mirvac One Darling Island, Pyrmont, NSW

mirvac One Darling Island, Pyrmont, NSW

agenda mirvac group mirvac STRATEGY DEVELOPMENT INVESTMENT MPT hotel management capital management MIRVAC 101 page 1

MIRVAC GROUP woolworths distribution centre, hoxton park, Sydney, NSW MIRVAC 101 page 2

MIRVAC GROUP Founded in 1972, listed in 1987, Stapled in 1999 2core divisions Mirvac Property Trust MPT Invested capital $5,805m 1 development Invested capital $1,806m 4 Residential $1,463.2m 81.0% Commercial $342.3m 19.0% Office 57.2% 2 retail 30.6% 2 other 12.2% 3 Condos 41.7% masterplanned communities 39.8% integrated housing 18.5% industrial 68.8% Office 21.1% retail 10.1% 1) By book value, including assets under development and indirect investments. 2) By book value, excluding assets under development and indirect investments. 3) By book value, includes industrial, indirect investments, carparks and a hotel. 4) Development Division s total inventories, investments and loans in associates and JVs. MIRVAC 101 page 3

mirvac group Mirvac Group Credit Rating: BBB 27.3% Balance Sheet Gearing 1 Approximately 35% of Mirvac investors are global 35.0 Market Cap (US$bn) 2 30.0 25.0 20.0 15.0 10.0 5.0 0 Simon Property Group Mitsubishi Estate Co Sun Hung Kai Properties Ltd. Westfield Group (#4) Unibail - Rodamco Mitsui Fudosan Co Public Storage Equity Residential Vornado Realty Trust HCP Inc Boston Properties Inc Host Hotels & Resorts Inc Sumitomo Realty & Dev Co AvalonBay Communities Inc Land Securities Group PLC Stockland (#16) Prologis Ventas Inc Hang Lung Properties Ltd. Westfield Retail Trust (#23) GPT Group (#35) Lend Lease Group (#43) Mirvac Group (#45) Goodman Group (#46) CFS Retail Property Trust (#47) Dexus Property Group (#51) 1) As at 31 December 2010. 2) As at 28 February 2011. MIRVAC 101 page 4

MIRVAC strategy 101 miller street, north sydney, nsw MIRVAC 101 page 5

mirvac STRATEGY 80% 20% Mirvac Property Trust Operating NPAT through cycle target corporation Operating NPAT through cycle target MIRVAC 101 page 6

mirvac STRATEGY 80% Operating NPAT through cycle target Mirvac Property Trust MPT Target unlevered 10 year Internal Rate of Return ( IRR ) of >11% > Maximise property income growth and security > Actively weight sector positions to maximise total returns > Continue to improve quality of portfolio via disposal of non-aligned assets > Utilise Development Division to generate high quality commercial assets Outcome: Market leading Australian diversified REIT MIRVAC 101 page 7

mirvac STRATEGY 20% Operating NPAT through cycle target development Target unlevered average project IRR of >18% > Focus on large, masterplanned or infill condo, house and land projects > Actively pursue quality office, retail and industrial projects for Mirvac Property Trust and external parties Outcome: Market leading Australian real estate developer MIRVAC 101 page 8

DEVELOPMENT laureate, port melbourne, vic MIRVAC 101 page 9

MIRVAC S DEVELOPMENT DIVISION development 1 Invested capital $1,806m 1 Residential $1,463.2m 81.0% Commercial $342.3m 19.0% condos 41.7% masterplanned communities 39.8% integrated housing 18.5% industrial 68.8% Office 21.1% retail 10.1% Mirvac s competitive advantage in integrated model ACQUISITION design development construction sales & marketing > Local relationships > Knowledge of local area > Government relationships > Specialists in product type > Control process > Key IP > Project management > Business judgement > Commercial acumen > Control process > Flexibility > Speed to market > Local market knowledge > Product awareness / brand > Marketing database 1) Development Division s total inventories, investments and loans in associates and JVs. MIRVAC 101 page 10

our markets Residential Masterplanned Communities > Land subdivision > Completed housing 1 > Packaged housing 2 > First home buyers > 2nd/3rd home buyers > Investor > Typical price range: > Land $170K $300K > Housing $350K $600K Gainsborough greens parkbridge, middleton Grange Integrated Housing > Small lot housing built in middle ring locations > First home buyers (top end) > 2nd/3rd home buyers (main market) > Investor > Typical price range: > Housing $375K $1m waverley park, mulgrave Harcrest, wantirna south Condos > 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 rhodes waterside Yarra s Edge Commercial Office / Industrial / Retail > Investment grade development suitable for MPT or third party woolworths distribution, Hoxton park 8 chifley square, Sydney 1) Mirvac build and sell houses on completion. 2) Packaged housing comprises land sale plus construction of a house with progress payments on purchase. MIRVAC 101 page 11

Diversification of residential lots/revenue 21,644 lots under control well diversified Lots by state NSW 21.7% QLD 20.5% VIC 38.2% WA 19.6% Mirvac share of revenue by type Condos 60.1% Land 22.8% House 17.1% Lots by structure 100% on balance sheet 42.9% JV 28.7% MWRDP 10.7% PDA 15.7% Development fund 2.0% 1) Total exchanged contracts as at 31 December 2010, adjusted for Mirvac s share of JV interest and Mirvac managed funds. MIRVAC 101 page 12

MIRVAC S DEVELOPMENT MODEL > Balanced model of Condos and House and Land: the lumpy nature of Condos earnings can be offset by the more stable earnings profile of House and Land house and Land development has shorter lead times and volumes can be accelerated or deferred based on market conditions > Condos average 18 months construction > House and Land average six months construction Lot settlements 2,500 House/land settlements Condo settlements 2,000 1,500 1,000 500 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 MIRVAC 101 page 13

mirvac buyer profile Mirvac s 1H11 settlements > 77% upgraders/empty nesters and investors > Mirvac average price: House $462,000 1 Land $241,000 2 Condo $1,260,000 3 Buyer profile 1H11 Upgraders/empty nesters: 60.0% FHB: 23.3% Investors: 16.7% 1) 450 housing lots settled, achieving gross revenue of $207.8m. 2) 124 land lots settled, achieving gross revenue of $29.9m. 3) 147 condo lots settled, achieving gross revenue of $185.2m. MIRVAC 101 page 14

investment MPT artist s impression, 10-20 bond street, sydney, nsw MIRVAC 101 page 15

mirvac s investment division Mirvac Property Trust MPT Invested capital $5,805m 1 Office 57.2% 2 retail 30.6% 2 other 12.2% 3 Geographic diversification 4 : NSW: 55.7% VIC: 19.6% QLD: 18.0% WA: 0.6% ACT: 5.3% Other: 0.8% 1) By book value, including assets under development and indirect investments. 2) By book value, excluding assets under development and indirect investments. 3) By book value, includes industrial, indirect investments, carparks and a hotel. 4) By book value, excluding assets under development and indirect property investments. MIRVAC 101 page 16

MIRVAC S INVESTMENT DIVISION Mirvac s competitive advantage in integrated model ACQUISITION development capability LEASING & MARKETING PROPERTY MANAGEMENT Facilities MANAGEMENT Investment MANAGEMENT Investment Division (MPT) core competencies: > Active portfolio management providing property income growth and lease security > Continuous quality improvement track record of prudent asset recycling and repositioning > increasing net asset backing High visibility & income security = underpins Group earnings MIRVAC 101 page 17

MPT portfolio snapshot Properties owned 1 70 74 NLA 1,337,501 sqm 1,329,423 sqm Book value 2 $5,805.1m $4,371.8m Net operating income 3 $208.2m $137.6m Like-for-like net operating income growth 4.2% 2.7% Maintenance capex $9.4m Cash tenant incentives $5.8m Occupancy 4 98.2% 96.7% NLA leased 52,526 sqm 116,973 sqm % of portfolio NLA leased 3.9% 8.8% No. of tenant rent reviews 986 807 Tenant rent reviews (area) 554,814 sqm 532,909 sqm WALE (area) 6.2 yrs 5.5 yrs WALE (income) 5.9 yrs 5.1 yrs WACR 7.56% 7.88% Lease expiry profile by area 70% 1H11 1H10 60 50 56% 40 30 20 10 0 2% VACANT 3% 7% 9% FY11 FY12 FY13 FY14 FY15 BEYOND 1) Includes carparks and a hotel. 2) Including assets under development and indirect investments. 3) Includes income from indirect investments. 4) By area, excluding assets under development. 12% 12% MIRVAC 101 page 18

TOP TEN TENANTS BY GROSS INCOME Rank Tenant Percentage 1 Westpac St George Bank 13.3% 2 Government State and Federal 9.9% 3 Woolworths Limited 7.5% 4 Wesfarmers Coles 4.3% 5 Fairfax Media Limited 2.4% 6 IBM Australia 2.0% 7 GM Holden 1.5% 8 United Group Limited 1.5% 9 Wilson Parking Australia 1.4% 10 Alcatel Lucent Australia 1.1% Total 44.9% 1 1) Excludes Mirvac tenancy. MIRVAC 101 page 19

office snapshot Properties owned 29 24 NLA 603,648 sqm 436,595 sqm Book value $3,211.2m $1,834.5m Net operating income $109.0m $57.3m Like-for-like net operating income growth 4.0% 5.2% Maintenance capex $5.4m Cash tenant incentives $2.5m Occupancy 1 98.0% 96.8% NLA leased 25,078 sqm 25,638 sqm % of portfolio NLA leased 4.2% 5.9% No. of tenant rent reviews 287 165 Tenant rent reviews (area) 317,093 sqm 180,220 sqm WALE (area) 6.7 yrs 5.8 yrs WALE (income) 6.5 yrs 5.7 yrs WACR 7.50% 7.93% Lease expiry profile by area 80% 1H11 1H10 Office portfolio breakdown by book value Premium Grade 5.1% A Grade 83.7% B Grade 10.4% C Grade 0.8% 60 65% 40 20 0 2% VACANT 8% 8% 8% 7% 3% FY11 FY12 FY13 FY14 FY15 BEYOND 1) By area, excluding assets under development. MIRVAC 101 page 20

office metrics Book value december 2010 Occupancy Average passing no of assets $m December 2010 1 gross rent per sqm NSW 13 $2,120.1 99.0% $570.2 North Sydney 2 $260.7 98.9% $658.2 Sydney Fringe 2 $285.0 100.0% $539.5 Sydney CBD 5 $1,037.1 98.2% $709.2 Homebush/Rhodes 2 $188.3 99.0% $377.5 Parramatta 1 $99.0 100.0% $304.0 Norwest 1 $250.0 100.0% $431.0 VIC 4 $439.0 100.0% $407.6 Southbank 1 $143.8 100.0% $459.4 St Kilda Road 1 $106.6 100.0% $393.0 East Melbourne 2 $188.6 100.0% $380.7 QLD 6 $229.2 87.9% $435.7 Brisbane CBD 1 $56.0 66.1% $530.9 Brisbane Near City 5 $173.2 95.3% $403.6 ACT 5 $405.1 97.5% $409.6 Canberra 5 $405.1 97.5% $409.6 SA 1 $17.8 100.0% $340.6 Adelaide Fringe 1 $17.8 100.0% $340.6 Total 29 $3,211.2 98.0% $505.0 1) Occupancy rate by book value as at 31 December 2010. MIRVAC 101 page 21

retail snapshot Properties owned 23 28 NLA 474,035 sqm 558,799 sqm Book value $1,716.5m $1,767.7m Net operating income $65.3m $55.3m Like-for-like net operating income growth 5.4% 3.1% Maintenance capex $3.4m Cash tenant incentives $3.2m Occupancy 1 98.9% 96.9% NLA Leased 27,448 sqm 49,417 sqm % of portfolio NLA leased 5.8% 8.8% No. of tenant rent reviews 690 617 Tenant rent reviews (area) 150,931 sqm 172,281 sqm WALE (area) 6.4 yrs 5.7 yrs WALE (income) 4.9 yrs 4.7 yrs Specialty occupancy cost 13.4% 12.6% MAT growth like-for-like 1.4% 4.1% MACR 7.45% 7.64% 1H11 1H10 Retail portfolio breakdown by book value Sub Regional 76.3% Bulky Goods Centres 7.8% CBD Retail 8.9% Neighbourhood 7.0% Lease expiry profile by area 70% 60 58% 50 40 30 20 10 0 1% VACANT 9% 9% 10% 10% 3% FY11 FY12 FY13 FY14 FY15 BEYOND 1) By area, excluding assets under development. MIRVAC 101 page 22

industrial snapshot 1H11 1H10 Properties owned 14 18 NLA 259,818 sqm 334,029 sqm Book value $363.9m $400.8m Net operating income $15.3m $10.5m Like-for-like net operating income growth 3.2% (5.0%) Maintenance capex $0.4m Cash tenant incentives $0.1m Occupancy 1 97.4% 96.0% NLA leased 0 sqm 41,919 sqm % of portfolio NLA leased 0.0% 12.5% No. of tenant rent reviews 9 25 Tenant rent reviews (area) 86,790 sqm 180,409 sqm WALE (area) 4.9 yrs 4.7 yrs WALE (income) 5.3 yrs 4.6 yrs WACR 8.38% 8.74% Lease expiry profile by area 40% 30 20 26% 29% 31% 10 8% 0 3% VACANT 1% 3% FY11 FY12 FY13 FY14 FY15 BEYOND 1) By area, excluding assets under development. MIRVAC 101 page 23

hotel management Mirvac manages a domestic portfolio of 47 hotels for third parties Hotels under management 40 5,439 40 5,351 44 5,616 5,812 46 47 5,908 25 2,750 27 3,124 FY05 No. of hotels No. of rooms FY06 FY07 FY08 FY09 FY10 1H11 Average room rate and occupancy $184 $198 $182 $184 $177 $168 $168 $176 72.0% 74.0% 72.0% 73.0% 73.0% 75.0% 74.0% 77.0% 74% Jun 06 Jun 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 MIRVAC 101 page 24

hotel management brand portfolio 25 hotels 3,168 rooms 1 hotel 107 rooms Future Openings 6 hotels 1,187 rooms 1 hotel 94 rooms Leighton BEACH 7 hotels 632 rooms 1 hotel 65 rooms 1 hotel 241 rooms 1 hotel 59 rooms 2 hotels 226 rooms 1 hotel 55 rooms 1 hotel 74 rooms MIRVAC 101 page 25

capital management 23 furzer Street, phillip, act MIRVAC 101 page 26

capital management 1H11 Achievements > Increased weighted average debt maturity to 4.2 from 2.6 years 1 > Refinanced $1.85bn syndicated facility > Issued $200m 6 year MTN at 250 basis point spread > No more than 20.0% of exposure expiring in one year > Maintained diversified sources of funding 1H11 FY10 2 Balance sheet gearing 3 27.3% 26.8% Covenant gearing 4 37.7% 34.0% Look-through gearing 29.4% 29.1% ICR 5 >4.0x >3.5x Total interest bearing debt $2,809m $2,305m Average borrowing cost 6 7.29% 1,7 7.10% Average debt maturity 1 4.2yrs 7 2.6yrs S&P rating BBB BBB Hedged percentage 64.0% 65.0% Average hedge maturity 5.0yrs 5.5yrs 1) Excludes WOP associated CMBS which is fully cash collateralised. 2) Post WOP transaction. 3) Net debt after CCIR swaps excluding leases/(total tangible assets cash). 4) Total liabilities/total tangible assets (per statutory financial statement). 5) Adjusted EBITDA/Interest expense per statutory financial statement. 6) Includes margins and line fees. 7) Post 19 January 2011 bank syndicated debt refinance. Drawn debt maturity profile 1,7 800 $m 600 400 200 0 Bank MTN USPP Bank Secured FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Significant improvement in debt maturity profile and tenor MIRVAC 101 page 27

DEBT AND HEDGING PROFILE Hedging profile post January 2011 refinancing 1 2,000 $m Debt sources post January 2011 refinancing 2 Bank Facilities 62.0% USPP 22.6% MTN 15.4% 6.29% 1,500 5.79% 5.79% 5.81% 5.86% 5.93% 6.06% 5.81% 5.79% 1,000 500 0 31 Dec 10 30 Jun 11 30 Jun 12 30 Jun 13 30 Jun 14 30 Jun 15 30 Jun 16 30 Jun 17 30 Jun 18 Fixed Options Swaps Rate 1) Includes bank callable swaps and a swaption. 2) Excludes WOP associated CMBS which is fully cash collateralised. MIRVAC 101 page 28

MIRVAC 101 page 29

glossary Term CCIR CMBS CPI FHB FY ICR JV MAT MGR MPT MTN MWRDP NLA NPAT PDA Rev PAR SE QLD SQM USPP WACR WALE WOP Meaning Cross Currency Interest Rates Commercial Mortgage Backed Securities Consumer Price Index First Home Buyer Financial Year Interest Cover Ratio Joint Venture Moving Annual Turnover Mirvac Group ASX code Mirvac Property Trust Medium Term Note Mirvac Wholesale Residential Development Partnership Net Lettable Area Net Profit After Tax Project Delivery Agreement Revenue per Available Room South East Queensland Square Metre US Private Placement Weighted Average Cap Rate Weighted Average Lease Expiry Westpac Office Portfolio MIRVAC 101 page 30

DISCLAIMER AND IMPORTANT NOTICE Mirvac Group comprises Mirvac Limited ABN 92 003 280 699 and Mirvac Property Trust ARSN 086 780 645. This presentation and the annexures thereto ( 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 advisors 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. 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. Forwardlooking 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. 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. 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 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. MIRVAC 101 page 31 page 31

by mirvac www.mirvac.com MIRVAC 101 page 32