MIRVAC GROUP — Interim / Quarterly Report 2019

Feb 6, 2019

Reimagine Urban Life 07.02.2019

1H19 RESULTS

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1H19 Results

AGENDA

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OVERVIEW FINANCIAL OFFICE & RETAIL RESIDENTIAL SUMMARY &
RESULTS INDUSTRIAL GUIDANCE
Susan Lloyd-Hurwitz Shane Gannon Campbell Hanan Susan MacDonald Stuart Penklis Susan Lloyd-Hurwitz
CEO & Managing Director Chief Financial Officer Head of Office & Industrial Head of Retail Head of Residential CEO & Managing Director
02 09 13 19 23 29
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Cover image: 477 Collins Street, Melbourne (artist impression)

07 FEBRUARY 2019 01

OVERVIEW

Susan Lloyd-Hurwitz CEO & Managing Director

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367 Collins Street, Melbourne
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1H19 Results

OUR PURPOSE[:] TO REIMAGINE URBAN LIFE

~~Shaping the future of Australia’s cities & urban areas~~

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TRAMSHEDS, SYD WOODLEA, MEL GREEN SQUARE, SYD 664 COLLINS STREET, MEL CALIBRE, SYD ATP, SOUTH EVELEIGH, SYD
We leave a legacy of sustainable, connected & vibrant urban environments
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07 FEBRUARY 2019 03

1H19 Results

STRATEGIC FOCUS ON URBAN AREAS IN GATEWAY CITIES DELIVERING RESULTS

HIGHLY VISIBLE & DEFENSIVE CASH FLOWS, SUSTAINABLE DISTRIBUTION GROWTH

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5.3 CPSS 7.8 CPSS
1H19 DPS 1H19 EPS
6% growth 26% growth
on pcp on pcp
16%
12 month
Total Return [1]
$290m $2.44
1H19 Operating Profit 1H19 NTA
26% growth 6% growth
on pcp on FY18
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1. Total return from distribution and NTA growth over the last 12 months.

07 FEBRUARY 2019 04

1H19 Results

MIRVAC IS WELL PREPARED FOR THE CYCLE

Quality will be the driver of differentiated performance

• Disposed of older, suburban and regional assets no longer on strategy

• Avoided acquiring low cap rate core assets with no development/repositioning upside

• Delivered six new modern office and five industrial buildings over the past six years with an end value of $2.7bn[1]

• Four new office assets currently under development with an end value of $3bn due for completion over FY19-22

EXECUTED STRATEGY TO SELL REGIONAL/NON-CORE ASSETS AND CREATE A MODERN CORE PORTFOLIO

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120,000 sqm 8%
477
Collins St
MEL
RSQ
Disposed of MEL
80,000 > 6
$3bn 275 Kent St
of assets SYD
FY13-FY18
367 Collins St Bldg 2 ATP
MEL SYD 80 Ann St
BRIS
699 Bourke St 2 RSQ
MEL MEL
40,000 4
Locomotive
Workshops
SYD
664
8 Chifley Square Collins St
SYD 200 MEL Bldg
George St 1 & 3,
DMJC
SYD ATP
PER
SYD
0 2
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
New Office developments Reposition / refurbish Australian composite cap rate (RHS)
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1. 100% value.

Source: Mirvac and MSCI.

07 FEBRUARY 2019 05

1H19 Results

TRANSITION CONTINUES TOWARDS HIGH QUALITY PASSIVE RECURRING EARNINGS

• Acceleration of passive earnings growth is delivering EPS growth despite lower residential earnings expected in FY19

EPS GROWTH FUELLED BY PASSIVE PORTFOLIO

20.0 (cents)

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

• Forecast ~$1bn of active EBIT over the next three years, in line with prior three years

• Passive capital as a percentage of total capital increasing as development pipeline completes

85[-] 90%

~ $1bn

5%

Passive capital allocation target (86% at 1H19)

Forecast average passive earnings growth p.a. FY19-21

Forecast active EBIT FY19-21

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16.9–17.1 c
16.4 c [ 1]
15.0
14.4 c
13.0 c
12.3 c
10.0
5.0
0.0
FY15 FY16 FY17 FY18 (Restated) FY19 guidance
Group EPS Residential proportion of Group EPS [ 2]
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1. FY18 Group EPS restated to align to FY19 Operating Profit definition.

2. Residential EBIT less residential development interest expense, less tax expense.

07 FEBRUARY 2019

06

1H19 Results

URBAN FOCUS & ASSET CREATION DELIVERING NTA GROWTH

OFFICE & > $6.4bn of office INDUSTRIAL 1 1 assets exposed 84% SYD/MEL, 84% SYD/MEL, 95% A/Prime 59%% grade. Valued on a 5.46% cap rate

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NTA GROWTH DRIVEN BY QUALITY INVESTMENT PORTFOLIO & COMMERCIAL OFFICE & > $6.4bn of office
DEVELOPMENT COMPLETIONS INDUSTRIAL 1 1 assets exposed 84% SYD/MEL, 84% SYD/MEL,
95% A/Prime
$2.50 $2.44 RESIDENTIAL 1 59%% grade. Valued on
a 5.46% cap rate
12% > $0.9bn of industrial
2.00 assets 100%
> $1.6bn of residential inventory SYD valued on
$1.74 valued at the lower of cost a 5.89% cap rate
and net realisable value.
1.50 > Additional value
> Over 27,000 lots under from managing
control with an average $6bn external
1.00 vintage of 6 years, AUM and forecast
74% NSW/VIC delivery of
commercial $3bn
0.50 RETAIL 1 2.44 developments
$ (>$200m of fair
27% NTA value uplifts & >$200m of
development EBIT
> $3.4bn urban focused
0.00 forecast)
portfolio, 68% SYD, valued
FY15 FY16 FY17 FY18 1H19
on a 5.40% cap rate
Group NTA Residential component of Group NTA [ 2]
> Recent transactions
demonstrate a growing
investment premium for OTHER 1,3
strong urban markets
2%
10% NTA CAGR
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NTA GROWTH DRIVEN BY QUALITY INVESTMENT PORTFOLIO & COMMERCIAL DEVELOPMENT COMPLETIONS

$0.9bn of industrial assets 100% SYD valued on a 5.89% cap rate

1. Indicative NTA split based on net liabilities of the corporate segment (excluding investment in Tuckerbox Hotel Trust) reallocated to the operating segments on a weighted average proportion of total Net Assets. Refer to note B1 Segment Assets and Liabilities of the Interim Report for further details.

2. Indicative residential NTA split based on proportion of Net Liabilities of the Corporate Segment (excluding investment in Tuckerbox Hotel Trust).

3. Other relates primarily to Mirvac’s investment in the Tuckerbox Hotel Trust.

07 FEBRUARY 2019 07

1H19 Results

CULTURE & CAPABILITY AS A SOURCE OF COMPETITIVE ADVANTAGE

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OUR PEOPLE

SUSTAINABILITY

SAFETY & WELLBEING

INNOVATION

WGEA citation for gender equity for fourth year in a row and accredited as a White Ribbon Workplace

Winner of AHRI CEO Diversity and Inclusion Champion Award and finalist in two categories: Elizabeth Broderick Workforce Flexibility Award; Dame Quentin Bryce Gender Equity Award

Zero pay gap for like-for-like roles for the last 3 years

95% Return from Parental Leave

75% of employees have some form of flexible working arrangement

90% Employee engagement score[ 1]

Climate Change & Natural Resources:

Continue to achieve leading sustainability ratings across the portfolio, including 1 Darling Island (6 Star NABERS Energy), and 200 George St and 275 Kent St (6 Star Green Star), demonstrating exceptional operational performance

Our Community: National Community Day, saw over 800 employees volunteer across 51 activities, with time, cash and in-kind donations valued at ~$400,000

Trusted Partner: Ranked #1 ESG company in Australia by J.P. Morgan ESGQ[ 2]

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A revised, modernised and simplified, HSE Management System, establishing the minimum requirements and standards for managing HSE at Mirvac, launched in July 2018

Mirvac Constructions Pty Limited obtained accreditation under the Work Health & Safety Scheme administered by the Office of Federal Safety Commissioner on 15 August

Delivery of health and wellbeing initiatives aimed at improving employees health, including health checks, skin checks and a mindfulness app

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WORK SAFE
stay safe
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Expansion of the Third Space – over 900 customers bookings to work in the space at Broadway, The Third Space is expanding to a second retail asset

• Pet Concierge at Green Square has officially been launched in conjunction with RSPCA NSW, delivering services to Mirvac residents and the community

Energy saving – At Ascot Green, BRC, residents who have taken up our ‘solar upgrade’ which uses solar and battery technology combined with Evergen’s Smart Energy System, are reported as being off grid for between 85 – 94% of their household energy usage.

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1. Willis Towers Watson. 2. J.P. Morgan – ESGQ Australia – 2018.

07 FEBRUARY 2019 08

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FINANCIAL 1H19 Results
RESULTS
Shane Gannon
Chief Financial Officer
Allendale Square, Perth 07 FEBRUARY 2019 0909
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1H19 Results

STRONG FINANCIAL RESULTS IN LINE WITH EXPECTATIONS

OPERATING RESULTS	1
		1H18	1H19
		$m	$m
Ofice & Industrial		189	265	40%
Retail		87	85	2%
Residential		34	58	71%
Corporate		(17)	(18)	6%
Operating EBIT		293	390	33%
Operating profit after	tax	230	290	26%
Adjusted funds from operations (AFFO)		182	252	38%
Statutory profit after tax		465	648	39%

Strong increase in NOI driven by 6.0% LFL growth and recent completion of 664 Collins Street, plus significant development EBIT driven by Calibre reaching PC and progressive profit recognition on 477 Collins Street & ATP, South Eveleigh

LFL NOI growth of 2.6% and Kawana development EBIT offset by loss of NOI from the 50% divestment of Kawana in December 2017

Reflects timing of settlements skewed more to 1H19 vs 1H18. On track to deliver FY19 lot target with greater proportion of settlements coming from masterplanned community projects

Group on track for FY19 EPS growth guidance

Benefiting from strong 1H19 operating earnings and $392m of net property revaluation gains

1. 1H18 Restated in line with FY19 definition of operating profit which includes share based payments expense and excludes the amortisation of all lease incentives and leasing costs.

07 FEBRUARY 2019 10

1H19 Results

ROBUST BALANCE SHEET

• Well positioned to fund existing development pipeline and growing distribution

• Gearing of 24.4% and $570m of cash and undrawn committed debt facilities

4.5% 24.4% 6.1YRS A3/A Average Gearing[ 2] Average Debt Maturity Moody’s/Fitch

Moody’s/Fitch Credit ratings

Average Borrowing Cost[ 1]

• New credit rating from Fitch (A-stable), and maintained A3 Moody’s rating

• Strong operating cashflows in 1H19 and expected to continue in 2H19 given the timing of residential settlements

• FY19 forecast distribution of 11.6cps (+5% on pcp) expected to be fully cash covered with a conservative payout ratio

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

• Creating value with an on market security buyback (average price discount to 1H19 NTA of 9%)

NET TANGIBLE ASSET GROWTH FUELLED BY PASSIVE PORTFOLIO

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$2.50 0.10 (0.05)
2.44
2.40 0.08
2.31
2.30
2.20
2.10
2.00
NTA at 1 July 2018 Retained Operating Net Revaluation Gain Distributions NTA at 31 December 2018
Earnings
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1. Includes margins and fees.

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

07 FEBRUARY 2019 11

1H19 Results

PIPELINE DELIVERING INCREASING RECURRING INCOME, SUPPORTED BY ACTIVE DEVELOPMENT

PIPELINE DELIVERING INCREASING RECURRING INCOME, SUPPORTED BY ACTIVE DEVELOPMENT	PIPELINE DELIVERING INCREASING RECURRING INCOME, SUPPORTED BY ACTIVE DEVELOPMENT	PIPELINE DELIVERING INCREASING RECURRING INCOME, SUPPORTED BY ACTIVE DEVELOPMENT
MAJOR CONTRIBUTORS 1
OFFICE & INDUSTRIAL > 664 Collins Street, MEL – full year > Calibre, SYD – B2 to 5 – part year > 75 George Street, Parramatta, SYD – full year > 383 LaTrobe Street, MEL – part year > ATP, South Eveleigh, SYD2 > 477 Collins Street, MEL2 > Calibre, SYD – B1 to 5 (50% sell down) > 477 Collins Street, MEL (final PC) > ATP, South Eveleigh, SYD (final PC) > 80 Ann Street, BNE2 > ATP, South Eveleigh, SYD – Buildings 1 & 3 – part year > 477 Collins Street, MEL – part year > Calibre, SYD – B2 to 5 – full year NOI Growth NOI Growth Development Profits & Fair Value Uplifts 2 Development Profits & Fair Value Uplifts 2 FY19 FY20 84% pre-let developments3		Development Pipeline > Locomotive Workshops, South Eveleigh, SYD > 80 Ann Street, BNE > 75 George Street, Parramatta, SYD > 55 Pitt Street, SYD > Elizabeth Enterprise, Badgerys Creek, SYD > 383 LaTrobe Street, MEL FUTURE PIPELINE
RETAIL > East Village (50%), SYD – full year > South Village, SYD – part year	> South Village, SYD – full year > Kawana, Sunshine Coast development – full year > Toombul, BNE development – part year	> Harbourside, SYD > Birkenhead Point, SYD > Broadway, SYD
RESIDENTIAL MPC Apartments > Tullamore, MEL > Woodlea, MEL > Olivine, MEL > Hydeberry, BNE > Crest, SYD > The Finery, SYD > Claremont, PER > The Eastbourne, MEL > Lucid, BNE	MPC Apartments > Tullamore, MEL > Woodlea, MEL > Olivine, MEL > Crest, SYD > Gainsborough Greens, BNE > St Leonards Square, SYD > The Eastbourne, MEL > Marrick & Co, SYD > Pavilions, SYD	MPC Apartments > Olivine, MEL > Woodlea, MEL > Smiths Lane, MEL > Everleigh, BNE > Googong, SYD > Altona North, MEL5 > Tullamore, MEL > Henley Brook, PER > Green Square, SYD > Pavilions, SYD > Yarra’s Edge, MEL > Ascot Green, BNE > Coonara Ave, SYD4 > 505 George Street, SYD > Harbourside, SYD4 + Australian Build-to-Rent Club

1. Based on Mirvac internal forecasts, subject to planning approvals and market demand. 2. Development profit recognised progressively over the life of the project. 3. Percentage pre-let of committed development pipeline including HoA. 4. Site owned by Mirvac, progressing re-zoning opportunities. 5. Held under share sale agreement.

07 FEBRUARY 2019 12

OFFICE & INDUSTRIAL

Campbell Hanan

Head of Office & Industrial

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Locomotive Workshops, South Eveleigh (artist impression)
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13
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1H19 Results

OFFICE PORTFOLIO TRANSITION NOW ACCELERATING

• Strong portfolio results supported by strategic overweight to prime Sydney and Melbourne assets and development completions

• Office NOI up 10% on pcp to $169m

• Like-for-like NOI growth of 5.4%

• Total leasing spreads of 15.6%[ 1]

• Maintained high levels of occupancy at 97.2%[ 2] , with a WALE of 6.6 years[ 3]

• Incentives declined to 15.7% from 22.0% over the half

• Strong net valuation gains of $286m, 4.7% over the half

• Capitalisation rate compression of 23bps[ 4] , to 5.46%

Developing high quality modern assets

OFFICE NOI ACCELERATING

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$170m
10%
165
on pcp
160
155
150
145
1H18 1H19
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• ATP, South Eveleigh – B1&3 scheduled for PC in 2H19 (100% leased)

• 477 Collins Street – now 88% committed and due for PC in FY20

• Locomotive Workshops, South Eveleigh – pre-leased 66% of 30,300 sqm and due for PC in FY21[ 5]

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$12bn 15.6%1 5.4%
Office AUM Leasing spreads LFL NOI growth
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1. Excludes a lease to the Department of Health due to delayed lease commencement.

2. By area.

3. By income.

4. Including share of valuation gains from joint ventures.

5. Includes retail component.

07 FEBRUARY 2019 14

1H19 Results

INDUSTRIAL PORTFOLIO PROVIDING HIGH QUALITY AND RESILIENT INCOME

• Industrial benefiting from strong tenant demand and 100% Sydney weighting

WESTERN SYDNEY FOCUS CLOSE TO TRANSPORT & INFRASTRUCTURE NODES

• Maintained 100% occupancy[ 1] , with a WALE of 7.6 years[ 2]

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KEY
SHARED HEAVY / DEDICATED FREIGHT RAIL
MAJOR ROAD
MIRVAC ASSET
LANE COVE ROAD
CALIBRE HUNTINGWOOD
RYDALMERE
ST LEONARDS
SMITHFIELD
PROPOSED
M12 MOTORWAY
WESTERN
SYDNEY
AIRPORT
ELIZABETH HOXTON PARK
ENTERPRISE
BANKSTOWN
AIRPORT
MILPERRA PADSTOW
>
1bn
$ PORT
BOTANY
MGR Industrial SYDNEY PRECINCT
AIRPORT
AUM NEXUS PRECINCT
SMEATON GRANGE
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• Like-for-like NOI growth of 10.3%[ 3]

• Strong net valuation gains of $37m, 4.5% over the half

Capital partnering success and future pipeline

• Calibre B1 – 5, Eastern Creek NSW: 100% complete and leased in 1H19. Sold 50% interest to the Mirvac Industrial Logistics Partnership (MILP) for approximately $125m

• Badgerys Creek, Western Sydney, NSW: Agreement to acquire Stage 1 of a future 244-hectare industrial estate 800 metres from new Western Sydney Airport

Strong outlook for Sydney

• Sydney market remains strong, supported by limited levels of vacant prime stock and solid tenant demand

• By area (NLA).

• By income.

• Like-for-like NOI growth 3.9% excluding 36 Gow St, Padstow, NSW.

07 FEBRUARY 2019 15

1H19 Results

INTEGRATED MODEL CREATING VALUE – CALIBRE INDUSTRIAL PRECINCT, SYD

Sydney’s Premier Industrial Precinct

Located in Western Sydney growth corridor

• Close proximity to transport links at interchange of M4 and M7 Motorways

• Pre-leased 100% prior to completion with strong demand from eCommerce

Aligned with Mirvac Industrial Strategy

• Value add through development

• Modern, high quality, flexible facility – strong cashflow, low capex

• Strong, diversified tenant covenants

• High level of sustainability features including rooftop solar, LED lighting and rainwater harvesting and re-use

Strong development returns and ongoing fund management

• 50% sold to Mirvac Industrial Logistics Partnership (MILP)

• Mirvac has a 10% co-investment in MILP

• MILP has 8 assets and $229m assets under management

• Mirvac receives fees for providing a range of services to MILP including asset and funds management

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Value
$250m [ 1]
Cap rate
5.0%
Ownership
50%
NLA
110,000 sqm
WALE
6 years
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Yield on cost
~
6.8%
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Fair value uplift [ 2] Development profit Total return [ 3]
$39m $38m 40%
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1. 100% value.

2. Uplift including revaluation gains in prior periods.

3. Includes development profit and net valuation increase.

07 FEBRUARY 2019 16

1H19 Results

BUILDING RESILIENT RECURRING INCOME

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

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$95m
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$3.0bn ACTIVE DEVELOPMENT PIPELINE NOI GROWTH
Potential additional annual NOI
100 ($m) NOI
by FY23 from FY19 from active
66%
90 committed development pipeline
80 66% [ 5]
committed
70
60 84% 88%
committed
50 pipeline committedof development [ 5] >$200m
Potential fair value uplift
40 100% between FY19-22 [ 2]
committed
100%
30
committed
100%
20
committed
10 100%
committed
0 YEAR 1 FULLY LET NOI >$200m
2H18 FY18–19 FY19 FY20 FY20 FY21 FY22 Cumulative NOI Potential development
664 Collins Street Calibre B2-5 ATP, ATP, 477 Collins Street Locomotive Workshops, 80 Ann Street by FY23 [ 4]
MEL SYD South Eveleigh, SYD South Eveleigh, SYD MEL South Eveleigh, SYD BNE EBIT between FY19-22 [ 3]
B1 and 3 [ 6] B2
Committed [ 5] Uncommitted
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1. Based on 100% occupancy and 50% ownership, other than ATP, South Eveleigh at 33.3% ownership and Locomotive Workshops, South Eveleigh at 100% ownership.

2. Potential fair value uplift based on 4.80% cap rate for 477 Collins Street, 5.0% cap rate for ATP, South Eveleigh, and 5.0% cap rate for 80 Ann Street.

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

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

5. Includes Heads of Agreement.

6. ATP, South Eveleigh B1&3 PC in FY19 & income contribution from FY20.

07 FEBRUARY 2019 17

1H19 Results

TRACK RECORD & VISIBLE FUTURE OPPORTUNITIES

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

~~CREATE TO CORE~~

• Executed a 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 the development yield-on-cost and cap rate

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Future pipeline aligned to strategy

75 George Street, Parramatta

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

New buildings with Tighter densities minimal maintenance for the modern capex workforce

Modern smart Long term buildings that work recurring income with disruptive technology

55 Pitt Street, Sydney

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

383 LaTrobe Street, Melbourne

• Potential for a >40,000 sqm A-grade office tower

Elizabeth Enterprise, Badgerys Creek

Engaged in early stage planning

CONSISTENT HISTORY OF STRONG TOTAL RETURNS TO MIRVAC

50% (Total Return)

9.0%

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8.0
40
7.0
30
6.0
20
5.0
10
4.0
0 3.0
699 Bourke Street David Malcolm 2 Riverside Quay 200 George Street 664 Collins Street Calibre B1-5
MEL Justice Centre MEL SYD MEL SYD
PER
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Total Return (profit + fair value uplift to Mirvac) (LHS) Development yield on cost (RHS) Cap Rate sold down (RHS)

1. Based on 100% Interest.

2. Based on development pipeline and internal forecasts.

07 FEBRUARY 2019 18

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1H19 Results
RETAIL
Susan MacDonald Head of Retail
Kawana Shoppingworld, Sunshine Coast
07 FEBRUARY 2019 1919
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1H19 Results

URBAN RETAIL DELIVERING SOLID PERFORMANCE

• High occupancy maintained of 99.3%[ 1]

• Executed ~28,800 sqm of leasing activity, with leasing spreads of 2.7%

• Valuation uplift of $69m or 2.1% reflecting a cap rate of 5.40% (9bps compression)

• Delivered solid 2.6% like-for-like income growth

• Comparable MAT sales growth of 2.5% and comparable specialty sales growth of 2.9% including apparel growth of 5.0%

• Strong specialty sales productivity of >$10,000/sqm

• Specialty occupancy costs of 15.4%

Successful developments on strategy

• South Village Shopping Centre[ 2] launched, anchored by Coles and Aldi with a mixed retail offer

• Completed Kawana Shoppingworld dining and cinema development and Rhodes Waterside Aldi development ahead of schedule and both 100% leased

• Commenced 4,500 sqm $43m redevelopment of Toombul, introducing an Entertainment and Dining precinct due for completion in late 1H20

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South Village Shopping Centre
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RETAIL SALES BY CATEGORY	1H19	1H19	1H19 Comparable
	Total MAT	Comparable MAT	MAT growth
Supermarkets	$1,117m	$936m	2.3%
Discount department stores	$265m	$233m	4.6%
Mini-majors	$547m	$499m	1.7%
Specialties	$1,196m	$1,037m	2.9%
Other retail	$220m	$185m	0.2%
Total	$3,345m	$2,890m	2.5%

1. By area, excludes South Village Shopping Centre, which has a 100% income guarantee.

2. Development payment made based on a 6.0% capitalisation rate of NOI.

07 FEBRUARY 2019 20

1H19 Results

URBAN AND METROPOLITAN PORTFOLIO POSITIONED FOR PERFORMANCE

Inner and middle ring

Growth corridor and satellite

High household wealth > Strong population growth

• Deep employment bases > Investment in infrastructure and job-creation

• High barriers to entry > Greater development opportunities

• High value distribution channel > Growing value as a distribution channel

MIRVAC CATCHMENTS HAVE LOWER UNEMPLOYMENT & STRONGER TOTAL INCOME GROWTH

7.5%

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6.5
5.5
4.5
3.5
2.5
Mirvac portfolio Sydney Melbourne Brisbane NSW VIC QLD
weighted average (excl. Sydney) (excl. Melbourne) (excl. Brisbane)
Total income growth (CAGR) Unemployment rate (%)
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High barriers to entry for urban retail
RHODES WATERSIDE GREENWOOD PLAZA
BIRKENHEAD POINT BRAND OUTLET
METCENTRE
HARBOURSIDE
TRAMSHEDS
BROADWAY SYDNEY
EAST VILLAGE
Low retail supply
despite strong
population growth
and high income
levels in the
inner ring
NSW Shopping Centres Supply
Retail Centre GLA (Postcode)
SOUTH VILLAGE SHOPPING CENTRE 0-10,000 sqm
10,000-30,000 sqm
30,000-50,000 sqm
50,000-100,000 sqm
Property Council of Australia, >100,000 sqm
Shopping Centre Directory
QGIS
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Sources: Australian Government Department of Jobs and Small Business, Small Area Labour Markets publication & Labour Market Information Portal, Sept 18. ABS, Cat. 6524.0.55.002 – Estimates of Personal Income for Small Areas, FY12-FY16. ABS, Cat. 6202.0 – Labour Force, Australia, Nov 18.

07 FEBRUARY 2019 21

1H19 Results

CREATING AN URBAN TOWN CENTRE – ORION SPRINGFIELD CENTRAL

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Rapidly growing suburban

town centre

• Main trade area (MTA) population CAGR of 4.7% p.a. (2011-2016)[1]

• Masterplanned town centre comprises a mix of retail, education, health and commercial uses

• Worker population of ~7,000[ 1]

• Strong supporting infrastructure: direct freeway and train access to Brisbane CBD ~30min

• Community amenity with Robelle Domain Parklands and Orion Lagoon

Key management initiatives

• Developed by Mirvac in March 2007 and expanded in 2016

• Integrated lifestyle town centre incorporating traditional retail, dining, entertainment, commercial, health and community uses

• Purposeful community connections with town square fountain, dog park, library and open malls

• Installed 3,200 solar panels, generating ~1Mw of electricity

Significant 3 year[ 2]

performance enhancement

• Sales up 67% to $412 million

• Foot traffic up 27% to 6.9 million

• Gross Asset value increased by ~50%

3 Yr CAGR

SALES

TRAFFIC

Future growth potential

• MTA population forecast to grow at 4.9% p.a. to 2031 (CAGR)[ 1]

• MTA Retail Expenditure to grow at 8% p.a. to 2031 (CAGR)[ 1]

• Specialty occupancy cost below Urbis benchmark[ 3]

• Major ~1,000 sqm playground

• Land for future expansion

NET VALUE

1. MacroPlan Dimasi, 2018.

2. Changes represent figures as at 31 December 2015 against 31 December 2018.

3. 2018 Urbis Benchmark for Retail Specialty Stores (Double DDS based Shopping Centres).

07 FEBRUARY 2019

22

RESIDENTIAL

Stuart Penklis

The Eastbourne, Melbourne (artist impression)

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Head of Residential
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1H19 Results

RESIDENTIAL RESULTS ON TARGET

On track to achieve >2,500 lot settlements for FY19

• Completed 1,067 settlements in 1H19 and over 110 settlements in January 2019

• 1H19 gross margins of 25% and EBIT margin of 16%

• $2bn of residential pre-sales securing future earnings

• Diversification across products, markets and capital efficient structures

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83% 25% of FY19 EBIT secured gross margin

Key differentiators across location, quality and customer care

• Mirvac remaining resilient despite Sydney and Melbourne prices declining after multi-year growth

• Over 900 lot sales in 1H19, with 95% of buyers domestic, and continued demand from owner occupiers

• Solid demand continues for masterplanned communities and medium density housing

$2bn of residential presales

1,067 lot settlements

<2%

defaults

203 lots, Woodlea, VIC MPC

138 lots, Hope Street, QLD Apt

112 lots, Finery, NSW Apt

105 lots, Claremont, WA Apt

95 lots, Googong, NSW MPC

• 89 lots, Hydeberry, QLD MPC

07 FEBRUARY 2019 24

1H19 Results

STRATEGY FOCUSED ON LONG TERM URBANISATION

• Strategic weighting to NSW and VIC representing 74% of residential lots

• In the 10 years to 2028, Australia’s population is projected to increase by over 4.5 million people[ 1]

• Over 75% of this growth will occur in our four largest capital cities

• On average, Sydney and Melbourne are each expected to grow by over 110,000 people per annum over the next five years[ 1]

• Over 39,000 new dwellings are expected to be required in both Sydney and Melbourne per annum to meet this demand but a shortfall in supply is forecast[ 2]

PROJECTED POPULATION INCREASE TO 2023[1]

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SYDNEY
MELBOURNE
~
111,000
~ people per year
126,000
people per year
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PRECONDITIONS FOR NEXT CYCLE UNDERWAY AS DWELLING COMPLETIONS FORECAST TO FALL BELOW REQUIRED HOUSEHOLD DEMAND 2

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2,000 (no. of dwellings)
HOUSING SURPLUS
0
-2,000
-4,000
-6,000
-8,000
HOUSING SHORTAGE
-10,000
-12,000
-14,000
FY19 FY20 FY21 FY22 FY23
Melbourne dwelling shortage/surplus (demand – net completions)
Sydney dwelling shortage/surplus (demand – net completions)
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1. Mirvac Research, ABS Population Projections Cat. 3222.0, Series B, November 2018,

2. Mirvac Research, BIS Oxford Economics, Forecast of Dwelling Completions, Q4 2018 , ABS Population Projections Cat. 3222.0, Series B, November 2018, Housing Industry Association, forecast of Greater Capital City commencements, November 2018 & RBA, “Long-run Trends in Housing Price Growth”, Bulletin September 2015, RBA, “Housing and the Economy”, Speech by Ric Battellino, November 2009. Greater Sydney & Greater Melbourne net completions calculated using implied dwelling demand (population projections adjusted for household formation rate), unoccupied private dwellings (second and holiday homes) and demolitions.

07 FEBRUARY 2019 25

1H19 Results

THE MIRVAC DIFFERENCE – QUALITY, CUSTOMER, PLACEMAKING

Mirvac Strategy – At the right time and right price

• Mirvac projects are well positioned, typically located in postcodes with lower mortgage delinquencies, lower unemployment rates and more resilient markets

KEY MIRVAC PROJECTS IN RESILIENT LOCATIONS – LOW MORTGAGE ARREARS & UNEMPLOYMENT RATES

4.50% (Arrears 30 Day + Delinquency Rate)

• Over 27,000 lot pipeline, ~20,000 added between FY11-FY15 with strong embedded margins and majority in capital efficient structures

• Flexibility to launch projects to capitalise on market cycles

Mirvac Product – Quality

Mirvac has 47 years experience in development

• A market leader by delivering through an internal, integrated design, construction, sales, marketing and development model

• Over 600 awards for industry excellence

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Western Australia
(excl. Perth)
3.00
Queensland
Olivine, Whittlesea (excl. Brisbane)
Melbourne
1.50 Woodlea, Rockbank Australia
The Eastbourne, Pavilions,
East Melbourne Homebush Bay Sydney Melbourne Tullamore, Inner East
Marrick & Co, Melbourne
St Leonards Square, Inner West Sydney
St Leonards Green Square
0
1.0 2.0 3.0 4.0 5.0 6.0 7.0
Unemployment Rate (%)
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Sources: Mirvac Research, Australian Government Department of Jobs and Small Business, Small Area Labour Markets publication & Labour Market Information Portal. Moody’s Investors Service, Mortgage Delinquency Map, 29 October 2018

• Focus on future of living and sustainability

Mirvac Customer Focus – Care

Quality and care in every little detail

DELIVER QUALITY PRODUCT TARGETED AT DOMESTIC OWNER OCCUPIERS

> 13000 ,

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sales in the past 4.5 years

• High level of repeat buyers

• End-to-end service from construction to settlement and access to dedicated Mirvac after sales care team & exclusive Mirvac leasing and resales

68% 11% 4% 6% 11% Owner occupiers Sydney investor Melbourne investor Offshore investor Other (WA/QLD investors/builders)

07 FEBRUARY 2019 26

1H19 Results

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BEFORE
AFTER
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URBAN MIXED USE DEVELOPMENT REIMAGINED

PROVEN TRACK RECORD OF DELIVERING SUSTAINABLE URBAN COMMUNITIES

Proven capability to deliver returns from complex urban developments

Ability to manage multiple stakeholders and work with local councils to deliver superior results > Integrated technical skills in development, design, construction and sales & marketing > Mixed use developments unlocking value across Residential, Commercial and Retail > Capital efficient structures providing flexibility to respond to the market at the right time

HAROLD PARK

Urban mixed use creates a more successful whole of place

Proximity to transport and future infrastructure

Close to schools, hospitals, parks and restaurants

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3.8
HECTARES
OF PUBLIC
OPEN SPACE
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Strong economic drivers: population growth, low unemployment rates

~~INTEGRATED MODEL FACILITATING OUR FUTURE SUCCESS~~ GREEN SQUARE ST LEONARDS SQUARE WOODLEA YARRA’S EDGE

Sustainable demand – designed for the owner occupier for all stages of life

• Investor appeal – low vacancy rates, low maintenance and long term capital growth

HAROLD PARK APARTMENTS

HAROLD PARK APARTMENTS

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VACANCY VS SURROUNDING SUBURB GROSS YIELD VS SURROUNDING SUBURB
3.00% 4.00% 4.1%
2.7%
2.00 3.2%
3.00
1.00
0.45%
0.00 2.00
Harold Park, NSW Harold Park, NSW
Mirvac Vacancy (%) [ 1] Postcode Vacancy (%) [2] Mirvac Rental Yield (%) [ 1] Surrounding Suburb Yield (%) [3]
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Project Value $1.3bn Residential >1,300 apartments Retail Tramsheds ~6,000 sqm

1. Mirvac Research, RES by Mirvac 442 managed units

2. SQM Research, total dwellings as at Nov 18.

3. CoreLogic - Gross Unit Indicative Rental Yield calculated off asking rents and median price of last 12 months. As at Sept 2018.

07 FEBRUARY 2019 27

1H19 Results

RESIDENTIAL OUTLOOK – HIGH QUALITY PRODUCT & PIPELINE

• Average prices and volumes are falling in many corridors – increasing importance of location, design and quality

• Lending conditions across all purchaser groups have tightened

• Competition reducing due to more restrictive developer access to financing

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

Strategic positioning provides solid medium-term earnings visibility

• Increased contribution from masterplanned communities, particularly in Melbourne

FY19 outlook

• Gross margins to remain at ~25%, above through-cycle 18-22% range

• Expect to achieve greater than 2,500 lot settlements

• Increased masterplanned communities contribution and lower apartment settlements in FY19

SHIFTING TO GREATER MPC EBIT CONTRIBUTION

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FY14–18
Masterplanned
communities: 47%
Apartments: 53%
FY19–21 expected
Masterplanned
communities: 62%
Apartments: 38%
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EXPECTED RESIDENTIAL EBIT CONTRIBUTION FY19-21

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Melbourne apartments 1% [1] Brisbane apartments 2%
The Eastbourne 7%
QLD masterplanned
communities 7%
WA 9%
NSW masterplanned
communities 8%
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VIC masterplanned
communities 41%
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NSW apartments 25%
(89% pre-sold to FY21)
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1. Melbourne apartments excluding The Eastbourne which is 100% pre-sold.

07 FEBRUARY 2019

28

CEO & Managing Director

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Locomotive Workshops, South Eveleigh (artist impression)
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GUIDANCE

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29
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1H19 Results

664 Collins Street, Melbourne

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MIRVAC WELL PLACED TO TAKE ADVANTAGE OF OPPORTUNITIES

Broadway, Sydney

Greenbank, Brisbane (artist impression)

OFFICE & INDUSTRIAL

RESIDENTIAL

RETAIL

Creating Australia’s youngest, lowest capex office and industrial portfolio

Maintaining our bespoke urban retail portfolio

Quality residential projects in the right place, with the right customer

Conservative & robust balance sheet – supports future growth

07 FEBRUARY 2019 30

1H19 Results

FY19 GUIDANCE TIGHTENED

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DPS
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FY19 guidance
3 [-] 4%
EPS growth
(16.9-17.1 cpss)
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12.0 cents
11.6
FY19 guidance
11.0 11.0
5%
DPS growth
10.4
10.0
9.9
9.4
9.0 9.0
8.7
8.0
FY13 FY14 FY15 FY16 FY17 FY18 FY19
Guidance
5% 6 year DPS CAGR 1
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1. Period of FY13 (DPS 8.7 cpss) to FY19, including guidance of 5% DPS growth in FY19.

07 FEBRUARY 2019

31

1H19 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 2018, 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 2018, unless otherwise noted.

07 FEBRUARY 2019 32

THANK YOU

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477 Collins Street, Melbourne (artist impression)
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