (at foreign exchange hedged rate) excluding leases/(total tangible assets – cash).

  • 2) Total liabilities/total tangible assets (refer to 31 December 2012 financial statements).

  • 3) Adjusted EBITDA/finance cost expense.

  • 4) Total interest bearing debt (at foreign exchange hedged rate) excluding leases.

  • 5) Includes margins and line fees.

Robust balance sheet position

1H13 results I 14 February 2013 I page 9

by mirvac operational update

1H13 results I 14 February 2013 I page 10

Capital partnership update

by mirvac

n Following the success of capital partnering with Keppel REIT on Treasury Building and 8 Chifley Square, Mirvac is currently progressing the opportunity to establish an office club and will also consider establishing a second residential club at an appropriate time

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ArTIST’S IMPrESSION OF 200 GEOrGE STrEET, SYDNEY, NSw
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  • n Currently finalising appropriate governance to ensure an efficient and timely marketing and due diligence process

  • n Expecting to launch an office club in the current financial year and will look to secure between two and five investors

Capital partnerships to enhance returns and facilitate capital for growth

1H13 results I 14 February 2013 I page 11

MPT

by mirvac

n Strong like-for-like NOI growth of 3.5%

n MPT continues to outperform IPD index[ 1]

n Occupancy remains strong across the portfolio at 98.2%[ 2]

n Group earnings remain underpinned with a solid WALE of 5.5[ 3] years n 193 leasing deals completed during the period representing 85,632sqm of portfolio

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MPT total return vs IPD benchmark 1H13 1H12
10% 9.9%1.5% 9.7%1.4% Net valuation uplift [ 4] 1.1% 1.4%
6.0% Like-for-like NOI growth 3.5% 3.3%
5 0.8%
Occupancy [ 2] 98.2% 96.4%
8.4% 8.3% 5.2%
0 WALE [ 3] 5.5yrs 5.5yrs
1 year 3 year 5 year
MPT IPD [1]
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  • 1) IPD peer group benchmark as at 30 September 2012.

  • 2) By area, excluding assets under development, based on 100% of building NLA.

  • 3) By income, excluding assets under development, based on MPT’s ownership.

  • 4) Net gain on fair value of investment properties divided by closing fair value from previous period.

Strong MPT metrics maintained – driving high quality assets harder

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1H13 results I 14 February 2013 I page 12
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Office – Passive

by mirvac

n Office portfolio has outperformed IPD index over one, three and five years[ 1 ]

n 1.2% net valuation uplift[2]

n 92.6% of office portfolio Premium and A Grade

n Like-for-like NOI growth of 4.2% continues to generate strong returns

n Occupancy remains high at 97.2%[ 3]

n Portfolio is de-risked by strong WALE of 5.7[ 4] years: limited expiry profile risk n Achieved 4.59 Star NABERS Energy rating ahead of schedule and target

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LFL NOI Growth Office total return vs IPD benchmark
5.0% Mirvac Peer [ 5] average 10% 10.5% 10.7%
1.5% 2.4%
4.1 7.6%
2.8%
3.3 5
2.4 9.0% 8.3% 4.8%
1.5 0
1H11 FY11 1H12 FY12 1H13 1 year 3 year 5 year
MPT IPD [1]
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  • 1) IPD peer group benchmark as at 30 September 2012.

  • 2) Net gain on fair value of investment properties divided by closing fair value from previous period.

  • 3) By area, excluding assets under development, based on 100% of building NLA.

  • 4) By income, excluding assets under development, based on MPT’s ownership.

  • 5) Peers: CPA, CQO, DXS, GPT, IOF, SGP. Source: Mirvac Research.

Office sector overweight again delivers strong performance

1H13 results I 14 February 2013 I page 13

Office – In development

by mirvac

n $1.6bn[ 1] pipeline end value to be delivered over the next 5 years

n Expertise in development and leasing critical for attracting capital partners

n 200 George Street, NSW: secured E&Y for 10 year lease and Stage 2 DA; demolition commenced n AGL Heads of Agreement for lease achieved at 699 Bourke Street, VIC n 8 Chifley Square, NSW project on track to complete by early FY14 n Treasury Building, WA on track for FY15 completion

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FY14 FY15 FY15 FY16
ArTIST IMPrESSION OF 8 CHIFlEY SquArE, NSw ArTIST IMPrESSION OF TrEASurY BuIlDING, wA ArTIST IMPrESSION OF 699 BOurkE STrEET, VIC ArTIST IMPrESSION OF 200 GEOrGE STrEET, NSw
42% 100% 80% [ 2] 74%
pre-leased pre-leased pre-leased pre-leased
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1) Represents 100% of end value of office development projects.

2) 699 Bourke Street, VIC under Heads of Agreement for lease to AGL.

Office development pipeline builds future portfolio and capital partnerships

1H13 results I 14 February 2013 I page 14

Retail – Passive

by mirvac

n Non discretionary focus insulates against subdued retail market

n Retail portfolio has outperformed IPD index over one and three years[1]

n 2.7% like-for-like NOI growth

n Occupancy strong at 99.4%[ 2] (exc. bulky goods)

n Occupancy cost manageable at 14.4%[3]

n Spreads positive on new leases and renewals at 2.3% and 1.9% respectively

Comparable
Comparable
~~retail sales~~
~~Total MAT~~
~~MAT growth~~
~~MAT growth~~
by category
1H13 $m
1H13 %
FY12%
Non-food majors
$343.9
(0.1%)
(1.1%)
Food majors
$963.1
3.6%
2.7%
Mini majors
$222.1
1.5%
(4.7%)
Specialties
$743.8
(0.2%)
0.0%
Other retail
$147.7
4.9%
3.2%
Total
$2,420.6
1.8%
0.6%

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Retail total return vs IPD benchmark
10%
8.7% 8.6%
0.8%
0.3%
4.6%
5 (1.6%)
7.9% 8.3% 6.2%
0
1 year 3 year 5 year
MPT IPD [1]
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  • 1) IPD peer group benchmark as at 30 September 2012.

2) By area, excluding bulky goods and assets under development, based on 100% of building NLA. Including bulky goods 98.9%.

  • 3) Includes marketing levy. Specialty occupancy costs excluding CBD centres (including CBD centres 15.2%).

Retail portfolio continues to outperform retail market

1H13 results I 14 February 2013 I page 15

Retail – In development

by mirvac

Current strategic retail developments

n Retail development pipeline of $202.1m[ 1] end value

kAwANA SHOPPINGwOrlD, qlD
GLA increase
8,900sqm
Anchor
ALDI Supermarket
and alfresco dining
End Value – Stage 4
$88.1m
Completion
July2014		 OrION TOwN CENTrE, qlD
GLA increase
18,400sqm
Anchor 5,500sqm supermarket
End Value:
> Padsites
$17.2m
> Supermarket extension $67m2
Completion:
> Pad Site
Dec 2013
> Supermarket
March 20152		 STANHOPE VIllAGE, NSw
GLA increase
3,100sqm
Anchor
ALDI Supermarket
End Value
$29.7m2
Completion
Stage 3
August 2013
Stage 4
May20152

1) Represents 100% of end value of active retail development projects. 2) Subject to planning and approvals.

Retail pipeline enhancing portfolio

Residential – 1H13

1H13 results I 14 February 2013 I page 16 by mirvac

n Secured $1,018.7m[ 1] in exchanged pre-sales contracts

n 694 lots settled over 1H13: FY13 target reduced to 1,600 –1,700 due to timing and provision impact n $338.7m[ 1] in new exchanged pre-sales during the period

n Major settlements: Yarra’s Edge, River Homes, VIC; Middleton Grange, NSW; Elizabeth Hills, NSW n Mid price point focus: 91.1% of 1H13 settlements at or below $1m

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Pre-sales – historic profile Forecast settlement of exchanged presales contracts
As at FY12
$1.2bn $500m As at 1H13
0.9 10 year
average $392m
$354m
0.6
$273m
$246m
0.3 $161m
0
FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1H13 2H13 FY14 FY15+
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1) Total exchanged pre-sales contracts as at 31 December 2012, adjusted for Mirvac’s share of JV’s, associates and Mirvac managed funds.

Good residential pre-sales momentum

1H13 results I 14 February 2013 I page 17

Development – FY13

by mirvac

n 78.3% of FY13 expected Development EBIT[ 1] secured

n FY13 expected Development EBIT remains on track due to diversification via commercial

~~Top FY13 expected Development EBIT~~ [ 1] ~~contributors~~

~~Top FY13 exp~~ ~~ected~~ ~~Develop~~ ~~ment EBI~~ ~~T~~1~~con~~ ~~tributors~~
% FY13
% FY13 FY13 expected
expected Mirvac’s expected operating
Project operating EBIT interest State Type lots EBIT secured
Yarra’s Edge, Yarra Point 18.5% 100% VIC Apartment 158 100.0%
Yarra’s Edge, River Homes 10.2% 100% VIC Masterplanned Communities 26 90.0%
WaverleyPark 6.7% 100% VIC Masterplanned Communities 100 77.9%
Elizabeth Hills 5.9% PDA NSW Masterplanned Communities 183 40.1%
TreasuryBuilding 5.6% 100% WA Commercial — 100.0%
Middleton Grange 5.4% 100% NSW Masterplanned Communities 144 83.6%

~~FY13 expected Development EBIT composition – by product[ 1 ] FY13 expected Development EBIT composition – by state[ 1 ]~~

Apartments 40% Masterplanned Communities 42% Commercial 18%

NSW 42% VIC 37% WA 12% QLD 9%

1) Commercial and residential EBIT before overheads and sales and marketing.

On track for FY13 through change in composition

1H13 results I 14 February 2013 I page 18

Development – FY14 and beyond

by mirvac

n 57.0% of FY14 expected Development EBIT[ 1] already secured

n Forward pipeline strong with key projects:

FY14: Era, Chatswood, NSW; Harold Park Precinct 1, NSW

FY15: Harold Park Precinct 1 and 2, NSW; Treasury Building, WA; 699 Bourke Street, VIC[ 2] FY16: Yarra’s Edge, Array, VIC; 200 George Street, NSW

n New projects supplementing pipeline:

Dallas Brooks Hall, VIC: 257 lots from FY18 Green Square, NSW: 1,927 lots from FY16 n Focus on capital efficient projects: 47% of lots in pipeline controlled by 27% of invested residential capital

~~Examples of capital effcient projects~~
Green Square, NSW
PDA/JV
Harold Park, NSW
Deferred termspayment
Elizabeth Point, NSW
Purchase from JV
Glenfeld, NSW
Deferred termspayment
Googong, NSW
JV
New Brighton Golf Course, NSW
PDA
Donnybrook Road, VIC
Part PDA
Eastern Golf Club, VIC
Deferred termspayment
Smiths Lane, VIC
Deferred termspayment

1) Commercial and residential EBIT before overheads and selling and marketing costs.

2) 699 Bourke Street, VIC under Heads of Agreement for lease to AGL.

On track to deliver >10% Development ROIC by FY14

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1H13 results I 14 February 2013 I page 19
Summary and guidance by mirvac
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~~Guidance range~~ ~~FY13~~
Groupoperating proft $366 – $370m
OperatingEPS 10.7 – 10.8cpss
DPS 8.5 – 8.7cpss
Weighted average securities 3,432m
Expected Development ROIC in FY14 >10%

On track to meet FY13 guidance

1H13 results I 14 February 2013 I page 20

Disclaimer and 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.

by mirvac

An investment in Mirvac stapled securities is subject to investment and other known and unknown risks, some of which are beyond the control of Mirvac, including possible delays in repayment and loss of income and principal invested. Mirvac does not guarantee any particular rate of return or the performance of Mirvac nor do they guarantee the repayment of capital from Mirvac or any particular tax treatment.

This Presentation contains certain “forward looking” statements. The words “anticipated”, “expected”, “projections”, “forecast”, “estimates”, “could”, “may”, “target”, “consider” and “will” and other similar expressions are intended to identify forward looking statements. Forward looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements including projections, indications or guidance on future earnings or financial position and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. There can be no assurance that actual outcomes will not differ materially from these statements. To the full extent permitted by law, Mirvac Group and its directors, officers, employees, advisers, agents and intermediaries disclaim any obligation or undertaking to release any updates or revisions to the information to reflect any change in expectations or assumptions. Past performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. Where necessary, comparative information has been reclassified to achieve consistency in disclosure with current year amounts and other disclosures.

This Presentation also includes certain non-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 31 December 2012. which has been subject to review by its external auditors.

This Presentation is not an offer or an invitation to acquire Mirvac stapled securities or any other financial products and is not a prospectus, product disclosure statement or other offering document under Australian law or any other law. It is for information purposes only.

The information contained in this presentation is current as at 31 December 2012, unless otherwise noted.

Thank you

by mirvac

FOllOw uS ON TwITTEr @MIrVACIr MIrVAC MIrVAC INVESTOr 1H13 rElATIONS PrOPErTY wEBSITE COMPENDIuM

additional information 14 february 2013

by mirvac

additional information i 14 february 2013 i page 1

Contents

financial results

2 1H13 statutory to operating profit reconciliation 3 1H12 statutory to operating profit reconciliation 4 1H13 operating profit by segment 5 1H12 operating profit by segment 6 Finance costs 7 Group overhead costs 8 MPT operating EBIT 9 1H13 contributions to growth 10 Liquidity profile 11 Debt and hedging profile

Commercial

13 Commercial market update 14 Sector and geographic diversification 15 MPT portfolio snapshot 16 Top ten tenants by income 17 MPT weighted average cap rate 18 Office snapshot 19 Office metrics 20 Retail snapshot 21 Industrial snapshot 22 Schedule of disposals 23 Commercial development pipeline

residential

25 Residential market outlook 26 Future projects pipeline 27 Development 1H13 activity detail

28 Development outlook FY13 – FY17 29 Residential development – strategic acquisitions 30 Diversification of residential lots/revenue 31 Strategic Positioning

by mirvac

residential

  • 33 Reconciliation to Development invested capital

  • 34 Gross development margin

  • 35 Development operating EBIT reconciliation

  • 36 Development historical information (FY09 – 1H13)

  • 37 Projects impacted by provision

  • 38 Looking forward

  • 39 Provision roll off

  • 40 Mirvac buyer profile

  • 41 Growing preference towards apartments

  • 42 Mirvac’s development business

  • 43 Hypothetical profit making development project – treatment of capitalised costs

  • 44 Hypothetical provisioned development project – treatment of capitalised costs 45 Capitalised interest policy

  • 46 Net realisable value

  • 47 Residential development high density = apartments

  • 48 Residential development low density = masterplanned communities

  • 49 Our markets

  • 50 Development risk management

Health safety and wellbeing

  • 52 Health safety and wellbeing

mirvac statutory income tax calculation

  • 53 Mirvac statutory income tax calculation

fy13 calendar

  • 54 FY13 calendar

glossary

disclaimer and important notice

  • 32 Pre-sales analysis

additional information i 14 february 2013 i page 2

1H13 statutory to operating profit reconciliation

by mirvac

investment
~~investment management development~~
~~unallocated~~
~~elimination~~
~~tax~~
~~total~~
december 2012
$m
$m
$m
$m
$m
$m
$m
proft/(loss) attributable to the stapled security holders of mirvac
271.0
(4.2)
(265.2)
(34.5)
1.1
87.0
55.2
Specifc non-cash items
Net gain on fair value of investment properties
(63.7)
—
—
—
(5.1)
—
(68.8)
Net loss on fair value of IPUC
0.9
—
—
—
—
—
0.9
Net (gain)/loss on fair value of derivative fnancial instruments
and associated foreign exchange movements
(1.0)
—
—
9.5
—
—
8.5
Security based payment expense
—
—
—
1.9
—
—
1.9
Depreciation of owner-occupied investment properties
—
—
—
—
3.6
—
3.6
Straight-lining of lease revenue
(8.0)
—
—
—
—
—
(8.0)
Amortisation of lease ftout incentives
6.7
—
—
—
(1.2)
—
5.5
Net loss on fair value of investment properties, derivatives and other specifc
non-cash items included in share of net proft of associates and joint ventures
1.6
0.8
—
—
—
—
2.4
Signifcant items
Impairment of investments including associates and joint ventures
—
—
12.3
—
—
—
12.3
Impairment of loans
—
—
18.0
—
—
—
18.0
Provision for loss on inventories
—
—
242.9
—
—
—
242.9
Net loss on sale of non-aligned assets
2.0
—
—
—
—
—
2.0
tax effect
Tax effect of non-cash and signifcant adjustments
—
—
—
—
—
(82.2)
(82.2)
operating proft/(loss) (proft before specifc non-cash and signifcant items) 1
209.5
(3.4)
8.0
(23.1)
(1.6)
4.8
194.2
Segment contribution
107.9%
(1.8%)
4.1%
(11.9%)
(0.8%)
2.5%
100.0%
Add back tax
—
—
—
—
—
(4.8)
(4.8)
Add back interest paid
7.2
8.8
23.5
0.2
(0.6)
—
39.1
Less interest revenue
(0.4)
(0.1)
—
(2.9)
0.3
—
(3.1)
Earnings before interest and tax
216.3
5.3
31.5
(25.8)
(1.9)
—
225.4
Segment contribution
96.0%
2.3%
14.0%
(11.5%)
(0.8%)
0.0%
100.0%

1) Operating profit after tax is a non-IFRS measure. Operating profit after tax is profit before specific non-cash items and significant items. Operating profit after tax is used internally by management to assess the performance of its business and has been extracted or derived from Mirvac’s half year ended 31 December 2012 financial statements, which has been subject to review by its external auditors.

additional information i 14 february 2013 i page 3

1H12 statutory to operating profit reconciliation

by mirvac

Total inc.
Hotel
Investment
discontinued
Investment Management Management Development
Unallocated
Elimination
Tax
operations
December 2011
$m
$m
$m
$m
$m
$m
$m
$m
Proft/(loss) attributable to the stapled security holders of Mirvac
242.0
8.5
(2.7)
(17.7)
(70.0)
(4.2)
20.7
176.6
Specifc non-cash items
Net (gain)/loss on fair value of investment properties and owner-occupied
hotel management lots and freehold hotels
(74.6)
—
—
—
—
3.4
—
(71.2)
Net loss on fair value of IPUC
10.3
—
—
—
—
—
—
10.3
Net loss on fair value of derivative fnancial instruments and associated
foreign exchange movements
23.7
—
—
—
28.6
—
—
52.3
Security based payment expense
—
—
—
—
3.5
—
—
3.5
Depreciation of owner-occupied investment properties, hotels and
hotel management lots (including hotel property, plant and equipment)
—
1.0
—
0.3
—
3.3
—
4.6
Straight-lining of lease revenue
(6.9)
—
—
—
—
—
—
(6.9)
Amortisation of lease ftout incentives
6.2
—
—
—
—
(1.0)
—
5.2
Net loss on fair value of investment properties, derivatives and other
specifc non-cash items included in share of net proft of associates and joint ventures
8.2
—
0.8
—
—
—
—
9.0
Signifcant items
Impairment of loans
—
—
—
—
6.5
—
—
6.5
Provision for loss on inventories
—
—
—
25.0
—
—
—
25.0
Net (gain)/loss on sale of non-aligned assets
(1.0)
—
0.6
—
—
—
—
(0.4)
Business combination transaction costs
—
—
—
—
6.0
—
—
6.0
Tax effect
Tax effect of non-cash items and signifcant items
—
—
—
—
—
—
(19.0)
(19.0)
Operating proft/(loss) (proft before specifc
non-cash items and signifcant items)
207.9
9.5
(1.3)
7.6
(25.4)
1.5
1.7
201.5
Segment contribution
103.2%
4.7%
(0.6%)
3.8%
(12.6%)
0.7%
0.8%
100.0%
Add back tax
—
—
—
—
—
—
(1.7)
(1.7)
Add back interest paid
21.1
0.7
9.8
28.9
5.3
(0.9)
—
64.9
Less interest revenue
(12.0)
(0.1)
(0.2)
—
(0.9)
0.4
—
(12.8)
Earnings before interest and tax
217.0
10.1
8.3
36.5
(21.0)
1.0
—
251.9
Segment contribution
86.1%
4.0%
3.3%
14.5%
(8.3%)
0.4%
0.0%
100.0%

additional information i 14 february 2013 i page 4

1H13 operating profit by segment

by mirvac

Investment
~~Investment Management Development~~
~~Unallocated~~
~~Elimination~~
~~Total~~
December 2012
$m
$m
$m
$m
$m
$m
Revenue from continuing operations
Investment properties rental revenue
277.3
2.6
—
—
—
279.9
Investment management fee revenue
—
5.5
—
—
(1.0)
4.5
Development and construction revenue
—
—
317.3
—
—
317.3
Development management fee revenue
—
—
9.9
—
(0.2)
9.7
Interest revenue
3.3
0.6
2.5
3.0
(0.3)
9.1
Dividend and distribution revenue
0.4
—
—
—
—
0.4
Other revenue
(0.2)
1.7
1.0
3.6
—
6.1
Inter-segment sales
20.5
7.7
1.6
—
(29.8)
—
Total revenue from continuing operations
301.3
18.1
332.3
6.6
(31.3)
627.0
Other income
Share of net proft of associates and joint ventures
accounted for usingthe equitymethod
7.3
1.6
0.7
0.1
—
9.7
Total other income
7.3
1.6
0.7
0.1
—
9.7
Total revenue from continuing operations and other income
308.6
19.7
333.0
6.7
(31.3)
636.7
Investment properties expenses
67.3
2.2
—
—
(6.6)
62.9
Cost of property development and construction
—
—
277.9
—
—
277.9
Employee benefts expenses
—
8.7
8.2
14.9
—
31.8
Depreciation and amortisation expenses
4.4
0.2
1.2
0.8
—
6.6
Finance costs
23.5
8.8
23.5
0.2
(16.9)
39.1
Selling and marketing expenses
—
0.3
11.4
0.3
—
12.0
Other expenses
3.9
2.9
2.8
13.6
(6.2)
17.0
Operating proft/(loss) from continuing operations before income tax
209.5
(3.4)
8.0
(23.1)
(1.6)
189.4
Income tax beneft
4.8
Operating proft attributable to the stapled securityholders of Mirvac
194.2

additional information i 14 february 2013 i page 5

1H12 operating profit by segment

by mirvac

Total inc.
Hotel
Investment
discontinued Discontinued 1
Investment Management Management Development
Unallocated
Elimination
operations
operations
Total
December 2011
$m
$m
$m
$m
$m
$m
$m
$m
$m
Revenue from continuing operations
Investment properties rental revenue
269.4
—
2.4
—
—
(0.6)
271.2
—
271.2
Hotel operating revenue
—
87.1
—
—
—
—
87.1
(87.1)
—
Investment management fee revenue
—
—
7.6
—
—
0.1
7.7
(2.0)
5.7
Development and construction revenue
—
—
—
370.1
—
—
370.1
—
370.1
Development management fee revenue
—
—
—
10.4
—
3.3
13.7
(0.9)
12.8
Interest revenue
12.0
0.1
1.5
3.1
2.0
(0.4)
18.3
(0.1)
18.2
Dividend and distribution revenue
1.2
—
—
—
—
—
1.2
—
1.2
Other revenue
0.9
0.3
1.5
3.9
1.0
(0.9)
6.7
(0.3)
6.4
Inter-segment sales
27.7
0.1
7.3
1.1
—
(36.2)
—
—
—
Total revenue from continuing operations
311.2
87.6
20.3
388.6
3.0
(34.7)
776.0
(90.4)
685.6
Other income
Share of net proft of associates and joint ventures accounted
for usingthe equitymethod
14.7
—
2.5
2.8
0.2
—
20.2
(8.2)
12.0
Total other income
14.7
—
2.5
2.8
0.2
—
20.2
(8.2)
12.0
Total revenue from continuing operations and other income
325.9
87.6
22.8
391.4
3.2
(34.7)
796.2
(98.6)
697.6
Net loss on sale of property, plant and equipment
—
—
—
0.2
0.1
—
0.3
—
0.3
Investment properties expenses
66.3
—
1.5
—
—
(6.2)
61.6
—
61.6
Hotel operating expenses
—
27.7
—
0.4
—
(0.9)
27.2
(26.8)
0.4
Cost of property development and construction
—
—
—
322.8
—
—
322.8
—
322.8
Employee benefts expenses
—
39.7
8.8
8.1
16.2
0.5
73.3
(40.0)
33.3
Depreciation and amortisation expenses
3.1
1.5
0.1
1.2
0.7
—
6.6
(1.6)
5.0
Impairment of loans
—
—
0.9
—
—
—
0.9
—
0.9
Finance costs
45.3
0.7
9.8
28.9
5.3
(25.1)
64.9
—
64.9
Selling and marketing expenses
—
5.0
0.3
14.7
0.1
—
20.1
(5.0)
15.1
Other expenses
3.3
3.5
2.7
7.5
6.2
(4.5)
18.7
(3.5)
15.2
Operating proft/(loss) from continuing operations before income tax 207.9
9.5
(1.3)
7.6
(25.4)
1.5
199.8
(21.7)
178.1
Income tax beneft
1.7
1.8
3.5
Operating proft from continuing operations
201.5
(19.9)
181.6
Operating proft from discontinued operations
—
19.9
19.9
Operating proft attributable to the stapled securityholders of Mirvac
201.5
—
201.5

1) The comparative figures have been adjusted to reflect the change in intention in relation to Travelodge Group. Refer to note 7 of the interim report for further information.

additional information i 14 february 2013 i page 6

Finance costs

by mirvac

~~1H13 $~~
~~1H12 $~~
~~(m)~~
~~(m)~~
Interest and fnance chargespaid/payable net ofprovision release
62.2
90.6
Amount capitalised
(37.1)
(46.0)
Interest capitalised in current and prior periods expensed
thisperiod net ofprovision release
12.4
18.6
Borrowingcosts amortised
1.6
1.7
Total fnance costs
39.1
64.9

additional information i 14 february 2013 i page 7

Group overhead costs

by mirvac

~~1H13 $~~
~~1H12 $~~
~~% h~~
~~(m)~~
~~(m)~~
~~cange~~
Employee benefts expenses1
31.8
33.6
(5.4)
Selling andmarketing expenses1
12.0
15.1
(20.5)
Otherexpenses1
17.0
15.2
11.8
Total overhead expenses 1
60.8
63.9
(4.9)
Total assets
8,319.0
8,431.2
(1.3)
Overhead expenses as apercentage of asset base 2
0.7%
0.8%
(12.5%)

1) Expenses are on an operational basis (excluding non-cash items and significant items) excluding Hotel Management business. For further detail see page 5 of Additional Information. 2) Excluding selling and marketing expenses, 1H13 overhead expenses as a percentage of asset base were 0.6% (1H12 0.6%).

additional information i 14 february 2013 i page 8

MPT operating EBIT

by mirvac

~~Dild bkd f MPT i EBIT~~
~~1H13 $~~
~~1H12 $~~
~~etae reaown o operatng~~
~~(m)~~
~~(m)~~
Net property income 1
Offce
125.7
122.9
Industrial
19.3
14.9
Retail
60.7
60.7
Other
4.1
5.1
Total netproperty income
209.8
203.6
Investment income2
10.4
15.9 3
Other income
Other income
0.0
0.9
Overhead expenses
(3.9)
(3.4)
Total MPT operating EBIT
216.3
217.0

  • 1) Excludes straightline of lease revenue and amortisation of lease fitout incentives.

  • 2) Includes income from indirect property investments.

  • 3) Includes revenue from discontinued operations; Mirvac Wholesale Hotel Fund of $8.0m.

additional information i 14 february 2013 i page 9

1H13 contributions to growth

by mirvac

~~1H12 to 1H13 segmented operating EBIT[ 1]~~

==> picture [355 x 264] intentionally omitted <==

----- Start of picture text -----

$300m
280
260
251.9 (0.7) (10.1)
240 (3.0) (5.0)
(4.8)
(2.9) 225.4
220
200
1H12 Investment Hotel Investment Development Unallocated Elimination 1H13
Management Management
1H12 to 1H13 segmented operating profit [ 1]
$220m
210
200 201.5 1.6 (9.5)
(2.1) 2.3 (3.1) 3.1 194.2
0.4
190
180
1H12 Investment Hotel Investment Development Unallocated Elimination Tax 1H13
Management Management
1) 1H12 includes discontinued operations (hotel assets).
----- End of picture text -----

additional information i 14 february 2013 i page 10

Liquidity profile

by mirvac

Facility limits
Drawn amount
Available liquidity
As at 31 December 2012
($m)
($m)
($m)
Total facilities maturing> 12 months
2,827.91
2,014.81
813.1
Total
2,827.9
2,014.8
813.1
Cash on hand 31 December 2012
68.6 2
Total liquidity 31 December 2012
881.7
Less facilities maturing< 12 months
0.0
Funding headroom
881.7

1) Based on hedged rate not carrying value.

additional information i 14 february 2013 i page 11

Debt and hedging profile

by mirvac

1H13 breakdown of debt maturities

Facility
Drawn
~~limit~~
~~amount~~
Issue / source
Maturity date
$m
$m
Bank facilities
January 2014
530.0
136.9
Bank facilities
November 2014
150.0
150.0
Bank facilities
January 2015
530.0
200.0
MTN III
March 2015
200.0
200.0
Bank facilities
January 2016
530.0
440.0
MTN IV
September 2016
225.0
225.0
USPP
November 2016
378.8
378.82
MTN V
December 2017
150.0
150.0
USPP
November 2018
134.1
134.12
Total
2,827.9
2,014.8

==> picture [219 x 241] intentionally omitted <==

----- Start of picture text -----

1H13 hedging and fixed interest profile [1]
$1,500m Fixed Options Swaps Rate
1,000
500 4.52% 4.52% 4.52% 4.47% 4.61%
0
1H13 FY13 FY14 FY15 FY16
Debt sources
Syndicated loans and bank facilities 46.0%
MTN 28.5%
USPP 25.5%
----- End of picture text -----

1) Includes bank callable swaps and a swaption.

2) Based on hedged rate not carrying value.

additional information i 14 february 2013 i page 12

commercial

by mirvac

additional information i 14 february 2013 i page 13

Commercial market update 1

by mirvac

Office

Weighting FY13 Medium term Whilst business conditions and the white collar employment outlook remain subdued, the office forecast market is likely to be partially insulated in the short to medium term by a lack of net supply and 57.8%[ 2] the prospect of cap rate compression. Overall, vacancy in the Sydney CBD market has decreased following withdrawals, whilst vacancy rates have increased across most other CBDs following net supply delivery. Over the next 12 months, demand is anticipated to remain subdued leading to subdued rent growth and incentives remaining at relatively high levels.

Retail

Weighting FY13 Medium term The environment for retailers remains challenging. In spite of lower interest rates, spending forecast headwinds remain in the form of slowing income growth, a preference for “experiences” and 27.6%[ 2] services over goods and consumers focussing on rebuilding their household balance sheet. Retail vacancy rates are expected to remain stable for centres in dominant catchment areas, however rental growth is likely to moderate due to the subdued retail sales environment. Industrial Weighting FY13 Medium term The average rent growth in prime and secondary markets was mixed, with growth broadly positive forecast to the end of 2012. With the short term forecast for lower than average construction, rent growth 7.4%[ 2] can be expected in high quality, modern, well located assets. These prime assets will continue to dominate tenant and investor demand.

1) Management forecast. 2) By book value, including assets under development and indirect property investments.

additional information i 14 february 2013 i page 14

Sector and geographic diversification

by mirvac

~~Sector diversification[1]~~

58.9% 58.9%
Office 59.0%
28.1%
Retail 27.7%
Industrial 7.5%
6.8%
LPT/ 3.8%
unlisted funds 4.8%
1.7% IH13
Other 1.7% IH12
0% 10% 20% 30% 40% 50% 60% 70%
~~Geographic diversification~~ ~~2~~
NSW 63.5%
62.7%
VIC 14.7%
14.5%
13.2%
QLD 13.8%
8.1%
ACT 8.2%
0.5%
USA 0.5%
0.0%
0.3%
SA		 1H13
1H12
0% 10% 20% 30% 40% 50% 60% 70%

1) By book value, excluding assets under development and including indirect investments.

2) By book value, excluding assets under development and indirect investments.

additional information i 14 february 2013 i page 15

MPT portfolio snapshot

by mirvac

~~1H13~~
~~1H12~~
Properties owned1
61
67
NLA1
1,347,863sqm
1,313,194sqm
Book value2
$6,013.7m
$5,850.1m
WACR
7.45%
7.49%
Netpropertyincome3
$220.2m
$220.5m
Like-for-like NOIgrowth
3.5%
3.3%
Maintenance capex
$8.0m
$19.1m
Tenant incentives
$5.8m
$4.9m
Occupancy4
98.2%
96.4%
NLA leased
85,632sqm
70,983sqm
% ofportfolio NLA leased
6.4%
5.4%
No. tenant reviews
865
937
Tenant rent reviews(area)
531,274sqm
477,163sqm
WALE(area)4
7.4yrs
5.9yrs
WALE(income)5
5.5yrs
5.5yrs

==> picture [224 x 175] intentionally omitted <==

----- Start of picture text -----

MPT – lease expiry profile and variance to FY12 [5]
60%
54.3%
50
40
30
20
13.1%
10 9.2% 9.1% 8.3%
4.0%
2.0%
0
Vacant FY13 FY14 FY15 FY16 FY17 Beyond
+10bp -580bp -20bp -10bp +40bp -10bp +560bp
----- End of picture text -----

  • 1) Includes carparks and a hotel.

  • 2) Including assets under development and indirect investments.

  • 3) Includes income from indirect investments and other income.

  • 4) By area, excluding assets under development, based on 100% of building NLA.

  • 5) By income, excluding assets under development and indirect investments, based on MPT’s ownership.

additional information i 14 february 2013 i page 16

Top ten tenants by income

Office

~~Rank Tenant~~
~~Percentage 1~~~~S&P Rating~~
1
Westpac BankingCorporation/St George
21.9%
AA-
2
Government
15.4%
AAA
3
Woolworths Limited
6.6%
A-
4
Fairfax Media Limited
4.6%
BB+
5
IBM Australia Limited
3.4%
AA-
6
UGL Limited
3.0%
None
7
GM Holden Limited
2.8%
BB+
8
Origin EnergyServices Limited
2.5%
BBB+
9
John Holland PtyLtd
1.5%
None
10
Alcatel – Lucent Australia
1.4%
B
Total top 10 tenants
63.1% 3

by mirvac

Retail

~~Rank Tenant~~
~~Percentage 2~~~~S&P Rating~~
1
Wesfarmers Limited – Coles
13.2%
A-
2
Woolworths Limited
9.6%
A-
3
The Reject ShopLimited
1.4%
None
4
Westpac BankingCorporation/St George
1.2%
AA-
5
Government
1.1%
AAA
6
Cotton On Group
1.0%
None
7
Sussan Group
1.0%
None
8
ALDI
1.0%
None
9
TerryWhite Chemist
1.0%
None
10
Just Group
0.9%
None
Total top 10 tenants
31.4%3

  • 1) Percentage of gross office portfolio income, based on MPT’s ownership.

  • 2) Percentage of gross retail portfolio income, based on MPT’s ownership. 3) Excludes Mirvac tenancy.

additional information i 14 february 2013 i page 17 MPT weighted average cap rate

by mirvac

==> picture [438 x 209] intentionally omitted <==

----- Start of picture text -----

9%
8 7.88% 7.74%
7.55% 7.56% [1] 7.55% [ 1] 7.49% [ 1] 7.48% [ 1] 7.45% [ 1]
7 7.01%
6
5
4
3
2
1
0
1H09 FY09 1H10 FY10 1H11 FY11 1H12 FY12 1H13
----- End of picture text -----

==> picture [97 x 7] intentionally omitted <==

----- Start of picture text -----

1) Excludes assets held for development.
----- End of picture text -----

additional information i 14 february 2013 i page 18

Office snapshot

by mirvac

~~1H13~~
~~1H12~~
Properties owned
25
29
NLA
609,846sqm
638,268sqm
Book value1
$3,471.5m
$3,431.3m
WACR
7.45%
7.45%
Netpropertyincome
$125.7m
$122.9m
Like-for-like NOIgrowth
4.2%
4.2%
Maintenance capex
$4.4m
$7.5m
Tenant incentives
$3.2m
$2.8m
Occupancy 2
97.2%
96.3%
NLA leased
35,862sqm
42,590sqm
% ofportfolio NLA leased
5.9%
6.7%
No. tenant reviews
209
269
Tenant rent reviews(area)
341,519sqm
311,509sqm
WALE(area) 2
5.7yrs
6.0yrs
WALE(income) 3
5.7yrs
6.1yrs		 ~~Office lease exir rofile and variance to FY12 3~~
70%
~~py p~~
60
65.0%
50
40
30
20
10
7.2%
6.2%
11.7%
0

2.5%
1.4%


6.0%
Vacant
FY13
FY14
FY15
FY16
Beyond
FY17
+40bp
-610bp
-10bp
+40bp
+10bp
+20bp
+510bp
~~1~~
Premium grade 29.2%
A grade 63.4%
B grade 7.4%
~~Office diversification by grade ~~
  • 1) By book value, as at 31 December 2012, excluding assets under development and indirect investments.

2) By area, excluding assets under development, based on 100% of building NLA.

  • 3) By income, excluding assets under development and indirect investments, based on MPT’s ownership.

additional information i 14 february 2013 i page 19

Office metrics

by mirvac

Book value
Average passing
December 2012
Occupancy 2
gross rent
No. of assets
$m 1
December 2012
$ per sqm
NSW
12
$2,380.6m
97.8%
$638
North Sydney
2
$286.3m
100.0%
$738
Sydney CBD
4
$1,254.0m
98.2%
$796
Sydney Fringe
2
$284.2m
98.7%
$587
Norwest
1
$246.6m
100.0%
$455
Homebush/Rhodes
2
$209.0m
88.6%
$402
Parramatta
1
$100.5m
100.0%
$305
VIC
4
$468.9m
94.9%
$426
Melbourne CBD
1
$168.9m
97.9%
$462
St Kilda Road
1
$114.7m
96.6%
$417
East Melbourne
2
$185.3m
92.1%
$408
ACT
5
$412.8m
97.2%
$424
Canberra
5
$412.8m
97.2%
$424
QLD
4
$209.2m
97.2%
$487
Brisbane CBD
1
$60.0m
92.7%
$581
Brisbane ‘Near City’
3
$149.2m
99.2%
$447
Portfolio
25
$3,471.5m
97.2%
$562

1) By book value, excluding assets under development and indirect investments.

2) By area, excluding assets under development, based on 100% of building NLA.

additional information i 14 february 2013 i page 20

Retail snapshot

by mirvac

~~1H13~~
~~1H12~~
Properties owned
19
19
NLA
390,646sqm
391,327sqm
Book value1
$1,661.5m
$1,610.1m
WACR
7.25%
7.29%
Netpropertyincome
$60.7m
$60.7m
Like-for-like NOIgrowth
2.7%
2.9%
Maintenance capex
$3.0m
$11.3m
Tenant incentives
$2.6m
$2.2m
Occupancy 2
98.9%
99.2%
NLA leased
29,244sqm
22,782sqm
% ofportfolio NLA leased
7.5%
5.8%
No. tenant reviews
645
656
Tenant rent reviews(area)
86,527sqm
99,271sqm
WALE(area) 2
5.7yrs
6.0yrs
WALE(income) 3
4.1yrs
4.4yrs
Specialtyoccupancycost
15.2%
14.9%
Specialtyoccupancycost excludingCBD centres
14.4%
14.1%
Total comparable MAT
$7,403sqm
$7,260sqm
Total comparable MATgrowth
1.8%
2.3%
Specialties comparable MAT
$7,478sqm
$7,519sqm
Specialties comparable MATgrowth
(0.2%)
1.8%
New leasingspreads
2.3%
1.4%
Renewal leasingspreads
1.9%
3.3%
Total leasingspreads
2.0%
2.8%

~~Retail lease expiry profile and variance to FY12[ 3]~~

==> picture [224 x 132] intentionally omitted <==

----- Start of picture text -----

40%
30 30.6%
20
15.9% 15.5%
13.1% 14.0%
10 9.6%
1.3%
0
Vacant FY13 FY14 FY15 FY16 FY17 Beyond
+10bp -510bp -70bp +20bp +50bp +60bp +440bp
----- End of picture text -----

~~Retail diversification by grade[ 1]~~

Sub regional 78.8% CBD retail 10.3% Neighbourhood 7.8% Bulky goods centre 3.1%

  • 1) By book value, as at 31 December 2012, excluding assets under development and indirect investments. 2) By area, excluding assets under development, based on 100% of building NLA.

  • 3) By income, excluding assets under development and indirect investments, based on MPT’s ownership.

additional information i 14 february 2013 i page 21

Industrial snapshot

by mirvac

~~1H13~~
~~1H12~~
Properties owned
13
15
NLA
346,972sqm
283,202sqm
Book value 1
$445.9m
$396.6m
WACR
8.00%
8.37%
Netpropertyincome
$19.3m
$14.9m
Like-for-like NOIgrowth
5.9%
(5.4%)
Maintenance capex
$0.7m
$0.2m
Tenant incentives
$0.0m
$0.0m
Occupancy 2
99.4%
92.7%
NLA leased
20,526sqm
5,612sqm
% ofportfolio NLA leased
5.9%
2.0%
No. tenant reviews
11
12
Tenant rent reviews(area)
88,394sqm
66,383sqm
WALE(area) 2
12.4yrs
5.7yrs
WALE(income) 3
9.2yrs
5.4yrs

==> picture [224 x 149] intentionally omitted <==

----- Start of picture text -----

Industrial lease expiry profile and variance to FY12 [ 3]
80%
69.9%
60
40
20
13.4%
8.6%
0 1.3% 0.7% 3.5% 2.6%
Vacant FY13 FY14 FY15 FY16 FY17 Beyond
-160bp -620bp +130bp -480bp +200bp -490bp +1,430bp
----- End of picture text -----

  • 1) By book value as at 31 December 2012, excluding assets under development and indirect investments.

  • 2) By area, excluding assets under development, based on 100% of building NLA.

  • 3) By income, excluding assets under development and indirect investments, based on MPT’s ownership.

Schedule of disposals

additional information i 14 february 2013 i page 22 by mirvac

1H13 schedule of disposals

Previous
Gross
Proceeds
Actual
~~book value~~
~~sale price~~
~~above book~~
~~settlement~~
Property
State
Sector
Status
$m
$m
value $m
date
64 Biloela Street, Villawood
NSW
Industrial
Settled
19.1
19.2
0.1
October 2012
32 Sargents Road, Minchinbury
NSW
Industrial
Settled
23.5
23.8
0.3
October 2012
52 Huntingwood Drive, Huntingwood
NSW
Industrial
Settled
22.0
22.3
0.3
October 2012
1 Hugh Cairns Avenue, Bedford Park
SA
Offce
Settled
16.5
16.5
0.0
October 2012
19 Corporate Drive, Cannon Hill
QLD
Offce
Settled
23.9
23.3
(0.6)
December 2012
Total
105.0
105.1
0.1

additional information i 14 february 2013 i page 23 Commercial development pipeline by mirvac

$1.3bn commercial development pipeline to be undertaken in-house by Mirvac

Status
FY14
FY15
FY16
FY17
Project 1
Active
Type
FY13		 Status
FY14
FY15
FY16
FY17
Project 1
Active
Type
FY13		 Status
FY14
FY15
FY16
FY17
Project 1
Active
Type
FY13		 Status
FY14
FY15
FY16
FY17
Project 1
Active
Type
FY13		 Status
FY14
FY15
FY16
FY17
Project 1
Active
Type
FY13		 Status
FY14
FY15
FY16
FY17
Project 1
Active
Type
FY13
8 Chifley Square Sydney, NSW
(50% with Keppel REIT)
42%
pre-leased
Office
✔		 $53m, 7.35%
Sep 10 to Aug 13
Redevelopment
Commenced
Treasury Building, Perth
WA (50% with Keppel REIT)
Office
✔		 $140m,
Aug 12		 8.40%
to Mar 15
Redevelopment
Commenced
✔
Retail
Kawana Shoppingworld
(Stage 4) Buddina, QLD (100%)		 $70.3m, 8.04%
Jul 12 to Jul 14
Stanhope Village (Stage 4)
Stanhope Gardens, NSW (100%)
Retail
✔
Redevelopment
Commenced
Retail
Stanhope Village (Stage 3)
Stanhope Gardens, NSW (100%)		 $10.5m, 7.65%
Aug 12 to Aug 13		 $ J 15.6m
ul 13 to May 15
Redevelopment
Commenced
✔
Retail
Orion Town Centre (Stage 2)
Springfield, QLD (100%)
Retail
Orion Town Centre (Pad Sites)
Springfield, QLD (100%)		 $11.5m, 6.9
Jul 12 to De		 $67m
Jul 1
0%
c 13		 3 to Mar 15
Office
200 George Street2
Sydney, NSW (100%)
✔		 $ J 474m, 7.20%
an 13 to May 16
Office
1 Woolworths Way
Norwest, NSW (100%)		 Jul 14 $95m
to Nov 16
Office
699 Bourke Street
Melbourne, VIC (100%)		 $113
Jun 1		 m
3 to Mar 15
Office
664 Collins Street
Melbourne, VIC (100%)		 $159m
Nov 15 to Sep 16

1) Forecast total costs to complete including interest, excluding land acquisition costs, based on MPT’s ownership.

2) Represents the amalgamated development site of 190 George Street, 200 George Street and 4 Dalley Street & Lane Sydney, NSW.

additional information i 14 february 2013 i page 24

residential

by mirvac

additional information i 14 february 2013 i page 25

Residential market outlook 1

by mirvac

The outlook for capital city residential markets remains mixed by location, however underlying factors underpinning the residential property market continued to improve through 2012. Lower borrowing rates, rising household incomes and weak property prices contributed to an advance in housing affordability, while population growth also picked up sharply. Whilst there has not been a material uplift in demand to date and purchasers maintain a cautious position, the stronger fundamentals should result in a further improvement in the residential property market, with the trend towards medium density living continuing, particularly in the south eastern states.

NSW

Weighting FY13 Medium term forecast A low rental vacancy rate and strong rental growth are evident of strong underlying demand in NSW.Population growth picking up, affordability improving and State measures directed towards boosting 39.4%[ 2] the demand for new dwellings, suggests a further uplift in the residential housing market is likely to be forthcoming. VIC Weighting FY13 Medium term forecast The strength of the Australian dollar has continued to exert pressure on the Victorian manufacturing sector and, as a consequence output and employment. Even though medium density approvals have been growing 34.7%[ 2] strongly, the Victorian property market is likely to under perform the other main states particularly in some segments characterised by oversupply. QLD Weighting FY13 Medium term forecast Whilst the Queensland property market has been adversely impacted by a number of one-off factors, there are growing signs the influences which underpin the market are becoming increasingly more tangible. This points 15.4%[ 2] to a medium term improvement in the property market, although state government spending and employment measures will continue to dilute the recovery in the short term. WA Weighting FY13 Medium term forecast In response to the sharp uplift in population growth, the WA property market has experienced an improvement in dwelling volumes and firmer pricing in low to mid price points. Short-term prospects for the property market 10.5%[ 2] are expected to remain favourable as the increased demand in absorbed. Longer term prospects will remain dependant on the extent and duration of the resources cycle.

1) Management forecast.

2) Forecast revenue from lots under control at 31 December 2012 , adjusted for Mirvac’s share of JV, associates and Mirvac’s managed funds.

additional information i 14 february 2013 i page 26

Future projects pipeline

by mirvac

Under construction
Planning
Active
Under negotiation		 Proft recognition profle 1 Proft recognition profle 1 Proft recognition profle 1 Proft recognition profle 1 Proft recognition profle 1
FY13
FY14
FY15
FY16
FY17
Project
Stage
Ownership
Commercial projects
8 ChifeySydney, NSW
50%
Currently marketing part share
sell down of commercial projects
200 George Street, NSW
100%
TreasuryBuilding, WA
100%
699 Bourke Street, VIC
100%
Residential projects – Apartments
Yarra’s Edge, VIC
Yarra Point
100%
201 lots
Rhodes Waterside, NSW
Pinnacle
20%		 233 lots
Chatswood, NSW
Era
100%		 294 lots
Harold Park, NSW
Precinct 1
100%		 298 lots
Harold Park, NSW
Precinct 2
100%		 184 lots
Green Square, NSW2
All Stages
25%		 1,927 lots
Yarra’s Edge, VIC
Array
100%		 205 lots
Residential projects – Masterplanned Communities
Middleton Grange, NSW
All Stages
100%
185 lots
Elizabeth Point, NSW
All Stages
100%		 248 lots
Elizabeth Hills, NSW
All Stages
PDA		 542 lots
Jane Brook, WA
All Stages
100%		 188 lots
WaverleyPark, VIC
All Stages
100%		 293 lots
Harcrest, VIC
All Stages
20%		 658 lots
Googong, NSW
Stage 1 & 2
50%		 1,480 lots
Alex Avenue, NSW
Precinct 1
100%		 259 lots
New Brighton Golf Course, NSW
All Stages
PDA		 228 lots
Rockbank, VIC
Stage 1
50%		 270 lots
Clyde North, VIC
Stage 1
100%		 403 lots
  • 1) Project lot settlements over EBIT contributing period.

2) Total project lots.

additional information i 14 february 2013 i page 27

Development 1H13 activity detail

by mirvac

694 lot settlements consisting of:

~~Total~~
~~Apartments~~
~~Masterplanned Communities~~
Settlement by lots
Lots
%
Lots
%
Lots
%
NSW
332
47.8%
6
0.9%
326
47.0%
QLD
155
22.3%
35
5.0%
120
17.3%
WA
113
16.3%
38
5.5%
75
10.8%
VIC
94
13.6%
—
—
94
13.5%
Total
694
100%
79
11.4%
615
88.6%

~~1H13 lot breakdown~~

NSW 47.8% VIC 13.6% QLD 22.3% WA 16.3%

Masterplanned Communities 88.6% Apartments 11.4%

100% Mirvac inventory 62.2% MWRDP 13.4% PDA 8.2% JVs and associates 10.0% Development funds 6.2%

additional information i 14 february 2013 i page 28

Development outlook FY13 – FY17

by mirvac

Settlement
Lots
Revenue
Released Project
State
Stage
Status
Ownership
commences
Lots
pre-sold
$m 2
✔
Yarra’s Edge Towers
VIC
Yarra Point
Nearingcompletion
100%
FY13
201
86.6%
190.5
✔
Chatswood
NSW
ERA
Under construction
100%
FY14
294
98.0%
297.9
✔
Rhodes
NSW
Pinnacle
Under construction
20%
FY14
233
77.3%
34.8
✔
Harold Park
NSW
Precinct 1
Under construction
100%
FY14
298
82.9%
237.4
✔
Harold Park
NSW
Precinct 2
Under construction
100%
FY15
110
70.0%
172.0
✔
Yarra’s Edge Towers
VIC
Array
Under construction
100%
FY16
205
50.7%
219.4
Total
1,341
75.6%3
1,152.0

==> picture [356 x 105] intentionally omitted <==

----- Start of picture text -----

Reconciliation of movement in exchanged
Expected settlement of exchanged pre-sales contracts
pre-sales contracts to FY12
$1,250m $500m
$392m
1,000 $338.7m $1,018.7m $354m
$907.7m $227.7m
$273m
750 $246m
$161m
500
250
FY12 Settled [ 4] Net sales 1H13 2H13 FY14 FY15+
As at FY12 As at 1H13
----- End of picture text -----

  • 1) Total exchanged contracts as at 31 December 2012, adjusted for Mirvac’s share of JVs, associates, and Mirvac’s managed funds.

  • 2) Mirvac’s share of forecast gross revenue, adjusted for JV interest, associates and Mirvac managed funds.

  • 3) Percentage pre sold as at 31 December 2012 for projects that have been released.

  • 4) Represents gross settlement revenue adjusted for Mirvac’s share of JVs, associates, and Mirvac’s managed funds.

additional information i 14 february 2013 i page 29

Residential development – strategic acquisitions

by mirvac

n Acquired 2,443 lots

n Key growth markets targeted n Profit recognition profile both near and medium term

n Price points on strategy n All acquisitions completed under capital efficient structures

Alex Avenue, NSW Dallas Brooks Hall, VIC
Green Square, NSW
Acquisitions
(100% MGR owned)
(100% MGR owned)
(25% MGR share)
Lots
259
257
1,927
Market
Masterplanned Communities
Apartments
Apartments
Firstproft recognition
FY14
FY18
FY16
Averagepricepoint
$364k
$1.1m
$648k
Structure
Deferred landpayment
PDA
PDA
Mirvac share ofgross revenue
$94m
$275.1m
$312.2m

additional information i 14 february 2013 i page 30

Diversification of residential lots/revenue

by mirvac

31,130 lots under control

==> picture [459 x 227] intentionally omitted <==

----- Start of picture text -----

Forecast future revenue by product Lots by structure Mirvac share of forecast revenue by State
Masterplanned 100% Mirvac inventory 39.6% NSW 39.4%
Communities 53.7% MWRDP 5.5% VIC 34.7%
Apartments 46.3% PDA’s 9.3% QLD 15.4%
JV’s & associates 44.6% WA 10.5%
Development funds 1.0%
Average price of lots under control Average price of lots under control
Apartmentss Masterplanned Communities
< $1.2m 94.0% < $200k 37.6%
$1.2m – $3m 5.0% $200k – $400k 55.6%
> $3m 1.0% > $400k 6.8%
----- End of picture text -----

additional information i 14 february 2013 i page 31

Strategic positioning

by mirvac

Residential development business strategic positioning

~~Pipeline diversity of product[ 1]~~

==> picture [95 x 15] intentionally omitted <==

----- Start of picture text -----

Masterplanned Communities 53.7%
Apartments 46.3%
----- End of picture text -----

~~Average price of Mirvac Apartments[ 2]~~

==> picture [193 x 88] intentionally omitted <==

----- Start of picture text -----

100%
80
60
40
20
0
FY13 FY14 FY15 FY16
< $1.2m $1.2m – $3.0m > $3.0m
----- End of picture text -----

n Positioning towards mid price point market in apartments and masterplanned communities

n Even split between apartments and masterplanned communities

==> picture [193 x 105] intentionally omitted <==

----- Start of picture text -----

Average price of Mirvac Masterplanned Communities [ 2]
100%
80
60
40
20
0
FY13 FY14 FY15 FY16
< $200k $250k – $500k > $500k
----- End of picture text -----

1) Based on Mirvac share of forecast future revenue.

2) Based on forecast future lot settlements and associated gross revenue.

additional information i 14 february 2013 i page 32

Pre-sales analysis

by mirvac

==> picture [448 x 131] intentionally omitted <==

----- Start of picture text -----

Exchanged contracts – by State [ 1] Age of exchanged pre-sale contracts [ 1]
$691m > 1yr: 58.7%
1 – 2yrs 34.8%
< 2yr: 6.5%
$305m
$19m $4m
NSW VIC WA QLD
Masterplanned Communities 33.5%
Apartments 25.2%
----- End of picture text -----

Exchangedpre-sales contracts on hand less than 1year old 58.7%
Exchangedpre-sales contracts on handpriced at <$1m 82.1%
Apartment exchangedpre-sales contracts on handpriced at <$1m 73.1%
Exchangedpre-sales contracts on handpriced at <$2m 99.3%

1) Total exchanged contracts as at 31 December 2012, adjusted for Mirvac’s share of JVs, associates, and Mirvac’s managed funds.

additional information i 14 february 2013 i page 33

Reconciliation to Development invested capital

by mirvac

Items excluded
Total
from Development
Development
Development
invested capital
eliminations
invested capital
Reconciliation to Development invested capital
$m
$m
$m
$m
Cash and cash equivalents
25.6
(25.6)
—
—
Receivables
181.4
(82.1)
—
99.3
Inventories – Gross
1,796.6
—
0.5
1,797.1
Inventories – Provision for loss
(413.9)
—
—
(413.9)
Other assets
0.9
(0.9)
—
—
Investments accounted for using the equity method
220.9
—
—
220.9
Other fnancial assets
20.3
—
—
20.3
Property, plant and equipment
7.8
(7.8)
—
—
Deferred tax assets
16.4
(16.4)
—
—
Total
1,856.0
(132.8)
0.5
1,723.7
development1 residential: 80.3% Apartments: 59.7%
Masterplanned Communities: 40.3%
invested Capital Industrial: 15.8%
$1,724m Commercial: 19.7% Offce: 83.1%
Retail: 1.1%

1) Development Division’s total inventories, investments and loans in associates and JV’s as at 31 December 2012.

additional information i 14 february 2013 i page 34

Gross development margin

by mirvac

development
Cost of property
gross
gross
and construction
development and
development
development
revenue
construction
margin
margin
$m
$m
$m
%
1H13
Adjusted for zero margin settlements
174.2
(141.2)
33.0
18.9
Commercialprojects
0.0
0.0
Provisionprojects
85.3
(79.1)
Adjusted
259.5
(220.3)
39.2
15.1
Cost recoveryactivities
57.8
(57.6)
Mirvac consolidated statement of comprehensive income
317.3 1
(277.9) 2
39.4
12.4
fy12
Adjusted for zero margin settlements
323.5
(265.4)
58.1
17.9
Commercialprojects
100.2
(84.9)
Provisionprojects
365.0
(325.6)
Adjusted
788.7
(675.9)
112.8
14.3
Cost recoveryactivities
129.7
(128.8)
Mirvac consolidated statement of comprehensive income
918.4
(804.7)
113.7
12.4
1H12
Adjusted for zero margin settlements
120.3
(97.8)
22.5
18.7
Commercialprojects
0.0
0.0
Provisionprojects
179.3
(154.5)
Adjusted
299.6
(252.3)
47.3
15.8
Cost recoveryactivities
70.5
(70.5)
Mirvac consolidated statement of comprehensive income
370.1
(322.8)
47.3
12.8

1) Total development and construction revenue — see page 4 of Additional Information.

2) Total cost of property development and construction — see page 4 of Additional Information.

additional information i 14 february 2013 i page 35

Development operating EBIT reconciliation

by mirvac

Development
$m
Revenue
Development and construction revenue
317.3
Development management fee revenue
9.9
Interest revenue
2.5
Other revenue
1.0
Inter-segment sales
1.6
Other Income
Share of netproft of associates andjoint ventures accounted for usingthe equitymethod
0.7
Total revenue from continuing operations and other income
333.0
Net loss on sale of property, plant and equipment
—
Hotel operating expenses
—
Cost of property development and construction
277.9
Employee benefts expenses
8.2
Depreciation and amortisation expenses
1.2
Selling and marketing expenses
11.4
Other expenses
2.8
Finance costs
23.5
Operating proft/(loss) (proft before specifc non-cash and signifcant items)
8.0
Add back fnance costs
23.5
Operating EBIT
31.5
COGS
(excl. capitalised interest)
net of provision release
Selling and Marketing
costs net of provision
release
Interest expense +
previously capitalised
interest released on
settlements, net of
provision release

additional information i 14 february 2013 i page 36

Development historical information (FY09 – 1H13)

by mirvac

1H13
FY12
1H12
FY11
FY10
FY09
Development and construction revenue
317.3
918.4
370.1
958.1
862.2
1,090.8
Gross margin
15.1%
14.3%
15.8%
14.2%
11.4%
16.5%
Gross residential margin (excludingzero margin)
18.9%
17.9%
18.7%
17.9%
17.6%
20.5%
EBIT
31.5
91.3
36.5
86.7
51.3
75.1
Operating proft (proft before non-cash and signifcant items)
8.0
15.2
7.6
34.0
20.1
29.1
1H13
FY12
1H12
FY11
FY10
FY09
Settlements
lots
lots
lots
lots
lots
lots
> Apartments
79
353
226
230
636
406
> Masterplanned communities
615
1,454
623
1,494
1,169
1,168
Lots settled
694
1,807
849
1,724
1,805
1,574

additional information i 14 february 2013 i page 37

Projects impacted by provision

by mirvac

~~Project~~
~~Product Line~~
~~State~~
~~Provision~~
~~Acquisition Date~~
Gainsborough Greens
Masterplanned Communities
QLD
$58.6m
Oct 06
Waterfront,Newstead – Site Balance
Apartments
QLD
$51.4m
Apr 08
Beachside Leighton,Stage 2
Apartments
WA
$43.0m
Aug06
Mackay
Commercial
QLD
$30.0m
Nov 07
Hope Island
Masterplanned Communities
QLD
$15.9m
Jan 07
Hamilton
Apartments
QLD
$13.4m
Jan 10
Burswood
Apartments
WA
$12.3m
Feb 03
Mariner’s Peninsula,Townsville
Apartments
QLD
$11.6m
Jun 06
Waterfront,Newstead – Park
Apartments
QLD
$8.6m
Apr 08
Brookwater
Masterplanned Communities
QLD
$8.4m
May06
Other1
—
—
$20.0m
—
Total
$273.2m

1) Remaining 1% relates to projects outside of Queensland and Western Australia.

==> picture [156 x 4] intentionally omitted <==

----- Start of picture text -----

additional information i 14 february 2013 i page 38
----- End of picture text -----

Looking forward

by mirvac

n Centralised capital allocation decision making

  • n Average age of non impaired projects is 2.5 years – purchased consistent with current market assumptions n Pro-actively increasing the number of capital efficient projects:
~~Projects controlled in capital effcient structures~~
FY07
11%1
FY12
30%2
FY15
45%2

  • n Capitalised interest is 6.8% of gross inventory from non provisioned projects

  • n Expected development operating EBIT focused on robust NSW market

==> picture [369 x 90] intentionally omitted <==

----- Start of picture text -----

FY13 FY14 FY15
NSW 38.5% NSW 89.0% NSW 70.1%
QLD 4.4% QLD 4.8% QLD 4.2%
VIC 46.3% VIC 4.4% VIC 1.7%
WA 10.8% WA 1.8% WA 24.0%
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  • 1) Represents capital structures (such as JVs and Investments and Associates) other than 100% inventory on Balance Sheet.

  • 2) Expected capital represents the development capital held within JV, Investments and Associates structures along with recent inventory acquisitions, acquired under capital efficient terms.

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Provision roll off 1
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additional information i 14 february 2013 i page 39
by mirvac
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Provision balance profile Provision release profile
$500m Existing provision balance Continue to develop $500m Existing provision balance Continue to develop
Unsold stock Englobo Unsold stock Englobo
400 400
300 300
200 200
100 100
0 0
1H13 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
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1) Based on forecast revenue, market conditions, expenditure and interest costs over project life.

Mirvac buyer profile

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additional information i 14 february 2013 i page 40
by mirvac
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Mirvac’s 1H13 settlements
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n 68.2% upgraders/empty nesters and investors
n Mirvac average price:
– House $926,000 [ 1]
– Land $242,000 [ 2]
– Apartments $1,034,000 [ 3]
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Buyer profile — 1H13
n Upgraders/empty nesters 35.7%
n Investors 32.5%
n FHB 31.8%
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Housing finance: market shares
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80% Investor First home buyer Repeat buyer
60
40
20
0
92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
Source: ABS and Mirvac
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1) 146 housing lots settled, achieving gross revenue of $135.2m.

2) 469 land lots settled, achieving gross revenue of $113.7m. 3) 79 apartment lots settled, achieving gross revenue of $81.7m.

additional information i 14 february 2013 i page 41

Growing preference towards apartments

by mirvac

Migrant households1
Dwelling structure 2003 to 20082 Prior to 20032
Separate house 46% 76%
Semi-detached/row or terrace house/townhouse 18% 9%
Flat,unit or apartment 36% 15%
All households 100% 100%

Source: Survey of Income and Housing, 2007-08 (June 2011), Mirvac

1) Households where the reference person was born overseas. 2) Year of arrival, of the household reference person.

additional information i 14 february 2013 i page 42

Mirvac’s development business

by mirvac

of total
development
capital
38% 1
Wholesale
Relationships
Structured
Land Payments
Development
Agreement
Joint Venture		 Defnition
Capital relationships with small number of investors for development, with
development deliverybyMirvacprovided for fees and share in equity profts
Benefts
Improved ROIC, fees
Example
MWRDP
Defnition
Time effcient method of staged terms for acquisition of land
for development assets
Benefts
Improved IRR, Improved ROIC
Example
Clyde North, VIC
Defnition
Provision of development services by Mirvac to the local owner
Eg. Project Development Agreement(PDA)
Benefts
Improved IRR, access to strategic sites, fees
Example
Elizabeth Hills, NSW; Green Square, NSW
Defnition
Undertakinga development in a defned relationshipwith a co-investor
Benefts
Improved ROIC, fees
Example
Googong, NSW

1) As at 31 December 2012.

additional information i 14 february 2013 i page 43

Hypothetical profit making development project – treatment of capitalised costs

by mirvac

~~Project metrics~~
~~Total~~
Sales revenue
120
Land
(20)
Cost of property development and construction
(60)
Sales & marketing expenses
(10)
Interest costs
(10)
Totalproject return
20
Cash Flow
Year 1
Year 2
Year 3
Sales revenue
120
Land
(20)
Cost of property development and construction
(20)
(40)
Sales & marketing expenses
(5)
(5)
Interest costs
(3)
(5)
(2)
Net cash fow
(48)
(45)
113
P&L
Year 1
Year 2
Year 3
Sales revenue
120
COGS
(80)
Gross margin
—
—
40
Sales & marketing expenses
(5)
—
(5)
EBIT
(5)
—
35
Interest and fnance charges paid/payable
—
—
(2)
Interest capitalised in current and prior years expensed this year
—
—
(8)
Total fnance costs
—
—
(10)
Operating netproft
(5)
—
25
Balance Sheet
Year 1
Year 2
Year 3
Cost of acquisition
20
20
—
Development costs
20
60
—
Borrowingcosts capitalised duringdevelopment
3
8
—
Gross inventory
43
88
—		 During construction all interes
costs are capitalised to
inventory. These are released
the P&L on settlement throug
‘Borrowing costs capitalised
during development’.
Upon Settlement capitalised
acquisition (land) and
development (construction)
costs are released in the P&L
through ‘COGS’.
Upon the completion
of construction interest
costs are expensed
directly to the P&L

During construction all interest costs are capitalised to inventory. These are released in the P&L on settlement through ‘Borrowing costs capitalised during development’.

additional information i 14 february 2013 i page 44

Hypothetical provisioned development project – treatment of capitalised costs

by mirvac

~~Project Metrics~~
~~Total~~
Sales revenue
100
Land
(25)
Cost of property development and construction
(50)
Sales & marketing expenses
(10)
Interest costs
(25)
Totalproject return
(10)
Cash fow
Year 1
Year 2
Year 3
Year 4
Year 5
Sales revenue
100
Land
(25)
Cost of property development and construction
(5)
(10)
(15)
(20)
Sales & marketing expenses
(5)
(5)
Interest costs
(3)
(5)
(7)
(8)
(2)
Net cash fow
(38)
(15)
(22)
(28)
93
P&L
Year 1
Year 2
Year 3
Year 4
Year 5
Sales revenue
100
COGS
(75)
Gross margin
—
—
—
—
25
Sales & marketing expenses
(5)
—
—
—
(5)
EBIT
(5)
—
—
—
20
Interest and fnance charges paid/payable
(2)
Interest and fnance charges paid/payable – provision release
2
Interest capitalised in current and prior years
expensed this year – provision release
(23)
Interest capitalised in current and prior years
expensed this year – provision release
3
Total fnance costs
—
—
—
—
(20)
Operatingnetproft
(5)
Inventoryimpairment
(5)
Statutorynetproft
(5)
(5)
—
—
—
Balance sheet
Year 1
Year 2
Year 3
Year 4
Year 5
Cost of acquisition
25
25
25
25
—
Development costs
5
15
30
50
—
Borrowing costs capitalised during development
3
8
15
23
—
Gross inventory
33
48
70
98
—
Provision for loss
—
(5)
(5)
(5)
—
Net inventory
33
43
65
93
—		 In year 2 when the
construction delays become
apparent, an inventory
impairment is taken to refect
the reduced net realisable
value of the project.
This is the same project but
it has suffered from a 2 year
delay in construction, increasing
interest costs and resulting
in a negative project return.
The Inventory is not written
down at the time of the
impairment but a provision
for loss is added to the
balance sheet. This provision
is released against interest
costs upon settlement.
Gross margin is not affected
by interest (project delay
impact) Impairment in this
example relates to increased
fnance costs from time delay.
If the impairment related
to increased development
costs causes the margin to be
negative then the impairment is
applied to make gross margin
zero through COGS provision
and COGS interest provision,
released on settlement.

This is the same project but it has suffered from a 2 year delay in construction, increasing interest costs and resulting in a negative project return.

additional information i 14 february 2013 i page 45

Capitalised interest policy

by mirvac

  • n Mirvac assesses and allocates capitalised interest on a stage-by-stage basis within a project and accounts for the stage separately (not project wide)

  • n Mirvac allocates interest to stages by the gross value of WIP irrespective of whether the project is in provision or not (therefore not burdening other profitable projects)

  • n Capitalisation of interest occurs when a stage is active

  • n Capitalisation ceases when a stage is practically complete, where a stage is inactive or deemed on-hold

  • n Projects recently announced as on-hold (Mariners Peninsula, Townsville and Foreshore, Hamilton) have commenced expensing interest

  • n All future interest costs (capitalised and/or expensed on gross value) are factored into NRV calculations

additional information i 14 february 2013 i page 46

Net realisable value

by mirvac

n Mirvac undertakes comprehensive and regular reviews of the carrying value of Inventories and JV and Associates. Inventory is required to be carried at the lower of cost and Net Realisable Value (“NRV”). NRV for the purposes of inventories provision is the difference between costs accumulated to date, plus all future costs (including interest and cost to sell) less forecast net revenue. Any future loss is booked as a provision immediately rather than progressively over the life of the project.

n Englobo projects are assessed on the basis of expected current market/ saleable value of the project (which differs to the NRV build out scenarios previously adopted).

additional information i 14 february 2013 i page 47

Residential development high density = apartments

by mirvac

Profile of high density

~~Generic profile — Single stage, 200 unit Apartment projects~~

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Month 35
Month 6 Month 12 Month 15 Practical
n High barriers to entry DA submitted DA approved Construction commences completion
50.0%
n Acceptable risk 30.0% paymentLand Settlement ofunsold stock
return profile
n Larger quantum of return 10.0%
Internal Council
n More capital intensive 0.0% design phase approval phase
n Longer cash conversion (10.0%) pre-sold stockSettlement of
2-3 yearscycle – approximately (30.0%) Initial marketing& pre-release Sales Civils, carparks &basement works
Finishing of
n Complex skill set (50.0%) lower levels
Finishing of
n Pre-sales for de-risking (70.0%) upper levels
Planning & design Marketing Construction Settlement
(9 months) (6 months) (20 months) (6 months)
Profit & loss impact
100% project Marketing expensed Sales commissions expensed 100% of profit recognised on settlement
Development Agreements Mirvac share of equity accounted sales and marketing expenses Mirvac share of equity profits recognised on settlement
Fee stream Cost based fees – billed for design, marketing and construction costs Revenue based fees
50% joint venture 50% of equity accounted sales and marketing expenses 50% of equity profits recognised on settlement
Fee stream Cost based fees – billed for design, marketing and construction costs Revenue based fees
Wholesale partnership Mirvac share of equity accounted sales and marketing expenses Mirvac share of equity profits recognised on settlement
Fee stream Cost based fees – billed for design, marketing and construction costs Revenue based fees
CUMULATIVE CASH FLOW
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additional information i 14 february 2013 i page 48

Residential development low density = masterplanned communities

by mirvac

Profile of low density

  • n Lower capital commitment n Smoother earnings

  • n Delivery less complicated

  • n Flexibility of stock and staging

  • n Shorter cash conversion cycle – approximately 6-12 months

  • n Risk in planning at acquisition

~~Generic profile — multi stage, 1,000 lot Masterplanned Community~~

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Month 6 Month 24 Month 36
DA submitted DA approved First settlement
80.0%
40.0%
0.0% Negotiationsauthoritiesbetweencouncil civil worksPeriod of Settlementperiod Indicative profileof each stage
Break
even point
Staged
(40.0%) land payment First profit recognition
Sales
Internal Initial civils
design & infrastructure
phase
(80.0%)
Planning & design Civils & settlements
(24 months) (continues for remainder of project)
CUMULATIVE CASH FLOW
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Profit & loss impact

==> picture [330 x 85] intentionally omitted <==

----- Start of picture text -----

100% project Marketing expenses 100% of profit recognised on settlement
Development Agreements Marketing expenses Mirvac share of equity profits recognised on settlement
Fee stream Cost based fees Revenue & cost based fees
50% joint venture Marketing expenses 50% of equity profits recognised on settlement
Fee stream Cost based fees Revenue & cost based fees
Wholesale partnership Marketing expenses Mirvac share of equity profits recognised on settlement
Fee stream Revenue & cost based fees
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additional information i 14 february 2013 i page 49

Our markets

by mirvac

==> picture [500 x 15] intentionally omitted <==

----- Start of picture text -----

Sector Description Sub-market Example developments
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Sector Description
Sub-market
Example developments
Residential Masterplanned communities
> Land subdivision
> Completed housing1
> Packaged housing2
> Integrated housing
> First home buyers
> 2nd/3rd home buyers
> Investors
> Typical price range:
> Land $170K – $300K
> Housing $350K – $600K
> Integrated housing $375K – $1m
ELIzABETH HILLS, NSW
MIDDLETON GRANGE, NSW
Apartments
> Mid market
> High end
> Often as part of larger
scale urban renewal
projects (multiple stages)
> Owner occupiers (60%)
> Investors (40%)
> Typical price range:
> 1 bed $400K – $550K
> 2 bed $600K – $900K
> 3 bed $800K – $2.0m
> Penthouse $1.5m – > $6m
HAROLD PARK, NSW
ERA, CHATSWOOD, NSW
Commercial Offce / Industrial / Retail
> Investment grade development suitable for
MPT, third party or capital partner

TREASURY BUILDING, WA 200 GEORGE STREET, NSW

1) Mirvac build and sell houses on completion.

  • 2) Packaged housing comprises land sale plus construction of a house with progress payments on purchase.

additional information i 14 february 2013 i page 50

Development risk management

by mirvac

Superior brand leveraged

==> picture [329 x 36] intentionally omitted <==

----- Start of picture text -----

PRICE
HIGHER REPEAT
PREMIUM
PRE-SALES CUSTOMERS
$ ACHIEVED
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Ability to drive returns in a flat macro market

n Better access to capital n National procurement

n Brand drives pre-sales and price premium n Increased market share

n Conservative assumptions via acquisition process

Settlement management

n Robust sales contracts over 40 years of experience n Default rates average 3% medium term n Contracts full recourse and unconditional

n Sales and marketing team employed and trained in-house

additional information i 14 february 2013 i page 51

HEALTH SAFETY AND WELLBEING

by mirvac

additional information i 14 february 2013 i page 52 by mirvac

Health safety and wellbeing

From FY08 to FY12 average time lost through injury days has reduced by 75.9%

From FY08 to FY12 the number of injuries resulting in workers compensation claims has reduced by 48.8%

==> picture [180 x 143] intentionally omitted <==

----- Start of picture text -----

Average time lost through injury in days
1H12 2 days
FY12 7 days
FY11 8 days
FY10 21 days
FY09 24 days
FY08 29 days
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==> picture [180 x 144] intentionally omitted <==

----- Start of picture text -----

Number of injuries resulting in workers
compensation claims
1H13 19
FY12 97
FY11 122
FY10 136
FY09 179
FY08 200
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additional information i 14 february 2013 i page 53

Mirvac statutory income tax calculation

by mirvac

~~1H13 ($m)~~
Loss Before Tax
(31.8)
Less: Trust Proft & GroupEliminations
(262.7)
Corporation Loss Before Tax
(294.5)
Net Add Back for Non Deductible Expenses and Non Assessable Income
23.4
Corporation Adjusted Taxable Loss
(271.1)
Tax Beneft At 30%
81.3
Tax Beneft Of Utilisation Of Prior Year Tax And Cgt Losses Not PreviouslyRecognised
0.0
Overprovided In Prior Years
5.7
Total Tax Beneft
87.0

additional information i 14 february 2013 i page 54

FY13 calendar[ 1]

by mirvac

Upcoming conference attendance:
~~Event~~
~~Location~~
~~Date~~
Private Roadshow
Melbourne
18 – 19 February2013
Private Roadshow
Sydney
21 – 22 February2013
Private Roadshow
Singapore
25 February2013
Private Roadshow
HongKong
26 February2013
Private Roadshow
USA
27 February– 1 March 2013
Citi Global PropertyConference
USA
4 March 2013
Upcoming announcements:
~~Event~~
~~Location~~
~~Date~~
Q3 update
—
29 April 2013
Annual General Meeting
Melbourne
14 November 2013
MGR Distribution Announcement
—
19 June 2013
June 2013 Indicative Distribution Ex Date
—
24 June 2013

Investor Relations Contact T: (02) 9080 8000 E: [email protected]

1) All dates are indicative and subject to change.

additional information i 14 february 2013 i page 55

Glossary

by mirvac

==> picture [477 x 14] intentionally omitted <==

----- Start of picture text -----

Term Meaning Term Meaning
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ABS
Australian Bureau of Statistics
A-REIT
Australian Real Estate Investment Trust
Bp
Basis Points
CBD
Central Business District
COGS
Cost of Good Sold
CPSS
Cents Per Stapled Security
DA
Development Application — Application from the relevant planning authority to
construct,add,amend or change the structure of aproperty.
DPS
Distribution Per Stapled Security
EBIT
In the current reporting period, Mirvac has revised its defnition of Earnings Before
Interest and Taxes (EBIT). Mirvac considers interest income from joint ventures and
interest income from mezzanine loans to be part of a business’s operations and
should therefore form part of operating revenue. Prior to FY11, interest income
from joint ventures and interest income from mezzanine loans were shown as part
of interest revenue. All historical EBIT fgures in this presentation have been re-
stated to refect the current defnition of EBIT for comparability.
EIS
Employee Incentive Scheme
Englobo
Groupof land lots that have subdivisionpotential
EPS
Earnings Per Stapled Security
FHB
First Home Buyer
FY
Financial Year
ICR
Interest Cover Ratio
IFRS
International Financial ReportingStandards
IPD
Investment PropertyDatabank
IPUC
Investmentproperties under construction
IRR
Internal Rate of Return
JV
Joint Venture
LPT
Listed PropertyTrust
MAT
MovingAnnual Turnover		 MGR
Mirvac GroupASX code
MPT
Mirvac PropertyTrust
MTN
Medium Term Note
MWRDP
Mirvac Wholesale Residential Development Partnership
NABERS
National Australian Built Environment Rating system — The National Australian
Built Environment Rating System is a multiple index performance-based rating
tool that measures an existing building’s overall environmental performance
during operation. In calculating Mirvac’s NABERS offce portfolio average, several
properties that meet the following criteria have been excluded:
i) Future development – If the asset is held for future (within 4 years)
redevelopment
ii) Operational control –If operational control of the asset is not exercised by MPT
(ie tenant operates the building or controls capital expenditure).
iii) Less than 75% offce space – If the asset comprises less than 75% of NABERS
rateable offce space by area.
iv)Buildings with less than 2,000sqm offce space
NCI
Non-ControllingInterest
NLA
Net Lettable Area
NOI
Net OperatingIncome
NPAT
Net Proft After Tax
NRV
Net Realisable Value
NTA
Net Tangible Assets
PDA
Project DeliveryAgreement
ROIC
Return on Invested Capital calculated as earnings before interest and tax divided
byinvested capital.
SQM
Square Metre
USPP
US Private Placement
WACR
Weighted Average Capitalisation Rate
WALE
Weighted Average Lease Expiry
1H
First half

additional information i 14 february 2013 i page 56

Disclaimer and important notice

by mirvac

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 Licence. They do receive salaries and may also be entitled to receive bonuses, depending upon performance. Mirvac Funds Limited is a wholly owned subsidiary of Mirvac Limited.

An investment in Mirvac stapled securities is subject to investment and other known and unknown risks, some of which are beyond the control of Mirvac, including possible delays in repayment and loss of income and principal invested. Mirvac does not guarantee any particular rate of return or the performance of Mirvac nor do they guarantee the repayment of capital from Mirvac or any particular tax treatment.

This Presentation contains certain “forward looking” statements. The words “anticipated”, “expected”, “projections”, “forecast”, “estimates”, “could”, “may”, “target”, “consider” and “will” and other similar expressions are intended to identify forward looking statements. Forward looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements including projections, indications or guidance on future earnings or financial position and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. There can be no assurance that actual outcomes will not differ materially from these statements. To the full extent permitted by law, Mirvac Group and its directors, officers, employees, advisers, agents and intermediaries disclaim any obligation or undertaking to release any updates or revisions to the information to reflect any change in expectations or assumptions. Past performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. Where necessary, comparative information has been reclassified to achieve consistency in disclosure with current year amounts and other disclosures.

This Presentation also includes certain non-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 31 December 2012. which has been subject to review by its external auditors.

This Presentation is not an offer or an invitation to acquire Mirvac stapled securities or any other financial products and is not a prospectus, product disclosure statement or other offering document under Australian law or any other law. It is for information purposes only.

The information contained in this presentation is current as at 31 December 2012, unless otherwise noted.

Thank you

by mirvac

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