Mirvac Group (MGR) Investor Day 2024 summary

Strategic focus and capital allocation

• Increasing allocation to living and logistics sectors, with clear capital allocation targets and a focus on long-term value creation through structural growth drivers and competitive advantages.

• Targeting at least 70% of capital to investments and no more than 30% to development, optimizing recurring income and development outperformance.

• Sharpening office and retail exposure toward premium CBD and urban retail, while expanding living sector exposure through build-to-rent and land lease.

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

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

Residential, build-to-rent, and land lease initiatives

• Deep operational capability in residential, with a pipeline of over 28,000 lots and AUD 19 billion end value, covering apartments and master planned communities.

• Build-to-rent portfolio expanding, targeting at least 5,000 apartments, with five operational assets by end of 2025 and strong leasing momentum.

• Land lease business, via Serenitas, targets the affordable luxury market for over-55s, with over 4,500 operational sites and a strong east coast pipeline.

• Land lease penetration is low (~2%), with significant growth potential as the population ages and awareness increases.

• Attractive investor returns in land lease through development margins, CPI-linked rent growth, and secure, recurring income streams.

Industrial and logistics strategy

• Targeting 20% capital allocation to industrial, with a $2.5bn development pipeline focused on Sydney and infill locations.

• Industrial portfolio is 100% Sydney-based, 99.3% occupied, and 86% prime/super-prime grade, with a 6% yield on cost.

• Developments like Calibre, Switchyard, and Aspect Kemps Creek are fully leased and set new benchmarks in quality and sustainability.

• Industrial developments drove an 18% NOI growth in FY24, with further uplift expected as the pipeline is delivered.

• Aligned capital partner model with Australian Retirement Trust, retaining 50% ownership and focusing on development-to-core assets.