Mirvac Group (MGR) Investor Day 2024 summary

Strategic focus and capital allocation

• Increasing allocation to living and logistics/industrial sectors, leveraging competitive advantages, integrated platform, and structural growth drivers for long-term value creation.

• Targeting at least 70% of capital to investments and no more than 30% to development, with a 20% allocation to industrial and clear capital targets for each segment.

• Sharpening office and retail exposure toward premium CBD and urban retail, while expanding living and logistics exposure.

• Secure balance sheet, deep capital partnerships, and sustainability focus underpin future earnings growth and resilience.

• Major project launches planned over the next 18 months, including Harbourside and six new master-planned community releases.

Living sector expansion and market fundamentals

• Expanding build-to-sell, build-to-rent, and land lease offerings to address affordability, supply shortages, and demographic shifts, leveraging under-penetrated markets.

• Living sector is significantly undersupplied, with strong population growth, tight vacancy, and robust rent growth supporting demand.

• BTR portfolio leads the domestic market, with a commitment to grow to at least 5,000 apartments and strong ESG credentials.

• Land lease sector benefits from aging population trends, low market penetration, and government support for affordable housing.

• Capital partnering demand is strong, enhancing returns and reducing balance sheet burden.

Residential development and build-to-sell strategy

• Over AUD 2 billion allocated to build-to-sell, with a pipeline of 28,000+ lots and end value of AUD 19 billion.

• Consistent gross margins above 18%-22% target, with margins expected to return to this range in FY26 as impacted projects roll off.

• Recent restocking of pipeline with 8,400 lots, increasing pipeline by over 20% on capital-efficient terms.

• New launches in FY25 include major projects in Sydney, with strong buyer momentum in middle ring locations.

• In-house design and construction drive quality, flexibility, and cost efficiency, supporting sustainability and innovation.