MIRVAC GROUP — Interim / Quarterly Report 2018

Feb 7, 2018

1H18 RESULTS

08.02.2018

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08 FEBRUARY 2018 1

1H18 Results

AGENDA

Overview
Susan Lloyd-Hurwitz, CEO and Managing Director	03
Financial
Shane Gannon, Chief Financial Oficer	07
Ofice & Industrial Campbell Hanan, Head of Ofice & Industrial	11
Retail
Susan MacDonald, Head of Retail	16
Residential
Stuart Penklis, Head of Residential	21
Summary and Guidance
Susan Lloyd-Hurwitz, CEO and Managing Director	27

08 FEBRUARY 2018 2

1H18 Results

OVERVIEW

Susan Lloyd-Hurwitz, CEO and Managing Director

08 FEBRUARY 2018

3

1H18 Results

OUR URBAN STRATEGY & INTEGRATED CAPABILITIES DELIVERING RESULTS

7.0-7.4% 5yr EPS CAGR[1] 6.1% 5yr NTA CAGR[2]

1. Period of FY13 (10.9cpss) to FY18, including guidance of 6-8% EPS growth in FY18.

2. Period of 1H13 ($1.64) to 1H18 ($2.20).

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1H18 Results

CYCLE PROGRESSING AS EXPECTED, MIRVAC WELL POSITIONED TO BENEFIT

Consistent execution of disciplined urban strategy to deliver earnings, distribution growth and ROIC above WACC

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Retail Residential
Office & Industrial
> Strategic overweight to Sydney > Challenging sector headwinds as expected > Price and volume growth moderating,
and Melbourne delivering results > Portfolio will continue to outperform due as expected
> Strong rental growth and falling to urban focus, strong catchments and > Portfolio well positioned with
vacancy and incentives disciplined remixing and repositioning a strong brand, urban focus and
> Creating modern assets with > Mirvac urban catchments have high incomes, overweight exposure to MEL/SYD
lower capex and higher cashflow strong population growth and high density and underweight MEL/BNE Apt
>50%
+12% +10% >$10,000/sqm +5.2% 92%
$2.3bn of pipeline has
Office leasing Office like for like Specialty +3.1% Specialty FY18 EBIT $2.9bn expected +25%
spreads Committed O&I NOI growth sales sales growth secured gross margin
development Like-for-like Pre-sales
NOI Growth
pipeline
FY18 Guidance Reaffirmed: EPS 15.3-15.6 cpss and DPS of 11.0 cpss
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08 FEBRUARY 2018 5

1H18 Results

‘HOW WE DO IT’ DRIVING ‘WHAT WE ACHIEVE’

Our people are key

• Employee engagement of 88%[ 1]

• Attracting talent as an employer of choice

• Launched industry leading Shared Care Parental Leave Policy

• Successful progress with our Transforming the Way We Work strategy through culture, place, flexibility & technology

Strong progress on ‘This Changes Everything’ sustainability strategy

• Mirvac named the most sustainable real estate company in the world by the Dow Jones Sustainability Index

• House With No Bills – November 2017 launch of pilot program to design a house with no energy bills

• Office average NABERS Energy rating of 5.1 stars

• 200 George Street, Sydney NSW: received the Architecture & Design Sustainability Award for innovation in a commercial development

• 477 Collins Street, Melbourne VIC: achieved a Platinum Core and Shell Pre-Certification from the International WELL Building Institute

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1. Undertaken by Willis Towers Watson 2017.

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1H18 Results
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Locomotive Shed, Sydney (artists impression)
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FINANCIAL

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Shane Gannon, Chief Financial Officer
08 FEBRUARY 2018 7
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1H18 Results

GROUP FINANCIAL RESULTS IN LINE WITH EXPECTATIONS

OPERATING RESULTS

OPERATING RESULTS
	1H18	1H17
	$m	$m
Ofice & Industrial	173	166		4%
Retail	83	81		3%
Residential	35	69		49%
Corporate & other	(13)	(13)		0%
Operating EBIT	278	303		8%
Operating profit after tax	215	230		7%
Funds from operations (FFO)	225	233
Adjusted funds from operations (AFFO)	182	183		1%
Statutory profit after tax	465	508		8%

Office NOI growth of 21% partially offset by lower development profit from skew to 2H18 Modest contribution from transactions and development completions Reflects the 80-90% 2H18 timing of residential settlements. On track to deliver FY18 settlements Continued focus on overhead management and other operational efficiencies Reflects 2H18 skew to residential settlements. On track for 6–8% EPS growth for FY18 2H18 skew offset by lower maintenance capex and lower incentives Timing of residential settlements and lower revaluation gains

08 FEBRUARY 2018

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1H18 Results

CONSERVATIVE BALANCE SHEET UNDERPINS EARNINGS GROWTH

Continued execution of capital management strategy

• Strong capital position and flexible balance sheet

• Upgraded credit rating to A3 from Baa1 by Moody's and upgraded outlook to positive from stable by S&P[ 1]

• Successful debt issue of US $400m Reg S notes under our EMTN program with a maturity of 9.5 years

• Gearing of 23.8% at the lower end of target range of 20-30%

• 6.8 years weighted average debt maturity up from 6.2 years at FY17, with limited expiries in any one year

• $913m of cash and undrawn committed debt facilities

• 73% of debt hedged providing protection against future interest rate movements

• Strong operating cash flows expected in 2H18 driven by the timing of residential settlements

• FY18 forecasted distribution of 11.0cpss (+6% on pcp) expected to be fully cash covered

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$2.20 4.8% 23.8% 6.8yrs
NTA increased Average Gearing [ 4] Average
3.3% from FY17 [ 2] Borrowing Cost [ 3] Debt Maturity
6.2yrs FY17
DIVERSIFIED DRAWN DEBT MATURITIES
500
400
300
200
100
0
FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33
EMTN USPP MTN Bank
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1. Mirvac S&P credit rating BBB+ positive.

2. NTA per stapled security, based on ordinary securities including Employee Incentive Scheme securities.

3. Includes margins and fees.

4. Net debt (at foreign exchange hedged rate) excluding leases/(total tangible assets – cash).

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1H18 Results

EXCELLENT VISIBILITY OF FUTURE EARNINGS GROWTH

MAJOR CONTRIBUTORS[ 1]

OFFICE & INDUSTRIAL > > > > > >	FY19						Development Pipeline > 55 Pitt Street, SYD > Australian Technology Park, SYD - Locomotive shed > 75 George Street, Parramatta FUTURE PIPELINE
	Development Profits & Fair Value Uplifts 2
	Australian TechnologyPark,SYD – Buildings 1 & 3	8 pre dev	8	4% -let ofice elopments
	477 Collins Street, MEL (fees) Calibre, SYD – B1 to 5 (potential 50% sell down)
	NOI Growth
	664 Collins Street, MEL – full year Calibre, SYD – Buildings 2 to 5 – part year 75 George Street, Parramatta – full year
RETAIL > >	East Village (50%), SYD – full year South Village (stage 1), SYD – part year			> South Village (stage 1), SYD – full year > Kawana, Sunshine Coast development – full year			> Harbourside, SYD > Toombul, BNE > Birkenhead Point, SYD > Broadway, SYD
RESIDENTIAL MPC Apartments > Tullamore, MEL > Woodlea, MEL > Olivine, MEL > Crest, SYD > Rochedale, BNE > Claremont, PER > The Finery, SYD				MPC Apartments > Tullamore, MEL > Woodlea, MEL > Olivine, MEL > Crest, SYD > Smith’s Lane, MEL > St Leonards, SYD > Pavilions, SYD > Marrick & Co, SYD > The Eastbourne, MEL			MPC Apartments > Tullamore, MEL > Woodlea, MEL > Olivine, MEL > Crest, SYD > Smith’s Lane, MEL > Everleigh, BNE > Menangle, SYD5 > Coonara Ave, SYD3 > Lane Cove Road, SYD3 > King St Canterbury, SYD4 > Pavilions, SYD > Ascot Green, BNE > Green Square, SYD
				> Crest, SYD > Smith’s Lane, MEL >	The Eastbourne, MEL

1. Based on Mirvac internal forecasts, subject to planning approvals and market demand. 2. Based on expected practical completion dates. 3. Site owned by Mirvac, progressing re-zoning opportunities. 4. Project Delivery Agreement with Australian Turf Club, subject to re-zoning. 5. Project held under an option agreement, subject to re-zoning.

ATP B1&3. Practical completion now FY19 (previous FY20) Eastbourne – Potential for partial completion in FY19

08 FEBRUARY 2018 10

OFFICE & INDUSTRIAL

Campbell Hanan, Head of Office and Industrial

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08 FEBRUARY 2018
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11
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1H18 Results

OFFICE PORTFOLIO TRANSITION NOW ACCELERATING

Strategic overweight Sydney and Melbourne delivering exceptional results

• Office NOI up 21% on pcp to $138m

• Occupancy up to 98.1% from 97.6% at FY17[ 1]

• WALE extended to 6.7 years from 6.5 years at FY17[ 2]

• Like-for-like income growth of 10%

• 50,253sqm of leasing with 12.2% leasing spreads[ 3]

• Total net valuation gains of $169m reflecting a cap rate of 5.81%

• 7 out of 28 assets externally valued at 1H18 reflecting a 5.7% gain

Strong Outlook

• 89% of FY18-19 office expiries relate to Sydney and Melbourne

• Expecting strong office like-for-like NOI growth for FY18

• 2H18 development EBIT to benefit from 664 Collins Street, Melbourne practical completion

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

• By income, including investments in joint ventures and excluding assets held for development.

• Excludes leasing of assets under development.

82%

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Sydney &
Melbourne
exposure
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12.2%

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leasing
spreads
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10%

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LFL income
growth
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OFFICE NOI ACCELERATING

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145 ($m)
140
135
130
125
120
115
110
1H17 2H17 1H18
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664 Collins St, Melbourne – Artist's Impression
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08 FEBRUARY 2018 12

1H18 Results

INDUSTRIAL PORTFOLIO PROVIDING HIGH QUALITY AND RESILIENT INCOME

Disciplined strategy execution capitalising on strong markets

• Delivered strong 4.6% like-for-like income growth with occupancy increasing 400bps to 99.3%[ 1]

• 44,000sqm of leasing including Gow St, Sydney (previously vacant)

• Formed the Mirvac Industrial Logistics Partnership (MILP) with Morgan Stanley Real Estate and sold two Melbourne assets into the fund

• 100% Sydney exposure[ 2] after selling small non-core US exposure at a premium to book value

High quality and well located developments

• Calibre, Eastern Creek NSW – progressing with development of buildings 2-5, with practical completion anticipated in stages over FY18-19 (53% pre-leased)

Strong outlook for Sydney

• Sydney market remains strong supported by limited levels of vacant prime stock

• Solid tenant demand from third-party logistics and e-commerce firms

100% Sydney exposure[ 2]

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99.3%
occupancy [ 1]
7.0 rs
y
WALE [ 3]
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IMPROVED PERFORMANCE OF INDUSTRIAL PORTFOLIO

	1H18	FY17
Sydney/Melbourne weighting2	100%	94%
Occupancy (by area)	99.3%	95.3%
Like-for-Like NOI growth	4.6%	2.0%
Cap rate	6.33%	6.37%
WALE (by income)	7.0yrs	7.0yrs

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Calibre, Eastern Creek NSW
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1. By book value, excluding assets held in funds.

2. By income.

3. By area.

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1H18 Results

HIGH FUTURE EARNINGS VISIBILITY FROM COMMITTED DEVELOPMENT PIPELINE

ADDITIONAL HIGH QUALITY INCOME FROM OFFICE AND INDUSTRIAL DEVELOPMENTS[[1]]

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ADDITIONAL HIGH QUALITY INCOME FROM OFFICE AND INDUSTRIAL DEVELOPMENTS [[1]]
RECENT COMPLETIONS $2.3BN ACTIVE DEVELOPMENT PIPELINE NOI GROWTH
~
90 ($m) NOI 49% $60m > [$] 200 [m]
committed
80 potential additional potential fair value
annual NOI by FY21 uplift between
70 100% from active dev. FY18–21 [ 2]
committed pipeline
60 100%
committed
50 53%
committed
40 100%
committed 84%
30 100% leased of active office > [$] 160 [m] 6.2%
20 100% leased 100% leased development pipeline potential development average yield
committed [ 6] EBIT between on cost [ 3]
FY18-21 [ 4]
10
YEAR 1 FULLY LET NOI
0
FY17 FY17 FY17 2H18 FY18–19 FY19 FY20 FY20 cumulative NOI
200 George St Calibre B1 2 Riverside Quay 664 Collins St Calibre B2-5 ATP ATP 477 Collins St by FY21 [ 5]
B1 & 3 [ 7] B2
Committed [ 6] Uncommitted
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1. Based on 100% occupancy and 50% ownership, other than ATP at 33.3% ownership and Calibre (all buildings) at 100% ownership.

2. Potential fair value uplift based on 4.97% cap rate for 664 Collins Street, 4.80% cap rate for 477 Collins Street, 5.0% cap rate for Australian Technology Park and 5.94% cap rate for Calibre buildings.

3. Active development pipeline only.

4. Potential future development EBIT from developments partially sold-down to capital partners (664 Collins Street, 477 Collins Street and Australian Technology Park developments).

5. Expected NOI from both active development projects and recently completed developments by FY21 including rental growth.

6. Includes Heads of Agreement.

7. ATP B1&3 PC in FY19 & income contribution from FY20.

08 FEBRUARY 2018 14

1H18 Results

ASSET CREATION MODEL IMPORTANT AT THIS POINT IN THE CYCLE

• As the last phase of a very strong cap rate compression cycle plays out, returns will be driven more by income growth

• Executing strategy to sell non-core and develop well leased, high-quality, premium/A grade assets

• Proven capability and track record of creating value with a sizable spread between developments' yield on cost and cap rates

• Benefits of a modern portfolio: lower capex, higher income, longer WALE, sustainability focus, high-quality tenants and latest technology

Future Development Pipeline

75 George Street, Parramatta

• Acquired for $86.3m on a 5.8% cap rate

• 100% leased with a WALE of 3.1 years

• 10,000sqm building on a site area of 2,668sqm

• Engaged in early stage planning, potential >30,000sqm building

MIRVAC OFFICE DEVELOPMENT YIELD ON COST VS SYD/MEL UPPER PRIME OFFICE CAP RATES

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DMJC
8.0 (%) 8.0 (%)
200 George St
7.5 7.5
699 Bourke St
7.0 Riverside Quay 7.0
664 Collins St
6.5 6.5
ATP
6.0 477 Collins St 6.0
5.5 5.5
5.0 5.0
4.5 4.5
4.0 4.0
FY15 FY16 FY16 FY17 FY18 FY19 FY20
est. est. est.
MGR Development YoC Sydney upper prime cap rates Melbourne upper prime cap rates
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*David Malcom Justice Centre

Source: JLL Research and Mirvac internal forecast

ATP Locomotive Shed, Sydney

• DA submitted, potential ~30,000sqm of retail and commercial

55 Pitt Street, Sydney CBD

• Planning submitted, potential >30,000sqm office tower

• Based on 100% Interest.

~ 45% of office portfolio younger than 10 years old

$4.2bn 82% of new office assets of office portfolio created or being developed by created between Mirvac by FY21[ 2] FY12 & FY21[ 1]

1. Based on development pipeline and internal forecasts.

08 FEBRUARY 2018 15

RETAIL Susan MacDonald, Head of Retail

1H18 Results

QUALITY URBAN RETAIL DELIVERING SOLID RESULTS

Urban and metro focus delivering performance

• Solid comparable MAT sales growth of 3.7%, with specialty MAT growth of 5.2%

• Strong comparable specialty sales productivity at $10,034/sqm, with healthy specialty occupancy costs of 15.3%

• Strong occupancy maintained at 99.4%[ 1]

• Sold a 50% share in Kawana, QLD and acquired the remaining 50% interest in East Village, Sydney

• Executed 162 lease deals across 29,000sqm, with leasing spreads remaining positive at 2.2%

• Delivered solid 3.1% like-for-like income growth

• Net valuation uplift of 2.0%[ 2]

Outlook

• Assets with superior demographics and astute management to remain resilient

• High traffic locations with convenient access will remain key in retail distribution channels

• Accelerated capex and retailer churn to continue into FY19

• By area.

• Excluding transaction costs.

• Densely populated local markets within 15km of a major CBD.

• Comparable foot traffic growth (3.1%), total foot traffic growth 4.9%.

	+5.2% specialty sales growth 3.1% foot traffic growth4 3.1% like-for-like income growth Inner urban3 exposure 70% of assets >$10,000 /sqm sales productivity
	Retail Sales by category 1H18 Total MAT 1H18 Comparable MAT 1H18 Comparable MAT growth Supermarkets $1,095m $958m 2.1% Discount department stores $253m $215m 2.8% Mini-majors $545m $474m 6.9% Specialties $1,166m $1,039m 5.2% Other retail $222m $156m (3.4%) Total $3,281m $2,842m 3.7%

08 FEBRUARY 2018

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1H18 Results

NOT ALL RETAIL IS CREATED EQUAL

Stay relevant, stay productive

• Active adapting mix, over 170 new retail brands introduced in past 18 months via development and remixing

• Disciplined development focused on asset productivity, not scale

• Customer-centric experiential capex: playgrounds, car parks, amenities, mall upgrades and technology

Outperforming anchors through the right blend and complementary uses

• Supermarkets trading over 30% above benchmarks[1] > Overweight food catering ~20% income

• Total majors trading over 25% above benchmarks[1] > Overweight entertainment & non-retail ~20% income

• Underweight department and discount department > Significantly improved apparel quality: specialty sales stores <5% income $/sqm up over 40% since Jun 14

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Strong consumer base in Mirvac’s highly urban catchments
10X Health,
~30% ~19% 65% education
higher household lower population higher population and tourism
per Sq Km vs
incomes [ 2] unemployment [ 3] growth [5] exposure
Sydney avg. [4]
The Best Markets
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1. Mirvac stores vs Urbis Shopping Centre Benchmarks 2017 per individual centre classification.

2. Estimated Mirvac SA1 catchment vs. Australian average per Census 2016.

3. Mirvac catchment unemployment rate of 4.6% versus Australian unemployment of 5.7%. Source: Department of Employment, Small Area Labour Markets – Sept 17, Mirvac Research.

4. Estimated Mirvac Sydney catchment population density of 3,906 persons per square kilometre versus Greater Sydney population density of 390 persons per square kilometre. Source: Census 2016, Mirvac Research.

5. Estimated Mirvac SA2 catchment population CAGR of 2.8% versus Australian population CAGR of 1.7% (2011-2016). Source: Census 2011 & 2016, Mirvac Research.

6. 3 years to 30 June 2017. Peer group contains ASX 200 listed AREITs with available disclosures, sourced from company reports.

7. 3 years to 31 December 2017, Mirvac comparable foot traffic growth versus Australian population growth (ABS population clock).

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Delivers Outperformance

3 YEAR AVG. COMPARABLE TOTAL SALES GROWTH[6]

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5.0 (%) 4.7%
4.0
3.0
2.2%
2.0
1.0
0
Mirvac Peer Average
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3 YEAR AVG. COMPARABLE SPECIALTY SALES GROWTH[6]

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5.0 (%)
4.5%
4.0
3.3%
3.0
2.0
1.0
0
Mirvac Peer Average
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3 YEAR AVG. COMPARABLE FOOT TRAFFIC GROWTH [7]
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5.0 (%)
4.0
3.2%
3.0
2.0 1.9%
1.0
0
Mirvac Australian population
08 FEBRUARY 2018 18
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1H18 Results

SUCCESSFUL CAPITAL RECYCLING ENHANCING PORTFOLIO QUALITY

TRANSACTIONS[–] INCREASINGLY URBAN

	Location	Transaction	Price 1	Date	Cap Rate
East Village	Sydney	50% acquisition	$155m	Aug 17	5.25%
South Village	Sydney	50% acquisition	n.a.2	n.a.2	6.00%
Kawana Shoppingworld	Sunshine Coast	50% disposal	$186m	Dec 17	5.50%

Developments – improving total asset performance

• Creating competitive point of difference with modest increase in area

• Focus on total asset IRR, not project IRR

• Focus on retailer productivity

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JUNE 2017 [ 5]
64% 6%
18%
12%
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Inner urban [ 3]
Middle ring
Growth corridor
Satellite [ 4]
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DECEMBER 2017 [ 5]
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70%
6%
18%
6%
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Inner urban [ 3]
Middle ring
Growth corridor
Satellite [ 4]
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COMPLETE

Kawana Shoppingworld

Birkenhead Point

• New Event cinema, expanded alfresco dining precinct and additional deck parking

• Premium precinct introducing Bally, Coach, Harrolds, Michael Kors, Peter's of Kensington

• 88% pre-leased

• 6,900sqm incremental GLA

• 100% leased on completion

• 100sqm incremental GLA

IN PROGRESS

Rhodes Waterside

• New ALDI and relocated Bing Lee

• 99% pre-leased > 900sqm incremental GLA

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TARGET MID 2018 COMMENCEMENT

Toombul Shopping Centre

• DA submitted for entertainment and dining precinct

• ~$30-$40m spend > ~1,500sqm incremental GLA

1. Excludes transaction costs.

1. Mirvac will pay an amount based on a 6.0% capitalisation rate of the leased net income less $30 million of initial payments made to date. Payment will be made following completion, with stage 1 expected mid FY19.

2. Densely populated local markets within 15km of a major CBD.

3. Significant population centre benefiting from proximity and connectivity to major city.

4. Weighted by asset value.

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1H18 Results

REMAINING RELEVANT – RHODES WATERSIDE (CASE STUDY)

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5 Yr CAGR
> 6.0% sales
> 4.7% traffic
> 10.7% value
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Driving value within the existing centre envelope

Customer driven evolution

• Growing catchment with 3.5% p.a. population growth over 5 years[ 1]

• Urban regeneration attracted younger, wealthier and increasingly Asian-born population[ 1]

Key Management Initiatives

• Significantly improved dining offer including evening and alfresco offer – food catering GLA doubled, apparel GLA reduced by over 36%

• Activated streetscape to engage with community

• Amenities, parents' rooms and furniture upgrades

Significant 5-year[ 2] performance enhancement

• Specialty productivity up 34% to $9,745/sqm

• Centre traffic up 26% to 11.7m customer visits

• Asset value up 66% to $195m (Mirvac share)

• Minor GLA increase <1%

• Aspirational lifestyle rebrand to ‘Rhodes Waterside’

• New ‘Monkey Bar’ playground

• Introduced free Shopping Nanny child minding service

• ALDI development and homewares remix underway

• Macroplan Dimasi research, Census 2016.

• Changes represent figures as at 31 December 2017 against 31 December 2012.

08 FEBRUARY 2018 20

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1H18 Results
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RESIDENTIAL

Stuart Penklis, Head of Residential

1H18 Results

RESIDENTIAL RESULTS ON TRACK

On track to achieve ~3,400 lot settlements for FY18

• Completed 735 settlements in 1H18 and a further 429 settlements in January 2018

• 1H18 gross margins of 22%[ 1] due to mix

• FY18 gross margins expected to be around 25%

• $2.9bn of residential pre-sales

• Defaults of <2% in-line with long-term average

• FIRB pre-sales moderating to 21% from 24% at FY17

Residential conditions continue to be mixed nationally

• Sydney returning to a more normalised market

• Demand for Melbourne land and medium density (46% of total MPC lots) product very strong

• High sales volumes and price growth at releases at Woodlea, Tullamore and Olivine in Melbourne

• Sub market weakness in Brisbane and Melbourne apartments (less than 5% of forecasted residential EBIT FY18-20[ 2] )

92% of FY18 residential EBIT secured

STRONG RESIDENTIAL PERFORMANCE

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4000 lots settled 30%
25
3000
20
2000 15
10
1000
5
0 0
FY16 FY17 FY18 Target
Lots settled (LHS) Gross Margin (RHS) ROIC (RHS)
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EXPECTED FY18 MAJOR EBIT CONTRIBUTORS

PROJECT	FY18 LOT TARGET	PRE-SOLD (%)
Harold Park, Sydney	232	100%
Tullamore, Melbourne	130	100%
Woodlea, Melbourne	887	87%
Green Square, Sydney	272	100%
Brighton Lakes, Sydney	146	100%

1. 1H18 gross margin 19%, including settlements of previously provisioned projects.

2. Brisbane & Melbourne apartments represent less than 5% of forecasted residential EBIT FY18-20 excluding Eastbourne which is 93% pre-sold.

08 FEBRUARY 2018 22

1H18 Results

RESIDENTIAL STRATEGY CENTERED ON CONTINUED URBANISATION AND GROWTH OF SYDNEY & MELBOURNE

• Mirvac benefiting from mixed use capability and strategic weighting to Sydney and Melbourne, representing 72% of total residential lots

• Strong population growth in Sydney and Melbourne underpinning long-term residential demand

• Sydney’s 20 -year population is forecasted to grow by 1.7m or 85,000 people per annum, requiring 36,250 new dwellings each year[ 1]

• Victoria’s population is forecast to grow by around 560,000 in the five years to 2022 or 112,900 people per annum.[ 2] Melbourne is estimated to require an additional 42,000 dwellings per year in the 20 years to 2031[ 3]

• Mirvac's key residential developments set to benefit from $118bn of government infrastructure spend in Sydney and Melbourne, including major transport oriented developments (TODS)

MIGRATION – SUM OF NET OVERSEAS & NET INTERSTATE (ROLLING ANNUAL)

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120 (000s)
100
80
60
40
20
0
-20
-40
Jun 85 Jun 89 Jun 93 Jun 97 Jun 01 Jun 05 Jun 09 Jun 13 Jun 17
New South Wales Victoria
Source: Australian Bureau of Statistics
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1. Greater Sydney Commission Estimate.

2. Oxford Economics forecasts average annual additions over a five year period (2018-2022).

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SHOWGROUND
STATION CASTLE HILL
T STATION CHERRYBROOKSTATION
T
T
55 COONARA AVE
WEST PENNANT HILLS
271 LANE COVE RD
MACQUARIE PARK
MACQUARIE PARKSTATION T
CHATSWOODSTATION T ST LEONARDS
ST LEONARDS/CROWS NEST T SQUARE
STATIONS
MARRICK HAROLD T CENTRAL STATION
& CO PARK T REDFERN STATION
CANTERBURY
STATION MARRICKVILLE
T STATION GREEN THE FINERY
T SQUARE T GREEN SQUARESTATION
KING ST STATIONTEMPE T
CANTERBURY T WOLLI CREEKSTATION T MASCOT STATION
INTERNATIONAL T
AIRPORT STATION
T DOMESTIC AIRPORT STATION
Urban Sydney
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1. Victoria in the Future 2016, Housing and Population forecasts.

2. Australian Bureau of Statistics – NSW & VIC expanding ~80–100K p.a. through net overseas and interstate migration.

08 FEBRUARY 2018 23

1H18 Results

MIXED USE URBAN DEVELOPMENT- GREEN SQUARE (CASE STUDY)

Proven capability to deliver returns from complex mixed use developments

• Urban regeneration, densification and mixed-use development driven by population growth, employment hubs and government investment in major infrastructure initiatives

• Ability to manage multi-stakeholders; City of Sydney, Landcom

• Integrated technical skills in development, design, construction and sales & marketing

• At completion Green Square precinct will comprise residential, retail, commercial, a community plaza, parks, library, infrastructure and an aquatic centre

Strong returns from diversified profit streams

• PDA structure reduces capital employed and increases ROIC

• Earn development and construction management fees across the life of the project and equity profit share

FY12 FY15 FY17

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Green Square – concept image
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Timeline Green Square: Longer term opportunities

Entered agreement – Mirvac, Urban Growth NSW (now Landcom), & Leighton

Acquired Leighton’s share – PDA with Urban Growth

Successful delivery and settlement of Ebsworth – 174 Apartments

FY18-19

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Future
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Completion and expected settlement of 302 OVO apartments, delivering a further six retail specialty stores’ and library and civil plaza completion

Future mixed-use: Retail and future residential stages (~650 apartments)

08 FEBRUARY 2018

24

1H18 Results

HIGH QUALITY PRODUCT AND PIPELINE

Strategic locations, quality product and brand strength will continue to drive outperformance

Strong embedded margins

• Control 28,207 lots with an overweight exposure to NSW and VIC

• 15,760 lots acquired in NSW/VIC between FY11-14

• 50% of the pipeline has an expected +25% gross margin

Managing the cycle, margins & profitability

• 51% of total lots in capital efficient PDA/JV structures provides optionality

• Continue to prudently target ~$2bn of balance sheet capital allocation to residential and engage in capital partnering

• Target 70-80% trade coverage prior to commencement of construction

• Declining capitalised interest now at 7% of inventory supports future margins

> 72% 50% exposed to of pipeline has NSW and VIC[ 1] expected +25% gross margin

25% average margin on $2.9bn of pre-sales

51%

of lots in PDA/JV capital efficient structures

1. By lots under control.

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Capital efficient projects
The Eastbourne, Melbourne (artists impression)
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Strong embedded margins
Woodlea, Melbourne (artists impression)
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08 FEBRUARY 2018 25

1H18 Results

SYDNEY AND MELBOURNE TO DRIVE FUTURE RESIDENTIAL EARNINGS

• The residential market is moderating in line with expectations

• Continued demand despite shifting market conditions reflects quality of Mirvac locations, product and brand strength

• FY18 Residential EBIT 92% secured

Medium term earnings visibility

• NSW Apartments/MPC and VIC MPC comprise ~75% of forecasted residential EBIT over FY18-20

• Strong MPC sales momentum expected to continue, supported by the release of >3,200 MPC lots over the next 18 months, driven by Melbourne projects – Woodlea, Tullamore and Olivine[ 2]

• Apartment earnings in FY19-20 supported by high-quality urban developments significantly pre-sold

88%

of forecasted NSW apartment settlements over FY18-20 pre-sold

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EXPECTED RESIDENTIAL EBIT CONTRIBUTION FY18-20 [ 1]
Other
(WA & QLD MPC)
14%
Brisbane
VIC
Apartments Masterplanned
3% Communities
33%
Melbourne
Apartments
1%
The
Eastbourne
44%
6%
VIC/NSW MPC
Sydney
Apartments
32% NSW
Masterplanned
Communities
Melbourne Apartments excluding 11%
The Eastbourne which is 93% presold
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Longer term flexibility

• Capability to release 13,000 lots over the next four years

• Urban mixed-use opportunities and commercial/industrial residential conversions

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$2.9bn
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of residential pre-sales

KEY EXPECTED APARTMENT SETTLEMENTS FY18-20

	The Eastbourne, Melbourne St Leonards, Sydney The Finery, Sydney	Pre-sold(%) 93% 100% 81%
	Green Square, Sydney	99%
	Pavilions, Sydney	73%

1. Mirvac internal forecasts

2. Subject to planning approvals and market demand

08 FEBRUARY 2018 26

1H18 Results

SUMMARY & GUIDANCE

Susan Lloyd-Hurwitz, CEO and Managing Director

08 FEBRUARY 2018

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27
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1H18 Results

OUTLOOK – DISCIPLINED URBAN STRATEGY WILL DELIVER EARNINGS AND DISTRIBUTION GROWTH

Strong earnings visibility from our diversified urban portfolio and asset creation capability

Office and Industrial

• Strategic overweight to Sydney and Melbourne delivering results with strong rental growth and falling vacancy and incentives

• Accelerating NOI growth from modern office portfolio

• Significantly pre-let development pipeline will deliver significant NOI uplift, development profits and NTA growth

Retail

• Challenging sector headwinds as expected

• Portfolio will continue to outperform due to urban focus

• Astute management, disciplined remixing and redevelopment will continue to deliver growth

Residential

• Portfolio well positioned for cycle with embedded margins and capital efficiency

• Overweight Melbourne and Sydney masterplanned communities and medium density

• Strong brand, quality product and strategically located sites leveraging infrastructure and continued urbanisation

08 FEBRUARY 2018 28

1H18 Results

REAFFIRMED FY18 GUIDANCE

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FY18 EPS
-
6 8%
Growth
on FY17
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OPERATING EPS

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15.3-15.6c
16.0 cents
14.4c FY18 guidance
(FY17 guidance:
14.0-14.4c)
14.0 13.0c
12.3c (FY16 guidance:
11.9c (FY15 guidance: 12.7-13.0c)
(FY14 guidance: 12.0-12.3c)
12.0 10.9c 11.7-12.0c)
(FY13 guidance:
10.7-10.8c)
10.0
8.0
FY13 FY14 FY15 FY16 FY17 FY18
Guidance
7.0-7.4% 5 year EPS CAGR 1
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FY18 DPS
6%
Growth
on FY17
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DPS

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12.0 cents
11.0c
FY18 guidance
10.4c
11.0
FY17 guidance:
(10.2–10.4c)
9.9c
(FY16 guidance:
9.4c 9.7–9.9c)
10.0
(FY15 guidance:
9.2–9.4c)
9.0c
8.7c (FY14 guidance:
(FY13 guidance: 8.8–9.0c)
9.0 8.5-8.7c)
8.0
FY13 FY14 FY15 FY16 FY17 FY18
Guidance
4.8% 5 year DPS CAGR 2
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1. Period of FY13 (DPS 8.7cpss) to FY18, including guidance of 6% DPS growth in FY18.

1. Period of FY13 (10.9cpss) to FY18, including guidance of 6-8% EPS growth in FY18.

08 FEBRUARY 2018

29

1H18 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 do they 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 31 December 2017, 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 2017, unless otherwise noted.

08 FEBRUARY 2018 30

THANK YOU

08.02.2018

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08 FEBRUARY 2018 31