Mirvac Group ANNUAL REPORT 2023
MIRVAC GROUP ANNUAL REPORT 2023
Business overview
ACKNOWLEDGEMENT OF COUNTRY
Mirvac respects Aboriginal and Torres Strait Islander peoples as the Traditional
Custodians of the lands and waters of Australia where we live, work and play.
Artwork created by Riki Salam (Mualgal, Kaurareg, Kuku Yalanji) of We are 27 Creative.
Mirvac is an Australian property group with a
clearly defined purpose to Reimagine Urban Life.
By creating beautiful homes, inspiring workplace and logistics
precincts, and thriving shopping centres, we aim to make
a positive contribution to our cities and communities.
ABOUT THIS REPORT
The FY23 Annual Report is a consolidated summary of Mirvac Group’s
operations, performance, and financial position for the year ended
30 June 2023. In this report, unless otherwise stated, references to
‘Mirvac’, ‘Group’, ‘company’, ‘parent entity’, ‘we’, ‘us’ and ‘our’ refer to Mirvac
Limited and its controlled entities as a whole. Mirvac Limited also includes
Mirvac Property Trust and its controlled entities. References in this report
to a ‘year’ relate to the financial year ended 30 June 2023. All dollar
figures are expressed in Australian dollars (AUD) unless otherwise stated.
Mirvac’s Board acknowledges its responsibility for our FY23 Annual
Report and has had oversight of its development. The Board reviewed,
considered, and provided feedback during the production process and
approved the Annual Report, consolidated financial statements, on 16
August 2023. The Directors have the power to amend and reissue the
financial statements. Our full-year financial statements can be found on
pages 71 to 120.
Mirvac continues to align its Annual Report with the 2021 International
Integrated Reporting Framework (2021) ( Framework). In
FY23, Mirvac has referenced, but not yet fully applied, the fundamental
principles, content elements and guiding principles.
All sustainability reporting within this report has been prepared in
accordance with the Global Reporting Initiative (GRI) Standards: Core
option. PwC has provided limited assurance over select environmental
and social data within the annual reporting suite, covering the 12 months
to 30 June 2023. Our assurance statement is available online at
www.mirvac.com/sustainability/our-performance.
CONTENTS
01 About this report and reporting suite
02 About Mirvac
04 FY23 highlights
06 Letters to securityholders
10 Our strategy
12 Megatrends
14 Our pillars for creating value
Performance: Financial
16
18
Place: Asset creation and curation
22 People: People, culture and safety
26 Partners: Customers and stakeholders
28 Planet: Sustainability
32
38 Risk and risk management
42 Governance
Financial statements
71
121 Directors’ declaration
122
130 Securityholder information
132 Glossary
133 Directory & upcoming events
FY23 financial and operational results
Independent auditor’s report
Letters to securityholdersOur strategyMegatrendsHow we create value 1
REPORTING SUITE
This reporting suite sets out the Group’s financial and operational
performance for the year ended 30 June 2023 across the
following documents:
> MGR FY23 Results Presentation: an overview of Mirvac’s financial,
operational and sustainability performance for the financial year
> MGR FY23 Additional Information: information supporting Mirvac’s
FY23 Results Presentation
> MGR FY23 Annual Report: an in-depth overview of Mirvac’s financial,
operational, and sustainability performance for the 2023 financial
year, along with the Group’s Directors’ Report, its Remuneration
Report and its detailed financial statements
> Corporate Governance Statement 2023
> MGR FY23 Property Compendium: a detailed summary of the Group’s
investment portfolio, funds, and its commercial and residential
development pipeline as at 30 June 2023
> MPT FY23 Annual Report: an overview of Mirvac Property Trust’s
financial performance for the financial year
> Building Climate Resilience: an overview of Mirvac’s approach
to managing its climate-related risks and opportunities, which
aligns with the recommendations set out by the Task Force on
Climate-related Financial Disclosures.
Mirvac Group comprises Mirvac Limited ABN 92 003 280 699 and its
controlled entities (including Mirvac Property Trust ARSN 086 780 645
and its controlled entities).
DIRECTORS’ REPORT AND OPERATING AND FINANCIAL
REVIEW (OFR)
The required elements of the Directors’ Report are featured on
pages 46 to 48 of this report. Our financial and operational results
for FY23 are covered specifically on pages 32 to 37. All financial and
non-financial metrics included in this annual report have been verified
through our internal verification process. The Remuneration Report on
pages 49 to 69 and the Financial Statements have been audited by PwC.
MATERIALITY
We have defined ‘relevant matters’ for inclusion in our FY23 Annual
Report, prepared with reference to the Framework, as those
matters that are material to securityholders and other providers of
financial capital in making their various decisions with respect to their
ongoing investment, funding, and support for Mirvac. The FY23 process
to determine material ‘relevant matters’ has been:
Identifying material relevant matters
We conduct an assessment of our key risks each year to identify
material operational and strategic matters that could potentially impact
the achievement of our strategy over the short, medium and long term.
As part of this process in FY23, we:
> scanned the external environment to identify political, economic,
societal, technological, and environmental threats and opportunities
> consulted with senior management and our Board to identify
strengths, weaknesses, opportunities and threats regarding risk
mitigation strategies
> engaged with industry
> sought to understand our key stakeholders’ and investors’ needs
and their expectations of us.
Evaluate and prioritise
To evaluate the material matters, our key risks were discussed with the
Executive Leadership Team and the Board in a structured workshop.
Key risks and risk mitigation strategies were evaluated and prioritised
based on likelihood of the material matter occurring, and the impact on
value creation and protection.
Disclose
Our key risks and risk mitigation strategies are set out on pages
38 to 41. These were reviewed and evaluated at least every quarter
by our Executive Leadership Team and the Audit Risk & Compliance
Committee, with the full Board in attendance at these meetings. Due to
the complex nature of our risk profile, some of these material matters
may impact on our ability to create and protect value over the short,
medium and long term.
Mirvac continues to evolve its Integrated Reporting processes in
line with the Framework. During the financial year, this included
engaging with key stakeholders on our value creation capability
and materiality processes and the ‘relevant matters’ required in an
Integrated Report (that is, those that the Board understand to be
material to Mirvac’s securityholders and other providers of financial
capital in making decisions relating to their ongoing investment,
funding and support for the company).
South Eveleigh, Sydney
Reimagine Urban LifeGovernanceFinancial reportOtherPerformance by pillarRisk managementFinancial and operational results 2
Business overview
About Mirvac
We are a leading urban property group, with a clearly defined purpose to
Reimagine Urban Life.
Mirvac is an Australian Securities Exchange
(ASX) top 100 company with an integrated
asset creation and curation capability. For
more than 50 years, we’ve dedicated ourselves
to shaping Australia’s urban landscape,
with a strong focus on placemaking, safety,
sustainability, and innovation. We own and
manage $11.9bn of assets across office,
industrial, retail and build to rent on our balance
sheet, and manage $17.1bn of external assets
for our aligned capital partners. Through our
$11.6bn commercial development pipeline and
our $17bn residential development pipeline,
we create award-winning urban precincts
that set new benchmarks in sustainability and
design excellence. Our projects and activities
are strategically located in Sydney, Melbourne,
Brisbane, Canberra and Perth.
Underpinning the success of our urban
strategy is our integrated and diversified
business model, which ensures we maintain
an appropriate balance of passive and
active capital, enabling us to be agile and
respond to fluctuations in the property cycle.
This integrated approach also gives us a
competitive advantage across the lifecycle of
a project. From site acquisition, urban planning
and design, through to development and
construction, leasing, sales and marketing,
property management and long-term
ownership, we exercise control over the entire
value chain. This means we are also able to see
the bigger picture and take a longer term view,
with the ability to create multifaceted spaces
and adapt to our customers’ diverse and
changing needs. The value that our integrated
approach delivers to our business and our
broad range of stakeholders is further outlined
on pages 14 to 31.
And key to everything we do is our people,
who help us to drive significant outcomes for
our customers, communities, securityholders,
and our planet. By harnessing the unique skill
set of our people across each of the sectors
we operate in, we are able to create and curate
outstanding urban environments and make
life better for millions of Australians.
OUR PURPOSE
Our purpose is to Reimagine Urban Life, which
inspires us to think about how we can enhance
the lives of those who work, shop, or live in
and around our assets and developments.
We apply our expertise and experience to
create unique urban precincts and thriving
communities, and we look to have a positive
impact in all that we do. This means designing
and delivering assets and projects that are at
the forefront of sustainability and innovation;
creating communities that connect the people
within them and leave a positive legacy; and
harnessing the capabilities and the power
of our people.
Gainsborough Greens, Queensland
MIRVAC GROUP ANNUAL REPORT 2023Letters to securityholdersOur strategyMegatrendsHow we create value 3
OUR VALUES
Our values are aligned with our purpose and guide us in what we do.
WE PUT
PEOPLE FIRST
WE
COLLABORATE
HOW WE WORK
MATTERS
WE ARE PASSIONATE
ABOUT QUALITY
AND LEGACY
WE ARE CURIOUS
AND BOLD
WE ARE GENUINE
AND DO THE
RIGHT THING
OUR BUSINESS
We have three core business segments that drive our financial performance and underpin
our commitment to Reimagine Urban Life: Investment, Funds, and Development.
INVESTMENT
FUNDS
~$26BN ASSETS UNDER MANAGEMENT
OFFICE
INDUSTRIAL
RETAIL
BUILD TO RENT
FUNDS
> 24 assets 1
> Portfolio value: $7.7bn 2
> NLA: 836,970 sqm
> 10 assets 1
> Portfolio value: $1.5bn 2
> NLA: 470,939 sqm
> 11 assets 1
> Portfolio value: $2.4bn 2
> NLA: 330,718 sqm 3
> Two assets 1 and three
developments under
construction
> Co-investment equity
value: $272m 2
> 805 completed,
1,368 pipeline apartments 4
> ~$17.1bn third-party
capital under management 5
> $14.4bn Funds
under management
> 14 funds, mandates
and JV partners
Heritage Lanes, Brisbane
Calibre, Sydney
Broadway, Sydney
LIV Munro, Melbourne8
Angel Place, Sydney
DEVELOPMENT
~$29BN DEVELOPMENT PIPELINE
COMMERCIAL & MIXED USE
RESIDENTIAL
> ~$3.1bn active developments 6
> ~$11.6bn total pipeline value 6
> 22,974 pipeline lots 7
> ~$17bn expected future revenue 6
> ~$1.8bn pre-sales 8
Elizabeth Enterprise, Badgerys Creek9
Olivine, Melbourne9
1. Includes BTR, assets for sale, but excludes IPUC, other co-investment properties and properties held for development. 2. Portfolio value includes assets held for sale, properties
being held for development and co-investments, based on equity value, excludes IPUC and represents fair value (excludes gross up of lease liability under AASB 16). 3. Excludes 80
Bay Street and 1-3 Smail Street, Ultimo. 4. Completed apartments include LIV Indigo and LIV Munro; pipeline apartments are subject to various factors outside of Mirvac’s control
such as planning outcomes, market conditions, construction cost escalation, supply chain risks, weather and other uncertainties. 5. Includes external Funds, Developments and Assets
under management. 6. Represents 100% expected end value / revenue (including GST) including where Mirvac is only providing Development Management Services, subject to various
factors outside Mirvac’s control such as planning outcomes, market conditions, construction cost escalation, supply chain risks, weather and other uncertainties. 7. Subject to change
depending on various factors outside of Mirvac’s control such as planning outcomes, market conditions, construction cost escalation, supply chain risks, weather and other uncertainties.
8. Represents Mirvac’s share of total pre-sales and includes GST. 9. Artist impression, final design may differ.
Reimagine Urban LifeGovernanceFinancial reportOtherPerformance by pillarRisk managementFinancial and operational results 4
Business overview
FY23 highlights
Mirvac delivered a solid operational result in
FY23, demonstrating our continued resilience
in a challenging operating environment.
STATUTORY LOSS
($165m)
down 118% on FY22
GROUP OPERATING EBIT
$767m
down 1% on FY22
OPERATING PROFIT
$580m
down 3% on FY22
GEARING 1
25.9%
up 4.6% on FY22
DISTRIBUTIONS
10.5cpss
up 3% on FY22
OPERATING EARNINGS
14.7cpss
down 3% on FY22
OPERATING CASH FLOW
($57m)
down 106% on FY22
NTA2
$2.64
down 5% on FY22
SECURED
$1.8bn
of residential pre-sales 3
LEASED OVER
223,400sqm
of office, industrial and retail space
SETTLED
2,298
residential lots
3 new aligned
partnerships
THIRD-PARTY CAPITAL
UNDER MANAGEMENT
$17.1bn
up 64% on FY22
TOTAL ASSETS
UNDER MANAGEMENT
~$26bn
1. Net debt (at foreign exchange hedged rate) / (total tangible assets – cash).
2. NTA per stapled security excludes intangibles, right-of-use assets and deferred tax assets, based on ordinary securities, including EIS securities.
3. Represents Mirvac’s share of total pre-sales and includes GST.
MIRVAC GROUP ANNUAL REPORT 2023Letters to securityholdersOur strategyMegatrendsHow we create value 5
DELIVERED
$13.9m
in community investment
NAMED BY
EQUILEAP AS THE
world’s
most gender equitable company
for the second year in a row
DIRECTED
$9.2m
of procurement spend
to social enterprise
AWARDED
AUSTRALIA’S FIRST
5 Gold Star
iCIRT rating from Equifax
Reimagine Urban LifeGovernanceFinancial reportOtherPerformance by pillarRisk managementFinancial and operational results 6
Letters to securityholders
Letters to our securityholders
CHAIRMAN’S LETTER
Dear securityholders,
I am pleased to present my first report to you as Chair of Mirvac. It is an honour to have
stepped into this role on behalf of my Board colleagues. Mirvac has an outstanding reputation
in the property sector, a passionate and dedicated workforce, and a remarkable 50-year history
of contributing to Australia’s urban landscape.
FY23 has been a challenging year, however,
we continued to make good progress on our
strategy. The structural changes created by
the COVID-19 pandemic continued to be felt
across the property industry. Rising inflation and
interest rates, together with supply chain issues,
labour shortages, and declining consumer
confidence have had a considerable impact
on our business.
I am proud of the way our leadership team has
responded to these challenges, taking steps
to ensure we are positioning the company by
focusing on our long-term objective of creating
value for our securityholders. We focused
on managing what was in our control, which
included protecting our balance sheet, growing
our third-party capital partnerships, maintaining
our high-performing culture, and enhancing our
strategy in light of the changing environment.
FINANCIAL PERFORMANCE AND
CAPITAL MANAGEMENT
Our statutory loss of $165m was driven by
valuation declines of $528m, in addition to
higher net financing costs, and a number
of one-off transaction costs relating to the
onboarding of the Mirvac Wholesale Office Fund
and the establishment of two new ventures.
Wet weather, labour constraints, material
shortages, and increased construction costs
impacted our residential business, leading
to construction delays across a number of
apartments and masterplanned communities
projects. As a result, we revised our FY23
settlement guidance in April from greater than
2,500 lots to approximately 2,200, and reset
EPS guidance to least 14.7 cents per stapled
security (cpss), from previous guidance of
15.5cpss. This reflected some lot settlements
moving into FY24, as well as delayed settlement
of our industrial development at Aspect North
in Kemps Creek, Sydney.
Our operational profit of $580m was down
3 per cent on FY22, and translates to 14.7 cents
per stapled security, which is in line with our
revised guidance. Pleasingly, we were able
to increase distributions by 2 per cent from
FY22 to $414m, equating to 10.5 cents per
stapled security.
With the cost of capital increasing and
capitalisation rates expanding during the
financial year, the importance of robust
and flexible capital management remained
front of mind. We maintained a strong
balance sheet and financial position, aided
by $454m in asset disposals and our capital
partnering initiatives. Despite some delayed
residential settlements, gearing remained
well within our 20 to 30 per cent target at
25.9 per cent. High liquidity of over $1.3bn was
maintained, along with a weighted average debt
maturity of 5.0 years. Prudently, 60 per cent
of our debt was hedged. As a result of our
disciplined capital management, our A3 credit
rating from Moody’s and our A- credit rating
from Fitch were retained. This will ensure we
can continue to access diverse sources of
capital to fund our development pipeline and
capitalise on opportunities as they arise.
During the financial year, we reclassified
the way we define active capital, which
now includes investment properties under
construction. We will continue to target a
20 to 30 per cent allocation to active capital
over time, with 70 to 80 per cent of our
capital allocated to passive investments. This
combined allocation is consistent with our
exposure in previous years, and is expected
to remain below 30 per cent over time.
BOARD AND EXECUTIVE LEADERSHIP
TEAM CHANGES
There was considerable change in our
leadership structure in FY23, which reflected
both our Board renewal process and our
increased focus on growing our funds
management business.
In October last year, John Mulcahy announced
his retirement from Mirvac, having served
on the Board since 2009 and as Chair since
November 2013. I would like to thank John for
his leadership of the Board and his significant
contribution to Mirvac during his tenure.
During the financial year, Susan Lloyd-Hurwitz,
who served as Mirvac’s CEO & Managing
Director, announced her plan to retire from
Mirvac at the end of the financial year, providing
a smooth transition for an internal successor
in Campbell Hanan.
Susan has been instrumental in the growth
and evolution of Mirvac over the past decade,
overseeing the successful execution of the
Group’s urban strategy and upholding its long
legacy of quality and care. I would personally
like to thank Susan for her outstanding
contribution and recognise her as the architect
of Mirvac’s culture as it stands today. Susan’s
remarkable leadership and focus on gender
equality, diversity and inclusion, sustainability,
and innovation have been well recognised
externally, with Mirvac also achieving
consistently high employee engagement
scores over the past 10 years.
Campbell was appointed to the role of Group
CEO & Managing Director, commencing 1 March
this year. Campbell joined Mirvac in 2016 as
Head of Office & Industrial and was appointed
Head of Integrated Investment Portfolio (IIP) in
2020. Campbell has over 30 years of experience
in the property and funds management industry,
including 12 years with Investa Office, where
he held the position of CEO for almost three
years. During his time at Mirvac, Campbell has
played a key role in transforming our investment
portfolio, as well as working with the Executive
Leadership Team to set the strategy and drive
performance. The Board has every confidence
that Campbell will continue to build on Mirvac’s
legacy and drive its success into the future.
In September last year, Brett Draffen announced
his resignation as Chief Investment Officer (CIO)
of Mirvac. Brett was an invaluable member of
the Mirvac team for over 20 years, and I would
like to thank him for his significant contribution
to the Group during that time. Following Brett’s
departure, the decision was made not to replace
the CIO role, and instead, use Brett’s departure
as an opportunity to reallocate the portfolio to
existing roles within Mirvac. Our Chief Financial
Officer, Courtenay Smith, absorbed Brett’s
CIO duties under her remit and Stuart Penklis
absorbed Brett’s Commercial & Mixed-Use
Development responsibilities under a new
combined Development Division.
MIRVAC GROUP ANNUAL REPORT 2023Business overviewOur strategyMegatrendsHow we create value Pleasingly, our focus on diversity was recognised
externally. We were honoured to have been
named by Equileap as the number one company
in the world for gender equality for the second
time in two years. The award highlights the
many initiatives we’ve taken over the past 10
years to embed gender equality within the
business, including our generous Shared Care
Parental Leave Policy and the superannuation
we pay on periods of unpaid parental leave,
the support we provide employees affected by
domestic and family violence, our investment in
women’s mentoring programs, and our focus on
ensuring a zero pay gap for like-for-like roles for
the past seven years.
REMUNERATION
We continue to align our remuneration
framework with the interests of our employees
and those of our securityholders and
stakeholders. In early FY23, and informed by
external benchmarking data, STI targets for
the Executive KMP increased from 70 per cent
to 100 per cent of fixed remuneration, with
the maximum reduced from 200 per cent of
target to 150 per cent of target. The deferral
component of the STI was increased from
25 per cent to 40 per cent, with all changes
effective 1 January 2023.
A financial gateway of 90 per cent of budget for
the Group STI Pool was maintained, which the
Human Resource Committee (HRC) believes is
important to align financial performance with
individual STI outcomes. In FY23, operating
profit was above the gateway, and the HRC
approved a Group STI score of 94.5 per cent,
down from 113 per cent in FY22. This reflects
the more challenging financial performance
balanced with the contribution of management
to deliver outcomes.
The performance period for the FY21 Long-term
Performance Plan (LTP) completed on 30
June 2023. The FY21 LTP was subject to a
single performance measure of relative TSR
over the performance period starting 1 October
2020. Mirvac’s absolute TSR performance of
18.68 per cent was at the 57th percentile of the
comparator group, resulting in total vesting of
the FY21 LTP of 64 per cent.
7
OUTLOOK
While high inflation and interest rates continue
to place pressure on our operating environment,
our integrated model ensures that we are well
positioned to continue to execute our urban
strategy and deliver long-term growth. We have
a high-quality, modern, sustainable investment
portfolio that is expected to continue to
deliver resilient cash flow streams to our
securityholders. This will be further enhanced
by industrial and build to rent developments, in
partnership with third-party capital providers.
We will continue to progress our non-core asset
sales program to optimise capital allocation
across our portfolio, actively manage our
development capital, and focus on unlocking
the considerable value from our development
pipeline over the coming years.
Expanding our funds management offering
with aligned capital partners remains a
strategic focus for the Group, and is well
supported by our continued commitment to
develop our deep multi-sector development
pipeline and deliver market-leading investment
and sustainability performance.
Importantly, we have a strong leadership team
in place, which, together with our Board, is
committed to growing our existing portfolio
and leveraging opportunities where we can
apply our more-than-50 years of expertise in
delivering quality residential product, such as
affordable housing and land lease communities.
Our owner’s mindset will also continue to ensure
that every decision we make is for the benefit of
our capital partners and our securityholders.
Overall, the Group is in a solid position, and I am
pleased with the focus and discipline that has
been applied by our leadership team to position
Mirvac for the future. An enormous amount
has been achieved in FY23, and I would like to
thank Susan and Campbell and the rest of the
team at Mirvac for their hard work, enthusiasm,
and dedication over the past 12 months. I would
also like to thank my Board colleagues for their
contribution, and our securityholders for your
continued support.
ROB SINDEL
CHAIRMAN
In line with our strategy to grow our funds
under management and build on our capital
partnering success, we appointed Scott Mosely
to the role of CEO, Funds in November last
year. Scott leads our wholesale pooled funds
and capital partnerships under a new Funds
Division. Scott’s extensive experience and his
well-established relationships in the real estate
capital and transactional markets make him well
qualified for this role.
Given our newly formed Funds team, and
with Campbell stepping into the role of Group
CEO & Managing Director, the decision was
made to separate IIP into an Investments
Division and an Asset Management Division.
The Investments Division manages assets
and investments that are on Mirvac’s balance
sheet, including investments held by Mirvac
Ventures, while the Asset Management Division
services both our Investments and Funds teams
independently, ensuring any conflicts of interest
are appropriately managed.
Following an internal recruitment process,
Victoria Tavendale was appointed as our
Chief Asset Management Officer, and Richard
Seddon was appointed as CEO, Investments.
Victoria and Richard are both highly capable,
respected, and experienced professionals and
have worked at Mirvac for the past six and
five years respectively. It is a testament to the
quality of leadership that we have at Mirvac
that we were able to promote from within the
organisation, and demonstrates the strong
focus we have on professional development
and talent management.
With this renewal to our Board and leadership
team, I am confident that we continue to
have the right people with the right skills and
experience required to steer Mirvac through
the current economic uncertainty and ensure
Mirvac’s future success.
DIVERSITY & INCLUSION
Maintaining a diverse and inclusive culture is
core to who we are. Our goal is to ensure that
all of our employees feel like they belong and
that they can be their true and authentic self at
work. Earlier this year, we were proud to support
Sydney WorldPride, with many of our office
assets and retail centres coming alive through
activations, installations, and events.
During our WorldPride celebrations, we
announced a new partnership with The Pinnacle
Foundation, which provides young LGBTQ+
Australians with educational scholarships and
mentoring opportunities to help them realise
their full potential. Through our partnership,
we have established three property and
construction scholarships, with the successful
applicants to be announced early next year.
We also announced our first LGBTQ+ working
group, The Pride Committee, led by our Chief
Digital Officer. Through this committee, our
intent is to continue to harness the power
of diversity within our organisation.
Reimagine Urban LifeGovernanceFinancial reportOtherPerformance by pillarRisk managementFinancial and operational results 8
Letters to securityholders
Letters to our securityholders
CEO & MANAGING DIRECTOR’S LETTER
Dear securityholders,
I am pleased to present my first report to you as Group CEO & Managing Director, and I would
also like to take the opportunity to thank Susan Lloyd-Hurwitz for her leadership over the past
10 years. I was fortunate enough to step into the role with a clear urban strategy in place
and a high-performing and motivated workforce to deliver on our strategy.
We have certainly achieved some big goals
in FY23, and while our financial results reflect
the challenging market we are in, our strong
balance sheet, vibrant culture, platform of
scale, and 50-plus years of experience, ensure
we continue to be well placed for the future.
There is no doubt that our operating
environment has shifted, with a number of
cyclical and structural shifts underway. In
addition to higher global interest rates, this
includes a critical undersupply of housing,
changing demographics, the ongoing
densification of our cities, and technology
changing the way we use real estate. To
respond to these trends, we have identified
five key areas of focus that we believe will be
critical for us to continue to deliver into the
future. These focus areas include:
> retaining balance sheet flexibility to execute
our strategy and take advantage of future
opportunities
> further improving the cash flow resilience
of our high-quality $11.9bn Investment
portfolio, with higher exposure to living
sectors and Sydney-based industrial
expected over time
> expanding our Funds offering across a
broader suite of asset classes and product
types to deliver superior returns and help
unlock our development pipeline
> leveraging our integrated development
capability to drive a more efficient allocation
of capital, better utilisation of skills, and
superior returns and risk management
> maintaining leadership in sustainability and
culture, which will help to future-proof the
business against changing stakeholder
requirements and expectations.
We are making good progress in each of these
areas, as outlined over the following pages of
this report. With the business now restructured
into Investment, Funds, and Development,
and a new leadership team in place, I am
confident that we will continue to deliver for
our securityholders.
GROWING OUR THIRD-PARTY CAPITAL
Third-party capital will play a critical role in
our business into the future as we look to
unlock the substantial value embedded in
our development pipeline and increase scale
in living sectors, including build to rent and
land lease communities, and the industrial
sector. Our end-to-end development, asset
management and investment expertise, our
willingness to co-invest, and our ability to
create best-in-class property investments are
key to attracting aligned capital partners.
We made great progress to grow our funds
under management in FY23, establishing
the Mirvac Industrial Venture (MIV) with
our existing capital partner, the Australian
Retirement Trust, as well as the Build to
Rent Venture, with aligned capital partners,
including the Clean Energy Finance
Corporation. These ventures are expected to
deliver solid returns on our co-invested capital,
along with additional fee streams, and will help
to accelerate our growth into asset classes
with strong fundamentals.
In addition to this, Japanese real estate
company, Daibiru, signed as our new,
long-term capital partner at our 7 Spencer
Street development in Melbourne, enabling
commencement of this next generation
workplace development. The transition of
the Mirvac Wholesale Office Fund (MWOF)
was also completed and saw us welcome over
50 new employees to the Group, broaden our
relationships with over 40 new investors, and
complete our $500m co-investment, providing
exposure to MWOF’s high-quality, modern
investment portfolio.
INCREASING THE RESILIENCE OF OUR
INVESTMENT PORTFOLIO
Our investment portfolio has undergone
considerable change over the past decade as
a result of our focused portfolio management.
We have sold over $4.2bn of non-core
assets and created approximately $6bn of
assets across build to rent, industrial and
office, substantially improving the quality
of our portfolio. As a result, we now have a
high quality, modern, sustainable portfolio that
has consistently outperformed the direct real
estate performance benchmarks.
Our focus on a cash-resilient, modern
investment portfolio underpinned a solid
performance in FY23. Occupancy remained
high at 96.9 per cent and we saw elevated
leasing activity, particularly at our build to rent
assets. Both tenant and capital demand for
our build to rent assets and our Sydney-based
industrial portfolio remained strong, supported
by positive market fundamentals, reinforcing
our plans to increase our capital allocation to
these sectors over time.
MIRVAC GROUP ANNUAL REPORT 2023Business overviewOur strategyMegatrendsHow we create value The bifurcation of tenant and capital demand
in the office sector also continued to play out,
and occupancy remained high at 95 per cent.
The recovery in retail also continued, with
moving annual turnover up 11 per cent on FY22,
with positive foot traffic growth of 25 per cent.
We expect sales activity to further improve
over the coming 12 months, supported by tight
vacancy, a restricted supply outlook, and the
resumption of overseas migration, and we have
a flexible launch program ready in place to take
advantage of more favourable conditions.
As well as lifting our exposure to the living sectors
and industrial assets in Sydney over time, and in
light of structural changes in the office sector, we
will continue to focus our exposure to modern,
Prime assets where demand fundamentals
remain the most resilient and capital expenditure
needs are lower.
PROGRESSING OUR DEVELOPMENT
PIPELINE, PRUDENTLY
We remain focused on progressing
development projects that have the right
tenant pre-commitments and capital partner
support in place, and our committed active
capital is largely centred around our build to
rent and industrial projects, in line with our
stated objectives. During the financial year,
we achieved practical completion of LIV Munro,
Melbourne and progressed construction at
LIV Aston, Melbourne and LIV Anura, Brisbane,
and we have now commenced construction
at LIV Albert Fields, Melbourne. Construction
at Switchyard Industrial Estate in Auburn,
Sydney is nearing completion, with the project
96 per cent pre-leased, and construction
progressed at Aspect, Kemps Creek in Sydney,
where we are pursuing our first net positive
embodied carbon development.
Being prudent with our capital in an uncertain
environment, we deferred the near-term
redevelopment of our assets at 90 Collins
Street and 383 La Trobe Street in Melbourne,
and 75 George Street, Parramatta, with a
strategy to re-lease in the short-term. The
ability to adapt to the market and be flexible
and selective in our deployment of capital is a
key strength of our integrated model.
While we were certainly not immune to the
challenges in the residential sector, our in-
house design, development and construction
capability helped us to manage the impacts
of rising materials costs, supply chain issues,
and labour shortages in FY23 better than most.
With wet weather impacting construction and
settlement programs, we made the decision to
delay a number of residential lot settlements
into FY24, ensuring our commitment to the
quality of product we deliver to our customers
remained intact.
Overall in FY23, we settled 2,298 residential
lots, slightly exceeding our revised guidance
of approximately 2,200 lots. The main drivers
were our masterplanned communities
projects, including Smiths Lane, Tullamore
and Woodlea in Victoria, and Googong in New
South Wales, which contributed 56 per cent
of total settlements. Sales activity moderated
during the period, following a peak driven
by government stimulus and historically low
interest rates, however, our $1.8bn in residential
pre-sales continues to provide us with good
visibility of future earnings.
PEOPLE AND CULTURE
Maintaining a high-performing culture that is
diverse, inclusive, and collaborative will help us
to maintain our competitive advantage, while
ensuring our people are engaged and enabled
to deliver on our urban strategy. Our overall
employee engagement score of 79 per cent in
FY23 reflected our continued focus in this area.
Amid a significant amount of change in our
workforce, we continued to prioritise our
peoples’ physical and mental wellbeing. This
included continuing to provide our people
and their families with access to digital care
platform, Sonder, which delivers medical and
mental health services and support. We are
also steadfast in our commitment to keep
our teams safe at work, and in line with that,
we continued to prioritise the prevention
of major hazards, particularly to preventing
high-consequence incidents across our
portfolio. Our robust safety approach in
FY23 was reflected in a low Lost Time Injury
Frequency Rate of 1.71 in FY23, along with a
Critical Injury Frequency Rate of 0.11.
Innovation remains a key element of our
culture, helping us to genuinely reimagine
how we can make lives better for those in
our communities. In FY23, we progressed
our work to deliver a more inclusive offering
at our residential projects, working with
Specialist Disability Accommodation provider,
InHab Australia, to design six dwellings that
will be built at three of our masterplanned
communities in Victoria in early FY24. We also
continued to embed a culture of innovation at
Mirvac by training more than 100 employees
on how to apply our award-winning innovation
methodology to our projects. We are proud to
have consistently placed in the top 10 in the
property and construction category of the
AFR Boss Most Innovative Companies for the
past four years.
ESG PERFORMANCE
Having reached our target to be net positive
in our scope 1 and 2 emissions by 2030, nine
years ahead of intentions, we released a new
environmental plan during the financial year
that details our target for scope 3 carbon
emissions. Our focus will be on leveraging our
internal design and procurement capabilities,
our in-house sustainability expertise, and our
relationships with our partners and suppliers
to reduce emissions as far as possible,
with the intention to invest in high-quality,
nature-based, Australian offsets for remaining
emissions from FY30.
9
Consistent with our commitment to our
ESG goals, we issued our Sustainable Finance
Framework during the financial year, which sets
out how we will issue and manage sustainable
finance instruments. Under this framework, all
financing arranged in FY23 was certified green
by the Climate Bonds Initiatives, taking our
total green debt facilities to $2 billion.
Having a strong social impact is another
key focus under our ESG strategy, and we
have a goal to invest at least $50 million
towards creating a sense of belonging at our
communities by 2025, using our buying power
and delivering social infrastructure amenity
that can help make a difference. We have
progressed our community partnerships,
which build capacity and scale our social impact.
You can read more about some of the fantastic
initiatives underway on page 30 of this report.
We believe that we all have a role to play in
creating a more just and reconciled Australia,
and through our second Reconciliation Action
Plan, we have been working to meaningfully
embed reconciliation in the way we do business
and build cultural understanding and inclusion
for First Nations People. With the referendum
on the Voice to Parliament approaching, we are
focused on facilitating learning and knowledge
sharing for our employees and communities, so
that they can make an informed choice when
the time comes.
OUTLOOK
Despite the current operating environment
and volatility in markets, I believe we have an
incredibly exciting future ahead of us. Our
integrated and diversified business model
has demonstrated resilience for more than
50 years and is further supported by a clear
urban strategy and a passionate team of
people. As our business and the operating
environment continue to evolve, we remain
as committed as ever to delivering quality for
our customers, advancing our sustainability
ambitions, innovating, and maintaining our
unique and vibrant culture. I look forward to
building on our vision on how we can continue
to deliver exceptional places and experiences
for millions of Australians.
I would like to join Rob in thanking everyone
at Mirvac for their hard work and dedication
in a challenging year. I would also like to thank
the Board for their stewardship, support and
guidance; our valued capital partners; and you,
our securityholders, for your continued trust
and support in Mirvac.
CAMPBELL HANAN
CEO & MANAGING DIRECTOR
Reimagine Urban LifeGovernanceFinancial reportOtherPerformance by pillarRisk managementFinancial and operational results 10
Our strategy
Our strategy
Our commitment to Reimagine Urban Life underpins
our strategy. We focus on Australia’s most attractive
urban markets, with an ambition to create places
and precincts for the long term, while delivering
sustained value to our securityholders.
Our strategy is supported by our vision to be a
leading creator and curator of urban places and
experiences for millions of Australians.
Pillars of Value
Our Aspirations
Where We Will Compete
How We Will Deliver
Sectors
> Office
> Industrial
> Retail
> Living (including build to sell,
build to rent, and land lease)
> Mixed Use
Markets
Major Australian urban areas
with sufficient market depth
Retain balance sheet flexibility
to execute strategy and take
advantage of opportunities
Increase resilience of investment
portfolio by lifting exposure to
high-quality, modern, assets that
require less capital expenditure
Leverage development capability
through a more selective approach
towards deployment of capital
Expand funds offering to deliver
superior returns and help to unlock
development pipeline
Continue leadership in ESG and
culture to future-proof the business
and respond to changes in customer,
capital and regulator requirements
PERFORMANCE
Delivering financial
outperformance
PLACE
Maintaining our integrated
creation and curation
capability, reputation for
quality, and deep expertise
in our sectors of choice
PEOPLE
Creating competitive
advantage through people
and culture
PARTNERS
Creating strong and
enduring relationships
with our customers, partners
and investors; and being
trusted by governments
and communities
PLANET
Remaining a leader in ESG
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersMegatrendsHow we create value 11
EY Centre, 200 George Street, Sydney
Reimagine Urban LifeGovernanceFinancial reportOtherPerformance by pillarRisk managementFinancial and operational results 12
Megatrends
Megatrends
shaping our world
Our operating environment
continues to evolve, with
a number of key global
megatrends shaping our world
and the cities we live in.
While these megatrends typically unfold over
a long period, we are focused on continually
monitoring them to understand their potential
impact to our business, workforce, customers,
and partners, so that we can enhance
our strategy and both manage the risks
and embrace the opportunities they present.
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersOur strategyHow we create value 13
MACROECONOMIC AND GEOPOLITICAL LANDSCAPE
The reversion from the pandemic-induced ‘free capital’ aberration, alongside a
backdrop of heightened global geopolitical tensions, continues to shape consumer,
capital, and policymaker behaviour.
> Value and cashflow-conscious households and businesses.
> Continued growth in domestic and international capital pools (including
consolidation and emergence of mega superfunds).
> Capital looking for resilient returns and platform opportunities, with Australia
continuing to be favoured as a relative economic safe haven.
> Rise of protectionism and government/regulatory intervention, including a focus
on production sovereignty and self-sufficiency.
HOW WE ARE RESPONDING
We have increased our focus on cost base and supply chain
resilience, through strategic procurement and other productivity
initiatives. We are also strengthening our capital strategy and
deployment to growth sectors and lifting our exposure to
high-quality, modern, capex-light assets. In addition to this, we
continue to focus on being a responsible custodian and delivering
strong returns for our third-party capital partners, and being a
trusted partner for governments and communities.
URBANISATION AND INFRASTRUCTURE
The urbanisation of Australia’s major capital cities continues, with varying
impacts across real estate sectors.
> Continued densification and regeneration of cities driven by record migration,
supportive government policy, investment in transport infrastructure, and the
creation of new growth corridors.
> Consumers rediscovering the benefits of urban living, with the COVID-19
pandemic increasingly behind us.
> Flexible working leading corporates to seek adaptive workspaces, driving
a flight to quality.
HOW WE ARE RESPONDING
We focus on key urban markets and creating and curating
high quality, desirable, and sustainable assets, precincts, and
communities. We believe that Australian cities will continue to be
the drivers of economic output, and we apply our placemaking
capabilities to deliver places people want to work, shop and live
in. We are sharpening our focus on Premium office assets to take
advantage of the continued bifurcation of investor and tenant
demand. We are also committed to exploring new living sectors,
such as land lease, and growing our build to rent portfolio, to help
address housing supply and affordability issues in Australia.
CHANGING DEMOGRAPHICS AND CONSUMER BEHAVIOURS
Changes in our population will impact how people live, work, and play.
> Ageing demographic in aggregate, however our cities are forecast to ‘stay young’.
> Five generations in the workforce by 2031, with Gen Alphas entering and Baby
Boomers transitioning out.
> Record migration levels over the next decade, creating increasingly diverse
cultural influences on product trends.
> Increasing adoption of share economy and access over ownership, driving
the potential emergence of generational renting and the institutionalisation
of traditional rental sectors.
> Increasing focus on healthcare, including physical and psychological health
and wellbeing.
> Online, real-time and convenience is the norm.
HOW WE ARE RESPONDING
We are embedding an enterprise wide, customer-centric approach
to designing and delivering products, services, and experiences that
add value to our customers’ lives. This includes bringing the online
world to bricks-and-mortar and ensuring a true omni-channel offer
for our retail partners and customers, leading the charge on build
to rent, and exploring additional sectors and product types such
as land lease and living solutions for over 55-year-olds.
DIGITAL EVOLUTION
The pace of digitisation is increasing and the world in which we operate
is changing fast.
> Increasing expectation and reliance on technology in business and day-to-day life.
> Exponential growth in data-enabled analytics and process automation.
> End-to-end digitisation supporting the growth of prefabrication methods
in construction.
> Continued acceleration and commercialisation of emerging technologies.
> Increased importance of data and cyber security.
HOW WE ARE RESPONDING
We are focused on executing our technology transformation
agenda to uplift digital fitness across the organisation and
capture efficiencies through improved operational systems and
processes, including digital construction and prefabrication. We
are also actively managing data and cyber risk, while continuously
studying the impact, both in terms of risks and opportunities,
of emerging technologies, such as Generative AI.
ESG FRONT AND CENTRE
Capital is flowing into investments that offer attractive ESG fundamentals,
as well as specific decarbonisation activities.
> ESG, decarbonisation and increasingly, biodiversity, now a primary focus for
investors and partners.
> Global capital and employees are searching for socially responsible impact.
> Government policy and regulation is moving from raising awareness to
planning and action.
> Trust, social license, governance and transparency continue to be key.
HOW WE ARE RESPONDING
Our sustainability strategy, This Changes Everything, is integrated
into the way we do business. It sets out our approach to
environmental and social responsibility, as well as our commitment
to transparency and doing the right thing. Having reached
our goal to be net positive in scope 1 and 2 carbon emissions
nine years early, we have now set our ambition in relation to
scope 3 emissions and investing in our communities to create
a strong sense of belonging. We are embarking on an enhanced,
coordinated and enterprise-wide plan to achieve these ambitions
by 2030, including science-based targets for scope 3.
Reimagine Urban LifeGovernanceFinancial reportOtherPerformance by pillarRisk managementFinancial and operational results 14
How we create value
Our pillars for creating value
Creating value across our business helps to ensure Mirvac’s success both now and in
the future. We have identified and defined five key pillars that enable us to deliver on our
strategy and allow us to maintain a healthy and resilient business. These pillars are set
out below, and more detail on these can be found from pages 16 to 31.
OUR PILLARS OF VALUE
PERFORMANCE
FINANCIAL
Having diversified and appropriately
balanced sources of capital, including
third-party capital, equity and debt,
helps us execute on our urban strategy
and deliver sustainable returns to our
securityholders and capital partners.
PLACE
ASSET CREATION
AND CURATION
PEOPLE
PEOPLE, CULTURE
AND SAFETY
PARTNERS
CUSTOMERS AND
STAKEHOLDERS
PLANET
SUSTAINABILITY
Our asset creation and curation
capability delivers places that
contribute to the vibrancy of our
cities and improve people’s lives.
Our people and culture are a source
of competitive advantage in the
delivery of our strategy and purpose.
The relationships we build as a trusted
partner allow us to deliver on our
ambition to Reimagine Urban Life.
Our rigorous focus on our
environmental and social impact
helps guide us to deliver outcomes
that are planet positive and remain
a global leader in ESG.
Isle Waterfront, Newstead (artist impression, final design may differ)
WE A
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SI
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A
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Q
U
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&
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W E A R E C U RIOUS AND BOLD
A S S E T CREATION
D e v e lopment
COMMERCIAL
& MIXED‑USE
RESIDENTIAL
WE PUT PEO P L E F I R S T
A S S E T CURATION
I n v estment
Fund s
WE COLLABO R AT E
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersOur strategyMegatrends
15
VALUE CREATED
HOW WE MEASURE VALUE
Excess returns for securityholders,
above our cost of capital, in a
sustainable manner, with appropriate
levels of gearing maintained.
> Return on Invested Capital
> Total shareholder return
> Earnings per share
> Distributions per share
Modern, high-quality assets and
projects that deliver NTA uplift,
development profit, and stable,
recurring income and management
fees to the Group.
A culture that provides a competitive
advantage and inspires our people
to deliver on our goals and our
urban strategy, while managing the
risks to our business.
>
Investment: Occupancy, WALE,
WACR and NOI
> Development: Development EBIT
and NTA uplift
> Funds Management: Assets
under management, and asset and
funds under management profit
> Employee engagement
> Talent retention
> Lost Time Injury Frequency
Rate (LTIFR) and Critical Injury
Frequency Rate (CIFR)
> % of women in senior
management roles
A trusted brand with a reputation
for delivering quality products
and services across each of our
asset classes.
> Net promoter scores
> Customer satisfaction
A climate-resilient business that
delivers assets and homes for our
customers that are more sustainable
and affordable to run, along with a
positive community legacy.
> Water, waste and emissions
performance
> MSCI and Sustainalytics ratings
> Social procurement spend
> Community investment delivered
W E A RE GENUINE AND DO T
A S S E T CURATION
I n v estment
H
E RIG
H
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T
H
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S
R
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T
AT
K M
H O W WE WOR
WE PUT PEO P L E F I R S T
OFFICE
INDUSTRIAL
RETAIL
BUILD TO RENT
Fund s
WE COLLABO R AT E
Reimagine Urban LifeGovernanceFinancial reportOtherPerformance by pillarRisk managementFinancial and operational results
16
Performance
FINANCIAL
Having access to diverse sources of capital, while maintaining financial discipline, is central
to our ability to deliver long-term sustainable growth for our investors and partners. We have
access to a variety of debt sources, third-party capital, funds from non-core asset disposals,
retained earnings, and equity markets (once conditions improve). These funding sources are
critical to deliver returns to our securityholders, pursue new investment opportunities, and
execute our development pipeline to create the next generation of assets.
As a result of these changes, management
reporting and business earnings are now
delivered across three key divisions:
> Investment: our passive portfolio, through
which we derive income from directly owned
assets, co-investment stakes in funds, and
investments in joint ventures alongside our
capital partners. Our diversified passive
investment portfolio spans office, industrial,
retail, and build to rent.
> Funds: includes both funds management
and asset management operations, earning
fees from the provision of investment
management, property management,
leasing, and capital expenditure delivery
services to the balance sheet portfolio
and third-party partners.
> Development: spans commercial and
mixed-use and residential projects. We
derive profits from developing next-
generation assets for our institutional
investors, as well as our own balance
sheet, and through building homes and
communities for our residential customers.
CAPITAL MANAGEMENT
In an increasingly volatile environment,
effective capital management is essential to
safeguard our financial licence to operate and
meet our ongoing funding requirements. We
maintain a target gearing range of 20-30 per
cent and an investment grade credit rating of
A3 and A- from Moody’s Investor Services and
Fitch Ratings respectively.
We also retain a distribution payout ratio
of between 60-80 per cent of operating
earnings per security. This policy strikes the
right balance between providing sustainable
income returns to securityholders versus
reinvesting profits for longer term investments.
CAPITAL ALLOCATION AND RETURNS
In response to market forces driving a
significant increase in the cost of capital across
the spectrum, we have recalibrated internal
return hurdles. This ensures that we are only
pursuing opportunities that meet higher
hurdles. Benchmark returns for our existing
portfolio have also increased. Stemming
from these updates, we continue to monitor
portfolio performance with a view to optimise
and remix the portfolio where appropriate.
During the financial year, we also reviewed and
refined the capital allocation policy to include
investment properties under construction
in active capital. Commensurate with this
updated definition, we will continue to allocate
no more than 20-30 per cent to active capital
through the cycle. We believe this achieves
a balance between passive investments
that provide steady income streams and
active investments that add value through
developments.
HOW WE MEASURE FINANCIAL
PERFORMANCE
Our key earnings measure is operating
earnings per security (EPS), reflecting the
net result of underlying business operations.
In addition, we also review and consider
total shareholder return and distributions
per security.
HOW WE MEASURE VALUE
Return on
Invested Capital
Total
shareholder return
Earnings per security
(cpss)
Distributions
per security (cpss)
FY23
FY22
(0.2%)
6.9%
18.7% 1
(19.2%) 2
14.7
10.5
15.1
10.2
CREATING VALUE THROUGH OUR
INTEGRATED MODEL
Through our integrated business model, we
are able to manage the entire lifecycle of a
project, which ensures quality and attention
to detail at every stage. The assets we create
deliver stable, recurring income to the Group
and superior returns. This creation capability
and alignment of interest also help us to
attract third-party capital to our business,
providing recurring fees and supporting the
execution of our development pipeline. Our
Development earnings, both commercial and
residential, are largely reinvested into the
development pipeline, with our distribution
funded by income from passive investments.
Our in-house asset creation capability:
> delivers NTA uplift, development profit,
management fees and new, high-quality
recurring income to the Group
> reduces risk across supply chain,
construction costs
> allows us to incorporate customer feedback
into front-end design, while driving
sustainable outcomes from the beginning
of a project’s lifecycle.
Our asset curation capability is also critical
in driving superior investment performance
and increasingly higher recurring funds
management income streams, supported
by our in-house asset management team.
This unique flywheel model remains a key
differentiator of our business.
NEW OPERATING SEGMENTS
During the financial year, we updated our
operating model to support the future growth
of our business. A Funds Management division
was created, and the Integrated Investment
Portfolio was separated into Investment and
Asset Management to ensure management of
conflicts of interest between our balance sheet
assets and those that we manage on behalf of
our capital partners.
1. 1 October 2020 to 30 June 2023.
2. 1 July 2019 to 30 June 2022.
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersOur strategyMegatrendsHow we create value 17
Mirvac’s Portfolio Management Framework
DIS T R I B U T ION PO
L
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L ALLOCA
T
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CAPI T
Y
N
E N T RETU
R
M
N
S
SE G
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M ANAGE
M
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N
T
CAPIT
RN O
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E
R
N I N VESTED C
A
P
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T
A
L
60-80%
PAYOUT RATIO
PASSIVE >70%
ACTIVE 1 <30%
ACTIVE/PASSIVE
20-30% GEARING
A-/A3 CREDIT RATING
SEGMENT
HURDLES
1.
Includes Investment Property Under Construction.
Reimagine Urban LifeGovernanceFinancial reportOtherPerformance by pillarRisk managementFinancial and operational results 18
Place
ASSET CREATION AND CURATION
As a leading Australian property group, we drive value for our securityholders through the
places, precincts, and communities we create. We do this by leveraging our integrated and
diversified capability to deliver new, high-quality assets, curating those assets (and the assets
we manage on behalf of our partners), and progressing our residential development pipeline.
ASSET CREATION
Development
> Integrated approach
> Centralised operations
> Recognised brand and proven track record
We have a strong track record of developing
high-quality commercial and mixed-use
assets, leveraging our development
expertise to refurbish existing assets,
and delivering apartments, build to rent
precincts, and masterplanned communities
that our customers are proud to call home.
Our integrated approach provides cost
efficiencies through centralised design and
procurement, along with in-house construction
and sales and marketing. With experienced
teams managing each stage of the
development process, we are able to fast-track
designs, align our procurement programs
across multiple projects, and more accurately
forecast budgets for future projects.
Over the past 10 years, we have evolved
our asset creation capability, leveraging our
integrated skill set to move from being a largely
residential and office developer to a true
mixed-use urban asset creator.
While cost inflation and material and labour
shortages continued to put pressure on the
property industry during the financial year, our
integrated model ensured that we remained
resilient. All key skill sets in the lifecycle of a
project are retained in-house, providing us
with optimal controls over construction costs
and supply chain risks, along with the ability
to capitalise on market opportunities.
In FY23, we combined our residential and
commercial and mixed-use businesses under
one division to allocate our capital more
effectively and to better harness and utilise
our creation skills. We have an ambition to
grow our exposure to new asset classes (such
as build to rent and land lease), expand our
industrial footprint, and position ourselves to
take advantage of the next residential cycle –
all the while delivering on our sustainability
objectives. The diversity of experience across
our Development team will also help us grow
leaders into the future and further strengthen
our asset creation capability.
COMMERCIAL & MIXED‑USE
Switchyard Industrial Estate, Sydney
(artist impression, final design may differ)
One of our key competitive advantages is
our ability to bring complex urban assets
and precincts to life. We focus on projects
where we can leverage our expertise across
different asset classes to deliver large-scale,
city-shaping urban renewal projects.
Our active commercial development pipeline
has a total end value of approximately
$11.6bn and comprises large-scale urban
renewal projects designed to support the
growth and evolution of our cities.
The majority of these projects have income in
place or are held in capital-efficient structures,
providing optionality and future value. We
also focus on substantially de-risking our
development pipeline through pre-leasing
ahead of development completion.
Over the past 10 years, we have delivered
approximately $6bn 1 of commercial assets,
significantly improving the quality of our
investment portfolio. The 13 new assets we
have created in the office, industrial and
build to rent sectors since 2014 have also
delivered around $145m of new income to
the Group, and generated approximately
$1.3bn of value in the form of development
earnings and revaluations, along with new
recurring management fees from our aligned
capital partners.
With tighter availability and a higher cost
of capital, we continue to be prudent with the
deployment of our development capital. We
remain selective on progressing commercial
development projects where return hurdles
are met and market conditions are supportive.
In FY23, this saw us advance a number of build
to rent and industrial projects in line with our
stated objective to grow our exposure to these
sectors. Likewise, we deferred a handful of
near-term redevelopments, including 90 Collins
Street and 383 La Trobe Street in Melbourne,
and 75 George Street, Sydney, with a strategy
to re-lease in the short term.
1. Represents 100 per cent end value of completed developments.
South Eveleigh, Sydney
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersOur strategyMegatrendsHow we create value 19
A FOUR-IN-ONE TOPPING OUT AT GREEN SQUARE
Green Square in Sydney represents one of the largest urban renewal projects in
Australia, and for the past nine years, Mirvac has played a pivotal role in shaping
this growing community.
In June this year, we were joined by the Honourable Paul Scully MP, NSW Minister
for Planning and Public Spaces and the Lord Mayor of Sydney, Clover Moore, as we
officially topped out the main structures of four new residential buildings, signalling
the near delivery of over 300 new homes.
The completion of the four buildings – The Frederick, Portman on the Park,
Portman House and Portman Terraces – marks a significant milestone for
the ongoing evolution of Green Square from one of the city’s oldest industrial
suburbs to Sydney’s first new town centre in more than a century, delivering much
needed housing in a prime location. The new community we are delivering in
partnership with state and local government has already provided homes for over
1,000 residents, and these three new apartment buildings will see approximately
685 residents calling the precinct home by the end of 2023.
By 2029, our leadership at Green Square will be evident in the more than 1,600
apartments we intend to deliver, along with state-of-the-art office and vibrant
retail spaces, and substantial public spaces within the town centre. The precinct
is already home to an internationally acclaimed library and civic plaza, Gunyama
Park Aquatic and Recreation Centre, Green Square train station, Joynton Avenue
Creative Centre, Goodstart Waranara Early Education Centre and over 40 parks,
including the 6,200 square metre Drying Green, which acts as Green Square’s
central park.
Mirvac’s CEO Development, Stuart Penklis, said:
‘ Green Square is a great example of how we create and curate places
that make a positive contribution to our cities, while playing an
important part in increasing housing supply in Australia. The
buildings and public and social amenity we have delivered, and the
community we are helping to foster, will meet the needs of its residents
for years to come.’
Green Square, Sydney (artist’s impression; final design may differ).
RESIDENTIAL
Trielle, Melbourne
(artist impression, final design may differ)
For over 50 years, Mirvac has delivered
places of enduring value, and our attention
to detail, focus on quality, and absolute
commitment to our customers has earned
us an unrivalled level of customer loyalty.
We have approximately 23,000 lots under
control across apartments and masterplanned
communities, and a reputation for care and
quality in everything we do.
We have a rigorous approach to planning,
design, development, and construction,
which ensures a high standard at all points of
delivery, and our attention to detail is second
to none. We have a name that is synonymous
with quality, demonstrated by a strong
history of repeat customers and countless
industry awards.
Our long history of undertaking complex urban
renewal projects and our integrated model
ensures we are able to manage every aspect of
development – from site acquisition to design,
planning approvals, construction, marketing,
and sales. We are also able to leverage our
integrated capability to bring product to
market quickly when conditions are favourable,
and we have a track record of bringing releases
forward to capture high demand.
Another advantage of our integrated offering
is that we are better placed to mitigate the
impacts of supply chain disruption and rising
costs, because we can strategically procure
across our residential product lines, with
good visibility of our forward pipeline. While
we were not immune to cost pressures and
supply chain issues in FY23, our integrated
model proved to be a true differentiator in
a challenging environment.
HOW WE MEASURE VALUE
FY23
FY22
Development
CMU
Development EBIT
NTA uplift
Residential
Sales
Settlements
$214m
(5.4%)
$285m
4.5%
1,638
2,298
2,898
2,523
Reimagine Urban LifeGovernanceFinancial reportOtherPerformance by pillarRisk managementFinancial and operational results 20
Place CONTINUED
ASSET CURATION
Investment
> Active portfolio management
> Disciplined portfolio growth
> Continuous quality improvement
Our Investment Division comprises four
business streams that deliver stable,
recurring income to the Group: Office,
Retail, Industrial and Build to Rent. We have
approximately $11.9bn1 of assets on our
balance sheet, and a focus on maximising
performance across the portfolio. We take
an integrated approach, which delivers
a number of benefits and increased
efficiencies to the Group, including
streamlined procurement, centralised asset
management, and resilience in investment.
In FY23, tenant and capital demand for
our build to rent assets and our Sydney-
based industrial portfolio remained
strong, supported by positive market
fundamentals. This reinforces our strategy
to increase our capital allocation to these
sectors over time.
INDUSTRIAL
BUILD TO RENT
Calibre, Sydney
LIV Munro, Melbourne
Our industrial portfolio is 100 per cent
weighted towards Sydney, and benefits from
close proximity to transport infrastructure.
As with our office portfolio, we focus
on high-quality assets that provide our
customers with flexibility, and through our
close relationships with our tenants and our
understanding of their business, we are able
to develop facilities that allow them to fulfil
their objectives and grow. We are focused on
continuing to lift our exposure to industrial
assets in Sydney, where vacancy is low and
supply is restricted.
Mirvac has long championed build to rent in
Australia, which gives renters flexibility, choice,
and convenience. As both the builder and
co-owner, we are able to deliver a completely
new property experience – one that’s designed
to remove the downsides that typically come
with renting. At our build to rent assets, our
customers don’t have to pay a bond, they have
security of tenure, and they are allowed to
bring a pet and hang pictures on their walls.
They are also provided with high-quality
amenity, communal spaces, and residents’
programs to help them connect with their
neighbours. Our consistently strong customer
focus and leasing success at our operational
assets, LIV Indigo in Sydney and LIV Munro
in Melbourne, demonstrate the appeal of this
growing asset class.
HOW WE MEASURE VALUE
FY23
FY22
Investment
Occupancy 2
WALE 3
WACR
NOI
96.9%
97.3%
5.2 years
5.6 years
5.28%
$633m
5.00%
$582m 4
OFFICE
RETAIL
Olderfleet, 477 Collins Street, Melbourne
Birkenhead Point Brand Outlet, Sydney
Today’s workplace is designed to encourage
connection, creativity, collaboration, and
innovation. We are leading the work revolution
through the creation of flexible and adaptable
workplaces that have technology and
sustainability embedded throughout. Our office
portfolio, comprising 99 per cent Premium and
A-grade assets, is primarily located in Sydney
and Melbourne, which continue to be Australia’s
economic powerhouses. Our young, modern,
and high-quality portfolio that is future-fit has
also benefitted from the bifurcation of tenant
demand we have seen over the past few years,
with assets like those in our portfolio continuing
to achieve high occupancy, while requiring less
capital expenditure.
We own and manage a diverse portfolio of retail
assets across Australia’s eastern seaboard,
with an overweight to the strong Sydney
market. Our centres are located within some of
the most progressive and strongest growing
urban and suburban catchments, anchored
by long-term tenancies with key retailers.
Through our integrated platform, we are able
to carefully refine the retail offer for each asset
and collaborate with our partners to deliver
bold and innovative experiences. Our focus
on having the right retail mix, on sustainability,
and on providing opportunities for our brands
to connect with and grow their audience, will
also ensure we continue to create value for our
securityholders into the future.
1. Excludes investment properties under construction
and includes co-investments.
2. By area, excludes Build to Rent.
3. By income, excludes Build to Rent.
4. Restated to reflect Mirvac’s new segment reporting structure,
which commenced the financial year ended 30 June 2023.
80 Ann Street, Brisbane
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersOur strategyMegatrendsHow we create value 21
Funds
> Unique alignment model
> Well-diversified platform
> Customer mindset
Quay Quarter Tower, Mirvac Wholesale Office Fund
Photo: Adam Mørk
Mirvac currently has approximately $17.1bn
in third-party capital under management with
domestic and international partners, which is
split between separately managed accounts,
clubs, co-mingled funds and joint ventures
across Office, Industrial and Build to Rent.
We are committed to taking a considered
and collaborative approach to forming long-
lasting relationships with our aligned investors
and partners, and to continuously engaging
with them to explore aligned investment
opportunities, including through the delivery
of our multi-sector development pipeline.
Our fiduciary responsibility means that we act
in the best interests of our investors, with a
mindset of doing the right thing.
In FY23, the transition of MWOF onto our funds
management platform helped to broaden our
sources of capital and establish relationships
with over 40 new investors. MWOF is
outperforming the Australian Wholesale Office
Fund benchmark over one-, two-, three- and
five-year periods, and comprises modern,
sustainable, Prime grade assets, which are
well aligned to Mirvac’s own balance sheet.
We also established two new managed
investment vehicles during the financial year:
the Build to Rent Venture, with well-capitalised
and aligned cornerstone investors, including
the Clean Energy Finance Corporation, and the
Mirvac Industrial Venture, with the Australian
Retirement Trust. These funds are expected to
deliver solid returns on our co-invested capital,
along with additional fee streams.
In addition to this, we secured a partnership
with Japanese real estate company, Daibiru,
a new, long-term capital partner, at our
7 Spencer Street development, enabling
commencement of this next generation
workplace development.
Expanding and building on our relationships
with pension funds, sovereign wealth funds
and other institutional real estate investors
will remain a key focus, and will provide us
with access to the capital required to execute
our large-scale development pipeline. It will
also allow us to generate new earnings streams
and a higher return on invested capital for
our securityholders.
In turn, we provide institutional capital with
access to our asset creation and curation
capability and our unique alignment model,
underscored by our intention to retain an
ownership interest in the assets we create.
Our in-house design, construction, development,
and asset management teams collaborate to
deliver assets that are designed and capitalised
to outperform over an asset’s lifecycle. Our
$7.3bn office portfolio, for example, has largely
been created by Mirvac and continues to
outperform the benchmark over one, three, five
and 15 years.
As we continue to grow our funds management
platform, we will look to expand our offering
across a broader suite of asset classes and
product types, with a strong focus on living
sectors and industrial, utilising the depth of our
asset creation, asset curation, and investment
capabilities. This will allow us to deploy
our capital effectively and accelerate our
development pipeline, while delivering shared
value and targeted returns for our investors
and securityholders.
HOW WE MEASURE VALUE
Funds
Third-party capital
under management
Asset and funds under
management EBIT
FY23
FY22
$17.1bn
$10.2bn
$20m
$2m
For detailed information on our performance
across all segments, see pages 32 to 37.
Quay Quarter Tower, Mirvac Wholesale Office Fund
ASSET MANAGEMENT
We have approximately $26bn of assets under
management, which includes assets owned by
Mirvac, including direct investments managed
by Investment, as well as assets that sit within
our third-party funds. Our Asset Management
team provides quality real estate operations,
leasing services, and portfolio management to
all assets under management, and supports
Development with pre-leasing at our new
commercial assets, as well as providing
operational expertise throughout the asset
creation phase.
To drive value for our securityholders, we
are focused on leveraging our scale and
end-to-end capability to curate exceptional
experiences for those who work in our office
buildings and logistics assets, shop in our retail
centres, or live in our build to rent apartments.
We recognise that our assets are places for
connection and social interaction, and we
want to provide our tenants and customers
with high-quality, sustainable, modern spaces
that serve to make their experience of urban
life better.
At the same time, we are mindful that the way
we work, shop, live, and socialise is changing,
and we continue to look at opportunities
beyond bricks and mortar where we can curate
digital experiences that enhance the physical
one. Within Build to Rent, we have developed
a consumer app (via our Consumer Platform)
that supports our customers’ engagement and
allows residents at LIV Indigo and LIV Munro
to book communal spaces and facilities, and
interact directly with the team on building
issues and their tenancy.
We are also focused on using data-driven
insights to continue to generate positive
outcomes for our tenants, customers, and
our business. This can include anything
from implementing systems that allow our
tenants to manage their after-hours HVAC
requirements or report on their energy usage,
right through to leveraging data to help them
to optimise their floor space. At Heritage
Lanes in Brisbane, for example, the integrated
building platform delivers information from
millions of data points throughout the asset,
allowing our tenants to manage their office
space and meet their ESG targets.
Reimagine Urban LifeGovernanceFinancial reportOtherPerformance by pillarRisk managementFinancial and operational results 22
People
PEOPLE, CULTURE AND SAFETY
By building a culture that is diverse and inclusive, performance oriented, and collaborative, we
can continue to give Mirvac a competitive advantage, and inspire our people to deliver on our
goals and urban strategy. We are proud of our culture, engagement, employment brand and
employee value proposition, and have focused on maintaining and lifting these areas during
the financial year.
In FY23, we were ranked number one in the
world for gender equality for the second time
in two years by Equileap, demonstrating our
ongoing commitment to gender equality. We
refreshed our Diversity and Inclusion strategy,
which builds on the work we have done around
gender diversity and flexibility, and expands our
focus on LGBTQ+ and Women in Construction.
And we continued our focus on mental health,
along with sharpening our focus on major
hazards and psychological health and safety.
We are pleased to see that our people feel
that Mirvac is a great place to work, with
93 per cent of employees saying they were
proud to work for Mirvac, 92 per cent happy
to recommend Mirvac as a great place to
work, and 95 per cent confident that Mirvac
is committed to the safety of employees. Our
overall engagement score in FY23 was 79 per
cent, reflecting our continued focus on our
culture and our people.
Willoughby, Sydney
PEOPLE AND CULTURE
Our people are at the heart of everything we
do. We consider our team to be our greatest
asset and our goal is to be the number one
employer in the property sector, the place
where people want to join, grow, and belong.
We focus on the employee experience by
prioritising the safety and wellbeing of our
people and ensuring that we maintain an
engaging and positive culture. Underpinning
this is our continued focus on:
OUR VALUES
Our values of putting people first, a passion
for quality and legacy, collaborating, being
curious and bold, and how we work, continue
to guide the decisions of our team and
define the high standards of behaviour
that we expect from our people. We assess
the performance of our people against our
values, and we recognise those who are role
models of our values through our recognition
program, Mirvac Stars.
DIVERSITY, INCLUSION AND BELONGING
Diversity and inclusion at Mirvac are about
more than gender alone. We value the
diversity of cultural backgrounds, ethnicities,
caring responsibilities, gender identity and
sexual orientation among our people, because
it leads to better business outcomes and
reflects the communities in which we operate.
We are committed to providing equal hiring,
development, and advancement opportunities,
and strive to create an environment in which
all employees feel safe, valued, included, and
empowered to do their best work.
We celebrated equality and inclusiveness
by supporting Sydney WorldPride and the
Sydney Gay and Lesbian Mardi Gras in FY23.
As well as hosting events for our people in
each of our state head offices, we launched
our first official LGBTQ+ working group,
the Mirvac Pride Committee, consisting of
LGBTQ+ colleagues and allies. The committee
is sponsored by our Chief Digital Officer
and is focused on understanding LGBTQ+
issues and developing initiatives that
promote awareness.
We are also making significant inroads in our
Women in Construction program. Through
targeted efforts, women made up 32 per cent
of new hires in construction in the past year,
increasing their representation in this part of
the business to 18 per cent, up from 15 per cent
in FY22. The program also continues our focus
on developing female leaders at Mirvac, with
initiatives to help them acquire new skills,
network with other senior leaders, and gain
experience to advance their careers.
Our last employee engagement survey
showed that one in two of our employees
have a cultural identity other than Australian,
highlighting the importance of harmony
and belonging. In March this year, we
celebrated Harmony Week with special lunch
gatherings at each of our state offices. It was
an opportunity for people to discuss and
celebrate cultural diversity at Mirvac, and
learning more about each other’s heritage.
DEVELOPING OUR PEOPLE
Having the right people in the right roles is
key to our success, and we are committed to
nurturing our future leaders and strengthening
our talent pipeline to create the best leaders,
and the best asset creators and curators.
Our goal is to equip our people with skills
and experience across our integrated model
to enable them to transition between our
diverse asset classes.
In line with this, we facilitated our targeted
development program, LEED (Leadership,
Experience, Exposure, Development) in FY23.
The program is aimed at enhancing leadership
capability amongst our key talent to enable
them to grow as adaptive leaders.
Changes to our organisational structure in
FY23 created a number of new opportunities
across the Group, and we were pleased that
88 per cent of these positions were filled by
internal candidates. The calibre of internal
applicants was a testament to the capability
and depth of talent within Mirvac, and a
demonstration of our talent management
and succession planning in action. Our
commitment to gender diversity helped us to
ensure that the percentage of women in senior
management roles remained above target.
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersOur strategyMegatrendsHow we create value Our workforce at a glance
HEADCOUNT
1,738
PAID PARENTAL
LEAVE POLICY
for the primary carer
20 weeks
4 weeks
for the non-primary carer
23
GENDER SPLIT
48:52
BOARD REPRESENTATION
women38%
WOMEN IN SENIOR
MANAGEMENT
women43%
RETENTION OF
KEY TALENT
89%
QLD 176
43:57
WA 44
52:48
Employment
by region & gender
48:52
NSW 1,182
ACT 6
VIC330
50:50
45:55
Reimagine Urban LifeGovernanceFinancial reportOtherPerformance by pillarRisk managementFinancial and operational results 24
People CONTINUED
SAFETY AND WELLBEING
Health, Safety and Environment (HSE) is
core to Mirvac’s business, and the safety
and wellbeing of our people remain a top
priority. As Mirvac embraces its new operating
model, and as the environment in which we
are operating becomes more complex, our
approach to health and safety has continued
to evolve.
During the financial year, we continued
to move from a traditional physical injury
prevention model towards one that prioritises
the prevention of major unwanted events and
the provision of holistic care for our team.
CONTINUED MENTAL HEALTH
PSYCHOLOGICAL SAFETY SUPPORT
Supporting the mental health and wellbeing of
our people is an important focus, and through
FY23, we further embedded our wellbeing
strategy by expanding our offering. Specifically,
we continued our partnership with Sonder,
which provides our employees and their
families access to support from a network of
trained safety, health, and wellbeing specialists
all year round. Through premium mental
health and wellbeing provider, Mindstar, we
also began offering personalised support for
employees who may be struggling with their
mental health.
As well as providing general support to our
people, we acknowledge there is a growing
need to provide our people leaders with the
necessary skills to care for themselves and
others in the context of mental health and
wellbeing. People leaders are usually the first
port of call for employees who may be affected
by mental health issues and are the first line of
defence in managing psychological hazards. To
upskill leaders, a pilot program was developed
and successfully delivered in FY23, and people
leaders across the business will receive this
training in FY24.
We have an active network of over 60 Mental
Health First Aiders in the business, and over
the course of FY23, their approach has evolved
to prioritise active listening and initial triaging,
before guiding people to either Sonder
or Mindstar.
ADDRESSING SAFETY AT EVERY STAGE
OF OUR BUSINESS LIFECYCLE
Our approach to safety continues to prioritise
major hazards, particularly to prevent
high-consequence incidents across our
portfolio. Key to this is a need for curiosity
and for leaders to adopt a ‘chronic unease’
mindset, encouraging people to seek out any
shortcomings in our existing approach, even
when things are going well. Approaching safety
in this way continues to strengthen our ability
to safeguard both our operational and social
licences to operate. In FY23, we delivered major
hazard review sessions across our Commercial
& Mixed-Use projects, with an emphasis
on identifying hazards that would have the
highest consequences for Mirvac, and then
workshopping appropriate solutions to prevent
such events.
Looking ahead, we will continue to enhance
our approach to both psychological health
and safety and major hazards, with ongoing
assessment of our psychosocial risks
and a reworking of our overarching HSE
Management System to better align with the
management and assurance of our major
hazard exposures. We are also adapting our
approach to measuring health and safety,
and in FY24, we will be introducing a new
metric that emphasises learning, enables a
psychologically safe reporting culture, and
importantly, allows us to measure the resilience
of our controls and detect weakness before
a serious accident occurs.
Smiths Lane, Melbourne
FY23 HSE STATISTICS
INDICATOR
HOURS
WORKED
LTIFR
TIMELY
REPORTING
WORKERS’
COMPENSATION
CLAIM COUNT
TRAINING
FATALITIES
CIFR
FY21
FY22
FY23
Target
6.8m
6.8m
8.8m
N/A
3.24
1.18
1.71
<2
22hrs
25hrs
31hrs
10
6
14
<24hrs
N/A
96.0%
97.2%
99.6%
100%
0
0
0
0
1.50
0.74
0.11
<1.5
Limited assurance has been provided by PwC and data sets that have been assured are marked with a
ISO14001, OHSAS18001, and AS/NZS 4801. For further information visit mirvac.com/sustainability.
. Our HSE management systems within construction continued to be certified to
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersOur strategyMegatrendsHow we create value 25
GENERATIVE AI
Our Hatch by Mirvac team led an innovation
project with the largest cohort of interns to date.
Over 35 interns were trained on our innovation
methodology and conducted research to
identify applications of Generative AI across the
organisation. These insights will form part of a
broader piece of work being undertaken by our
Digital team to develop a pipeline of Generative
AI applications at Mirvac.
HATCH22
Key to ensuring innovation is embedded in our
culture at Mirvac is equipping all employees with
the knowledge and tools to drive innovation in
all aspects of their work. Hatch by Mirvac aims
to provide our award-winning innovation training
to all employees, from senior leaders to interns.
In the past financial year, we made significant
strides to build innovation capability across our
organisation, delivering training to more than
100 employees.
We designed and delivered our Hatch22
program, which upskilled employees on
how to apply our award-winning innovation
methodology to our projects. The program was
designed to cater to all employees – whether
they were new to innovation at Mirvac or
wanted to refresh their innovation knowledge
and skills. We also created innovation culture
training modules to support leaders to develop
the right mindset to operate in a challenging
operating environment.
We are proud to have consistently placed in
the top 10 in the property and construction
category of the AFR Boss Most Innovative
Companies for the past four years. The focus
of Hatch by Mirvac for FY24 is to build on
our innovation capability to help us navigate
through the next phase of Mirvac’s journey.
INNOVATION
Our innovation program, Hatch by Mirvac,
has helped to create a strong innovation
culture and capability at Mirvac since it was
established in 2014. It has underpinned our
value to be curious and bold, and contributed
to an employment brand that is attractive
to the next generation of employees seeking
to work for innovative organisations. In FY23,
the Hatch by Mirvac team continued to partner
across the business to deliver on our strategy
in new ways, which included:
BE: BY MIRVAC
Reimaging the living experience for Australians
with a disability continued to be a key focus
for Hatch by Mirvac during the financial
year. As part of a pilot, and partnering with
our Residential team, we are constructing
six leading-edge Specialist Disability
Accommodation (SDA) dwellings at three of
our masterplanned communities in Victoria.
By taking our asset creation expertise and
applying this to new and different products,
we are creating more inclusive communities
where everyone can live comfortable,
autonomous, and enriching lives.
HOW WE MEASURE VALUE
Employee engagement
Talent retention
LTIFR, CIFR
% of women in senior
management roles
FY23
FY22
79%
89%
80%
96%
1.71, 0.11
1.18, 0.74
43%
44%
Reimagine Urban LifeGovernanceFinancial reportOtherPerformance by pillarRisk managementFinancial and operational results 26
Partners
CUSTOMERS AND STAKEHOLDERS
In order to Reimagine Urban Life, we need to ensure that we are taking our stakeholders’
perspectives into account. This includes our customers, the communities in which we operate,
as well as the governments that regulate those communities.
A key part of our approach is to ensure our
customers receive the highest level of care
through every part of their journey with us –
from when they sign a new lease with us, step
into one of our residential sales display suites,
or connect with us online. We know that if we
engage with them in the right way, at every
step of the way, we can foster strong customer
loyalty and unlock opportunities into the future.
It is also important that we know our customers
intimately – their needs, motivations, and
aspirations – so that we can understand their
pain points and deliver solutions that make
their experience with us easier. We look to
connect a wide range of data sources to
drive continuous improvements, deliver more
personalised experiences at scale, and create
new products, services and revenue streams.
MEASURING OUR CUSTOMER IMPACT
Across the business, we use Net Promoter
Score (NPS) to measure customer experience
at key moments of the customer journey and
periodically for ongoing customer relationships.
In FY23, we largely maintained NPS across our
asset classes, with feedback from our tenants
and partners continuing to shape the service
we provide.
We recognise that the environment we are
operating in is becoming more complex, and
that the requirements of those who lease our
assets, rent in our build to rent communities,
or purchase one of our homes are constantly
changing. We are committed to continuously
understanding and leveraging the insights we
collect through extensive customer research,
so that we can continue to deliver exceptional
products, services, and experiences. We will
also continue to focus on being open and
transparent with our key stakeholders to
maintain our reputation as a trusted partner.
ENGAGING WITH OUR CUSTOMERS
We have a wide and diverse range of
customers across our business, from our office,
retail, and industrial tenants to those in our
build to rent and residential communities. We
know that building strong relationships and
finding new and innovative ways to connect
with them is vital for our ongoing success.
In FY23, we established a new customer
and brand function that brings together the
extensive work we do across the business to
engage and inspire our customers. By taking
an enterprise-wide view, we can leverage
our expertise to unlock opportunities for our
customers across all sectors, and design and
deliver experiences that are both consistent
and uniquely Mirvac.
Topping out at Isle, Waterfront Sky in Brisbane
HOW WE MEASURE VALUE
Net promoter score (NPS)
FY23
FY22
Office tenant
Industrial tenant
Retail consumer
Build to rent resident
Residential
Customer satisfaction
+39
+57
+52
+27
+60
+40
N/A
+56
+24
+60
Residential
8.9/10
8.9/10
Within our Residential business, we survey
our customers at key milestones along their
journey with us, measuring their satisfaction
from their initial enquiry all the way through
to settlement and aftersales service. We
collaborate all customer feedback across
our teams to enable a listening culture for
continuous improvement.
ENGAGING WITH OUR STAKEHOLDERS
We recognise the importance of maintaining
strong, healthy relationships with our
stakeholders and the communities in which
we operate, and we strive to understand
their diverse and changing needs in order to
develop communities with an enduring legacy.
This is because we understand that mutually
beneficial relationships help us look at complex
problems from different angles and deliver
maximum value where it matters most.
We have an integrated stakeholder engagement
framework that sets out the vision, principles
and tools that guide our interactions with our
stakeholders. Its purpose is to:
> set a consistent One Mirvac approach,
with key principles for engagement across
all our projects
> encourage strong, healthy relationships with
our stakeholders and the communities in
which we operate
> allows us to actively monitor issues and
maximise opportunities
> facilitate shared learnings from our previous
experiences
> help us to develop the capability of our
people to create a stakeholder-centric culture.
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersOur strategyMegatrendsHow we create value 27
Green Square Library, Sydney
In FY23, we worked on rolling out the
framework across all asset classes within the
business to ensure we maintain a competitive
advantage in this space. We are committed
to actively measuring and reviewing our
engagement across each project into the
future, so that we can continuously learn,
improve upon our approach, and deliver even
better project outcomes.
Our approach to stakeholder engagement
reflects our diverse business and encourages
dialogue with:
> governments, agencies, and regulators
at all levels
> our securityholders and the investment
community
> local and national media outlets
> residents, tenants, and customers
> community groups, community partners,
and the local communities in which we
operate or have plans to do business with
> capital and development partners
> industry
> our employees.
GOVERNMENT
We pride ourselves on having high
engagement with all levels of government
and coordinating this engagement across
the organisation. We maintain a bipartisan
approach and actively engage about policy
decisions in general and those that affect
our properties and projects. We do not make
donations to politicians or political parties at
any level of government and we do not pay
success fees for planning advice of any kind.
In FY23, the Board approved an updated
Government Relations Policy that aims to
protect and enhance Mirvac’s brand and
corporate reputation, satisfy regulatory
requirements, deliver on our ESG commitments,
and minimise adverse stakeholder outcomes.
We also continued to coordinate our
state-based and federal government
engagement through State Government
Relations Steering Committees, which includes
representatives from all parts of Mirvac’s
business. All engagement with government
is undertaken in accordance with our
Government Relations Policy.
INDUSTRY
We are a member of a number of industry
groups and participate in advocacy on issues
affecting our industry, as well as those that may
affect our properties. We have representatives
on a number of national and divisional
committees, join briefings and conferences,
and attend professional development courses.
In FY23, we focused on playing a leading
role with a range of associations that share
our vision to make our cities among the
best in the world, tackling issues that affect
livability. We also continued to embed a more
coordinated approach to committees.
ENGAGING WITH OUR THIRD-PARTY
CAPITAL PARTNERS
With Mirvac now managing more capital for
its partners than on its own balance sheet, the
relationships we build with our capital partners
are key to our success. We apply a genuine
fiduciary mindset, and put our partners’
financial wellbeing and trust at the forefront of
our decision making.
We want to build and nurture long-term
relationships that are aligned to our business,
underpinned by a commitment to transparency
and high levels of governance to minimise
conflicts of interest.
In FY23, we welcomed over 40 new investors
to the Group through MWOF. Together, we
will look to further position MWOF as the
pre-eminent office fund in Australia, leveraging
Mirvac’s leading management platform and
asset creation capability.
Our new capital partnerships through MIV and
our BTR Venture will also assist us in furthering
our reach into the industrial and build to rent
sectors and building closer relationships with
aligned and like-minded investors.
ENGAGING WITH OUR INVESTORS AND
SECURITYHOLDERS
Since becoming publicly listed in 1999, Mirvac
has earned a reputation as a business with
secure, highly visible cash flows, and one that
delivers attractive returns to investors.
We have an award-winning, best practice
Investor Relations program, which facilitates
effective two-way communication between
investors and the Board and management
team and ensures transparent disclosure is
maintained. More information can be found
in our Continuous Disclosure and External
Communication Policy on our website.
Approximately 90 per cent of issued
capital is held by institutional investors.
We meet regularly with these investors
through meetings, open briefings, site tours,
conferences, and roadshows, both domestically
and offshore. Throughout FY23, we held
over 450 investor engagements across both
existing and potential institutional investors.
We also actively engage with all investors
through our Annual General Meetings held
in November with virtual and in person
attendance facilitated.
In addition to a proven track record over more
than 50 years, and a reputation for quality, our
diversified exposure and integrated model,
with in-house design and construction, is a key
point of difference for our investors, particularly
in the current climate. Alongside our sound
financial performance, capital management,
and transparency, investors are attracted to
our genuine leadership and commitment to
ESG. The strength of the leadership team
and culture, from the Board down, is also a
contributing factor in our ability to attract
institutional capital to our business.
Reimagine Urban LifeGovernanceFinancial reportOtherPerformance by pillarRisk managementFinancial and operational results 28
Planet
SUSTAINABILITY
As a leading diversified property company, we aim to be a force for good by making choices,
developing products, and working with our communities with sustainability in mind.
Our strategy, This Changes Everything, is geared towards making a positive impact. It’s designed to manage environmental, social, and governance
(ESG) risks and opportunities, while delivering positive outcomes for our people, the planet, our customers and partners, and the communities
in which we operate.
We focus on what is most important to us and our stakeholders, working to instil a culture of ethical decision making to support one of our key
values, which is to do the right thing. Our employees are a key factor in our sustainability success, and they recognise the importance of our
authentic approach, which contributes to high levels of engagement, discretionary effort, and talent retention across the business.
FY23 HIGHLIGHTS
ENVIRONMENTAL
SOCIAL
GOVERNANCE
> Set Scope 3 emissions
target to be net positive by 2030 1,
and released plan
> Set goal to invest at least $50m
in Creating a Strong Sense
of Belonging by 2025
> Released fifth TCFD report and
climate-related risks and opportunities
> Ranked #1 most gender equitable
company in the world by Equileap
> Released fourth Modern
Slavery Statement
> First business in Australia to receive
the Equifax 5 Gold Star iCIRT rating,
demonstrating our capability to deliver
trustworthy buildings
> Average NABERS Star ratings:
5.2 Energy and 4.8 Water
> Completed our first Green Star Home
at Waverley Park, Victoria
> Joined the Science-Based
Targets initiative
> Achieved net positive in Scope 1 and 2
emissions for the second year
> Recycling waste: 95% construction
and 68% operations
> Investment in Reconciliation education
and support of Indigenous artists
> Recognised as a top Stewardship
> $13.9m in verified community
investment; $9.2m spend on
procurement with social and
Indigenous businesses
> Recognised by Good Company as one
of the best workplaces to give back
for the second year in a row
> Held our biggest employee
volunteering event to date
> Established community partnerships
to build capacity in social enterprises
and support LGBTQ+ young people
in property and construction
Leader by Stewardship Asia
> Released Sustainable Finance
Framework, with a third of our total debt
facilities now certified as green loans
> Top ESG index ratings: AAA (MSCI),
5 Star (UN principles for Responsible
Investment), Negligible Risk
(Sustainalytics)
> Voluntarily disclosed through the Clean
Energy Regulator Corporate Emissions
Reductions Transparency pilot
> Applied to be certified as a B-Corp
force for good company
1. The target reflects Mirvac’s current intention. Mirvac reserves the right to change this target in the future.
Smiths Lane, Melbourne
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersOur strategyMegatrendsHow we create value 29
FY23
Source data
153,254 GJ
526 kg
445,827 L
35,779 L
18,591 L
101,196,684 kWh
ENERGY, GHG, WATER & WASTE 1
Emissions tCO2e
FY13
FY21
FY22
FY23
Scope 1
Natural Gas
Refrigerants
Diesel
Petrol
LPG
Total scope 1
Scope 2 (market-based) 2
Electricity
Total scope 2
Total scope 1 + 2
Voluntary carbon offsets
Net scope 1 + 2 3
Renewable electricity %
Potable water usage
Retail
Office & Industrial
Build to rent
Total (kL)
Total waste
Construction
Investment
Total (T)
Construction
Investment
2,697
1,383
2,333
646
7
7,066
4,430
1,083
701
97
31
6,342
12,660
12,660
19,002
19,002
84%
5,028
1,311
677
87
21
7,125
—
—
7,125
7,225
(100)
100%
7,897
415
1,208
83
29
9,632
—
—
9,632
9,732
(100)
100%
492,216
349,597
406,320
295,338
841,813
701,658
35,565
12,833
48,398
8,780
20,230
29,010
337,166
291,049
22,609
650,824
7,667
17,647
25,314
322,291
557,800
42,815
922,906
11,819
18,343
30,162
95%
Recycled
5%
Landfill
68%
Recycled
32%
Landfill
1. This report includes the addition of five MWOF assets resulting in an increase to Scope 1 emissions, electricity
and water consumed.
2. We began reporting market-based electricity in FY19.
3. This means we offset 100 more tonnes of Scope 1 and Scope 2 carbon emissions than we emit, meeting our
Net Positive Carbon by 2030 target.
Note: some columns may not add due to rounding.
The house is a fully electric home and the
most substantial GBCA certified Green Star
Home built to date. The home achieved a
7.8 Star NatHERS rating and has a 10kW solar
panel system, making it one of our highest
performing homes in terms of energy bills
and renewable energy consumption.
Waste and materials
In 2020, we set out a plan to reach our target
to send zero waste to landfill by 2030, Planet
Positive – Waste and Materials. We have
already made good progress, recycling 95 per
cent of construction waste and 68 per cent of
operational waste and making good use of the
circular economy model. The principles of this
model are fundamental to eliminating waste,
reducing costs, and increasing resilience within
our business. One of our actions has been to
partner with social enterprises to repurpose,
recycle and reuse items from our developments.
A standout circularity project in the financial
year was at Harbourside Shopping Centre in
Sydney as we undertook vacant possession.
Together with Mates on The Move, a work
program run by Prisoners Aid NSW, we
removed over 4,000 unwanted items weighing
22 tonnes, such as furniture and kitchen
equipment valued at more than $320,000,
which were delivered to local charities
and businesses. In addition, our in-house
team conducted waste audits with social
enterprise partners at a number of retail
centres and office assets to understand landfill
waste composition and feedback recycling
opportunities for customers.
We are also on track with our ambition
to halve development waste. This year, we
worked in partnership with Boral on a trial to
change the procurement and management
of concrete at our Green Square project
in Sydney. By connecting the supply and
take-back of materials, waste concrete reduced
by 50 per cent, with 99.6 per cent of concrete
waste recycled back into construction materials.
In FY23, Mirvac launched the third iteration
of its ESG strategy, which is underpinned by
these focus areas:
> Environment: Carbon emissions, Waste,
and Water
> Social: Our people, Connection, and Inclusion
> Governance: Procurement, Finance &
investment, and Capability & disclosures.
We align our targets with these United Nations
Sustainable Development Goals:
OUR PERFORMANCE
ENVIRONMENT
We have set ambitious targets in carbon, waste
and water and have published transparent plans
with clear timelines to outline the steps we
intend to take towards achieving these goals.
Scope 3 emissions
The release of our latest environmental plan,
Net Positive in Carbon by 2030, details our
target for scope 3 carbon emissions 1. These
are the emissions we cannot directly control
but can influence – things like embodied
carbon in the materials we buy, emissions
from waste disposal, and the energy used
by our tenants and residential customers.
Our focus is on using our internal design and
construction procurement capabilities and
in-house sustainability expertise, in partnership
with our suppliers and customers, to reduce
emissions as far as possible. At this stage, we
intend to invest in high-quality, nature-based,
Australian offsets for remaining emissions from
FY30. We are undertaking detailed transition
planning across Mirvac, and will then confirm
or adjust our target and approach.
Green certifications
We already have one of Australia’s greenest
office portfolios, with 17 office assets rated
5 Star NABERS Energy or higher; our operating
assets are supplied with 100 per cent
renewable electricity, progressively electrifying
our assets; and we have high waste diversion
rates across construction and operations.
17 OFFICE
ASSETS RATED
5+ Star
NABERS Energy
In FY23, we constructed our first Green Star
Home at Waverley Park in Victoria. The home
raises the bar for environmental and social
sustainability as part of Mirvac’s commitment
to create outstanding living environments that
leave a positive legacy.
1. The target reflects Mirvac’s current intention. Mirvac reserves the right to change this target in the future.
Reimagine Urban LifeGovernanceFinancial reportOtherPerformance by pillarRisk managementFinancial and operational results
30
Planet CONTINUED
Water
Our target to reach net positive water by 2030
is tracking well. Our plan focuses on designing
to reduce consumption, reusing what we can,
and educating and innovating across our
portfolio, from masterplanned communities,
to retail centres, industrial sites and office and
build to rent assets. In FY23, we partnered with
Sydney Water and their WaterFix Commercial
program to audit water use at three retail
centres, Greenwood Plaza, Birkenhead Point
Brand Outlet, and Broadway in Sydney, and
prepared a plan to reach a 4.5 Star average
NABERS Water rating across our office
portfolio by 2030.
Nature
Protecting biodiversity is crucial for combating
climate change, and we are mindful of
emerging requirements to understand and
disclose our impacts on nature as part of
the Taskforce for Nature-related Financial
Disclosures. A priority for FY24 is to continue
the process of gathering data to assess
our current impacts and opportunities, and
map out our strategic approach, building
on the lessons we have learned at a range
of developments, like our work to preserve
diverse natural habitats at Gainsborough
Greens in Queensland.
After 15 years of development, Mirvac has
successfully completed construction on this
2,000-home masterplanned community,
which has played a vital role in transforming
this growth corridor. With 173 hectares
of conservation area and koala habitat,
Gainsborough Greens is now home to over
5,000 residents. The community boasts
32 hectares of parklands, 33 hectares of
wetlands, and over 13 kilometres of walking
and cycle trails, providing a thriving and
sustainable living environment.
Gainsborough Greens, Queensland
Volunteering
We are proud to provide unlimited, fully paid
volunteer leave to all employees, and we
also provide matched funding for employee
donations, which are activated during times
of crisis. In FY23, this included raising funds
for the Australian Red Cross to support those
affected by the earthquake which impacted
Turkiye and Syria in February 2023.
This year, our National Community Day was
our biggest ever, with nearly 900 volunteers
taking part in 48 activities across the country,
equalling 6,650+ volunteer hours and over
$550,000 in community investment.
We were again acknowledged by Good
Company as one of the best workplaces to
give back, for the second year in a row, and
were also named as one of Australia’s most
generous companies in the fourth annual
Australian Financial Review Corporate
Philanthropy 50.
MIRVAC’S CLIMATE-RELATED
RISKS AND OPPORTUNITIES
This year we release our fifth climate
resilience report, which details the
ways in which Mirvac is addressing
climate-related risks and opportunities
to date, in line with the requirements set
out by the Taskforce for Climate-related
Financial Disclosures.
This report provides an update on our
progress, our plans, as well as an outline
of the physical and transition risks and
opportunities we face.
A highlight this year is the work we’ve
undertaken on establishing 2050 climate
scenarios, which help prepare us for
success under any temperature changes.
The full report can be downloaded here:
www.mirvac.com/sustainability
SOCIAL
Our purpose to reimagine urban life inspires us
to continually strive to do what’s right, and to be
a force for good in our communities. We know
the choices we make with our buying power and
when we invest in social infrastructure amenity
can make a difference in helping to create a
sense of community belonging. That’s why
we’ve made community investment and social
procurement integral parts of our strategy,
allowing us to identify new partnerships and
approaches for attracting customers and driving
positive outcomes.
Community partnerships
We believe that belonging and inclusion
are essential drivers of success for our
business. We have progressed our community
partnerships, which build capacity and scale
our social impact with social and Indigenous
suppliers, PRIDE, and First Nations Australians.
One such initiative is our supplier development
program in collaboration with Social Traders.
We are sponsoring four high-potential
social enterprises for 12 months to address
their scaling challenges. By assisting these
businesses in identifying and overcoming
capacity obstacles, we aim to enhance
their readiness to collaborate with large
organisations like Mirvac, and expand the pool
of social procurement suppliers.
Additionally, we are proud sponsors of three
scholars through The Pinnacle Foundation,
which empowers young LGBTQ+ Australians to
overcome identity-related challenges and fulfill
their potential. Our focus for these scholars
is in our construction business, to help build
diversity and a sense of belonging.
Community investment
When we invest in social infrastructure and
amenity upfront in the development process,
we help to bring the community together
and drive preference for our products.
Incorporating facilities like libraries, schools,
parks, and cafes, and holding events to
build community relationships, help to make
retail centres, office assets, and residential
communities better places to live, work and
shop. We measure the impacts of these
activities through community investment
spend, which this year was $13.9m, bringing
our total since FY18 to $59.2m.
Our buying power
We have made excellent progress towards
our goal to direct $100m to the social sector
by 2030, with $9.2m directed to Indigenous
businesses, social enterprises, B-Corps,
and charities in FY23, with a total of $51.1m
since FY18.
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersOur strategyMegatrendsHow we create value 31
Reconciliation
We believe we all have a role to play in creating
a more just and reconciled Australia. For
us, this means we can develop properties
respectfully and create spaces for dialogue
that build cultural understanding and inclusion
for First Nations People. We are focused on
helping facilitate education and knowledge
sharing on the Voice to Parliament referendum,
so our employees and communities can make
an informed choice.
GOVERNANCE
We understand our crucial role in creating
positive impacts through the choices we make.
From preferencing sustainable materials, to
working with ethical partners, we work to make
choices that align with our value to do the right
thing. These efforts are monitored regularly by
senior executive and Board oversight groups
to ensure we deliver on our ESG promises.
Accountability for performance against our
targets is shared across the company, and
forms part of every employee’s remuneration.
Trust in construction
During the financial year, Mirvac Construction
became the first business in Australia to be
awarded the highest possible 5 Gold Star
iCIRT rating, issued by regulated ratings
agency Equifax, a global data, analytics and
technology company. The rating tool is one of
several pillars of reform introduced in NSW in
recent years, and is intended to raise building
standards and consumer confidence in built
form within the state. Mirvac achieved the
prestigious 5 Gold Star rating following a
rigorous assessment process.
Green finance
In FY23, we launched our Sustainable Finance
Framework, which expands our sustainability
philosophy into raising finance. The framework
sets out how we issue and manage sustainable
finance instruments, with a commitment
to financing or refinancing eligible projects
and assets, or by incentivising improved
environmental and social outcomes.
Modern slavery
In line with the Modern Slavery Act 2018, we
released our fourth Modern Slavery statement,
which provides insight into our modern slavery
risks across our operations and supply chain,
and details our actions in response. This
financial year, we have brought the timing of
the release of our report forward to better
align with integrated annual reporting. We
have looked deeper into cleaning, landscape
labour, and stone. And we have partnered with
Commonwealth Bank to achieve certification
under the Cleaning Accountability Framework
(CAF) at South Eveleigh, also serving as our
pilot for a CAF precinct and asset-based
certification approach.
ESG index ratings and recognition
We continue to have leading ESG ratings,
including the top rating of 5 stars with the
UN Principles for Responsible Investment.
Some of the features of our approach that
resulted in our rating included a responsible
investment policy and associated employee
training, climate scenario analyses, percentage
of real estate assets with external certification,
disclosure of political influence activities, third
party assurance, and internal audit.
FY23 ENRICHING COMMUNITIES
We also achieved a AAA rating from MSCI
and were included in Sustainalytics’ newly
released 2023 Top-Rated ESG Companies list.
This means that we are globally recognised
as one of the best performing ESG companies
rated by Sustainalytics. Our leading ESG
performance was further showcased at
the inaugural Stewardship Asia Steward
Leadership 25 Awards for 2022, with Mirvac
named as a recipient.
HOW WE MEASURE VALUE
Emissions
performance
FY23
FY22
Net
positive
carbon
(Scope 1
and 2)
Net
positive
carbon
(Scope 1
and 2)
Water 1
922,906L
650,824L
Waste diverted
Construction
Operational
MSCI and
Sustainalytics
ratings
Social procurement
spend 2
Community
investment delivered
95%
68%
AAA,
Negligible
risk
94%
68%
AAA,
Negligible
risk
$9.2m
$14m
$13.9m
$9.6m
1. Total potable water usage for our investment portfolio.
The increase in FY23 largely due to the addition of the
MWOF portfolio and Heritage Lanes, 80 Ann Street,
Brisbane during the financial year.
2. Social procurement spend and community investment
figures may fluctuate in line with development pipeline
and timing of spend.
$13,941,630
OF COMMUNITY INVESTMENT
(including $1,521,555 of management costs)
$1,123,421
IN-KIND CONTRIBUTIONS
$10,503,045
FINANCIAL CONTRIBUTIONS
$793,609
VALUE OF HOURS OF SUPPORT
$168,833
LEVERAGE CONTRIBUTIONS
Gainsborough Greens, Queensland
Reimagine Urban LifeGovernanceFinancial reportOtherPerformance by pillarRisk managementFinancial and operational results
32
FY23 financial and operational results
Mirvac continued to deliver on a number of key strategic objectives in FY23, despite a challenging
operating environment, which included high inflation, further interest rate increases, labour
shortages, increased material costs, and limited transaction activity. Against this backdrop, our
high-quality asset creation capability, leading integrated platform, and reputation as a trusted
manager ensured we remained resilient. Our operating profit of $580m translated into earnings
of 14.7 cents per stapled security (cpss), which was in line with our revised market guidance.
Key drivers of our operational result included:
> growth in Investment, led by development completions at Heritage Lanes, 80 Ann Street, Brisbane and Locomotive Workshop, Sydney; our
investment in the Mirvac Wholesale Office Fund (MWOF); and improved collection of COVID-19 arrears. This was partly offset by the impact of asset
disposals across FY22 and FY23
> notable contributions to Development EBIT in the Commercial & Mixed-Use business, following the sale of Waterloo Road, Macquarie Park in 1H23,
the sell down of Switchyards, Sydney to MIV, and the sell down of a 50 per cent interest in 7 Spencer Street, Melbourne in 2H23
> the establishment of the Mirvac Build to Rent Venture with aligned capital partners, seeded by our operational assets, LIV Indigo, Sydney and LIV
Munro, Melbourne, as well as our build to rent pipeline assets, LIV Anura, Brisbane, and LIV Aston and LIV Albert Fields, Melbourne. The Venture has
a medium-term growth target of 5,000 units, with further acquisitions being explored
> 2,298 residential lot settlements, which slightly exceeded our revised market guidance.
We also made significant progress to grow our Funds business, which will help the Group execute its development pipeline. Key achievements
included onboarding MWOF, establishing the Mirvac Industrial Venture (MIV) with ART, and establishing the Mirvac Built to Rent Venture with
key cornerstone investors, including the Clean Energy Finance Corporation. These transactions provide us with the opportunity for future growth
with aligned capital partners.
To support the execution of our strategic initiatives, we redefined our operating model across three key segments - Investment, Funds, and Development.
This structure ensures that the business is well placed to capitalise on opportunities as they arise, facilitates improved governance, and enables us to
maintain independence between our balance sheet investments and third-party capital mandates.
Statutory loss for the financial year was ($165m), driven by a marked shift in investment property valuations, higher net financing costs, and a number
of one-off transaction costs relating to the onboarding of MWOF and the establishment of two new ventures.
Investment EBIT
Funds EBIT
Development EBIT
Segment EBIT 2
Unallocated overheads
Group Operating EBIT
Operating profit after tax
Development revaluation (loss)/gain 3
Investment property revaluation
Other non-operating items
Statutory (loss)/profit after tax
Key performance metrics
EPS (cpss)
DPS (cpss)
Net tangible Assets ($ per stapled secuirty)
1. Restated to reflect Mirvac’s new segment reporting structure, which commenced the financial year ended 30 June 2023.
2. Includes share of net operating profit of joint ventures and associates.
3. Relates to the fair value movement on investment properties under construction.
FY23
$m
619
20
214
853
(86)
767
580
(42)
(528)
(175)
(165)
14.7
10.5
2.64
FY22
$m
Movement
$m
568 1
2
285 1
855
(82)
773
596
70
305
(65)
906
15.1
10.2
2.79
51
18
(71)
(2)
(4)
(6)
(16)
(112)
(833)
(110)
(1,071)
(0.4)
0.3
(0.15)
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersOur strategyMegatrendsHow we create value
Financial and operational results
33
However, this was lower than in FY22, which
included final proceeds from Heritage Lanes,
80 Ann St in Brisbane and Locomotive
Workshop in Sydney. Operating cash outflow
was also negatively impacted by higher
borrowing costs during the financial year.
Net investing outflow in FY23 was ($322m),
an improvement of $114m on the prior year.
Investing cashflow in FY23 was comprised
of proceeds from the sale of 189 Grey Street,
Brisbane, Allendale Square, Perth, and
Stanhope Village, Sydney, and net proceeds
from the establishment of MIV and our BTR
Venture. This was partly offset by the Group’s
co-investment stake in MWOF. Financing cash
outflow was ($57m), down $39m on FY22,
driven by higher repayment of borrowings.
CAPITAL MANAGEMENT
Maintaining ample liquidity and financial
flexibility continued to be a key focus for the
Group in FY23. Our capital position and balance
sheet remained strong, despite the volatility
in markets. Key outcomes of our capital
management focus in FY23 included:
> a well-diversified maturity profile, which has
delivered a weighted average debt maturity
of 5.0 years, with only $250m of debt due for
repayment in the next 12 months
> A- and A3 credit ratings with stable outlooks
from Fitch Ratings and Moody’s Investor
Services maintained
> more than $1.3bn of cash and undrawn debt
facilities at 30 June 2023
> gearing slightly above the mid-point of our
preferred range of 20-30 per cent.
FY23
FY22
Movement
Gearing 2 (%)
Liquidity ($m)
Weighted average debt maturity (years)
Net debt ($m)
Average borrowing rate
(% per annum as at 30 June)
25.9
1,352
5.0
4,318
5.4
21.3
1,368
5.6
3,532
3.9
Credit rating Fitch Ratings and Moody’s
Investor Services
A-/A3
A-/A3
4.6
(16)
(0.6)
786
1.5
—
GROUP OUTLOOK 1
While high inflation and interest rates
continue to place pressure on our operating
environment, our integrated model ensures
we are well positioned to capture synergies
and drive operational efficiencies across the
business, allowing us to deliver long-term
growth for securityholders.
Attracting third-party capital with aligned
interests remains a strategic focus for
the Group, and this is well supported by
our continued commitment to deliver our
Development pipeline. Additionally, significant
progress has been made on our non-core asset
sales program, which will extend into FY24 to
optimise capital allocation across the business.
Subject to no material changes in conditions,
the Group is targeting operating earnings
in FY24 of 14.0 to 14.3cpss and distributions
of 10.5cpss.
CASH FLOW
The Group’s net operating cash outflow in
FY23 was ($57m), down $952m on FY22. This
was driven by a lower Residential cashflow
due to reduced settlement revenue and an
increase in construction spend on apartment
projects, including Nine at Willoughby, Green
Square, and The Langlee in Sydney, Prince
& Parade, 699 Park Street, in Melbourne,
and Isle at Waterfront Newstead in Brisbane.
Development spend also increased in our
Commercial & Mixed-Use business due to
progress at 55 Pitt Street and Aspect South
at Kemps Creek in Sydney. This was partially
offset by the sell down of development projects
to third parties, which comprised 34 Waterloo
Road and Switchyard Industrial Estate in
Sydney, and 7 Spencer Street in Melbourne.
1. These statements are future looking and based on our reasonable belief at the time they were made. They include possible outlooks for our operating environments, but are subject to external
factors and the uncertain environment caused by the global pandemic.
2. Net hedging debt (at foreign exchange hedged rate) excluding leases / (total tangible assets – cash).
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FY23 financial and operational results CONTINUED
INVESTMENT
In FY23, the Investment portfolio delivered EBIT
of $619m, up 9 per cent on FY22. The result was
driven by additional income from completed
developments at LIV Munro, Melbourne and
Heritage Lanes, 80 Ann Street, Brisbane,
like-for-like growth from the passive portfolio,
additional income from our co-investment
in MWOF, and an uplift on new lease deals
at 40 Miller Street and 10-20 Bond Street in
Sydney and 383 La Trobe Street, Melbourne.
These gains were offset by loss of income
from $454m of asset sales achieved during
the financial year, as part of our non-core asset
sales program. This included Allendale Square,
Perth, 189 Grey Street, Brisbane, Stanhope
Village, Sydney, which sold at an average
2 per cent discount to book value.
Higher inflation and bond yields created
uncertainty in FY23 and resulted in lower
real estate transaction volumes. A softening
in capitalisation rates led to an overall loss in
investment property valuations of $528m.
Net operating income 2
Office
Retail
Industrial
Build to Rent
Management and administration expenses
Investment EBIT
Investment property revaluation 4
Total Investment Return
Portfolio metrics
Investment property portfolio value 5 ($m)
Weighted average capitalisation rate (%)
Occupancy (%) 6
Cash collection (%) 7
Weighted average lease expiry (years)
INVESTMENT OUTLOOK 1
Office
Sentiment within Australia’s major markets
has softened, as businesses assess the
implications of the broader macroeconomic
environment and the impact of new ways of
working on office space requirements. Leasing
volumes remain steady, with increased activity
from tenants looking for less than 1,000 square
metres. A focus on wellbeing and sustainability
continues, as tenants implement strategies to
encourage employees back to the office, many
mandating minimum requirements for workers
in recent months. Meanwhile, capital demand
is becoming increasingly bifurcated, with low
investor appetite for secondary assets. This
supports Mirvac’s view that the flight to quality
theme will continue. Our office portfolio, which
is 99 per cent weighted to Prime and A grade
assets and has an average age of 10.8 years,
is well placed to benefit from these trends.
FY23
$m
633
399
168
57
9
(14)
619
(528)
91
11,925
5.28
96.9
99
5.2
FY22
$m
Movement
$m
582 3
370
152
56
4
(14)
568 3
305
873
12,126
5.00
97.3
97
5.6
51
29
16
1
5
—
51
(833)
(782)
(201)
0.28
(0.4)
2
(0.4)
Leasing (sqm)
233,421
110,879
122,542
Industrial
Operating fundamentals in the industrial
sector remain positive, with strong occupier
demand, improved e-commerce penetration,
constrained supply, and very low vacancy
levels resulting in strong market rental growth.
This is helping to mitigate the potential impact
of expanding capitalisation rates across our
industrial portfolio, as a result of recent interest
rate rises. Our industrial portfolio, which is 100
per cent occupied and weighted to Sydney, is
expected to benefit from market rent growth
and continued capital demand for high-quality,
well-located industrial assets, while upcoming
development completions are also expected
to bolster our recurring income stream.
Retail
Sales activity in the retail sector continues
to improve, although early signs indicate to
a moderation in spending as the impact of
interest rate rises and cost of living weighs
on household budgets. Momentum in the
investment market has also moderated, with
economic headwinds and a widening gap in
pricing expectations between buyers and
owners contributing to yield expansion. At the
same time, Australia’s population is expected
to reach its highest level on record in FY24
and remain high in subsequent years relative
to pre-pandemic levels. Our east-coast and
predominantly urban-based retail portfolio
is expected to benefit from this as well as
low unemployment.
Build to Rent
Rental markets continue to perform strongly,
with residential vacancy at historically low
levels and renters expected to be one of the
fastest growing cohorts of the residential
market. This strong growth is further enhanced
by record low unemployment rates, rising
levels of migration, declining household sizes,
and population growth in cities, while broader
apartment supply continues to moderate. Our
Build To Rent (BTR) portfolio is well placed to
benefit from tight rental market conditions and
a more supportive policy environment, which
recognises the important role build to rent can
play in addressing housing supply shortages
in capital cities.
1. These statements are future looking and based on our reasonable assumptions at the time they were made. They include possible outlooks for our operating environments, but are subject
to external factors outside of Mirvac’s control.
2. Includes income from co-investments.
3. Restated to reflect Mirvac’s new segment reporting structure, which commenced the financial year ended 30 June 2023.
4. Excludes development revaluation loss and includes Mirvac’s share in the joint ventures and associates (JVA) revaluation of investment properties, which is included within share of
net profit of JVAs.
5. Includes Mirvac’s co-investment in funds (MWOF, Mirvac Industrial Ventures and Build to Rent Fund) and assets classified as held for sale. Excludes investment properties under
construction and the gross up of lease liability under AASB 16.
6. By area, excludes Build to Rent.
7. By income, excludes Build to Rent.
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersOur strategyMegatrendsHow we create value
Financial and operational results
35
Further, we secured Japanese real estate company, Daibiru, as our 50 per cent partner at
7 Spencer Street, Melbourne, allowing us to commence development of our new generation
commercial space in a challenging environment.
Interest and support for our asset creation activities remains strong. We have a strong pipeline
of commercial and mixed-use development pipeline opportunities, including Harbourisde and
55 Pitt Street, Sydney, allowing for continued growth in funds.
ASSET MANAGEMENT
We have approximately $26bn of assets under management, which includes assets owned by
Mirvac, including direct investments managed by Investment, as well as assets that sit within our
third-party funds. Our Asset Management team provides quality real estate operations, leasing
services, and portfolio management to all assets under management, and supports Development
with pre-leasing at our new commercial assets, as well as providing operational expertise
throughout the asset creation phase.
Separating Investment, Funds, and Asset Management ensures we can deliver best-in-class
service to all of our stakeholders, and manage and lease our assets, and the assets we manage
on behalf of our partners, in a way that is free from any conflicts of interest.
Funds Management EBIT
Asset Management EBIT
Management and
administration expenses
Funds EBIT
FUNDS OUTLOOK 1
We executed a number of strategic initiatives
in FY23, demonstrating our ability to align
ourselves with well-capitalised partners
to accelerate the growth of our funds
platform. We will look to grow the platform
through recently launched vehicles and new
vehicles where we have deep operational
expertise and where we have conviction in
our ability to create value for our investors
and securityholders. We see opportunity in
the living sectors, where we can leverage
our integrated model and over 50 years of
experience as a residential developer.
With a growing number of investors focused on
generating positive impact for people and the
planet alongside financial returns, we will look
at integrating investment strategies with social
and environmental considerations in our next
phase of growth.
FY23
$m
26
30
(36)
20
FY22
$m
Movement
$m
13
19
(30)
2
13
11
(6)
18
Following a period of rising inflation and
interest rates and economic uncertainty,
asset valuations have seen some softening
in the past 12 months.
With our multi-sector development pipeline
in well-located geographical areas, we will
continue to create and curate by connecting
capital with our capability, and in turn, deliver
value for our investors, our business, and
our communities.
Capital allocation to differentiated real
estate remains strong. As the market gets
comfortable with a more stable interest rate
environment, we are seeing increased interest
from investors to deploy capital with managers
that have operational capability and a
co-investment alignment model.
FUNDS
We have $17.1bn in third-party capital under
management with domestic and international
partners, which includes funds, mandates,
and joint ventures across all sectors (office,
retail, industrial, build to rent, and residential).
Key to our capital partnership strategy is our
continued engagement with aligned capital
partners to cater for future mutual growth
ambitions, including through the delivery
of our multi-sector development pipeline.
During the financial year, we secured the
management rights to MWOF and successfully
transitioned the fund to Mirvac, significantly
increasing our third-party capital under
management by approximately $7bn. MWOF
has outperformed the benchmark over one,
two, three and five years. As part of our
offering, we have also co-invested $500m into
the fund, demonstrating alignment and our
commitment to MWOF investors.
We also continued to grow our Funds platform
through the incremental conversion of our
current development pipeline, establishing
three new ventures with high-quality,
strategically aligned capital partners. This
included the Mirvac Industrial Venture (MIV)
with existing partner Australian Retirement
Trust (ART), with ART investing a 49 per
cent interest in the Venture. The Venture was
seeded by Switchyard Industrial Estate, Auburn,
Sydney, which provides 72,000 square metres
of high-quality industrial space, and expands
this relationship to approximately $1bn.
In addition, we launched Australia’s first
operational Build to Rent Venture (BTRV)
with key cornerstone investors, including
the Clean Energy Finance Corporation. The
Venture comprises Mirvac’s operational build
to rent assets – LIV Indigo, Sydney and LIV
Munro, Melbourne, as well as its build to rent
pipeline assets, including; Melbourne based
LIV Aston and LIV Albert Fields, and LIV Anura,
Brisbane. The Venture has around 2,200 lots in
its secured pipeline and an expected end value
of $1.8bn. The establishment and capitalisation
of the Venture supports our vision to increase
our exposure to the build to rent sector, grow
our portfolio to at least 5,000 apartments
in the medium term, and play a key role in
helping solve the housing and rental shortfall
in Australia. Mirvac will provide investment
management, property management,
development management and construction
services to the Venture.
1. These statements are future looking and based on our reasonable assumptions at the time they were made. They include possible outlooks for our operating environments, but are subject
to external factors outside of Mirvac’s control.
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36
FY23 financial and operational results CONTINUED
DEVELOPMENT
Our Development business combines
our Commercial & Mixed-Use (CMU) and
Residential development activities, with a total
pipeline value of approximately $29bn.
Through our CMU business, we deliver
world-class office, industrial, build to rent, and
large-scale urban renewal projects designed to
support the growth and evolution of our cities.
Our unique in-house, mixed-use development
capability provides benefits of future income,
development value creation, and funds
management opportunities.
Within our Residential business, we have
approximately 23,000 lots under control across
apartments and masterplanned communities,
and a reputation for care and quality in
everything we do.
COMMERCIAL & MIXED‑USE
CMU EBIT in FY23 was primarily driven by
the divestment of a 49 per cent interest in
Switchyard, Auburn in Sydney to the Mirvac
Industrial Venture (MIV), along with the sale
of 34 Waterloo Road, Macquarie Park, Sydney,
with both transactions realising significant
development earnings. In addition, residual
development earnings were recognised on
completed projects, including the Locomotive
Workshop at South Eveleigh, Sydney and
Heritage Lanes at 80 Ann Street, Brisbane.
This was offset by a net development
revaluation loss of $42m, driven by a negative
revaluation of LIV Albert Fields, Melbourne,
due to planning delays, and partially offset by a
positive revaluation of LIV Munro, Melbourne,
which reached practical completion in FY23.
Our CMU development pipeline is diverse and
flexible, comprising projects at various stages
of the development lifecycle. In FY23, the value
of our pipeline decreased, reflecting market
conditions, as well as the completion of LIV
Munro, Melbourne and the sale of 34 Waterloo
Road, Macquarie Park, Sydney.
In line with our commitment to deploy capital
prudently, we deferred a handful of near-term
redevelopments, including 90 Collins Street
and 383 La Trobe Street in Melbourne, and
75 George Street, Sydney, with a strategy to
re-lease in the short term.
Commercial & Mixed Use EBIT
Residential EBIT
Management and
administration expenses
Development EBIT
Commercial & Mixed-Use EBIT
Development revaluation gain/loss
Total Commercial & Mixed-Use return
Commercial & Mixed-Use key metrics
Total development pipeline 2
Committed development pipeline
Invested capital
COMMERCIAL & MIXED‑USE PROJECT
UPDATES
Office and Mixed-Use
> Harbourside Sydney: substantially completed
demolition works, and commenced civil works.
> 55 Pitt Street, Sydney: completed demolition
works and substantially completed civil works.
> 7 Spencer Street, Melbourne: commenced
main works on a 45,500sqm office building
following the sale of a 50 per cent interest
in the development to Japanese real estate
company, Daibiru, in May this year.
> Waterloo Metro Quarter, Sydney:
commenced early works on the Southern
Precinct, with construction expected to
commence in FY24.
> Toombul, Brisbane: progressed master
planning for the future use of the site, with a
development application for the demolition
of this site lodged in April this year.
Industrial
> Switchyard Industrial Estate, Auburn,
Sydney: achieved further pre-leasing
success, with the project 96 per cent
pre-committed as at 11 August3. The first
stage of the 72,000sqm last-mile estate
reached practical completion in FY23,
with the balance to follow in early FY24.
Switchyard Industrial Estate was also the
seed asset for the Mirvac Industrial Venture,
which was established in FY23.
FY23
$m
FY22
$m
Movement
$m
120
156
(62)
214
120
(42)
78
105 1
236 1
(56) 1
285
105 1
70
175
11,529
3,218
1,482
12,452
2,197
1,603
15
(80)
(6)
(71)
15
(112)
(97)
(923)
1,021
(121)
> Aspect Industrial Estate, Kemps Creek,
Sydney: commenced construction at our
first embodied carbon positive development.
The 211,000sqm estate is approximately
64 per cent pre-leased 3, with strong tenant
engagement for the remaining space.
> Elizabeth Enterprise Precinct, Badgerys
Creek, Sydney: lodged the initial
development application following
the finalisation of the Western Sydney
Aerotropolis Phase 2 Development Control
Plan in November 2022.
> 34 Waterloo Road, Macquarie Park,
Sydney: sold in FY23, realising significant
development earnings.
Build to Rent
> LIV Munro, Melbourne (490 apartments):
achieved practical completion in November
2022, with 62 per cent of apartments leased
as at 30 June 2023.
> LIV Anura, Newstead, Brisbane (396
apartments) and LIV Aston, Melbourne (474
apartments): construction progressed and
on track for completion in mid-2024.
> LIV Albert Fields, Melbourne
(498 apartments): substantially completed
civil works, with main works to commence
early FY24.
1. Restated to reflect Mirvac’s new segment reporting structure, which commenced the financial year ended 30 June 2023.
2. Represents 100 per cent of expected end value, including where Mirvac is providing Development Management Services, and subject to various factors outside of Mirvac’s control, such as
planning outcomes, market conditions, construction cost escalation, supply chain risks, weather and other uncertainties..
3. Includes agreement for lease and non-binding heads of agreement. Excluding heads of agreement, Switchyard is approximately 82 per cent pre-leased.
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersOur strategyMegatrendsHow we create value
Financial and operational results
37
RESIDENTIAL
Residential EBIT in FY23 was 34 per cent
lower than in FY22, with higher interest
rates contributing to more subdued market
conditions, while sustained wet weather on
the east coast of Australia placed pressure on
residential programs and settlement timings.
In addition, cost escalation, supply chain
constraints, and labour shortages added
further complexities and challenges to the
delivery environment.
The main contributors to Residential EBIT in
FY23 were our masterplanned communities
(MPC) projects, including Smiths Lane,
Tullamore and Woodlea in Victoria, and
Googong in New South Wales, which
contributed 56 per cent of total settlements,
resulting in a higher gross margin of 26 per
cent. This is expected to normalise in FY24,
when key apartment projects delayed in FY23
commence settlements.
Sales activity over the 12 months to 30 June
2023 moderated from elevated levels in FY22,
impacted by lower first-home buyer activity,
uncertainty over rising interest rates, and a
reduction in planned launches. Despite this,
we continued to see solid enquiry across our
projects, led by upgraders and right-sizers
attracted to Mirvac’s track record of delivery,
quality of product, and upfront amenity, with
leads returning to 10-year averages. This was
demonstrated by strong sales success at Isle at
Waterfront Newstead, Brisbane and continued
sales momentum at Green Square, Sydney,
along with activity across our MPC projects,
which helped to maintain our pre-sales balance
to $1.8bn.
We released 1,510 residential lots throughout
the financial year, with 56 per cent of all
released lots pre-sold. This included the launch
of three major apartment projects, which,
as well as Isle Waterfront included Trielle at
Yarra’s Edge, Melbourne and the next stage at
NINE by Mirvac in Willoughby, Sydney. Defaults
returned to historic low levels of 0.1 per cent.
Residential EBIT ($m)
Lots released
Lots exchanged (sold)
Lots settled
Pre-sales secured ($m)
Defaults (%)
Gross development margin (%)
Pipeline lots
DEVELOPMENT OUTLOOK 3
COMMERCIAL & MIXED‑USE
Office
While the uncertainty around the longer term
impacts of the pandemic and the adoption of
hybrid work practices has resulted in softened
capital demand and tenant pre-commitments
taking longer to convert, positive tenant
enquiry remains for well-located new office
buildings that offer the latest in sustainability,
wellness and technology, and facilitate
collaboration. Our secured office and mixed-
use development pipeline is well placed to
benefit from this trend in the medium term.
Industrial
We continue to see strong customer demand
for our industrial developments, in a market
with ongoing elevated demand and very
low vacancy. This strong customer interest
continues to support the roll out of our
Sydney-based industrial development pipeline,
secured on attractive terms, which includes
Switchyard Industrial Estate in Auburn, Aspect
Industrial Estate at Kemps Creek, and Elizabeth
Enterprise Precinct at Badgerys Creek.
Build to Rent
Metropolitan rental markets continue to rapidly
improve, being well timed to match delivery of
our secured pipeline of build to rent projects
between FY23 and FY25. This is expected to
be supported by record low unemployment
rates, low rental vacancy, rising levels of
migration, and population growth in cities,
while broader apartment supply is expected to
moderate further.
FY23
156
1,510
1,638
2,298
1,821
<1
26
FY22
Movement
236 1
2,748
2,898
2,523
1,635
2.7
26 2
(80)
(1,238)
(1,260)
(225)
186
(2.6)
—
22,974
25,352
(2,378)
Residential
While momentum in the residential market
has softened as a result of rising interest rates
and inflation, underlying fundamentals remain
strong. Favourable demand drivers include
low unemployment, above-average wage
growth, rising overseas migration, compelling
relative affordability of apartments, and strong
household balance sheets. We anticipate
demand will remain close to long-term average
levels, especially among wealthy downsizers,
with strong potential for increasing investor
demand. The market continues to experience
supply scarcity, with established listings
below long-term benchmarks, approvals of
new supply continuing to languish, and rental
vacancies persisting at generational lows.
We continue to experience good demand from
owner-occupiers focused on high-quality,
well-located, designed product with good
amenity and certainty of outcome, backed
by a credible brand.
We expect to launch a further four major
apartment projects over FY24, including:
> Prince & Parade, 699 Park Street,
Melbourne, a premium offering overlooking
Princes Park
> The Albertine, our newly acquired site on
31 Queens Road, Melbourne, a boutique
offering overlooking Albert Park
> the next stage of The Fabric in Altona
North, Melbourne
> the last stages at NINE by Mirvac,
Willoughby, Sydney.
This launch profile, complemented by the
release of MPC lots, is expected to elevate
pre-sales in the coming years and contribute
to future residential earnings.
1. Restated to reflect Mirvac’s new segment reporting structure, which commenced the financial year ended 30 June 2023.
2. Restated to reflect the transfer of a project from Residential to Commercial & Mixed-Use.
3. These statements are future looking and based on our reasonable assumptions at the time they were made. They include possible outlooks for our operating environments, but are
subject to external factors outside of Mirvac’s control.
Reimagine Urban LifeGovernanceFinancial reportOtherPerformance by pillarRisk management
38
Risk and risk management
RISK GOVERNANCE
The Mirvac Board is responsible for ensuring
the effectiveness of Mirvac’s risk management
framework. This framework outlines our
governance, risk appetite, accountability for
risk management, and operational resilience,
and is consistent with the Australian and New
Zealand standard on risk management (ISO
31000:2018).
The Board has charged our leadership team
with the responsibility for managing risk
across the Group and implementing mitigation
strategies under the direction of the CEO &
Managing Director, supported by other senior
executives. Each business unit is responsible
for identifying and managing their risks. An
enterprise-wide risk management system is
in place to drive consistency in risk recording
and reporting.
The Group Risk function is responsible for
embedding the risk management framework,
advising business units on risk management
plans, and consolidating risk reporting to
senior executives, the Audit, Risk & Compliance
Committee, and the Board. A strong risk
management culture is the key element
underpinning the risk management framework.
In FY23, we continued to experience a
challenging and volatile operating environment
and prolonged economic uncertainty. Global
and domestic supply chains remained fragile
and were further exacerbated by labour
shortages, construction insolvencies, and
adverse weather conditions, having impacts on
our delivery schedules. Inflationary pressures
and higher interest rates also continued to
have an impact on our business, while risks
were further amplified by the transition out
of the global COVID-19 pandemic, ongoing
international conflict, the accelerating need for
climate change adaptation and mitigation, the
increasing prevalence of cyber-attacks, and
changes in the geopolitical landscape.
Our integrated and diversified business
model, the quality of our modern, sustainable
investment portfolio, our strong balance
sheet, and disciplined approach to
capital management and allocation have
positioned us well to navigate through the
cycle. We will continue to leverage our key
competitive advantages to manage risks
and identify opportunities in order to drive
long-term success and achieve our targeted
strategic objectives.
The Risk Management Policy is available on
our website: https://www.mirvac.com/about/
corporate-governance
RISK MANAGEMENT: OUR PRINCIPAL
RISKS AND OPPORTUNITIES
A number of the risks and opportunities we
face in delivering our strategic plan are set
out in the table below. They are largely related
to our portfolio of assets and are typical of a
property group. These are not the only risks
associated with Mirvac. The risks are grouped
by theme, rather than order of importance.
RELATED PILLAR OF VALUE KEY RISKS AND OPPORTUNITIES HOW WE ARE ADDRESSING THEM
HOW RISK HAS CHANGES SINCE FY22
INVESTMENT AND DEVELOPMENT PERFORMANCE
Performance
Place
MACROENVIRONMENT
Performance
Place
Our business is impacted
by the value of our property
portfolio and our ability to
deliver modern, high-quality,
sustainable assets. This can be
influenced by external factors
outside our direct control,
including the health of the
economy and the strength of
the property sector and capital
markets, and internal factors,
including our investment
decisions and group structure.
We collaborate with aligned investors to
leverage capability and develop recurring
income streams. Prudent capital decisions
are based on due diligence and market
research to ensure investor confidence is
retained. Buying and selling at the right
time in the property cycle has enabled
us to deliver sustainable returns to our
securityholders. We have a disciplined
approach to acquisitions and are mindful
of the fundamentals needed to maintain
growth through our sustainable and
diversified urban-focused business model.
Mirvac is impacted by
changing domestic and
international economic and
macroprudential and regulatory
measures, which impact access
to capital, investor activity, and
foreign investment.
We monitor a wide range of macro-
economic, property market and capital
market indicators and use trend analysis to
assess macroeconomic changes, and we
are attentive to these shifts. We maintain
a robust balance sheet and appropriate
gearing to ensure we can respond to
unforeseen economic shocks.
Rising inflation and increases in
interest rates, which may remain
higher for longer, have the potential
to negatively impact our financial
performance, primarily through
increased cost of capital, decline
in asset valuations and transaction
volumes, and a resetting of targeted
investment returns.
A challenging and volatile operating
environment and prolonged
economic uncertainty, with
successive interest rate rises, have
impacted consumer confidence and
buyer sentiment. The Australian
economy may lose considerable
momentum and enter a period of
low growth and lower investment,
with the potential for a cyclical
slowdown to negatively impact
some income streams.
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersOur strategyMegatrendsHow we create value Risk management
39
RELATED PILLAR OF VALUE KEY RISKS AND OPPORTUNITIES HOW WE ARE ADDRESSING THEM
HOW RISK HAS CHANGES SINCE FY22
CAPITAL MANAGEMENT
Performance
Place
Maintaining a diversified
capital structure to support
the delivery of stable investor
returns and maintain access to
equity and debt funding.
KEY PARTNERS
Performance
Place
Partners
Our partners play a vital
role in our business, and our
sustained success and the
execution of our development
pipeline is driven by
engagement with targeted and
strategically aligned partners.
It is crucial that we build long-
term relationships that are
driven by trust, transparency
and shared values.
CYBER RISK
Place
Partners
DIGITAL DISRUPTION
Place
Partners
Cyber security and information
privacy are an increasing
risk for our business given
the dynamic nature of
these threats. Safeguarding
our intellectual property,
Information and Operational
Technology systems,
contractual agreements,
and employee and customer
information is critical to ensure
ongoing business continuity
and the safety of our people,
assets, and customers.
Technology is changing
our world at a rapid pace.
It is important we embrace
new digitally enabled ways
of working and customer
experiences to maintain
relevance and continue
to innovate.
We have a capital management framework
that is approved and monitored by the
Board. The framework aims to address
market, credit and liquidity risks, while also
meeting the Group’s strategic objectives.
We seek to maintain an investment-grade
credit rating of A-/A3 to reduce the cost
of capital and diversify its sources of debt
capital. Our target gearing ratio is between
20 and 30 per cent.
Our partner relationships are based on
delivering mutual benefits to all parties.
Our value creation model has a focus on
committed partners and enables the delivery
of our strategy through the partner lens.
Fit-for-purpose governance frameworks are
in place to manage our capital partnerships.
In FY23, we restructured the Group into
separate Investment, Development and
Funds divisions, reflecting the growing scale
of the platform and our fiduciary mindset
with respect to third-party capital. The
establishment of Asset Management as a
separate division further strengthens our
end-to-end management expertise, removes
any conflicts of interest in the structure,
and provides independent service and
support to both Mirvac and its third-party
capital partners.
We have a technology and cyber security
strategy and framework (aligned to
the National Institute of Standards and
Technology Cyber Security Framework),
which includes a disaster recovery plan
and a comprehensive cyber security
incident response plan, to prevent and
detect cyber threats and respond and
recover from cyber-related incidents. This
includes data governance and information
security frameworks to safeguard the
privacy of information in accordance with
applicable privacy regulations. Cyber
security frameworks are tested frequently
and remedial action is monitored by ELT
and the Board.
A core element of our strategy is
understanding and preparing for disruption
and building a resilient business. We are
committed to ensuring that we have the
right people, processes, and systems to
take advantage of disruption and to create
a competitive advantage. Our innovation
program, Hatch, ensures that we continue
to innovate in a meaningful way. We also
continue to invest in people and technology
to ensure that digital experiences are
continually evolving.
Appropriate liquidity is in place and
gearing remains within the target
range, however, the cost of capital
has increased materially, and any
movement in net asset valuations
and changes in transaction activity
have the potential to impact
on gearing.
There was no material change in
Mirvac’s key partner risk profile
during the reporting period.
There were several high-profile
cyber security incidents in Australia
during the reporting period, with
increases in the sophistication,
scale, and frequency of cyber
threats, resulting in changes to
laws and regulations, and societal
expectations of privacy. The global
geopolitical risk landscape and the
rapid evolution of the cyber threat
environment increases the potential
of an attack.
There was no material change in
Mirvac’s innovation and digital
disruption risk profile during the
reporting period.
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Risk and risk management CONTINUED
RELATED PILLAR OF VALUE KEY RISKS AND OPPORTUNITIES HOW WE ARE ADDRESSING THEM
HOW RISK HAS CHANGES SINCE FY22
BUSINESS RESILIENCE
Place
People
Partners
Planet
It is crucial that we have the
capability and capacity to
effectively manage and recover
from a major incident in a
timely and efficient manner,
and to adapt to changes in our
operating markets.
SUPPLY CHAIN
Partners
With a broad range of
suppliers providing an equally
diverse range of goods and
services, our stakeholders
can be directly and indirectly
impacted by the practices of
our suppliers, and the materials
they are supplying.
SOCIAL RESPONSIBILITY
Partners
Planet
In an Australian context of low
institutional trust, we must
maintain and enhance trust
and reputation to retain a
social licence to operate.
There was no material change
in Mirvac’s organisational
resilience and business continuity
management risk profile during
the reporting period.
Supply chain disruption and
constraints continue to persist,
with local labour and materials
shortages in key markets,
subcontractor and developer
insolvencies, and sustained
adverse weather. These have the
potential to cause cost escalation
and delays in delivery schedules.
There was no material change
in Mirvac’s corporate social
responsibility and stakeholder
relations risk profile during the
reporting period.
We have an embedded organisational
resilience program that enables the
business to effectively manage and
continue business-critical processes and
operations during a business-impacting
event. This includes breaches to our
information systems and/or damage
to physical assets, which could cause
significant damage to our business
and reputation.
We have well-established process
and oversight bodies to manage key
areas, such as modern slavery, worker
exploitation, material import risk, high-risk
materials, and cyber security. We are
elevating our controls to identify and
mitigate our exposure to these risks and
ensure full compliance with emerging
legislation. Supply chain disruption,
accelerated by COVID-19, geopolitical
tensions, and the impact of cost-escalation
and labour shortages in the construction
industry, is actively managed through
supply continuity plans and alternative
supply arrangements.
We provide consistent, high-quality
communication and transparent and
responsible reporting. We have a
coordinated and consistent stakeholder
engagement framework to instil a
considered approach to stakeholder
and community engagement. We have
committed to proactively sharing our
progress as a business to help us earn
and retain trust. We provide good earnings
visibility, guidance and full disclosure to
our securityholders so they can make
informed choices.
PLANNING AND REGULATION
Partners
Planet
Our activities can be affected
by government policies
in many ways, from local
decisions regarding zoning
and development approval
processes, right through
to the national position on
immigration.
We have proactive and constructive
engagements with all levels of government
on policy changes that may impact our
business and projects, and we ensure
we are prepared to respond to changing
community expectations. Approval
timeframes are built into project delivery
plans and are actively managed to
minimise the impact on returns.
There was no material change
in Mirvac’s compliance and
regulatory risk profile during
the reporting period.
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41
RELATED PILLAR OF VALUE KEY RISKS AND OPPORTUNITIES HOW WE ARE ADDRESSING THEM
HOW RISK HAS CHANGES SINCE FY22
HEALTH, SAFETY AND ENVIRONMENT
People
Partners
Planet
Maintaining the health, safety
and wellbeing of our people
is our most important duty of
care obligation, and is critical
to our ongoing success. We
must safeguard the integrity
of our operations, assets, and
the environment, and enable
our people to thrive in order
to deliver an enhanced safety
performance in a high-growth
and complex landscape.
PEOPLE, CULTURE AND CAPABILITY
People
We require an engaged,
motivated, and high-performing
workforce with the capability
and capacity to deliver our
business strategy and maintain
our desired culture.
IMPACTS OF CLIMATE CHANGE
Place
Planet
Climate change can not
only affect our assets, it can
affect our business operations.
It is vital that we respond to the
implications of climate change
by implementing appropriate
adaptation and mitigation
strategies for the portfolio,
as well as building resilience
throughout the business.
We continue to pursue safety excellence
and to improve the overall wellbeing of our
employees, our suppliers, our community,
and the environment.
During FY23, we continued to strengthen
our stewardship of major hazards and
operations integrity across the lifecycle
of our projects, while enhancing our
safety leadership culture. We recognise
psychological health and safety and
psychosocial hazards require a greater level
of capability, solutions and leadership going
forward, particularly as a result of the long-
term societal and health consequences
posed by the global pandemic.
We focus on having the right culture
and capabilities so that our people are
engaged and enabled to deliver on our
strategy, particularly in an uncertain
and changing operating environment
in which labour markets are currently
constrained. We have a range of programs
aimed at creating great leaders, growing
and retaining key talent, and fostering a
diverse and inclusive workplace, and have
been defining, measuring and curating
our desired culture for some time. Our
remuneration strategy is designed to
attract the best talent, and motivate and
retain individuals, while aligning to the
interests of executives, securityholders
and community expectations.
We regularly assess our portfolio for
climate risk and resilience. We report
under the Task Force on Climate-
related Financial Disclosures (TCFD)
recommendations. We strive to design
developments and major renovations
to a high standard for green building
and community certifications, as well as
energy and water performance ratings.
In FY23, having achieved our ambition to
be net positive for scope 1 and 2 carbon
emissions nine years ahead of our 2030
target, we released our plan and approach
to be net positive in scope 3 carbon
emissions by 2030.
There was no material change
in Mirvac’s health, safety, and
environment risk profile during
the reporting period.
Our high retention level of key
talent, a reduction in voluntary
turnover, and our overall employee
engagement score are indicative
of effective talent and change
management, and the prioritisation
and protection of our culture.
There was no material change in
Mirvac’s sustainability and ESG
risk profile during the reporting
period. Mirvac remains proactive in
the management of ESG risks and
is highly focused on sustainability
outcomes, particularly with respect
to climate risks and disclosures.
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Governance
Board of Directors
44
46
Directors’ report
Remuneration report
49
Auditor’s independence declaration
70
Financial report
71
121 Directors’ declaration
122
130 Securityholder information
132 Glossary
133 Directory & upcoming events
Independent auditor’s report
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Reimagine Urban LifeFinancial reportOtherPerformance by pillarRisk managementFinancial and operational results 44
Board of Directors
DIRECTORS’ EXPERIENCE AND AREAS OF SPECIAL RESPONSIBILITY
The members of the Mirvac Board and their qualifications, experience and responsibilities are set out below:
Robert Sindel
BEng, MBA, GAICD, FIEAust
Campbell Hanan
BEc, EMBA
Christine Bartlett
BSc, MAICD
Group Chief Executive
Officer & Managing Director
(CEO/MD) – Executive
Campbell Hanan was appointed Group
Chief Executive Officer & Managing
Director of Mirvac in March 2023,
and joined the Board as an Executive
Director at the same time.
Campbell joined Mirvac in March
2016 as the Head of Commercial
Property. In October 2020, he was
appointed as the Head of Integrated
Investment Portfolio, and in this role
he was responsible for the strategic
direction and leadership of Mirvac’s
commercial portfolio, which included
Office, Industrial, Retail, and Build
to Rent business units nationwide.
Prior to this, Campbell was the CEO
of Investa Office, a role he held since
2013. He has 30 years’ experience in
the property and funds management
industry, 12 of which were with Investa,
where he served in a number of senior
positions, as well as at UBS Warburg.
Campbell is a member of the Property
Champions of Change and the
Climate Leaders Coalition.
Independent Non-Executive Chair
Chair of the Nomination Committee
Member of the Health, Safety,
Environment & Sustainability
Committee
Member of the Human
Resources Committee
Robert Sindel was appointed a
Non-Executive Director of Mirvac in
September 2020 and as Independent
Non-Executive Chair in January
2023. He has 30 years’ experience
in the construction industry both in
Australia and the United Kingdom
as well as experience operating in
high-risk industries. Most recently,
Rob has held roles in senior executive
management and leadership in
the building industry supply chain,
manufacturing, sales and marketing
in business-to-business environments
and strategic management.
Rob is currently the Chair of Orora
Limited, a Non-Executive Director
of Boral Limited and is a Member
of Australian Business Community
Network Foundation and the Yalari
NSW Advisory Committee.
Rob is the former Managing Director
and Chief Executive Officer of CSR
Limited, a former Member of the
UNSW Australian School of Business
Advisory Council and a former Director
of Green Building Council of Australia.
Independent Non-Executive
Chair of the Human
Resources Committee
Member of the Audit, Risk
and Compliance Committee
Member of the Nomination Committee
Christine Bartlett was appointed a
Non-Executive Director of Mirvac in
December 2014.
Christine is an experienced Chief
Executive Officer and senior executive,
with extensive line management
experience gained through roles with
IBM, Jones Lang LaSalle and National
Australia Bank Limited. Her executive
career has included Australian,
regional and global responsibilities
based in Australia, the USA and
Japan. Christine brings a commercial
perspective especially in the areas
of financial discipline, identifying
risk, complex project management,
execution of strategy, fostering
innovation and taking advantage
of new emerging technologies.
Christine is currently a Director of
Reliance Worldwide Corporation
Limited, Sigma Healthcare Limited
and TAL Life Limited.
Christine is currently a member of the
UNSW Australian School of Business
Advisory Council.
Christine is a former Director of iCare,
GBST Holdings Ltd and Director and
Chair of The Smith Family.
Damien Frawley
Independent Non-Executive
Member of the Audit Risk
and Compliance Committee
Member of the Human
Resources Committee
Damien Frawley was appointed a
Non-Executive Director of Mirvac
in December 2021. Damien has
wide-ranging experience in investment
management and asset management
in real estate and infrastructure in
Australia and offshore, as well as
public markets.
From 2012 to 2022, Damien was
the CEO of Queensland Investment
Corporation (QIC), one of Australia’s
leading investment managers. He
has led the Queensland Government-
owned global institutional investment
manager for the past nine years,
retiring as CEO in 2022.
In June 2022, Damien was appointed
as Chair of Host-Plus Pty Ltd and
Queensland Treasury Corporation
Capital Markets.
Damien has over 35 years’ experience
in the financial services sector, with
a strong focus on developing and
executing strategy. Prior to his QIC
role, Damien was the country head of
BlackRock Australia. Damien’s career
has also included roles at Merrill Lynch
Investment Management, Barclays
Global Investors and Citibank.
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45
James M. Millar AM
BComm, FCA, FAICD
Samantha Mostyn AO
BA, LLB
Peter Nash
BComm, FCA, F Fin
Jane Hewitt
BAS Land Economics, MAICD
Independent Non-Executive
Member of the Audit, Risk
and Compliance Committee
Member of the Health,
Safety, Environment &
Sustainability Committee
Jane Hewitt was appointed a
Non-Executive Director of Mirvac
in December 2018. Jane has over
27 years’ experience in real estate
development and asset management.
She founded UniLodge in 1996
and pioneered the corporatisation,
professional development
and management of student
accommodation facilities on and off
University campuses in Australia
and New Zealand.
As an entrepreneur and founder,
Jane has extensive operational
experience and a strong track record
in developing successful partnerships
in real estate and business ventures.
She developed UniLodge into an
operation with assets of approximately
$1 billion.
Since 2012, Jane has worked on a
number of non profit ventures in
housing, homelessness and youth
disadvantage. She is Chair of the Beacon
Foundation, and is a member of the
board of the National Housing Finance
and Investment Corporation.
Independent Non-Executive
Chair of the Audit, Risk and
Compliance Committee
Member of the Nomination Committee
James M. Millar was appointed a
Non-Executive Director of Mirvac in
November 2009.
James commenced his career in the
Insolvency & Reconstruction practice
at EY, being involved in a number of
sizeable corporate workouts. He has
qualifications in both business
and accounting.
James is currently the Chair of Export
Finance Australia and Cambooya Pty
Ltd, and a Director of Credit Corp
Group Limited.
James serves a number of charities
and is Chair of the Vincent Fairfax
Family Foundation and Director
of Vincent Fairfax Ethics in
Leadership Foundation.
James is the former Chief Executive
Officer of Ernst & Young (EY) in the
Oceania Region, and was a Director on
its global board.
James is a former Director of Forestry
Corporation of NSW, Macquarie Media
Limited, Fairfax Media Limited, Slater
& Gordon Ltd, and former Chair of
The Smith Family.
COMPANY SECRETARY
Michelle Favelle
BBus, FGIA
Michelle Favelle was appointed as Company Secretary in December 2019,
having joined Mirvac in February 2018 as Deputy Group Company Secretary.
She has over 20 years’ corporate experience and has held a range of
governance and company secretary roles in the property, financial services,
media and not-for-profit sectors. She holds a Bachelor of Business and is a
fellow of the Governance Institute of Australia.
Independent Non-Executive
Chair of the Health, Safety,
Environment & Sustainability
Committee
Member of the Human
Resources Committee
Member of the Nomination Committee
Samantha Mostyn was appointed a
Non-Executive Director of Mirvac in
March 2015.
Samantha has significant experience
in the Australian corporate sector
both in executive and non-executive
capacities, in particular in the areas
of human resources, corporate and
government affairs, sustainability
management and diversity.
Samantha is the Chair of Aware Super,
and a corporate adviser and Director
of GO Foundation and Alberts Group.
Samantha has held senior executive
positions, including Group Executive
Culture and Reputation, IAG and
Global Head HR and Culture, Cable &
Wireless in London. She serves on the
Australian faculty of the Cambridge
University Business & Sustainability
Leadership Program.
Samantha is a former Director of
Virgin Australia Holdings Limited,
Transurban Holdings Limited, Cover-
More Group Limited, Sydney Theatre
Company, National Sustainability
Council, National Mental Health
Commission, Carriageworks,
Sydney Swans, Commissioner with
the Australian Football League,
Deputy Chair of the Diversity
Council of Australia, and Chair of an
Australian APRA regulated Citibank
subsidiary board.
Independent Non-Executive
Member of the Audit, Risk and
Compliance Committee
Member of the Health,
Safety, Environment &
Sustainability Committee
Peter Nash was appointed a
Non-Executive Director of Mirvac
in November 2018.
Peter has worked in geographically
diverse and complex operating
environments providing advice on a
range of topics, including business
strategy, risk management, business
processes, and regulatory change.
Peter has also provided financial
and commercial advice to many
government businesses at both a
federal and state level.
Peter is currently the Chair of Johns
Lyng Group Limited (appointed
October 2017), Director of Westpac
Banking Corporation (appointed
March 2018), ASX Limited (appointed
June 2019), Koorie Heritage Trust and
General Sir John Monash Foundation.
Peter was a Senior Partner with
KPMG until September 2017, having
been admitted to the partnership of
KPMG Australia in 1993. He served as
the National Chair of KPMG Australia
from 2011 until August 2017, where
he was responsible for the overall
governance and strategic positioning
of KPMG in Australia. In this role,
Peter also served as a member of
KPMG’s global and regional boards.
Peter’s previous positions with KPMG
included Regional Head of Audit
for Asia Pacific, National Managing
Partner for Audit in Australia, and
Head of KPMG Financial Services.
Peter is a former member of the
Business Council of Australia and its
Economic and Regulatory Committee.
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Directors’ report
The Directors of Mirvac Limited present their report, together with the consolidated financial report of Mirvac Group (Mirvac or Group) for the year ended
30 June 2023. Mirvac comprises Mirvac Limited (parent entity) and its controlled entities, which include Mirvac Property Trust and its controlled entities.
PRINCIPAL ACTIVITIES
The principal continuing activities of Mirvac consist of real estate investment, third party capital management, property asset management and
development across three segments: Investment, Funds, and Development.
DIRECTORS
The Directors of Mirvac in office at any time during the financial year and up to the date of this report, together with information on their qualifications
and experience are set out on pages 44 to 45. The number of Board and Board committee meetings held and attended by Directors, of which they
were members during the year ended 30 June 2023 is detailed below.
REMUNERATION REPORT
The Remuneration report as required under section 300A of the Corporations Act 2001 is set out on pages 49 to 69 and forms part of the Directors’ report.
MEETINGS OF DIRECTORS
The number of Directors’ meetings held and attended by each Director during the year ended 30 June 2023 is detailed below:
Board
Audit, Risk
& Compliance
Committee 1
Human
Resources
Committee 1
Nomination
Committee 1
Health, Safety,
Environment
& Sustainability
Committee 1
Director
Held Attended
Held Attended
Held Attended
Held Attended
Held Attended
Robert Sindel (Chair)
Campbell Hanan (Group CEO/MD) 2
Christine Bartlett
Damien Frawley
Jane Hewitt
James M. Millar AM
Samantha Mostyn AO
Peter Nash
John Mulcahy 3
Susan Lloyd-Hurwitz 4
12
4
12
12
12
12
12
12
7
8
12
4
12
11
12
12
11
12
7
8
—
—
6
6
6
6
—
6
3
—
—
—
6
5
6
6
—
6
3
—
6
—
6
6
—
—
6
—
4
—
6
—
6
5
—
—
5
—
4
—
4
—
4
—
—
4
4
—
2
—
4
—
4
—
—
4
4
—
2
—
4
—
—
—
4
—
4
4
2
—
4
—
—
—
4
—
3
4
2
—
1. Voluntary attendances at meetings by Directors who were not committee members are not included.
2. Campbell Hanan was appointed as a Director effective 1 March 2023.
3. John Mulcahy resigned as a Director effective 31 December 2022.
4. Susan Lloyd-Hurwitz resigned as a Director effective 1 March 2023.
OTHER DIRECTORSHIPS
Details of all directorships of other listed companies held by each Director in the three years immediately before 30 June 2023 or up to the date of
their resignation are as follows:
Director
Robert Sindel
Campbell Hanan 1
Christine Bartlett
Damien Frawley
Jane Hewitt
Company
Boral Limited
Orora Limited
Nil
Date appointed
September 2020
March 2019
Reliance Worldwide Corporation Limited
Sigma Healthcare Limited
November 2019
March 2016
Nil
Nil
December 2021
December 2010
June 2019
October 2017
March 2018
ALS Limited (formerly Campbell Brothers Limited)
GWA Group Limited
February 2012
November 2010
James M. Millar AM
Credit Corp Group Limited
Samantha Mostyn AO
Transurban Holdings Limited
Peter Nash
John Mulcahy 2
ASX Limited
Johns Lyng Group Limited
Westpac Banking Corporation
Susan Lloyd-Hurwitz 3
Nil
1. Campbell Hanan was appointed as a Director effective 1 March 2023.
2. John Mulcahy resigned as a Director effective 31 December 2022.
3. Susan Lloyd-Hurwitz resigned as a Director effective 1 March 2023.
Date ceased
Current
Current
Current
Current
Current
October 2021
Current
Current
Current
Current
Current
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Governance
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Directors’ report
ACTIVE GOVERNANCE
Board Governance
Mirvac is committed to ensuring that its operations, procedures, and practices reflect a high standard of corporate governance to foster a culture
that values ethical behaviour, integrity, and respect. This ensures that Mirvac is well placed to protect the interests of its stakeholders.
In addition to the regular program of meetings, briefings, and site tours, the Board and Board Committees continued to strengthen and enhance their
corporate governance practices and oversight during FY23 in the following key areas, which are aligned with Mirvac’s five pillars for creating value:
> continuing to take a disciplined approach to capital management and diversifying capital sources
> supporting the asset disposal program and debt strategy
> heightened rigour around the financial returns of key development projects
> growing the funds management and capital partnering businesses
PERFORMANCE
> focussing on asset creation and curation of development projects to drive better outcomes for customers
> supporting external partnerships and fund mandates to deliver development projects
> continuing to support the important role of Mirvac’s in-house design team in the delivery of
PLACE
placemaking outcomes
> maintaining high engagement on safety culture, supplemented by visits to Mirvac’s sites, with an emphasis
on physical safety processes and procedures
> a broadening of the health and safety focus for our people to psychosocial and mental health initiatives
> supporting the investment in social infrastructure and further developing community partnerships that
support a range of important social matters, including reconciliation, LGBTQ+ inclusion, mental health and safety,
and housing affordability
> strong engagement and support of the recent organisational change management program
> the design of remuneration and reward structures to encourage appropriate behaviours
> continuing the proactive approach to Board succession planning, which resulted in the successful transition
of CEO and Chair leadership in early 2023
PEOPLE
> supporting the growth of the funds management and capital partnering business
> related to the above, approving governance framework enhancements for Mirvac Wholesale Office Fund I and
II (MWOF), following engagement with MWOF unitholders, with the appointment of a trustee board comprising
a majority of independent Directors
PARTNERS
> supporting and building government relations as a pathway to better outcomes on property projects
> our sustainability strategy and project-specific initiatives, supplemented by visits to Mirvac’s sites
> supporting Mirvac’s ambitious target to achieve net positive scope 3 emissions by 2030
> focussing on areas of climate change financial reporting, carbon accounting methodology, and carbon and
PLANET
environmental offsets
> supporting green financing strategy
Compliance
Mirvac’s governance arrangements and practices met the requirements of the fourth edition of the Australian Securities Exchange (ASX)
Corporate Governance Council Corporate Governance Principles and Recommendations (the ASX Principles) during FY23. Further information
on our corporate governance policies and practices are contained in our 2023 Corporate Governance Statement located at
www.mirvac.com/about/corporate-governance.
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Directors’ report
REVIEW OF OPERATIONS
A review of the operations of the Group during the financial year and the results of those operations are detailed in the FY23 Financial and Operational
Results section on pages 32 to 37 of the report.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Details of the state of affairs of the Group are disclosed on pages 32 to 37. Other than those matters disclosed, there were no significant changes to
the state of affairs during the financial year under review that are not otherwise disclosed in this annual report.
EVENTS OCCURRING AFTER THE END OF THE YEAR
No events have occurred since the end of the year which have significantly affected or may significantly affect Mirvac’s operations, the results of those
operations, or Mirvac’s state of affairs in future years.
DISTRIBUTIONS
Distributions paid or payable by the Group for the year ended 30 June 2023 were 10.5 cents per stapled security (2022: 10.2 cents per stapled
security). Refer to note F1 in the consolidated financial statements.
ENVIRONMENTAL REGULATIONS
Mirvac and its business operations are subject to compliance with both Commonwealth and state environment protection legislation. The Board is
satisfied that adequate policies and procedures are in place to ensure Mirvac’s compliance with the applicable legislation. In addition, Mirvac is also
subject to the reporting requirements of the National Greenhouse and Energy Reporting Act 2007 and Building Energy Efficiency Disclosure Act 2010.
Mirvac is not aware of any incidents that have resulted in material non-compliance with environmental regulations during the financial year.
TAX GOVERNANCE STATEMENT
Mirvac has adopted the Board of Taxation’s Tax Transparency Code (TTC). As part of the TTC, Mirvac has published a Tax Governance Statement
(TGS), which details Mirvac’s corporate structure and tax corporate governance systems. Mirvac’s TGS for the year ended 30 June 2023 can be found
on Mirvac’s website at: www.mirvac.com/about/corporate-governance.
FRAUD, BRIBERY AND CORRUPTION
Mirvac has zero tolerance regarding fraud, bribery and corruption and requires all workplace participants and service providers to adhere to the
highest standards of honesty and integrity in the conduct of all activities. Mirvac will uphold all laws relevant to countering bribery, fraud and
corruption in the jurisdictions in which it operates.
Any allegation of a person from within or associated with Mirvac (notwithstanding the capacity in which they are acting), acting in a manner
inconsistent with this statement will be treated seriously, regardless of the seniority of those involved. Disciplinary action, including dismissal,
may result. Where it is believed that a criminal offence may have been committed, the police and other relevant bodies may be informed.
NON-AUDIT SERVICES
From time to time, Mirvac may engage its external auditor, PricewaterhouseCoopers, to perform services additional to its statutory audit duties. Details
of the amounts paid or payable to PricewaterhouseCoopers for audit and non-audit services provided during the year ended 30 June 2023 are set out
in note H4 to the consolidated financial statements.
In accordance with the advice received from the ARCC, the Board is satisfied that the provision of non-audit services is compatible with the general
standard of independence for auditors imposed by the Corporations Act 2001 and did not compromise the auditor independence requirements of the
Corporations Act 2001 for the following reasons:
> all non-audit services were reviewed by the ARCC to ensure they did not affect the impartiality and objectivity of the auditor; and
> none of the services undermined the general principles relating to auditor independence as set out in Accounting Professional & Ethical
Standards 110 Code of Ethics for Professional Accountants, including reviewing or auditing the auditor’s own work, acting in a management or a
decision-making capacity for the Group, acting as advocate for the Group or jointly sharing economic risk and rewards.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the Auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 70 and forms part
of the Directors’ report.
ROUNDING OF AMOUNTS
The amounts in the consolidated financial statements have been rounded off to the nearest million (m) dollars in accordance with ASIC Corporations
Instrument 2016/191.
This statement is made in accordance with a resolution of the Directors.
Campbell Hanan
Director
Sydney
16 August 2023
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Remuneration report
MESSAGE FROM THE HUMAN RESOURCES COMMITTEE (HRC)
The HRC is pleased to present securityholders with the FY23 Remuneration Report. This report sets out Mirvac’s approach to remuneration for
its Executives and in particular the link between Mirvac’s strategy and its remuneration framework, the link between performance and reward, and
remuneration outcomes for Executives. The HRC has oversight of Mirvac’s People Strategy, Culture and key Human Resources practices.
Mirvac’s remuneration framework is an integral component of our People Strategy.
Leadership changes
During FY23, there were a number of leadership changes. As a testament to Mirvac’s robust professional development, talent management and
succession planning, three key appointments on the ELT were made by internal promotion - Campbell Hanan into the Group CEO/MD position, Richard
Seddon as the CEO, Investments and Victoria Tavendale as the Chief Asset Management Officer. We also welcomed Scott Mosely as the CEO, Funds
Management. These appointments set Mirvac up with a highly experienced and capable leadership team to execute on the Group’s strategic priorities.
People and culture key highlights
The HRC has for many years recognised Mirvac’s culture as a key source of competitive advantage, a differentiator for attracting and retaining the
best talent in our sector, and a driver of employee, team and organisational performance. In FY23, Mirvac continued to deliver on its People Strategy.
Through another challenging year, our purpose, culture, and values have guided our decision making and actions.
Key highlights for the year include:
> Mirvac ranked number one globally in Equileap’s Global Report on Gender Equality for the second time in two years
> maintained an average like-for-like gender pay gap of zero for the seventh consecutive year
> achieved an overall engagement score of 79 per cent, reflecting our continued focus on our culture and our people
> 93 per cent of employees said they are proud to work for Mirvac and 92 per cent were happy to recommend Mirvac as a great place to work in our
employee engagement survey
> launched our first official LGBTQ+ working group, the Mirvac Pride Committee, consisting of LGBTQ + colleagues and allies
> secured internal candidates for 88 per cent of positions arising from changes to our organisational structure, demonstrating Mirvac’s talent
management and succession planning in action
> made significant inroads in our Women in Construction program, with women making up 32 per cent of new hires in the past year and 18 per cent of
our construction workforce
> maintained female representation above targets, including 43 per cent of senior leadership roles held by women
> retained 89 per cent of key talent, notwithstanding a highly competitive labour market
More on our People Strategy and how this supports Mirvac’s performance can be found in the People section, page 22.
Summary of remuneration outcomes and decisions for FY23
In early FY23, a review was undertaken of the remuneration for Executives and, informed by external benchmarking data the STI targets for the
Executives were increased from 70 per cent to 100 per cent of fixed remuneration, with the maximum reduced from 200 per cent of target to 150 per
cent of target. The deferral component of the STI was increased from 25 per cent to 40 per cent. These changes were all effective 1 January 2023.
In September last year, Brett Draffen announced his resignation as Chief Investment Officer (CIO) of Mirvac. Following Brett’s departure, the decision
was made not to replace the CIO role, and instead, use Brett’s departure as an opportunity to reallocate the portfolio to existing roles within Mirvac.
Our Chief Financial Officer, Courtenay Smith, absorbed Brett’s CIO duties under Group Advisory Solutions, and Stuart Penklis absorbed Brett’s
Commercial & Mixed-Use Development responsibilities under a new Development Division. In recognition of the additional responsibilities:
– Courtenay Smith received a fixed pay increase from $800,000 to $950,000 per annum, effective 1 January 2023
– Stuart Penklis received a fixed pay increase from $950,000 to $1,100,000 per annum, effective 1 January 2023.
Shortly after Brett’s announcement, Susan Lloyd-Hurwitz, who served as Mirvac’s CEO & Managing Director, announced her plan to retire from Mirvac
at the end of the financial year. This provided a smooth transition for an internal successor, Campbell Hanan. As announced to market, Campbell’s
remuneration package is consistent with what Susan received (which did not change over her 10 years with Mirvac), the only exception being the
changes that had already been approved to increase STI targets, as mentioned above.
With regards to FY23 outcomes:
– As in previous years we have maintained a financial gateway of 90 per cent of budget for the Group STI Pool to open, which the HRC believes is
important in aligning financial performance with individual STI outcomes. FY23 operating profit was above the gateway, and the HRC approved
a Group STI score of 94.5 per cent, down from 113 per cent in FY22, which reflects the more challenging financial performance balanced with the
contribution of management to deliver outcomes.
– The performance period for the FY21 Long-term Performance Plan (LTP) completed on 30 June 2023. The FY21 LTP was subject to a single
performance measure of relative TSR over the performance period starting 1 October 2020. Mirvac’s absolute TSR performance of 18.68 per cent
was at the 57th percentile of the comparator group, resulting in total vesting of the FY21 LTP of 64 per cent for Executives. The Board believes this
is a fair reward for Executives for their management of the business during COVID and up until 30 June 2023.
Reimagine Urban LifeFinancial reportOtherPerformance by pillarRisk managementFinancial and operational results 50
Remuneration report
KEY MANAGEMENT PERSONNEL FOR FY23
This report covers the key management personnel (KMP) of Mirvac, who are the people responsible for determining and executing Mirvac’s strategy.
This includes both the Executive KMP (the Group CEO/MD, CFO and divisional CEO who are part of the ELT) as well as Non-Executive Directors.
For FY23, the KMP were:
Name
Name
Non-Executive Directors
Robert Sindel
Christine Bartlett
Damien Frawley
Jane Hewitt
James M. Millar AM
Samantha Mostyn AO
Peter Nash
Chair
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Former Non-Executive Directors
John Mulcahy
until 31 December 2022
Executive KMP
Campbell Hanan
Courtenay Smith
Scott Mosely
Stuart Penklis
Richard Seddon
Group CEO & Managing Director
CFO
CEO, Funds Management from 28 November 2022
CEO, Development
CEO, Investments from 1 March 2023
Former Executive KMP
Susan Lloyd-Hurwitz
Brett Draffen
until 30 June 2023
until 31 December 2022
The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations Act 2001.
Contents
Key questions
1
2 Our pillars of value and the link to remuneration outcomes
3
4
5
6
7 Non-Executive director remuneration
Additional required disclosures
8
Executive remuneration outcomes
Executive KMP remuneration
Equity instrument disclosures
Remuneration governance
1 KEY QUESTIONS
Key questions
Mirvac approach
REMUNERATION IN FY23
How is Mirvac’s
performance
reflected in FY23
remuneration
outcomes?
What changes
have been made to
the remuneration
structure in FY23?
Mirvac’s reward framework aims to align the interests of our employees with those of our securityholders and
stakeholders. The remuneration outcomes reflect a pay-for-performance approach that considers a number
of factors, including Group, team and individual performance, as well as behaviours that help build and protect
Mirvac’s culture and reputation.
Short-term incentives: A Group operating profit gateway is applied, such that no STI pool is funded unless
operating profit is at least 90 per cent of plan. Subject to the gateway being met, the STI pool is funded up to
a maximum of 6 per cent of operating profit. The FY23 operating profit was above the gateway, and the HRC
approved a Group STI score of 94.5 per cent, down from 113 per cent in FY22.
Long-term incentives: The performance period for the FY21 Long-term Performance Plan (LTP) completed on
30 June 2023. The FY21 LTP was subject to a single performance measure of relative TSR over the performance
period starting 1 October 2020. Mirvac’s absolute TSR performance of 18.68 per cent was at the 57th percentile
of the comparator group, resulting in total vesting of the FY21 LTP of 64 per cent for Executives.
Fixed remuneration: Courtenay Smith, CFO, received a fixed pay increase from $800,000 to $950,000 per annum
and Stuart Penklis, CEO Development, received a fixed pay increase from $950,000 to $1,100,000 per annum both
effective 1 January 2023. These increases reflect their expanded roles following the departure of Brett Draffen,
with Courtenay Smith absorbing Brett’s CIO duties under Group Advisory Solutions, and Stuart Penklis absorbing
Brett’s Commercial & Mixed-Use Development responsibilities under the Development Division.
Short-term incentives: There were no changes to STI methodology. Consistent with prior years, the STI pool
has a gateway requirement of Group operating profit being at least 90 per cent of target, and the pool funding is
moderated by the Board based on the achievement of a scorecard of strategic objectives.
In early FY23, a review was undertaken of the remuneration for the Executive KMP and, informed by external
benchmarking data, the STI targets for the Executive KMP were increased from 70 per cent to 100 per cent of fixed
remuneration, with the maximum reduced from 200 per cent of target to 150 per cent of target. The deferral component
of the STI was increased from 25 per cent to 40 per cent. These changes were all effective 1 January 2023.
Long-term incentives: There were no changes to the LTP award. Consistent with the prior year, the performance
measures were relative TSR and ROIC: 40 per cent weighting for relative TSR; and 60 per cent weighting for ROIC.
The performance period of the FY23 LTP began on 1 July 2022 and will end on 30 June 2025.
Page
50
53
58
61
65
67
68
69
Further info
Section 2
Page 56
Section 3
Page 58
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersOur strategyMegatrendsHow we create value Remuneration report
1 KEY QUESTIONS continued
Key questions
Mirvac approach
REMUNERATION IN FY23 continued
Governance
51
Further info
Are any changes
planned for FY24?
As always, Mirvac conducts a detailed review of our executive remuneration framework each year. While the
Board prefers stability in the framework we believe a full review ensures the approach remains fit for purpose.
The Board and Management believe that the current STI design remains fit for purpose, including a financial
gateway of 90 per cent of operating profit for the STI plan, and rewarding for performance against operating
earnings, ROIC and a scorecard of strategic objectives.
The LTP design has been reviewed to ensure the incentive remains fit for purpose, taking into account current
and future market conditions, and that continues to meet the intended purpose of the LTP. In reviewing our LTP
the core principles are that the design is strongly aligned with securityholders – especially in rewarding for relative
outperformance – as well as ensuring the LTP is simple, based on publicly available data, drives behaviours and
outcomes aligned to our strategy, and provides the right balance of motivation, stretch and retention.
In view of this, our future awards will have two relative hurdles each accounting for 50 per cent of the award,
with performance measured against the ASX 200 A-REIT constituents:
> Relative TSR: retained from previous awards, increased weighting to 50 per cent from 40 per cent.
> Relative ROE: defined as Statutory Profit / Total Equity. To incentivise outperformance of peers, vesting
will be calculated on a relative basis, similar to how TSR operates. However, to strike a balance between
relative outperformance and the need for absolute returns and to ensure appropriate gearing, vesting for this
component will be capped at 50 per cent unless: (a) ROIC exceeds WACC over the performance period; and,
(b) gearing is within the Board approved range. ROIC continues to be a key metric, but ROE was chosen as
the best ROIC-like measure that would enable relative comparison on a like-for-like basis to peers.
Further details will be provided in the Notice of Meeting for our 2023 AGM.
There are no further changes anticipated in our remuneration approach for FY24.
REMUNERATION FRAMEWORK
Where does Mirvac’s
remuneration sit
relative to the market?
Fixed and variable pay are both aimed at the market median, with remuneration opportunities for
outstanding performance extending up to the 75th percentile of the market.
What proportion
of remuneration
is “at risk”?
The majority of Executive KMP’s remuneration is based on performance and is therefore at risk. The
remuneration package for the Group CEO/MD is 71 per cent performance-related pay, and for other Executives
the remuneration package is, on average, 60 per cent performance-related pay.
Section 4
Page 62
Section 4
Page 61
Are there any
clawback provisions
for incentives?
What is Mirvac’s
minimum
securityholding
requirement?
Yes, the Board has the ability to claw back incentives in the event of a material financial misstatement,
any misconduct that is, or may be, harmful to the Group, and/or gross negligence.
Section 4
Pages 63-64
The minimum securityholding requirement is:
>
>
>
150 per cent of fixed remuneration for the Group CEO/MD
100 per cent of fixed remuneration for other Executives
100 per cent of base fees for Non-Executive Directors.
Section 6
Page 67
SHORT-TERM INCENTIVES
Are any STI
payments deferred?
Yes, 40 per cent of STI for Executives are awarded as rights over Mirvac securities, half of which vest in
one year and half in two years. If the Executive resigns before the vesting period ends, the rights do not vest
and are forfeited.
Section 4
Pages 62-63
Are STI payments
capped?
Yes, an Executive’s STI is capped at 150 per cent of their STI target, achievable only in circumstances of both
exceptional individual and Group performance.
Section 4
Page 62
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1 KEY QUESTIONS continued
Key questions
Mirvac approach
LONG-TERM INCENTIVES
What are the
performance
measures for
the LTP plan?
For the FY21 LTP award, performance is measured over the period 1 October 2020 to 30 June 2023 with 100
per cent of the award subject to relative TSR, with the Board having overarching discretion to ensure vesting
outcomes are appropriately aligned to performance.
For the FY22 and FY23 LTP awards, performance is measured over a three-year period with 40 per cent of the
award subject to relative TSR and 60 per cent of the award subject to ROIC, with the Board having overarching
discretion to ensure vesting outcomes are appropriately aligned to performance.
No, there is no re-testing.
No, dividends/distributions are not paid on unvested LTP awards. This ensures that Executives are only
rewarded when performance hurdles have been achieved at the end of the performance period.
No, there is no adjustment to reflect the performance conditions. The grant price for allocation purposes is not
reduced based on performance conditions.
The allocation price for determining the number of performance rights granted to each Executive KMP is
calculated as the average security price for the month leading up to grant, discounted for the assumed value of
dividends and distributions not paid during the three-year performance period.
Consistent with the Corporations Act 2001, participants are prohibited from hedging their unvested
performance rights.
Section 4
Pages 63-64
For deferred STI awards, securities are purchased on-market. For LTP awards, the Board has discretion to issue
new securities or buy existing securities on-market.
Section 4
Pages 63-64
Does the LTP
have re-testing?
Are dividends/
distributions paid on
unvested LTP awards?
Is the size of LTP
grants increased in
light of performance
conditions?
Can LTP participants
hedge their
unvested LTP?
Does Mirvac buy
securities or issue new
securities for security-
based awards?
Does Mirvac issue
share options?
No, Mirvac uses performance rights for the deferred STI and LTP awards.
EXECUTIVE KMP SERVICE AGREEMENTS
What is the maximum
an executive can
receive on termination?
Executive KMP termination entitlements are limited to 12 months fixed remuneration.
2 OUR PILLARS OF VALUE AND THE LINK TO REMUNERATION OUTCOMES
Mirvac’s remuneration strategy is designed to support and reinforce its business strategy. The at-risk components of remuneration are tied to
measures that reflect the successful execution of our business strategy in both the short and long term.
STI SCORECARD
Our Pillars of Value are reflected in STI performance measures ensuring Mirvac’s actual performance directly affects what Executives are paid.
Further info
Section 4
Pages 63-64
Section 4
Pages 63-64
Section 4
Pages 63-64
Section 4
Pages 63-64
Section 4
Page 64
Section 4
Page 64
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2 OUR PILLARS OF VALUE AND THE LINK TO REMUNERATION OUTCOMES
OUR PILLARS OF VALUE
VALUE CREATED
COMMENTARY
PERFORMANCE
FINANCIAL
Having diversified and
appropriately balanced
sources of capital,
including third-party
capital, equity and debt,
helps us execute on our
urban strategy and deliver
sustainable returns to
our securityholders and
capital partners.
Excess returns for securityholders,
above our cost of capital, in a sustainable
manner, with appropriate levels of gearing
maintained.
HOW WE MEASURE VALUE
EPS
DPS
TSR
ROIC
FY23
FY22
14.7 cpss
10.5 cpss
18.7% 1
(0.2%)
15.1 cpss
10.2 cpss
(19.2%) 2
6.9%
ASSESSMENT
Within target range
> We maintain a target gearing range of 20 to 30 per cent
and an investment grade credit rating of A3 and A- from
Moody’s Investor Services and Fitch Ratings respectively.
> We achieved EPS of 14.7 cpss, in line with revised
market guidance.
> We achieved DPS of 10.5 cpss, representing 2.9 per cent
growth on FY22, and a payout ratio of 71 per cent, in line
with our policy of 60 to 80 per cent.
> Our ROIC result was impacted by devaluations in our
investment portfolio.
Read more about Financial performance at Mirvac on page 16.
OUR PILLARS OF VALUE
VALUE CREATED
COMMENTARY
PLACE
ASSET CREATION
AND CURATION
Our asset creation
and curation capability
delivers places that
contribute to the vibrancy
of our cities and improve
people’s lives.
Modern, high-quality assets and projects
that deliver NTA uplift, development
profit, and stable, recurring income and
management fees to the Group.
HOW WE MEASURE VALUE
FY23
FY22
$633m
96.9%
$582m
97.3%
5.2 years
5.6 years
5.28%
5.00%
$214m
(5.4%)
$285m
4.5%
1,638
2,298
2,898
2,523
$17.1bn
$10.2bn
Investment
NOI
Occupancy
WALE
WACR
CMU
Development EBIT
NTA Uplift
Residential
Sales
Settlements
Funds
Third-party capital
under management
Asset and funds under
management EBIT
> In FY23, we combined our residential and commercial and
mixed-use businesses under one division to allocate our
capital more effectively and to better harness and utilise our
creation skills.
> Our active commercial development pipeline has a total end
value of $11.6bn and comprises large-scale urban renewal
projects designed to support the growth and evolution of
our cities.
> We advanced a number of Build to Rent and industrial
projects in line with our stated objective to grow our
exposure to the sectors.
> We have ~23,000 lots under control across apartments
and masterplanned communities.
> Our Investment Division comprises four business streams
that deliver stable, recurring income to the Group: Office,
Retail, Industrial and Build to Rent. We have approximately
$11.9bn of assets on our balance sheet.
> Mirvac currently has approximately $17.1bn in third-party
capital under management with domestic and international
partners, which is split between separately managed
accounts, clubs, co-mingled funds and joint ventures across
Office, Industrial and Build to Rent.
$20m
$2m
> We established two new managed investment vehicles
during the financial year: the Build to Rent Venture, with well-
capitalised and aligned cornerstone investors, including the
Clean Energy Finance Corporation, and the Mirvac Industrial
Venture, with the Australian Retirement Trust.
Read more about Asset Creation and Curation on pages 18 to 21.
ASSESSMENT
Within target range
1. 1 October 2020 to 30 June 2023.
2. 1 July 2019 to 30 June 2022.
Below target
Within target range
Above target
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2 OUR PILLARS OF VALUE AND THE LINK TO REMUNERATION OUTCOMES continued
OUR PILLARS OF VALUE
VALUE CREATED
COMMENTARY
PEOPLE
PEOPLE, CULTURE
AND SAFETY
Our people and
culture are a source
of competitive advantage
in the delivery of our
strategy and purpose.
A culture that provides a competitive
advantage and inspires our people to
deliver on our goals and our urban strategy,
while managing the risks to our business.
HOW WE MEASURE VALUE
Employee engagement
Talent retention
LTIFR
CIFR
% of women in senior
management
FY23
FY22
79%
89%
1.71
0.11
43%
80%
96%
1.18
0.74
44%
ASSESSMENT
Above target
> Ranked number one globally in Equileap’s Global
Report on Gender Equality for an historic second time
in two years, demonstrating our ongoing committment
to gender equality.
> Launched our first official LGBTQ+ working group, the
Mirvac Pride Committee, consisting of LGBTQ+ colleagues
and allies and announced a new partnership with The
Pinnacle Foundation, which provides young LGBTQ+
Australians with educational scholarships and mentoring
opportunities to help them realise their full potential.
Through our partnership, we have established three
property and construction scholarships.
> Secured internal candidates for 88 per cent of positions
arising from changes to our organisational structure,
demonstrating Mirvac’s talent management and succession
planning in action.
> We are also making significant inroads in our Women in
Construction program. Through targeted efforts, women
made up 32 per cent of new hires in construction in the
past year, increasing their representation in that part of the
business to 18 per cent, up from 15 per cent in FY22.
Read more about People, Culture and Safety at Mirvac on
pages 22 to 25.
OUR PILLARS OF VALUE
VALUE CREATED
COMMENTARY
> In FY23, we established a new customer and brand function
that brings together the extensive work we do across the
business to engage and inspire our customers.
> We rolled out an integrated stakeholder engagement
framework that sets out the vision, principles and tools that
guide our interactions with our stakeholders.
Read more about Customers and Stakeholders at Mirvac on
pages 26 to 27.
PARTNERS
CUSTOMERS AND
STAKEHOLDERS
The relationships we
build as a trusted partner
allow us to deliver on our
ambition to Reimagine
Urban Life.
A trusted brand with a reputation for
delivering quality products and services
across each of our asset classes.
HOW WE MEASURE VALUE
Net promoter score (NPS)
Office tenant
Industrial tenant
Retail consumer
Build to rent resident
Residential resident
Customer satisfaction
Residential
FY23
FY22
+39
+57
+52
+27
+60
+40
N/A
+56
+24
+60
8.9/10
8.9/10
ASSESSMENT
Within target range
Below target
Within target range
Above target
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2 OUR PILLARS OF VALUE AND THE LINK TO REMUNERATION OUTCOMES continued
OUR PILLARS OF VALUE
VALUE CREATED
COMMENTARY
PLANET
SUSTAINABILITY
Our rigorous focus on our
environmental and social
impact helps guide us to
deliver outcomes that are
planet positive
and remain a global
leader in ESG.
A climate-resilient business that delivers
assets and homes for our customers that
are more sustainable and affordable to run,
along with a positive community legacy.
HOW WE MEASURE VALUE
Emissions
performance
FY23
FY22
Net positive
carbon
(Scope 1
and 2)
Net positive
carbon
(Scope 1
and 2)
Water 1
922,906L
650,824L
95%
68%
94%
68%
AAA,
Negligible
risk
AAA,
Negligible
risk
$9.2m
$14m
$13.9m
$9.6m
Waste diverted
Construction
Operational
MSCI and
Sustainalytics
ratings
Social procurement
spend 2
Community
investment
delivered
ASSESSMENT
Within target range
Environmental
> Set scope 3 emissions target to be net positive by 2030,
and released plan.
> Released fifth TCFD report and climate-related risks
and opportunities.
> Average NABERS Star ratings: 5.2 Energy and 4.8 Water.
> Completed our first Green Star Home at Waverley
Park, Victoria.
> Achieved net positive in scope 1 and 2 emissions for the
second year.
> Recycling waste: 95 per cent construction and 68 per cent
operations.
Social
> Set goal to invest at least $50m in Creating a Strong Sense
of Belonging by 2025.
> Ranked #1 most gender equitable company in the world
by Equileap.
> Investment in Reconciliation education and support
of Indigenous artists.
> $13.9m in verified community investment; $9.2m spend
on procurement with social and Indigenous businesses.
> Recognised by Good Company as one of the best
workplaces to give back for the second year in a row.
> Held our biggest employee volunteering event to-date.
> Established community partnerships to build capacity in
social enterprises and support LGBTQ+ young people in
property and construction.
Governance
> Released fourth Modern Slavery Statement.
> First business in Australia to receive the Equifax 5 Gold
Star iCIRT rating, demonstrating our capability to deliver
trustworthy buildings.
> Recognised as a top Stewardship Leader by Stewardship Asia.
> Released Sustainable Finance Framework, with a third of our
total debt facilities now certified as green loans.
> Top ESG index ratings: AAA (MSCI), 5 Star (UN principles
for ResponsibleInvestment), Negligible Risk (Sustainalytics).
> Voluntarily disclosed through the Clean Energy Regulator
Corporate Emissions Reductions Transparency pilot.
> Applied to be certified as a B-Corp force for good company.
Read more about Sustainability and ESG at Mirvac on pages
28 to 31.
Increase in FY23 largely due to the addition of the MWOF portfolio and Heritage Lanes, 80 Ann Street, Brisbane during the financial year.
1.
2. Construction waste was particularly low in FY22. Construction waste depends on the type and stage of a project and will vary year on year. The proportion of recycled waste remains
consistent with prior years.
Below target
Within target range
Above target
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2 OUR PILLARS OF VALUE AND THE LINK TO REMUNERATION OUTCOMES continued
HOW THE GROUP’S PERFORMANCE HAS TRANSLATED INTO STI AWARDS
Mirvac’s financial performance directly affects the STI awards in two ways:
> Gateway: Group operating profit must be at least 90 per cent of plan
before any STI payments are made
> STI pool funding: Subject to the gateway being met, the STI pool
is funded up to a maximum of 6 per cent of operating profit.
The Board then has discretion to moderate the calculated outcome
based on achievement of strategic objectives.
The FY23 operating profit was above the gateway, and the HRC approved
a Group STI score of 94.5 per cent (of a potential 150 per cent), down from
113 per cent in FY22.
This graph shows how the average STI outcome for all employees has been
closely tied to financial performance on operating profit and ROIC.
Financial performance vs. average STI outcome
160%
140
120
100
80
60
40
20
0
(20)
Financial performance in each case is expressed as a percentage of the
business target set for the year, while the STI outcome represents the
average STI award to participants that year as a percentage of target.
FY19
FY20
FY21
FY22
FY23
Operating profit
ROIC
STI score
Operating earnings per stapled security
The diagram below sets out Mirvac’s performance and the resulting STI outcomes:
Gateway achieved (at least 90 per cent of target operating profit achieved)
18.0
15.0
12.0
9.0
6.0
3.0
0
OPERATING
PROFIT
PILLARS
OF VALUE
STI pool funding: Subject to the gateway being met, the STI pool is funded up to a maximum of 6 per cent of operating profit.
Pool moderation: The HRC can moderate the score, up or down, based on achievement of strategic objectives to ensure STI awards are consistent
with Mirvac’s remuneration strategy, and is appropriately aligned to business performance, investor outcomes, and stakeholder expectations.
FY23 STI outcome: The HRC approved a Group STI score of 94.5 per cent of target (from a maximum potential pool of 150 per cent of target).
FY23 cash STI pool – $34.5m (6 per cent of Mirvac’s operating profit).
Fixed
remuneration
X
Individual
STI target
X
Group STI
score (0-150%)
X
Individual STI
score (0-150%) =
Individual STI award
(capped at 150% of target)
Each Executive KMP is awarded an individual STI score between zero and 150 per cent of their target.
Scores are based on an assessment of their performance for the year against their individual objectives.
When determining executive remuneration outcomes, the Board use its judgement and oversight to consider a range of quantitative and qualitative
factors to ensure outcomes align to business performance, investor outcomes, and stakeholder expectations.
STEP 1
STEP 2
STEP 3
STEP 4
Calculated
STI pool outcomes
Assessment of Group
scorecard outcomes
Consider other factors
affecting performance that are
not reflected in the scorecard
Apply judgement ensuring
outcomes align to investor outcomes,
stakeholder expectations, Mirvac Values
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2 OUR PILLARS OF VALUE AND THE LINK TO REMUNERATION OUTCOMES continued
HOW THE GROUP’S PERFORMANCE HAS TRANSLATED INTO LTP AWARDS
Mirvac’s financial and security price performance directly affects the vesting of the LTP awards. For the FY21 award, 100 per cent of the LTP is subject to
a relative TSR performance measure, with the Board having overarching discretion to ensure vesting outcomes are appropriately aligned to performance.
In the performance period to 30 June 2023, Mirvac’s absolute TSR performance of 18.68 per cent was at the 57th percentile of the comparator group
and as a result 64 per cent of the total FY21 LTP award vested.
The diagram below sets out the Group’s performance and the resulting LTP outcomes for the Executive KMP:
FY21 LTP grants to eligible participants and relative TSR performance hurdle set
30 June 2023: performance period ends for the FY21 grant and performance is measured for relative TSR
Mirvac’s security price and distributions over the past five years
Mirvac’s TSR (1 October 2020 to 30 June 2023)
Relative TSR
$500m
400
300
200
100
0
$3.50
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
50%
40%
30%
20%
10%
0
0
FY19
FY20
FY21
FY22
FY23
Jun 20
Jun 21
Jun 22
Distributions paid ($m)
Security price ($)
25th percentile
50th percentile
75th percentile
Jun 23
MGR
Mirvac’s absolute TSR performance of 18.68 per cent was at the 57th percentile of the comparator group
=
64 per cent of the total FY21 LTP award vested
Executive KMP vesting outcomes for the past three years
A summary of vesting under Mirvac’s performance-based equity grants that have vested in the last three years is shown in the following table:
Performance hurdle
Performance period
Performance period ended
Vested %
Relative TSR and ROIC
Relative TSR and ROIC
Relative TSR
3 years
3 years
2.75 years
30 June 2021
30 June 2022
30 June 2023
Past financial performance
The table below provides summary information on the Group’s earnings and securityholders’ wealth for the five years to 30 June 2023:
Loss attributable to the stapled securityholders of Mirvac ($m)
Operating profit ($m)
Distributions paid ($m)
Security price at 30 June ($)
Statutory EPS – basic (cents)
Operating earnings per stapled security (EPS) – diluted (cents)
FY23
FY22
FY21
FY20
(165)
580
414
2.26
(4.2)
14.7
906
596
404
1.98
23.0
15.0
827
550
390
2.92
21.0
14.0
558
602
357
2.17
14.2
15.3
76.0
40.0
64.0
FY19
1,019
631
440
3.13
27.6
17.1
Grant year
FY19
FY20
FY21
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3 EXECUTIVE REMUNERATION OUTCOMES
SUMMARY OF FY23 REMUNERATION
Group
CEO/MD
remuneration
Fixed and
total target
remuneration
STI
LTP
The Group CEO/MD’s remuneration as disclosed in the ASX appointment notice:
Fixed remuneration: $1,500,000 per annum, inclusive of superannuation contributions.
Variable remuneration: STI incentive opportunity at target of 100 per cent of fixed remuneration with a potential maximum of
150 per cent of fixed remuneration. The Board approved STI award will be delivered as 60 per cent cash (cash payment made in
September, following the end of the financial year) and 40 per cent deferred into rights, vesting in two tranches: 50 per cent after
one year and 50 per cent after two years.
LTP award up to a maximum of 150 per cent of fixed remuneration.
Campbell Hanan’s STI opportunity and LTP award were apportioned based on his Head of Integrated Investment Portfolio role and
Group CEO/MD role, with increased incentive opportunities effective 1 November 2022 to reflect the transitional responsibilities.
Fixed remuneration
Campbell Hanan received a fixed pay increase from $950,000 to $1,500,000 effective 1 February 2023 in recognition of his
appointment to Group CEO/MD.
Courtenay Smith, CFO, received a fixed pay increase from $800,000 to $950,000 per annum and Stuart Penklis, CEO Development,
received a fixed pay increase from $950,000 to $1,100,000 per annum both effective 1 January 2023. These increases reflect their
expanded roles following the departure of Brett Draffen, with Courtenay Smith absorbing Brett’s CIO duties under Group Advisory
Solutions, and Stuart Penklis absorbing Brett’s Commercial & Mixed-Use Development responsibilities under the Development Division.
Variable remuneration
In early FY23, a review was undertaken of the remuneration for Executives, and informed by external benchmarking data the STI
targets for the Executives were increased from 70 per cent to 100 per cent of fixed remuneration, with the maximum reduced from
200 per cent of target to 150 per cent of target. The deferral component of the STI was increased from 25 per cent to 40 per cent.
These changes were all effective 1 January 2023.
A Group operating profit gateway is applied, such that no STI pool is funded unless operating profit is at least 90 per cent of plan.
Subject to the gateway being met, the STI pool is funded up to a maximum of 6 per cent of operating profit.
The STI pool in FY23 was driven by:
> operating profit of $580m, down from $596m FY22
> performance against the scorecard of the strategic objectives (see pages 53 to 55).
The FY23 operating profit was above the gateway, and the HRC approved a Group STI score of 94.5 per cent, down from
113 per cent in FY22. This outcomes reflects the more challenging financial performance balanced with the contribution of
management to deliver outcomes.
Vesting of LTP grants is dependent on achieving relative TSR performance over the performance period, with the Board having
overarching discretion to ensure vesting outcomes are appropriately aligned to performance.
The performance period for the FY21 LTP completed on 30 June 2023. The FY21 LTP was subject to a single performance measure
of relative TSR over the performance period starting 1 October 2022. Mirvac’s absolute TSR performance of 18.68 per cent was at
the 57th percentile of the comparator group, resulting in total vesting of the FY21 LTP of 64 per cent for Executives.
EXECUTIVE KMP STI AWARDS IN FY23
The following table shows the actual STI outcomes (including any deferred component) for each of the Executive KMP for FY23:
Executive KMP
Campbell Hanan
Courtenay Smith
Scott Mosely 3
Stuart Penklis 4
Richard Seddon
Former Executive KMP
Susan Lloyd-Hurwitz
STI target % of
fixed remuneration 1
STI max % of
fixed remuneration 2
Actual
STI % max
STI forfeited
% max
Actual STI (total)
$
100
100
100
100
100
80
150
150
150
150
150
160
63
63
63
63
69
59
37
37
37
37
31
41
1,154,475
763,088
417,411
1,039,500
366,597
1,134,000
1. STI targets were increased to 100 per cent, from 70 per cent, effective 1 January 2023. With the exception the STI target increase was effective 1 July 2022 for Stuart Penklis and
1 November 2022 for Campbell Hanan.
2. STI maximum was reduced to 150 per cent of STI target, down from 200 per cent of STI target.
3. Scott Mosely commenced employment with Mirvac as CEO, Funds Management on 28 November 2022. Fixed remuneration has been pro-rated for the period of the year worked.
4. Stuart Penklis received an additional amount of $207,900, as agreed in 2022, which is equivalent to 20 per cent of his FY23 STI in recognition for facilitating a smooth transition and
providing stability in the leadership team following the departures of Brett Draffen and Susan Lloyd-Hurwitz, and the consolidation of CMU and Residential into the new Development
Division. This additional award will be delivered as 60 per cent cash, with the remaining 40 per cent deferred.
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3 EXECUTIVE REMUNERATION OUTCOMES continued
ACTUAL REMUNERATION RECEIVED IN FY23
The following table sets out the actual value of the remuneration received by Executive KMP members during the year.
The figures in this table are different from those shown in the accounting table on the next page which includes an apportioned accounting value for
all unvested STI and LTP grants during the year (some of which remain subject to satisfaction of performance and service conditions and may not
ultimately vest). The table below, on the other hand, shows:
> cash STI: the cash portion of any STI payments to be made in September 2023 in recognition of performance during FY23
> deferred STI vested: the value of the deferred STI from prior years that vested in FY23 (being the number of rights that vested multiplied by the
security price on the vesting date)
> LTP vested: the value of performance rights whose performance period ended 30 June 2023 (being the number of performance rights that
vested multiplied by the security price on 30 June 2023, being the last business day of the performance period).
Actual remuneration received in FY23
Executive KMP
Campbell Hanan 2
Courtenay Smith 3
Scott Mosely 4
Stuart Penklis 5
Richard Seddon 6
Former Executive KMP
Susan Lloyd-Hurwitz 7
Brett Draffen 8
Fixed
remuneration
$
Cash
STI
$
Deferred
STI vested
$
1,179,167
950,000
875,000
800,000
449,091
—
1,025,000
800,000
556,667
—
1,500,000
1,500,000
475,000
950,000
692,685
704,485
457,853
498,330
246,929
—
623,700
593,250
276,507
—
1,134,000
1,169,315
—
676,305
103,662
92,797
101,288
112,821
—
—
87,294
92,797
—
—
187,061
193,457
118,472
124,254
Year
FY23
FY22
FY23
FY22
FY23
FY22
FY23
FY22
FY23
FY22
FY23
FY22
FY23
FY22
LTP
vested
$
310,668
108,492
130,807
—
—
—
261,615
108,492
88,294
—
1,471,585
610,274
559,201
231,904
Other 1
$
Total
$
26,694
15,446
14,962
12,627
9,492
—
142,203
17,383
10,416
—
587,549
24,617
578,016
15,768
2,312,876
1,871,220
1,579,910
1,423,778
705,512
—
2,139,812
1,611,922
931,884
—
4,880,195
3,497,663
1,730,689
1,998,231
1.
Includes long service leave accrued during the year. For Stuart Penklis, Other includes an additional amount, as agreed with Stuart in 2022, equivalent to 20 per cent of his FY23 STI in recognition for
facilitating a smooth transition and providing stability in the leadership team following the departures of Brett Draffen and Susan Lloyd-Hurwitz, and the consolidation of CMU and Residential into
the new Development Division. For Susan Lloyd-Hurwitz and Brett Draffen, Other reflects the accrued annual leave and long service leave paid upon termination of employment.
2. Campbell Hanan was appointed Group CEO/MD effective 1 March 2023 and received a fixed remuneration increase from $950,000 to $1,500,000 per annum effective 1 February 2023.
3. Courtenay Smith received a fixed remuneration increase from $800,000 to $950,000 per annum effective 1 January 2023.
4. Scott Mosely commenced employment with Mirvac as CEO, Funds Management on 28 November 2022.
5. Stuart Penklis received a fixed remuneration increase from $950,000 to $1,100,000 per annum effective 1 January 2023.
6. Richard Seddon commenced his role and therefore became an Executive KMP on 1 March 2023.
7. Susan Lloyd-Hurwitz ceased employment with Mirvac on 30 June 2023.
8. Brett Draffen ceased employment with Mirvac on 31 December 2022.
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3 EXECUTIVE REMUNERATION OUTCOMES continued
TOTAL REMUNERATION IN FY23
The following statutory table shows the total remuneration for the Executive KMP for FY22 and FY23. These disclosures are calculated in accordance
with the accounting standards and accordingly differ from the information presented in the actual remuneration received in FY23 table on page 59.
Short-term benefits
Post-
employ-
ment
Cash salary
and fees 1
$
Year
Cash Non-cash
STI 2 benefits 3
$
$
Super-
annuation
contri-
butions
$
Security-
based payments
Value of
Value Deferred
STI
of LTP
rights 4
rights 4
$
$
Other
long-term
benefits
Long
service
Total
Termi-
remu-
nation
leave 5 benefits 6 neration
$
$
$
Executive KMP
Campbell Hanan FY23
FY22
1,153,874
926,432
692,685
704,485
Courtenay Smith FY23
FY22
831,830
765,109
457,853
498,330
Scott Mosely 7
Stuart Penklis
FY23
FY22
430,509
—
246,929
—
FY23 1,085,936
766,696
FY22
748,440
593,250
Richard Seddon 8 FY23
FY22
531,374
—
276,507
—
Former Executive KMP
Susan
FY23
Lloyd-Hurwitz 9
FY22
1,474,708 1,134,000
1,169,315
1,476,432
2,106
—
17,878
11,323
2,082
—
17,878
14,453
—
—
—
—
25,292
23,568
25,292
23,568
18,682
—
25,292
23,568
25,292
—
676,408
309,000
249,648
142,074
104,885
—
373,143
239,017
250,355
209,719
68,591
—
331,871
272,617
360,094
201,278
132,637
—
37,538
—
25,292 1,583,249
1,533,475
23,568
370,262
431,313
Brett Draffen 10
FY23
FY22
457,843
917,410
—
676,305
45,343
9,494
12,646
23,568
601,634
718,938
213,194
314,172
24,588
15,446
14,962
12,627
7,410
—
17,463
12,666
10,416
—
24,588
24,617
—
15,296
— 2,948,096
2,217,948
—
—
—
—
—
1,847,818
1,662,750
878,988
—
— 2,586,974
1,884,528
—
—
—
1,013,764
—
562,961 5,175,060
— 4,658,720
537,184 1,867,844
2,675,183
—
Perfor-
mance
related
59%
56%
52%
51%
48%
—
56%
57%
44%
—
60%
67%
44%
64%
1. Cash salary and fees includes accrued annual leave paid out as part of salary.
2. Cash STI relates to cash portion of STI awards accrued for the relevant year and payable in September following the end of the relevant financial year.
3. Non-cash benefits include salary-sacrificed benefits and related fringe benefits tax where applicable.
4. Valuation of rights is conducted by an independent advisor.
5. Long service leave relates to amounts accrued during the year.
6. Termination benefits for Susan Lloyd-Hurwitz and Brett Draffen reflects the accrued annual leave and long service leave paid upon termination of employment.
7. Scott Mosely commenced employment with Mirvac as CEO, Funds Management on 28 November 2022.
8. Richard Seddon commenced his role and therefore became an Executive KMP on 1 March 2023.
9. Susan Lloyd-Hurwitz ceased employment with Mirvac on 30 June 2023. In accordance with accounting standards, the expense has been accelerated for any unvested awards that were
retained as per the termination treatment under the LTP Plan Rules.
10. Brett Draffen ceased employment with Mirvac on 31 December 2022. In accordance with accounting standards, the expense has been accelerated for any unvested awards that were
retained as per the termination treatment under the LTP Plan Rules.
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4 EXECUTIVE KMP REMUNERATION
REMUNERATION DELIVERY
The graphs below set out the remuneration structure so that a substantial portion of remuneration is delivered as equity through STI and LTP,
encouraging an ownership mindset and aligning the interests of the executives with those of our securityholders:
FIXED
Base salary, superannuation
& any salary-sacrificed items
STI
LTP
Based on individual and
business performance
(financial & strategic objectives)
Cash
20% deferred for 12 months
20% deferred for 24 months
Performance rights subject to three-year performance period and continued service
Year 0
Year 1
Year 2
Year 3
REMUNERATION MIX
Mirvac’s executive remuneration approach is strongly performance focused. A significant proportion of executive remuneration is based on sustained
performance, aligned with the business strategy.
Executive remuneration at Mirvac is:
> performance based:
– the remuneration package for the Group CEO/MD is 71 per cent performance related pay
– the remuneration package for other Executive KMP is 60 per cent performance related pay; and is therefore at risk
> equity focused:
– 55 per cent of the Group CEO/MD’s total remuneration is paid in equity
– about one-third of other Executive KMP members’ total remuneration is paid in equity
> encouraging an ownership mindset through equity-based incentives (above) and minimum securityholding requirements:
– the Group CEO/MD is required to hold 150 per cent of fixed remuneration as Mirvac securities
– other Executive KMP are required to hold 100 per cent of their fixed remuneration as Mirvac securities
> multi-year focused:
– STI is deferred in two equal tranches, with 50 per cent deferred for 12 months and 50 per cent deferred for 24 months
– LTP performance is measured over a three-year period.
The graphs below set out the remuneration mix for the Group CEO/MD and other Executive KMP members at Mirvac:
Group CEO/MD
PERFORMANCE DEPENDENT
Fixed remuneration 29%
Target STI 29%
Maximum LTP 42%
Cash
17%
Deferred
12%
TSR (40% of award)
17%
ROIC (60% of award)
25%
Other Executive KMP
PERFORMANCE DEPENDENT
Fixed remuneration 40%
Target STI 40%
Maximum LTP 20%
Cash
24%
Deferred
16%
TSR (40%
of award) 8%
ROIC (60%
of award) 12%
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FIXED REMUNERATION: HOW DOES IT WORK?
Purpose
Attract and retain talented employees capable of delivering business performance.
Components
Fixed remuneration includes cash salary, compulsory superannuation contributions and any salary-sacrificed items
(including fringe benefits tax).
Benchmarking The Board engages its independent remuneration advisor to provide external remuneration benchmarking data as input into setting
remuneration for Executive KMP, ensuring that remuneration remains competitive. When determining the relevant market for each
role, Mirvac considers the companies from which it sources talent, and to whom it could potentially lose talent:
For business roles
> primary comparison group: the A-REIT, plus Lendlease
> secondary comparison group: general industry with a similar market capitalisation (50 per cent to 200 per cent of Mirvac’s
12-month average market capitalisation).
For corporate roles
> primary comparison group: general industry with a similar market capitalisation (50 per cent to 200 per cent of Mirvac’s 12-month
average market capitalisation). The use of general industry reflects the greater transferability of skills for these roles
> secondary comparison group: specific peers in the A-REIT, plus Lendlease.
STI: HOW DOES IT WORK?
Purpose
Value
Group STI
scorecard/
pool funding
Motivate and reward employees for contributing to the delivery of annual business performance.
Target
Maximum
Group CEO/MD
Other Executive KMP
100% of fixed remuneration
100% of fixed remuneration
150% of fixed remuneration
150% of fixed remuneration
Gateway: Group operating profit must be at least 90 per cent of plan before any STI payments are made.
STI pool funding: Subject to the gateway being met, the STI pool is funded up to a maximum of 6 per cent of operating profit.
Pool moderation: The Board has discretion to moderate the above calculated outcome based on achievement of strategic objectives
(see below). The objectives are quantitative in nature and are set in line with the short- and medium-term strategic objectives.
Scorecard
At the start of the year, a scorecard of objectives is agreed with management. At the end of the year, the Board makes a rigorous
assessment, taking into account quantitative and qualitative factors. The Board has discretion to increase or decrease the pool
funding taking into account performance against these strategic objectives and the Group’s risk framework and tolerance.
OUR PILLARS OF VALUE
VALUE CREATED
HOW WE MEASURE VALUE
Having diversified and appropriately balanced
sources of capital, including third-party capital,
equity and debt, helps us execute on our
urban strategy and deliver sustainable returns
to our securityholders and capital partners.
Excess returns for securityholders,
above our cost of capital, in a
sustainable manner, with appropriate
levels of gearing maintained.
> Return on Invested Capital
> Total shareholder return
> Earnings per share
> Distributions per share
Our asset creation and curation capability
delivers places that contribute to the vibrancy
of our cities and improve people’s lives.
Our people and culture are a source
of competitive advantage in the delivery
of our strategy and purpose.
Modern, high-quality assets and
projects that deliver NTA uplift,
development profit, and stable,
recurring income and management
fees to the Group.
A culture that provides a
competitive advantage and inspires
our people to deliver on our goals
and our urban strategy, while
managing the risks to our business.
>
Investment: Occupancy,
WALE, WACR and NOI
> Development: Development
EBIT and NTA uplift
> Funds Management: Assets under
management, and asset and funds
under management profit
> Employee engagement
> Talent retention
> Lost Time Injury Frequency Rate (LTIFR)
and Critical Injury Frequency Rate (CIFR)
> % of women in senior
management roles
The relationships we build as a trusted
partner allow us to deliver on our ambition to
Reimagine Urban Life.
A trusted brand with a reputation
for delivering quality products
and services across each of our
asset classes.
> Net promoter scores
> Customer satisfaction
Our rigorous focus on our environmental
and social impact helps guide us to deliver
outcomes that are planet positive and
remain a global leader in ESG.
A climate-resilient business that
delivers assets and homes for our
customers that are more sustainable
and affordable to run, along with a
positive community legacy.
> Water, waste and emissions
performance
> MSCI and Sustainalytics ratings
> Social procurement spend
> Community investment delivered
PERFORMANCE
FINANCIAL
PLACE
ASSET CREATION
AND CURATION
PEOPLE
PEOPLE, CULTURE
AND SAFETY
PARTNERS
CUSTOMERS AND
STAKEHOLDERS
PLANET
SUSTAINABILITY
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4 EXECUTIVE KMP REMUNERATION continued
STI: HOW DOES IT WORK? continued
Individual
performance
objectives
Each Executive KMP agrees an individual scorecard of performance objectives at the start of the year against which their
performance will be assessed. Individual performance objectives are set based on the specific responsibilities for each role and
include specific risk objectives, and an assessment by the HRC at year end on risk leadership and risk outcomes.
Performance
assessment
When determining executive remuneration outcomes, the Board uses its judgement and oversight to consider a range of quantitative
and qualitative factors to ensure outcomes align to business performance, investor outcomes, and stakeholder expectations.
Individual awards are proposed by the Group CEO/MD, endorsed by the HRC and approved by the Board. For the Group CEO/MD,
the HRC proposes the STI award for Board approval.
Risk considerations: the HRC, in determining the remuneration outcomes, makes an overall assessment of how each individual
ELT member had managed risk before approving individual STI outcomes. This is an assessment of risk culture and compliance,
including training and open audit items, with a broad view of risk including financial and non-financial risks and reputation matters.
Delivery/
deferral
For Executive KMP:
> 60 per cent is paid as cash
> 40 per cent of any STI award is deferred into performance rights over Mirvac securities (granted on the same date as the cash
payment is made). The rights vest in two tranches: 50 per cent after one year and 50 per cent after two years. If the deferred
rights vest, entitlements are satisfied by the purchase of existing securities on-market. Executives are expected to retain the
resulting securities they receive until they satisfy the minimum securityholding guidelines.
Termination/
forfeiture
The deferred portion of a STI award is forfeited if an employee resigns or is dismissed for performance reasons prior to the vesting
date. Unvested deferred STI awards may be retained if an employee leaves due to circumstances such as retirement, redundancy,
agreed transfer to an investment partner, total and permanent disablement or death.
Clawback
policy
The policy gives the Board the ability to claw back incentives in the event of a material financial misstatement, any misconduct that
is, or may be, harmful to the Group, and/or gross negligence.
Hedging
Consistent with the Corporations Act 2001, participants are prohibited from hedging their unvested performance rights.
LTP: HOW DOES IT WORK?
Purpose
Value
Instrument
Assist in attracting and retaining the required executive talent; focus executive attention on driving sustainable long-term growth;
and align the interests of executives with those of securityholders.
The maximum LTP opportunity during FY23 was equivalent to:
150 per cent of fixed remuneration
Group CEO/MD
50 per cent of fixed remuneration
Other Executive KMP
Awards under this plan are made in the form of performance rights. A performance right is a right to acquire one fully paid Mirvac
security provided a specified performance hurdle is met.
No dividends/distributions are paid on unvested LTP awards. This ensures that Executives are only rewarded when performance
hurdles have been achieved at the end of the performance period.
Grant
value/price
The average security price for the month leading up to grant, discounted for the assumed value of dividends and distributions not
paid during the three-year performance period.
The grant price for allocation purposes is not reduced based on performance conditions.
Performance
period
Performance is measured over a three-year period. The FY23 grant has a performance period commencing 1 July 2022 and ending
30 June 2025.
Performance
hurdle for
FY23 grant
The HRC reviews the performance conditions annually to determine the appropriate hurdles based on Mirvac’s strategy and
prevailing market practice. Two performance measures apply to the LTP grants made during FY23:
Relative TSR (40 per cent of the LTP allocation): Relative TSR is used because it is an objective measure of securityholder value
creation and is widely understood and accepted by the various key stakeholders.
Mirvac’s TSR performance is measured relative to a comparison group consisting of Mirvac’s primary market competitors
(the A-REIT) as this is aligned to the peer group in which we compete for capital.
ROIC (60 per cent of the LTP allocation): ROIC is used because it is aligned to Mirvac’s strategic drivers, in particular financial
performance and capital efficiency. ROIC is calculated as Total Return divided by average Invested Capital.
The vesting schedule set out below reflects the Board’s view that vesting of the ROIC component ought to commence on the
achievement of Mirvac’s WACC, the point at which management creates value for securityholders, with full vesting on achieving
a premium above WACC. The premium to WACC for the ROIC component of the FY23 award was 1 per cent, which at the time
represented both significant stretch and value creation for securityholders. After calculating the outcome based on the vesting
schedule detailed below, the Board shall have +/-20 per cent discretion to adjust the vesting outcomes for the ROIC performance
hurdle to ensure vesting outcomes reflect management’s performance over the performance period.
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4 EXECUTIVE KMP REMUNERATION continued
LTP: HOW DOES IT WORK? continued
Vesting
schedule for
FY23 grant
Relative TSR
ROIC
Relative TSR
(percentile)
Percentage of
TSR-tested rights to vest
Average annual ROIC (%)
Percentage of
ROIC-tested rights to vest
< 50th
50th
> 50th to 75th
Nil
50%
Pro-rata between
50% and 100%
75th and above
100%
< WACC
Nil
Between WACC and WACC +
0.2%
Pro-rata between 0% and 50%
Between WACC + 0.2%
and WACC + 0.4%
Between WACC + 0.4%
and WACC + 1.0%
Pro-rata between 50% and 75%
Pro-rata between 75% and 100%
> WACC + 1.0%
100%
Vesting/
delivery
Vesting of LTP grants is dependent on achieving relative TSR performance and ROIC targets over the period 1 July 2022 to
30 June 2025, with the Board having overarching discretion to ensure vesting outcomes are appropriately aligned to performance.
The performance rights will automatically exercise if and when the Board determines the performance conditions are achieved.
If the performance rights vest, entitlements are satisfied by either an allotment of new securities to participants or by the
purchase of existing securities on-market. Any performance rights that do not vest at the end of the performance period will lapse.
There is no re-testing.
Executive KMP members will be expected to retain the resulting securities until they satisfy the minimum securityholding guidelines.
Termination/
forfeiture
Resignation or dismissal: all unvested performance rights are forfeited.
Retirement, redundancy, agreed transfer to an investment partner, total and permanent disablement or death: the HRC determines
the number of rights that will lapse or are retained, subject to both the original performance period and hurdles.
Change of control event: the Board, in its absolute discretion, determines the number of performance rights that vest, if any, taking
into account the performance from the date of grant to the event.
Clawback
policy
Dilution
The policy gives the Board the ability to claw back incentives in the event of a material financial misstatement, any misconduct that
is, or may be, harmful to the Group, and/or gross negligence.
Dilution that may result from securities being issued under Mirvac’s LTP plan is capped at the limit set out in ASIC Class Order
14/1000, which provides that the number of unissued securities under those plans must not exceed 5 per cent of the total number
of securities of that class as at the time of the relevant offer.
Hedging
Consistent with the Corporations Act 2001, participants are prohibited from hedging their unvested performance rights.
SERVICE AGREEMENTS FOR EXECUTIVE KMP
Each Executive KMP member, including the Group CEO/MD, has a formal contract, known as a service agreement. These agreements are of a
continuing nature and have no fixed term of service.
There were no changes to the service agreements for Executive KMP in FY23.
The key terms of the service agreements for the Group CEO/MD and other Executive KMP members are summarised below:
Contract term
Employee
Group
Notice period
Maximum
termination payment 1
Group CEO/MD
Other Executive KMP
No fixed term
No fixed term
6 months
3 months
6 months
3 months
6 months
9 months
1. Payable if Mirvac terminates employee with notice, for reasons other than unsatisfactory performance.
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5 EQUITY INSTRUMENT DISCLOSURES
LTP GRANTS IN FY23
The table below shows LTP grants made during FY23, subject to performance conditions over the performance period 1 July 2022 to 30 June 2025.
Accounting standards require the estimated valuation of the grants be recognised over the performance period. The minimum value of the grant is
nil if the vesting conditions are not met. The maximum value is based on the estimated fair value calculated at the time of the grant and amortised in
accordance with the accounting standard requirements.
LTP max as a % of
fixed remuneration
Performance measure
Number of
performance
rights granted
Fair value per Maximum total
value of grant 1
$
performance right
$
Executive KMP
Campbell Hanan
Total
Courtenay Smith
Total
Scott Mosely
Total
Stuart Penklis
Total
Richard Seddon 2
Total
Relative TSR
ROIC
Relative TSR
ROIC
Relative TSR
ROIC
Relative TSR
ROIC
Individual Performance
ROIC
150
50
50
50
30
381,225
571,839
953,064
91,954
137,931
229,885
89,654
134,483
224,137
117,816
176,724
294,540
35,172
52,759
87,931
1.27
1.49
1.27
1.49
1.27
1.49
1.27
1.49
1.99
1.49
1. The value of performance rights reflects the fair value at the time of grant. For the LTP grants subject to ROIC, 75 per cent vesting is assumed in the above valuation.
2. The LTP award for Richard Seddon was granted prior to him commencing his role as CEO, Investments and becoming an Executive KMP.
Key inputs used in valuing performance rights granted during FY23 were as follows:
Grant date
Performance hurdles
Performance period start
Performance period end
Security price at grant date
2 December 2022
Relative TSR and ROIC
1 July 2022
30 June 2025
$2.24
Exercise price
Expected life
Volatility
Risk-free interest rate (per annum)
Dividend/distribution yield (per annum)
The valuation of rights is conducted by an independent advisor. The fair value is determined using a Monte Carlo simulation for the relative TSR
component and a binomial tree methodology for the ROIC component.
SECURITYHOLDINGS
Executives are expected to establish and maintain a minimum securityholding (excluding performance rights) to the value of 150 per cent of fixed
remuneration for the Group CEO/MD and 100 per cent of fixed remuneration for all other Executives. Executives have five years from the date they
commenced their role on the ELT, or the date of a remuneration change, to build up their securityholding to the expected level.
As at 30 June 2023, the number of ordinary securities in Mirvac held by Executive KMP, including their personally related parties, is set out below:
Executive KMP
Campbell Hanan
Courtenay Smith
Scott Mosely
Stuart Penklis
Richard Seddon 1
Balance
1 July 2022
Changes
Balance
30 June 2023
Value
30 June 2023
$
Minimum
securityholding
guideline
$
490,344
45,218
—
342,275
—
80,000
55,087
—
85,411
36,985
570,344
100,305
—
427,686
36,985
1,288,977
226,689
—
966,570
83,586
2,250,000
950,000
780,000
1,100,000
650,000
Date
securityholding
to be attained
March 2028
January 2028
November 2027
January 2028
March 2028
1. Richard Seddon commenced his role and therefore became an Executive KMP on 1 March 2023. Changes reflects securities already held.
484,537
853,416
1,337,953
116,874
205,849
322,723
113,950
200,703
314,653
149,744
263,744
413,488
69,988
78,738
148,726
$nil
2.6 years
28.40%
3.02%
4.55%
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5 EQUITY INSTRUMENT DISCLOSURES continued
OPTIONS
No options (i.e. a right to acquire a security upon payment of an exercise price) were granted as remuneration during FY23 and no unvested or
unexercised options are held by Executive KMP as at 30 June 2023.
PERFORMANCE RIGHTS HELD DURING THE YEAR
The number of performance rights in Mirvac held during the year by each Executive KMP, including their personally related parties, is set out below:
LTP
Deferred STI
Executive KMP
Campbell Hanan
Courtenay Smith
Scott Mosely
Stuart Penklis
Richard Seddon 1
Rights vested/
forfeited relating
to performance
period ended
30 June 2023
Rights issued
Rights issued
Rights vested/
forfeited
Balance
30 June 2023
953,064
229,885
224,137
294,540
87,931
(214,787)
(90,436)
—
(180,873)
(61,044)
119,202
84,319
—
100,380
—
(50,192)
(55,087)
—
(42,267)
—
1,303,427
476,468
224,137
589,582
142,228
Balance
1 July 2022
496,140
307,787
—
417,802
115,341
1. Richard Seddon commenced his role and therefore became an Executive KMP on 1 March 2023. Opening balance has been adjusted to reflect performance rights already held.
Details of the movement in the number and value of performance rights held by Executive KMP during the year are set out below:
Executive KMP
Plan Grant date
Campbell Hanan
Total
Courtenay Smith
LTP
STI
STI
LTP
STI
STI
LTP
STI
LTP
STI
STI
LTP
STI
STI
LTP
3 Dec 20
31 Aug 21
31 Aug 21
30 Nov 21
31 Aug 22
31 Aug 22
2 Dec 22
26 Mar 21
26 Mar 21
31 Aug 21
31 Aug 21
30 Nov 21
31 Aug 22
31 Aug 22
2 Dec 22
Number
of rights
granted
Value at
grant
date 1
214,787
50,192
50,192
180,969
59,601
59,601
953,064
348,170
151,693
146,941
311,451
119,492
114,079
1,337,953
1,568,406 2,529,779
45,218
90,436
9,869
9,869
152,395
42,160
42,159
229,885
103,233
127,515
29,827
28,892
262,274
84,525
80,694
322,723
Vested
Vesting
date
Number
of rights
30 Jun 23
31 Aug 22
31 Aug 23
30 Jun 24
31 Aug 23
31 Aug 24
30 Jun 25
8 Mar 23
30 Jun 23
31 Aug 22
31 Aug 23
30 Jun 24
31 Aug 23
31 Aug 24
30 Jun 25
137,463
50,192
—
—
—
—
—
187,655
45,218
57,879
9,869
—
—
—
—
—
% of
total
grant
64%
100%
—
—
—
—
—
100%
64%
100%
—
—
—
—
—
Value
of rights
Number
of rights
222,829
151,693
—
—
—
—
—
77,324
—
—
—
—
—
—
374,522
77,324
103,233
81,610
29,827
—
—
—
—
—
—
32,557
—
—
—
—
—
—
Total
621,991
1,039,683
112,966
214,670
32,557
Lapsed
% of
total
grant
Value
of rights
36%
0%
—
—
—
—
—
0%
36%
0%
—
—
—
—
—
125,341
—
—
—
—
—
—
125,341
—
45,905
—
—
—
—
—
—
45,905
Scott Mosely
LTP
2 Dec 22
224,137
314,653
30 Jun 25
—
—
—
—
—
—
Total
Stuart Penklis
Total
Richard Seddon
Total
LTP
STI
STI
LTP
STI
STI
LTP
LTP
LTP
LTP
3 Dec 20
31 Aug 21
31 Aug 21
30 Nov 21
31 Aug 22
31 Aug 22
2 Dec 22
3 Dec 20
30 Nov 21
2 Dec 22
224,137
314,653
180,873
42,267
42,267
152,395
50,190
50,190
294,540
293,195
127,742
123,740
262,274
100,624
96,066
413,488
30 Jun 23
31 Aug 22
31 Aug 23
30 Jun 24
31 Aug 23
31 Aug 24
30 Jun 25
812,722
1,417,129
61,044
54,297
87,931
117,840
120,633
148,726
30 Jun 23
30 Jun 24
30 Jun 25
203,272
387,199
115,758
42,267
—
—
—
—
—
158,025
47,858
—
—
47,858
64%
100%
—
—
—
—
—
78%
—
—
187,645
127,742
—
—
—
—
—
65,115
—
—
—
—
—
—
315,387
65,115
96,467
—
—
13,186
—
—
96,467
13,186
36%
0%
—
—
—
—
—
22%
—
—
105,550
—
—
—
—
—
—
105,550
21,373
—
—
21,373
1. The calculation of the value of performance rights used the fair value as determined at the time of grant. For the LTP grants subject to ROIC performance, the initial accounting treatment
assumes 75 per cent vesting, which is reflected in the above valuation.
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Remuneration report
6 REMUNERATION GOVERNANCE
The Board, the HRC, advisors and management
work closely to apply our remuneration
principles and ensure our strategy supports
sustainable securityholder value.
Board
Oversees remuneration
WITH ADVICE FROM
The Audit, Risk and
Compliance Committee
provides advice to the
HRC on risk and risk
culture issues or breaches
for consideration when
determining Executive
remuneration outcomes
HRC
Four independent
Non-Executive Directors
Advises Board on remuneration strategy
Responsible for making recommendations
on Executive remuneration
Approves KMP terms of employment
HRC Charter is available on Mirvac’s website at:
https://www.mirvac.com/about/corporate-governance
BASED ON
Remuneration principles
Aligned to Mirvac’s
Pillars of Value
and desired
business outcomes
Aligned to our
securityholders
Fair, equitable
and market
competitive
Support
Mirvac’s desired
performance-based
culture
Simple
and easily
understood
EXTERNAL ADVISORS
The HRC has appointed EY as its external
remuneration advisor. EY provides both information
on current market practice and independent input
into key remuneration decisions.
MINIMUM SECURITYHOLDING
Mirvac has adopted a minimum securityholding
requirement of:
> 150 per cent of fixed remuneration
for the Group CEO/MD
EY’s terms of engagement include specific
measures designed to protect its independence.
To effectively perform its role, EY needs to
interact with members of Mirvac management,
particularly those in the Human Resources team.
However, to ensure independence, members
of Mirvac’s management are precluded from
requesting services that would be considered to
be a ‘remuneration recommendation’ as defined
by the Corporations Act 2001.
During FY23, EY provided the HRC with
regulatory updates and market trend analysis.
No remuneration recommendations were provided
by EY or any other advisor during the year.
> 100 per cent of fixed remuneration
for other Executives
> 100 per cent of base fees for
Non-Executive Directors.
Any purchases of Mirvac securities are subject
to the Security Trading Policy.
The Minimum Securityholding Policy is
available on Mirvac’s website at: https://www.
mirvac.com/about/corporate-governance
SECURITY TRADING POLICY
In line with the Code of Conduct, Mirvac
has implemented a Security Trading Policy,
which covers dealings in Mirvac securities
by Directors and employees, as well as their
respective associates.
Directors and employees are only permitted to
trade in Mirvac securities during designated
trading windows and provided that they
are not in possession of confidential price-
sensitive information at that time. The policy
also sets out the specific approval process
to be followed prior to any dealing in Mirvac
securities. Margin loans and any form of
hedging or short-term speculative dealing
in Mirvac securities (including options
or derivatives) are prohibited under the
Security Trading Policy.
The Security Trading Policy is available on
Mirvac’s website at: https://www.mirvac.com/
about/corporate-governance
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7 NON‑EXECUTIVE DIRECTOR REMUNERATION
APPROACH TO NON-EXECUTIVE DIRECTOR FEES
In contrast to Executive KMP remuneration, the remuneration of Mirvac’s Non-Executive Directors is not linked to performance. This is consistent with
Non-Executive Directors being responsible for objective and independent oversight of the Group.
Mirvac Limited’s Constitution provides that Non-Executive Directors may determine their own remuneration, but the total amount provided to all
Directors (not including the Group CEO/MD and any other Executive Directors) must not exceed the sum agreed by securityholders at a general meeting.
The maximum aggregate remuneration of $2.75m per annum was approved by securityholders at the 2022 AGM.
Non-Executive Directors have not received any fees other than those described in this section, and do not receive bonuses or any other incentive
payments or retirement benefits.
The Non-Executive Directors are reimbursed for expenses properly incurred in performing their duties as a Director of Mirvac.
The schedule of fees for Non-Executive Directors during FY23 is set out in the table below and fees are annual fees, unless otherwise stated:
Board/committee
Mirvac Limited and Mirvac Funds Limited Board Chair
Mirvac Limited and Mirvac Funds Limited Board member
ARCC, HRC and HSE&E Chair
Committee member
Due Diligence Committee (per diem fee)
1. Chair fee covers all Board and committee responsibilities.
2. The ARCC, HRC and HSE&E Chair fee is in addition to the committee member fee.
3. The single committee fee is paid once for all committee memberships.
ACTUAL REMUNERATION FOR NON-EXECUTIVE DIRECTORS
Non-Executive Directors
Robert Sindel 2
Christine Bartlett
Damien Frawley 3, 4
Jane Hewitt
James M. Millar AM
Samantha Mostyn AO 5
Peter Nash
Former Non-Executive Directors
John Mulcahy
Total
$
480,000 1
185,000
30,000 2
18,000 3
4,000
Total
$
356,500
233,000
233,000
233,000
325,262
118,417
203,000
203,000
233,000
233,000
213,000
203,000
203,000
203,000
240,000
480,000
2,006,762
1,906,417
Short-term
benefits
Cash salary
and fees
$
Post-
employment 1
Superannuation
contributions
$
352,349
229,028
210,860
211,818
299,970
107,652
183,710
184,545
210,860
211,818
192,761
184,546
188,533
199,540
227,354
456,432
1,866,397
1,785,379
4,151
3,972
22,140
21,182
25,292
10,765
19,290
18,455
22,140
21,182
20,239
18,454
14,467
3,460
12,646
23,568
140,365
121,038
Year
FY23
FY22
FY23
FY22
FY23
FY22
FY23
FY22
FY23
FY22
FY23
FY22
FY23
FY22
FY23
FY22
FY23
FY22
1. Relates to payments required under superannuation legislation.
2. Robert Sindel was appointed Chair of the Board on 1 January 2023.
3. Damien Frawley joined the Board as a Non-Executive Director on 1 December 2021.
4. FY23 remuneration for Damien Frawley is inclusive of fees for his Directorship on both the Mirvac Group and Mirvac Funds Management Australia Limited Board’s.
5. Samantha Mostyn was appointed Chair of the HSE&E on 1 March 2023.
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Remuneration report
7 NON‑EXECUTIVE DIRECTOR REMUNERATION continued
MINIMUM SECURITYHOLDING FOR NON-EXECUTIVE DIRECTORS AND ACTUAL SECURITYHOLDING
In order to further strengthen the alignment of interests between Non-Executive Directors and securityholders, the Board established minimum Mirvac
Securityholding Guidelines, which recommend Non-Executive Directors build up to a minimum securityholding level of 100 per cent of base fees. Non-
Executive Directors appointed to the Mirvac Board will have three years from the date of appointment to establish their securityholding to the minimum level.
In addition to this minimum securityholding requirement, a voluntary Non-Executive Director Fee Sacrifice Rights Plan is available to further
encourage Directors to build an ownership stake in Mirvac.
Non-Executive Directors
Rob Sindel
Christine Bartlett
Damien Frawley
Jane Hewitt
James M. Millar AM
Samantha Mostyn AO
Peter Nash
Balance
1 July 2022
Changes
Balance
30 June 2023
90,198
80,172
—
70,000
55,172
74,045
82,720
57,800
47,125
32,000
40,000
—
—
24,221
147,998
127,297
32,000
110,000
55,172
74,045
106,941
Value
$
399,480
280,751
72,320
269,200
91,220
177,319
262,023
Date
securityholding
to be attained
September 2024
September 2024
December 2024
September 2024
September 2024
September 2024
September 2024
8 ADDITIONAL REQUIRED DISCLOSURES
OTHER TRANSACTIONS WITH KMP
There are a number of transactions between KMP and the Group. On occasions, Directors and other KMP participate in arrangements available
to directly purchase Mirvac developed residential property. These transactions are made on terms equivalent to those that prevail in arm’s length
transactions and are at market rates.
As set out in the Directors’ Report, a number of the Directors of Mirvac are also Directors of other companies. On occasions, the Group may purchase
goods and services from or supply goods and services to these companies. These transactions are undertaken on normal commercial terms and
conditions and the Director or other KMP does not directly influence these transactions.
Mirvac developed property purchased by KMP
Exchanges
Deposits received
Outstanding commitments
2023
$000
1,440
72
7,477
2022
$000
5,027
251
6,108
Other benefits
Fees paid by Mirvac for Directors’ and Officers’ liability insurance are not itemised for each Director as their disclosure would breach the terms of the policy.
Executives and Directors (including Non-Executive Directors) are entitled to participate in arrangements available to directly purchase Mirvac developed
residential property. These transactions are made on terms equivalent to those that prevail in arm’s length transactions and are at market rates.
TERMS USED IN THIS REMUNERATION REPORT
Meaning
Term
A-REIT
Clawback
S&P/ASX 200 Australian Real Estate Investment Trust Index.
Mirvac’s clawback policy gives the HRC the ability to claw back incentives in the event of a material financial misstatement, for
misconduct that is, or may be, harmful to the Group, and/or gross negligence. The clawback provisions apply to unvested STI
and LTP awards received after the introduction of the policy in February 2013.
Executive KMP
Includes the Group CEO/MD, CFO, the CEO, Funds Management, the CEO, Development and the CEO, Investments.
Executives
Members of Mirvac’s Executive Leadership Team (including the Executive KMP).
Invested Capital
Invested Capital equals investment properties, inventories and indirect investments, less fund-through adjustments (deferred
revenue) and deferred payment for land. Average Invested Capital is the average of the current period and the prior two
reporting periods.
KMP
Key management personnel are those people with authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly.
Performance right
A right to a Mirvac security at the end of a performance period, subject to the satisfaction of performance measures.
ROIC
Total Return
TSR
ROIC is calculated as Total Return divided by average Invested Capital.
Total Return is the profit for the year attributable to securityholders adjusted for development interest costs and other interest
costs; net gain or loss on financial instruments; and income tax expense.
Total Shareholder Return measures the percentage growth in a company’s security price together with the value of dividends/
distributions received during the period, assuming that all of those dividends/distributions are reinvested into new securities.
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Auditor’s independence declaration
Auditor’s Independence Declaration
As lead auditor for the audit of Mirvac Limited for the year ended 30 June 2023, I declare that to the
best of my knowledge and belief, there have been:
(a)
(b)
no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Mirvac Limited and the entities it controlled during the period.
Voula Papageorgiou
Partner
PricewaterhouseCoopers
Sydney
16 August 2023
PricewaterhouseCoopers, ABN 52 780 433 757
One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001
T: +61 2 8266 0000, F: +61 2 8266 9999
Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124
T: +61 2 9659 2476, F: +61 2 8266 9999
Liability limited by a scheme approved under Professional Standards Legislation.
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Financial report
71
Financial report
For the year ended 30 June 2023
CONSOLIDATED FINANCIAL STATEMENTS
72
73
74
75
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
76
A BASIS OF PREPARATION
B RESULTS FOR THE YEAR
B1 Segment information
B2 Revenue
B3 Expenses
B4 Events occurring after the end of the year
B5
Income tax
C PROPERTY AND DEVELOPMENT ASSETS
C1 Property portfolio
C2
C3
C4
Investment properties
Investments in joint ventures and associates
Inventories
D OPERATING ASSETS AND LIABILITIES
D1 Receivables
D2 Other financial assets
D3
Intangible assets
D4 Payables
D5 Provisions
E CAPITAL STRUCTURE AND RISKS
E1 Capital management
E2 Borrowings and liquidity
E3 Cash flow information
E4 Derivative financial instruments
E5 Financial risk management
E6 Fair value measurement of financial instruments
F
EQUITY
F1 Distributions
F2 Contributed equity
F3 Reserves
F4 Security-based payments
G GROUP STRUCTURE
G1 Group structure and Deed of Cross Guarantee
G2 Parent entity
G3 Business combinations
H OTHER DISCLOSURES
H1 Contingent liabilities
H2 Earnings per stapled security
H3 Related parties
H4 Auditor’s remuneration
APPENDICES
Property portfolio listing
I
I1
I2 Controlled entities
I3
Joint venture and associate entities
77
80
82
83
83
86
88
90
93
94
96
96
98
98
99
99
100
101
103
105
107
107
108
108
110
112
112
113
113
113
114
115
118
120
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Consolidated statement of comprehensive income
For the year ended 30 June 2023
Revenue
Other income
Revaluation gain on investment properties
Share of net profit of joint ventures and associates
Gain on financial instruments
Gain on sale of assets
Total revenue and other income
Development expenses
Cost of goods sold interest
Impairment of inventory and other assets
Selling and marketing expenses
Revaluation loss on investment properties
Loss on disposal of assets
Investment property expenses and outgoings
Depreciation and amortisation expenses
Impairment loss on receivables
Employee expenses
Finance costs
Loss on financial instruments
Other expenses
(Loss)/profit before income tax
Income tax (benefit)/expense
(Loss)/profit from continuing operations attributable to stapled securityholders
Other comprehensive (loss)/income that may be reclassified to profit or loss
Changes in the fair value of cash flow hedges
Other comprehensive (loss)/income for the year
Total comprehensive (loss)/income for the year attributable to stapled securityholders
Earnings per stapled security (EPS) attributable to stapled securityholders
Basic EPS
Diluted EPS
Note
B2
C2
C3
B2
B3
B3
C2
B3
B3
B3
B3
B3
B5
F3
H2
H2
2023
$m
1,902
—
38
32
—
1,972
777
20
66
40
480
23
207
73
—
139
152
6
171
(182)
(17)
(165)
(2)
(2)
(167)
Cents
(4.2)
(4.2)
2022
$m
2,306
347
109
64
16
2,842
1,152
24
15
46
—
1
212
83
24
122
96
—
83
984
78
906
17
17
923
Cents
23.0
23.0
The above consolidated statement of comprehensive income (SoCI) should be read in conjunction with the accompanying notes.
The comparative amounts have been restated for the recognition of a put option liability presented in current other financial liabilities and
derecognition of non-controlling interest. Refer to note A Basis of preparation.
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Consolidated statement of financial position
As at 30 June 2023
Current assets
Cash and cash equivalents
Receivables
Inventories
Derivative financial assets
Other assets
Assets classified as held for sale
Total current assets
Non-current assets
Receivables
Inventories
Investment properties
Investments in joint ventures and associates
Derivative financial assets
Other financial assets
Other assets
Property, plant and equipment
Right-of-use assets
Intangible assets
Deferred tax assets
Total non-current assets
Total assets
Current liabilities
Payables
Deferred revenue
Borrowings
Derivative financial liabilities
Other financial liabilities
Lease liabilities
Provisions
Current tax liabilities
Total current liabilities
Non-current liabilities
Payables
Deferred revenue
Borrowings
Lease liabilities
Derivative financial liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Retained earnings
Total equity attributable to the stapled securityholders
Note
D1
C4
E4
C2
D1
C4
C2
C3
E4
D2
D3
B5
D4
B2
E2
E4
E2
D5
B5
D4
B2
E2
E2
E4
D5
F2
F3
2023
$m
122
173
1,504
22
42
759
2,622
53
1,735
9,753
2,302
180
74
7
8
23
78
47
14,260
16,882
930
44
250
9
—
8
260
—
2022
$m
558
144
622
66
42
—
1,432
30
1,639
12,189
1,481
176
73
49
13
28
79
17
15,774
17,206
730
17
281
6
66
8
232
42
1,501
1,382
379
23
4,226
56
129
11
4,824
6,325
10,557
7,533
23
3,001
10,557
571
3
3,930
72
111
11
4,698
6,080
11,126
7,527
23
3,576
11,126
The above consolidated statement of financial position (SoFP) should be read in conjunction with the accompanying notes.
The comparative amounts have been restated for the recognition of a put option liability presented in current other financial liabilities and
derecognition of non-controlling interest. Refer to note A Basis of preparation.
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Consolidated statement of changes in equity
For the year ended 30 June 2023
Attributable to stapled securityholders
Contributed
equity
$m
Note
Reserves
$m
Retained
earnings
$m
Balance 30 June 2021
Recognition of financial liability
Restated total equity 30 June 2021
A
7,510
—
7,510
Profit for the year
Other comprehensive income for the year
Total comprehensive income for the year
Transactions with owners of the Group
Security-based payments
Expense recognised – EEP
Expense recognised – LTI and STI
LTI vested
STI vested
Legacy schemes vested
Transfer from SBP reserve for unvested awards
Distributions
F2
F4
F2/F4
F4
F2
F4
F1
Total transactions with owners of the Group
Balance 30 June 2022
Balance 1 July 2022
Loss for the year
Other comprehensive loss for the year
Total comprehensive loss for the year
Transactions with owners of the Group
Security-based payments
Expense recognised – LTI and STI
LTI vested
STI vested
Transfer from SBP reserve for unvested awards
Distributions
F4
F2/F4
F4
F4
F1
Total transactions with owners of the Group
Balance 30 June 2023
—
—
—
1
—
15
—
1
—
—
17
7,527
7,527
—
—
—
—
6
—
—
—
6
7,533
13
—
13
—
17
17
—
13
(15)
(1)
—
(4)
—
(7)
23
23
—
(2)
(2)
13
(6)
(1)
(4)
—
2
23
3,070
—
3,070
906
—
906
—
—
—
—
—
4
(404)
(400)
3,576
3,576
(165)
—
(165)
—
—
—
4
(414)
(410)
Total
$m
10,593
—
10,593
906
17
923
1
13
—
(1)
1
—
(404)
(390)
11,126
11,126
(165)
(2)
(167)
13
—
(1)
—
(414)
(402)
Non-
controlling
interests
$m
66
(66)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Total
equity
$m
10,659
(66)
10,593
906
17
923
1
13
—
(1)
1
—
(404)
(390)
11,126
11,126
(165)
(2)
(167)
13
—
(1)
—
(414)
(402)
10,557
The above consolidated statement of changes in equity (SoCE) should be read in conjunction with the accompanying notes.
The comparative amounts have been restated for the recognition of a put option liability presented in current other financial liabilities and
derecognition of non-controlling interest. Refer to note A Basis of preparation.
3,001
10,557
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Consolidated statement of cash flows
For the year ended 30 June 2023
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Interest received
Distributions received from joint ventures and associates
Distributions received
Interest paid
Income tax paid
Net cash (outflows)/inflows from operating activities
Cash flows from investing activities
Payments for investment properties
Proceeds from sale of investment properties
Proceeds from loans to unrelated parties
Payments of loans to unrelated parties
Proceeds from sale of property, plant and equipment
Payments for property, plant and equipment
Contributions to joint ventures and associates
Proceeds from joint ventures and associates
Payments for software under development
Proceeds from investments
Payments for investments
Proceeds from acquisitions of subsidiaries, net of cash acquired
Payments for acquisitions of subsidiaries, net of cash acquired
Proceeds from disposal of subsidiaries, net of cash deconsolidated
Deconsolidation of cash and cash equivalents upon disposal of controlled entities
Net cash outflows from investing activities
Cash flows from financing activities
Proceeds from borrowings
Repayments of borrowings
Distributions paid
Proceeds from non-controlling interests
Principal element of lease payments
Net cash outflows from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Note
E3
G3
G3
2023
$m
2,017
(1,935)
82
10
130
2
(228)
(53)
(57)
(736)
442
7
(24)
1
(3)
(745)
1
(2)
1
(5)
—
(203)
944
—
(322)
3,425
(3,075)
(407)
7
(7)
(57)
(436)
558
122
2022
$m
2,461
(1,531)
930
6
95
1
(131)
(6)
895
(792)
231
22
—
—
(7)
(70)
163
(1)
9
—
11
—
—
(2)
(436)
1,711
(1,320)
(402)
—
(7)
(18)
441
117
558
The above consolidated statement of cash flows (SoCF) should be read in conjunction with the accompanying notes.
The comparative amounts have been restated for the recognition of a put option liability presented in current other financial liabilities and
derecognition of non-controlling interest. Refer to note A Basis of preparation.
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Notes to the consolidated financial statements
For the year ended 30 June 2023
A BASIS OF PREPARATION
Mirvac Group – stapled securities
A Mirvac Group stapled security comprises one Mirvac Limited share ‘stapled’ to one unit in Mirvac Property Trust (MPT) to create a single listed
security traded on the ASX. The stapled securities cannot be traded or dealt with separately. Mirvac Limited (the deemed parent entity) and Mirvac
Funds Limited (as responsible entity for MPT) have common directors and operate as Mirvac Group. Mirvac Limited and MPT have a Deed of
Cooperation to recharge each other on a cost recovery basis, where permitted by law, to maintain the best interests of Mirvac as a whole.
The stapled security structure will cease to operate on the first of:
> Mirvac Limited or MPT resolving by special resolution in a general meeting, and in accordance with its Constitution, to terminate the stapled
security structure; or
> Mirvac Limited or MPT commencing winding up.
The ASX reserves the right (but without limiting its absolute discretion) to remove entities with stapled securities from the official list if their securities
cease to be stapled together, or either one or more stapled entities issues any equity securities of the same class that are not stapled.
Mirvac Limited and MPT remain separate legal entities in accordance with the Corporations Act 2001. For accounting purposes, Mirvac Limited has
been deemed the parent entity of MPT.
Statement of compliance
These consolidated financial statements are general purpose financial statements. They have been prepared in accordance with Australian
Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board, the Corporations Act 2001 and
International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
Basis of preparation
Mirvac Group is a for-profit entity for the purposes of preparing the financial statements.
These financial statements have been prepared on a going concern basis, using historical cost conventions except for investment properties,
investment properties under construction (IPUC), derivative financial instruments and other financial assets and financial liabilities that have been
measured at fair value.
All figures in the financial statements are presented in Australian dollars and have been rounded to the nearest million (m) dollars in accordance with
ASIC Corporations Instrument 2016/191, unless otherwise indicated.
Critical accounting estimates and judgements
The preparation of financial statements requires estimation and judgement. The areas involving a higher degree of estimation or judgement are
discussed in the following notes:
Revenue
Income tax
Investment properties
Investments in joint ventures and associates
Inventories
Intangible assets
Fair value measurement of financial instruments
Security-based payments
Note
B2
B5
C2
C3
C4
D3
E6
F4
Comparative information
Where necessary, comparative information has been restated to conform to the current year’s disclosures.
Specifically, the Group has made the following restatements in relation to the 30 June 2022 comparative amounts:
> Mirvac’s segments have been realigned following changes to its Executive Leadership Team (ELT) and adjustments to its organisational structure
to enhance and maximise operating efficiencies. This restatement is presentational in nature and has no impact on reported net assets or profit for
the year ended 30 June 2022. Refer to note B1 Segment information for further information.
> Recognition of a put option liability presented in current Other financial liabilities of $66m (1 July 2021: $66m) and derecognition of Non-controlling
interest of $66m (1 July 2021: $66m), restatement of other expenses presented on the SoCI by $1m.
New and amended standards adopted by the Group
Amended standards and interpretations adopted by the Group for the year ended 30 June 2023 have not had a significant impact on the current
period or any prior period and are not likely to have a significant impact in future periods. These are listed below:
> AASB 2020-3 Amendments to Australian Accounting Standards –Annual Improvements 2018–2020 and Other Amendments AASB 1, AASB 3,
AASB 9, AASB 116 & AASB 137 & AASB 141.
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Notes to the consolidated financial statements
Financial report
77
B RESULTS FOR THE YEAR
This section explains the results and performance of the Group, including segmental analysis and detailed breakdowns.
B1 SEGMENT INFORMATION
The Group identifies its operating segments based on the internal reporting provided to the ELT, who are the Group’s chief operating decision
makers. Mirvac’s segments have been realigned effective 1 March 2023, following changes to its ELT and adjustments to its organisational
structure to enhance and maximise operating efficiencies. The new segments are: Investment, Funds and Development.
Comparative information has been restated to conform to the change in segments. The restatement is presentational in nature and has no
impact to the reported net assets or profit for the year ended 30 June 2022.
The Group’s operating segments are as follows:
INVESTMENT
Passive portfolio, through which income is derived from directly owned assets, co-investment stakes in funds,
and investments in joint ventures and associates alongside capital partners. The portfolio spans office, industrial,
retail and build to rent.
FUNDS
Includes both funds management and asset management operations, earning fees from the provision
of investment management, property management, leasing, and capital expenditure delivery services to
the balance sheet portfolio and third-party partners.
DEVELOPMENT
Spans commercial and mixed-used and residential projects. Profits are derived from development of assets
for institutional investors as well as the Group’s balance sheet, and through building homes and communities
for residential customers.
Geographically, the Group operates in major urban areas across Australia.
During the prior year, the Group recognised revenue of $528m from two external customers. This revenue represents 23 per cent of total revenue in
the prior year and was attributed to the Development segment. No other single customer in the current or prior year provided more than 10 per cent of
the Group’s revenue.
Presented below are the key profit metrics, a breakdown of revenue by function and other required information for each segment:
Key profit metrics
Investment
Funds
Development
Segment EBIT 1
Unallocated overheads
Group EBIT
Net financing costs 2
Operating income tax expense
Operating profit after tax
Development revaluation (loss)/gain 3
Investment property revaluation (loss)/gain
Other non-operating items
Statutory (loss)/profit attributable to stapled securityholders
1. EBIT includes share of net operating profit of joint ventures and associates.
2. Includes cost of goods sold interest of $20m (2022: $24m) and interest revenue of $10m (2022: $5m).
3. Relates to the fair value movement on IPUC.
2023
$m
619
20
214
853
(86)
767
(162)
(25)
580
(42)
(528)
(175)
(165)
2022
$m
568
2
285
855
(82)
773
(115)
(62)
596
70
305
(65)
906
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Notes to the consolidated financial statements
B RESULTS FOR THE YEAR continued
Investment
Segments
Funds
2023
$m
2022
$m
2023
$m
2022
$m
Development
Unallocated
Total
2023
$m
2022
$m
Revenue by function
Property rental revenue
Development revenue 1
Asset and funds
management revenue 2
Other revenue
Total operating revenue
Share of net profit/(loss) of
joint ventures and associates 3
Gain on sale of assets
Other income
Total operating revenue
and other income
Non-operating items 4
Total statutory revenue
and other income
760
—
—
11
771
67
—
67
838
(97)
772
—
—
2
774
50
—
50
824
266
741
1,090
13
—
72
11
96
—
—
—
96
—
96
2023
$m
4
1,013
—
9
2022
$m
3
1,485
—
19
1,026
1,507
68
—
68
36
16
52
1,094
1,559
—
70
11
—
39
9
59
—
—
—
59
—
2023
$m
777
1,013
72
41
2022
$m
786
1,485
39
35
1,903
2,345
135
—
135
85
16
101
2,038
2,446
(66)
396
—
—
—
5
5
(1)
—
(1)
4
60
—
—
—
10
10
—
—
—
10
31
41
59
1,094
1,629
64
1,972
2,842
Includes development management fees.
1.
2. Investment property management revenue incurred on the Group’s investment properties of $19m (2022: $19m) has been eliminated on consolidation.
3. Revenue excludes non-operating items.
4. The current period relates mainly to fair value loss on investment properties held by joint ventures and associates. The prior period relates mainly to fair value gain on investment
properties and IPUC held by wholly owned entities.
Investment
Segments
Funds
Development
Unallocated
Total
Additional segment information
2023
$m
2022 1
$m
2023
$m
2022
$m
2023
$m
2022
$m
2023
$m
2022
$m
2023
$m
2022 1
$m
Segment assets and liabilities
Assets
Investment properties
Inventories
Assets held for sale
Indirect investments 2
Other assets
Total assets
Total liabilities
Net assets
Other segment information
Share of net (loss)/profit of
joint ventures and associates
Depreciation and
amortisation expenses
Additions for investment
properties and PPE
Additions of investments in
joint ventures and associates
9,015
—
759
2,063
45
10,782
—
—
1,376
50
11,882
12,208
177
217
11,705
11,991
(29)
59
67
69
305
826
707
6
—
—
—
38
40
78
34
44
—
2
—
—
—
—
—
40
22
62
21
41
—
1
—
—
738
3,239
—
366
56
4,399
1,173
3,226
1,407
2,261
—
263
48
3,979
1,143
—
—
—
35
488
523
—
—
—
15
942
957
9,753
3,239
759
2,502
629
16,882
4,941
4,699
6,325
2,836
(4,418)
(3,742)
10,557
12,189
2,261
—
1,694
1,062
17,206
6,080
11,126
67
1
43
2
498
876
37
62
—
11
1
—
(1)
11
6
38
73
109
83
804
1,708
—
744
68
1. The comparative amounts have been restated for the recognition of a put option liability presented in current other financial liabilities and derecognition of non-controlling interest.
Refer to note A Basis of preparation.
2. Includes carrying value of investments in joint ventures and associates and other indirect investments.
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Financial report
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Notes to the consolidated financial statements
B RESULTS FOR THE YEAR continued
Reconciliation of statutory profit to operating profit after tax
The following table shows how profit for the year attributable to stapled securityholders reconciles to operating profit after tax:
Segments
Investment
$m
Funds Development Unallocated
$m
$m
$m
2023
Total
$m
(Loss)/profit for the year attributable
stapled securityholders
Exclude specific non-cash items
Revaluation of investment properties 1
Net loss/(gain) on financial instruments
Depreciation of right-of-use assets
Straight-lining of lease revenue 2
Amortisation of lease incentives and leasing costs
Amortisation of management rights
Share of net loss/(profit) of joint ventures and
associates relating to movement of non-cash items 3
AASB 16 Leases – net movement
Exclude other non-operating items
Net loss on sale of assets
Restructuring expense 4
Impairment of inventory and other assets
Transaction costs
Insurance proceeds 5
Other non-operating items
Tax effect
Tax effect of non-operating adjustments 6
Operating profit after tax
SaaS implementation costs
FFO
(2)
(35)
438
1
—
(9)
103
—
97
—
22
—
—
—
(31)
—
—
619
1
620
—
—
—
—
—
2
—
—
—
—
—
53
—
—
—
20
6
26
46
42
—
—
—
—
—
—
—
—
—
60
20
—
7
—
175
11
186
(174)
(165)
—
(27)
8
—
—
—
—
(8)
1
9
—
—
—
—
(43)
(234)
6
(228)
480
(26)
8
(9)
103
2
97
(8)
23
9
60
73
(31)
7
(43)
580
24
604
2022
Total
$m
906
(347)
(64)
7
(5)
114
—
(24)
(7)
—
—
—
—
—
—
16
596
18
614
1.
Includes development revaluation loss and excludes Mirvac’s share in the joint ventures and associates revaluation of investment properties which is included within Share of net profit
of joint ventures and associates.
2. Included within Revenue.
3. Included within Share of net profit of joint ventures and associates.
4. Included within Employee expenses.
5. Included within Revenue and Investment property expenses and outgoings.
6. Included within Income tax expense.
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Notes to the consolidated financial statements
B RESULTS FOR THE YEAR continued
B2 REVENUE
The Group has three main revenue streams: property rental revenue, asset and funds management revenue and development revenue.
Property rental revenue comes from holding properties as investment properties and earning rental yields over time. Asset and funds
management revenue are fees earned from managed assets. Development revenue is derived from constructing and selling properties
as well as managing developments for third parties and capital partners.
Revenue is measured at the fair value of the consideration received or receivable, net of returns, trade allowances and duties and taxes paid.
The Group recognises revenue from the transfer of goods or services over time and at a point in time in the following revenue streams.
PROPERTY RENTAL REVENUE
Lease revenue
The Group invests in properties for rental yields and capital appreciation. Rental revenue from investment properties is recognised on a
straight-line basis over the lease term, net of any incentives. Modifications to the leases are accounted for as a new lease from the effective
date of the modification, considering any prepaid or accrued lease payments relating to the original lease as part of the lease payments for
the new lease.
Service revenue
The Group also provides services to the lessees, which primarily consist of general building management and operations in accordance
with their lease agreements. Service income, representing the recovery of associated costs from the lessees, is recognised over time when
the services are provided.
ASSET AND FUNDS MANAGEMENT REVENUE
The Group provides property management and leasing, investment funds management, and facilities management services. These services
are provided on an ongoing basis and over the term of the agreements. The management fees are generally calculated based upon the
value of the managed assets, which is a variable consideration and recognised upon delivery of services.
DEVELOPMENT REVENUE
Settlement revenue
The Group develops and sells properties comprising apartments, land lots, masterplanned communities and commercial and mixed-use
properties held as inventory. Revenue is recognised when control of the property is transferred to the customer and generally occurs on
settlement. The revenue is measured at the transaction price agreed under the contract.
Development management service revenue
Development management fees are received to remunerate the Group for management services, time and the risk of developing a
commercial, mixed-use or residential project. Contracts can include one or multiple performance obligations depending on the terms of the
contract. Revenue is recognised as the performance obligations are satisfied. Hourly rate fees are recognised when service is provided, and
fixed rate fees are recognised on a percentage of completion basis.
Construction service revenue
The Group provides services to construct office, industrial, retail and residential buildings or a combination thereof as mixed-use on
customer-owned land.
There is ordinarily one performance obligation, being the ‘macro-promise’ to deliver a completed building to the customer, including
the design, construction and leasing (if applicable) of the building. The performance obligation is satisfied, and revenue, including costs
and margin is recognised over time with progress determined in line with the building’s percentage of completion. The percentage of
completion is determined by costs incurred to date as a percentage of total expected costs. This method best represents the passing of
control of the building to the customer as it is being built. Estimates of costs and project completion and associated revenue are revised if
circumstances change, with any resulting increases or decreases reflected in the consolidated SoCI.
Certain development contracts may include variable revenue, which is dependent on predetermined metrics; for example, capitalised net rental
income. Variable revenue is recognised when highly probable based on historical experience, forecasts and current economic conditions.
Deferred revenue
Some development contracts are funded by a capital partner throughout the life of the project or construction phase, generally known
as fund through projects. Payments received for these projects are recognised as deferred revenue, which is classified as a liability in
the consolidated SoFP. Associated revenue is recognised in the consolidated SoCI when the performance obligations are satisfied. The
recognition of deferred revenue is contractually based. Judgement is required in determining whether performance obligations have been
satisfied for the recognition of the associated revenue.
At 30 June 2023, the Group held $67m of deferred revenue (2022: $20m).
During the year, the Group recognised $9m in revenue from contracts for which deferred revenue was held at the beginning of the
financial year (2022: $45m).
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81
B RESULTS FOR THE YEAR continued
Revenue
Lease revenue 1
Service revenue
Other property rental revenue
Total property rental revenue
Asset and funds management revenue
Settlement revenue
Development and construction management services revenue
Total development revenue
Interest revenue
Other revenue
Total revenue
1.
Includes straight-lining of lease revenue of $9m (2022: $5m).
2023
$m
599
119
24
742
72
667
346
1,013
10
65
1,902
2022
$m
620
104
8
732
39
1,014
471
1,485
5
45
2,306
Costs to obtain a contract
Sales commissions, incurred to obtain a contract, are capitalised and included within other assets on the consolidated SoFP and expensed when the
associated settlement revenue is recognised.
Expensed during the period 1
Incremental costs to obtain a contract
Current
Non-current
Total incremental costs to obtain a contract
1. No impairment loss was recognised during the year (2022: $nil).
Transaction price allocated to remaining performance obligations
The transaction price allocated to partially unsatisfied performance obligations at 30 June 2023 is as set out below.
Within one year
More than one year
Total
Gain on financial instruments
Gain on interest rate derivatives
Gain on assets at fair value through profit or loss
Gain on cross currency derivatives
Total gain on financial instruments
2023
$m
11
4
2
6
2023
$m
1,346
754
2,100
2023
$m
28
—
4
32
2022
$m
22
3
6
9
2022
$m
985
650
1,635
2022
$m
49
4
11
64
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Notes to the consolidated financial statements
B RESULTS FOR THE YEAR continued
B3 EXPENSES
Development expenses
Development expenses are initially capitalised as inventory on the consolidated SoFP until the associated revenue is recognised. These
expenses include the costs of acquisition and development and all other costs directly related to the specific projects, including an
allocation of direct overhead expenses.
Cost of goods sold interest
Interest previously capitalised to incomplete inventory is expensed when the associated revenue is recognised. Upon completion of the
project, borrowing costs and other holding charges are no longer capitalised and are expensed as incurred.
Selling and marketing expenses
Costs to promote and market projects are expensed as incurred. Direct costs incurred in obtaining a contract, such as sales commissions,
are capitalised as a contract asset and included within other assets on the consolidated SoFP. These costs are expensed when the
associated revenue is recognised.
Investment property expenses and outgoings
Investment property expenses relate to those costs that allow for the occupation and maintenance of investment properties in order
to continue to earn rental revenue. Expenses include statutory levies, insurance and other property outgoings and are recognised on
an accruals basis.
Government grants
Government grants are accounted for under AASB 120 Accounting for Government Grants and Disclosure of Government Assistance.
The standard provides the option to present these amounts as income or as a reduction in expenses.
During the prior year, the Group received $13m land tax rebates from various state revenue agencies. These rebates were provided to
landlords who provided rental relief to tenants. These amounts have been recognised as a reduction to Investment property expenses
and outgoings in the consolidated SoCI. No land tax rebates were received in the current year.
Depreciation and amortisation
Depreciation on property, plant and equipment is calculated on a straight-line basis over the estimated useful life of the asset, usually
between 3-15 years. Amortisation on lease incentives, software and management rights is calculated on a straight-line basis over the
estimated useful life of the asset.
Profit before income tax includes the following specific expenses:
2023
$m
2022
$m
Total impairment of inventory and other assets
Provision for impairment of inventories
Inventory costs written off
Total impairment of inventory
Other assets written off
Total impairment of other assets
Total impairment of inventory and other assets
Total investment property expenses and outgoings
Statutory levies
Insurance
Power and gas
Property maintenance
Other
Total investment property expenses and outgoings
Total impairment loss on receivables
Loss allowance on trade debtors
Loss allowance on loans receivable
Total impairment loss on receivables
25
6
31
35
35
66
47
9
29
53
69
207
—
—
—
5
10
15
—
—
15
46
6
26
55
79
212
25
(1)
24
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Notes to the consolidated financial statements
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83
B RESULTS FOR THE YEAR continued
Total employee expenses
Employee benefits expenses
Security-based payments expense
Restructuring expense
Total employee expenses
Interest and borrowing costs
Interest paid/payable
Interest on lease liabilities
Interest capitalised
Borrowing costs amortised
Total finance costs
Add: cost of goods sold interest 2
Total interest and borrowing costs
Total other expenses
Compliance, consulting and professional fees
Office and administration expenses
IT infrastructure 3
Insurance and other expenses
Transaction costs
Total other expenses
2023
$m
2022 1
$m
116
14
9
139
217
2
(71)
4
152
20
172
21
18
43
16
73
171
107
15
—
122
127
3
(36)
2
96
24
120
19
11
35
18
—
83
1. The comparative amounts for Other expenses have been restated. Refer to note A Basis of preparation.
2. This interest was previously capitalised and has been expensed in the current period.
3. Includes employee benefits expenses $7m (2022: $7m) relating to the implementation of SaaS arrangements.
B4 EVENTS OCCURRING AFTER THE END OF THE YEAR
No events have occurred since the end of the year which have significantly affected or may significantly affect Mirvac’s operations, the results of those
operations, or Mirvac’s state of affairs in future years.
B5 INCOME TAX
This section includes the Group’s tax accounting policies and details of the income tax expense and deferred tax balances.
Accounting for income tax
Most of the Group’s profit is earned by Mirvac Property Trust and its sub-trusts, which are not subject to taxation, provided that the stapled
securityholders of the Group are attributed the taxable income of the Mirvac Property Trust. Stapled securityholders are liable to pay tax at their
effective tax rate on the amounts attributed.
Income tax expense for Mirvac Limited and its wholly owned controlled entities is calculated at the applicable tax rate (currently 30 per cent in
Australia). This is recognised in the profit for the year, unless it relates to other comprehensive income or transactions recognised directly in equity.
The tax expense comprises both current and deferred tax. Broadly, current tax represents the tax expense paid or payable for the current year.
Accounting income is not always the same as taxable income, creating temporary differences. These differences usually reverse over time. Until
they reverse, a deferred asset or liability is recognised on the consolidated SoFP. Deferred tax is not recognised on the initial recognition of goodwill.
Deferred tax assets, including those arising from tax losses, are only recognised to the extent it is probable that sufficient taxable profits will be
available to utilise the losses in the foreseeable future.
The Group estimates future taxable profits based on approved budgets and forecasts extending five years. Future taxable profits are influenced by a
variety of general economic and business conditions, which are outside the control of the Group. A change in any of these assumptions could have an
impact on the future profitability of the Group and may affect the recovery of deferred tax assets.
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84
Notes to the consolidated financial statements
B RESULTS FOR THE YEAR continued
Mirvac Limited Tax Consolidated Group
Mirvac Limited and its wholly owned controlled entities are in a tax consolidated group. The entities in the tax consolidated group have entered into a
tax sharing agreement that, in the opinion of the Directors, limits the joint and several liability of the wholly owned entities in the case of a default by
the head entity, Mirvac Limited. Accordingly, the deferred tax assets and deferred tax liabilities are permitted to be offset in the consolidated SoFP.
The entities in the tax consolidated group have also entered into a tax funding agreement to fully compensate/be compensated by Mirvac Limited for
current tax balances and the deferred tax assets for unused tax losses and credits transferred.
Income tax analysis
Reconciliation to effective tax rate
(Loss)/profit before income tax
Less: Group elimination entries not subject to corporate taxation
Less: MPT loss/(profit) not subject to taxation
Add: Mirvac Limited trust (loss)/profit not subject to taxation 2
(Loss)/profit that is subject to taxation
Income tax (benefit)/expense calculated at 30%
Tax effect of amounts that are not deductible/(taxable) in calculating taxable income
Recognition of deferred tax asset equity based payments 3
Non-deductible transaction costs 4
Non-deductible equity accounted loss
Other non-deductible/(non-assessable) items
Over provision in prior years
Income tax (benefit)/expense
Effective tax rate 5
2023
$m
(182)
(4)
105
(3)
(84)
(25)
(8)
14
—
3
(1)
(17)
27%
2022 1
$m
984
(6)
(712)
1
267
80
—
—
1
(3)
—
78
29%
1. The comparative amount for profit has been restated. Refer to note A Basis of preparation.
2. Trust income that is not subject to corporate taxation as not wholly owned by the Mirvac Ltd tax consolidated group.
3. First time recognition of a deferred tax asset for the estimated future deductible amount of employee equity-based performance entitlements.
4. Non-deductible transaction costs in relation to AMP Wholesale Office Fund (renamed to Mirvac Wholesale Office Fund).
5. Effective tax rate is calculated as the income tax expense divided by the profit which is subject to taxation. The effective tax rate has been normalised by excluding non deductible
transaction costs, initial recognition of a deferred tax asset on equity based payments and non deductible losses on equity accounted joint ventures and associates.
Reconciliation of income tax (benefit)/expense to tax paid and payable
Income tax (benefit)/expense
Temporary differences
Deferred revenue
Inventories
Revaluation of derivative financial instruments
Movements in foreign exchange translation losses
Receivables
Right-of-use assets
Lease liabilities
Other temporary differences
Transfer to/(from) tax losses
Current tax expense
Opening current tax liability
Less: current tax paid during the year
Closing tax liability
2023
$m
(17)
2
(126)
(27)
19
10
2
(4)
25
127
11
42
(53)
—
2022
$m
78
(32)
84
(10)
(5)
(18)
—
(1)
(4)
(44)
48
—
(6)
42
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Notes to the consolidated financial statements
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85
B RESULTS FOR THE YEAR continued
Unrecognised tax and capital losses
Unused capital losses that have not been recognised as deferred tax assets due to uncertainty of utilisation 1
Potential tax benefit at 30 per cent
1. Unused capital losses can only be utilised against capital gains.
2023
$m
60
18
2022
$m
62
19
Movement in deferred tax
1 July 2021 profit or loss
$m
$m
income 30 June 2022 profit or loss
$m
$m
$m
Balance
income 30 June 2023
$m
$m
Recognised
in other
Recognised in comprehensive
Recognised
in other
Balance Recognised in comprehensive
Unrealised gain from JVAs
Accruals
Employee provisions and accruals
Deferred revenue
Derivative financial instruments
Impairment of loans and doubtful debts
PPE
Tax losses
Lease liabilities
Foreign exchange translation losses
Other
Deferred tax assets
Investments in JVAs
Inventories 1
Derivative financial instruments
Land and buildings
Prepayments
Receivables
Right-of-use assets
Other
Deferred tax liabilities
Net deferred tax assets
7
30
11
47
44
7
1
44
24
70
9
294
(6)
(133)
(74)
(3)
(4)
(7)
(10)
(2)
(239)
55
—
(1)
3
(32)
(3)
(5)
1
(44)
(1)
(5)
(1)
(88)
(2)
84
(7)
(2)
1
(18)
—
2
58
(30)
—
—
—
—
13
—
—
—
—
(30)
—
(17)
—
—
9
—
—
—
—
—
9
(8)
7
29
14
15
54
2
2
—
23
35
8
189
(8)
(49)
(72)
(5)
(3)
(25)
(10)
—
(172)
17
—
10
8
2
(21)
(1)
3
127
(4)
19
—
143
1
(126)
(6)
4
1
10
2
(1)
(115)
28
—
—
—
—
8
—
—
—
—
(25)
—
(17)
—
—
19
—
—
—
—
—
19
2
7
39
22
17
41
1
5
127
19
29
8
315
(7)
(175)
(59)
(1)
(2)
(15)
(8)
(1)
(268)
47
1.
Includes investment properties that are considered trading stock for tax purposes.
Deferred tax assets expected to be recovered after more than 12 months are $188m (2022: $189m).
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86
Notes to the consolidated financial statements
C PROPERTY AND DEVELOPMENT ASSETS
This section includes investment properties, investments in joint ventures and associates and inventories. They represent the core
assets of the business and drive the value of the Group.
C1 PROPERTY PORTFOLIO
Mirvac holds a property portfolio for long-term rental yields. Depending on the specific arrangements for each property, they are classified as
investment properties or properties held through joint ventures and associates.
Refer to note I1 for a detailed listing of Mirvac’s property portfolio.
Investment properties
Investment properties are properties owned by Mirvac and not occupied by the Group. Investment properties include investment
properties under construction (IPUC), which will become investment properties once construction is completed.
Mirvac accounts for its investment properties at fair value. Revaluation gains are recognised as Other income and revaluation losses are
recognised as an expense. For the year ended 30 June 2023, $480m revaluation loss has been recognised in Profit before income tax
(2022: $347m revaluation gain).
Investments in joint arrangements
Mirvac enters into arrangements with third parties to jointly own investment properties. If Mirvac has joint control over the activities and
joint rights to the net assets of an arrangement held in a separate entity, then it is classified as a joint venture. If Mirvac has significant
influence over an entity, that is neither a subsidiary nor an interest in a joint venture, then it is classified as an associate. The joint venture
or associate (JVA) holds investment property at fair value and Mirvac recognises its share of the JVA’s profit or loss as Other income.
For further details on accounting for JVAs, refer to note C3.
Mirvac also holds joint operations with third parties whereby the parties have rights to the assets, and obligations for the liabilities,
relating to the arrangement. The Group recognises its direct right to the assets, liabilities, revenues and expenses of joint operations and
its share of any jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the financial statements
under the appropriate headings.
Judgements in fair value estimation
Fair value is the price that would be received to sell an asset in an orderly transaction between market participants.
For all investment property that is measured at fair value, the existing use of the property is considered the highest and best use.
The Group assesses its property portfolio for environmental risks and incorporates sustainability initiatives, where appropriate, in
determining the fair value of investment properties.
The fair values of properties are calculated using a combination of market sales comparisons, discounted cash flows and capitalisation rates.
To assist with calculating reliable estimates, Mirvac uses independent valuers on a rotational basis. Approximately 25 per cent of the
portfolio is independently valued every six months, with management internally estimating the fair value of the remaining properties using
estimation techniques by suitably qualified personnel. As at 30 June 2023, the Group undertook independent valuations covering 36 per
cent of its investment property portfolio, by value, excluding IPUC.
The fair values are a best estimate but may differ to the actual sales price if the properties were to be sold. The key judgements for each
valuation method are explained below:
Discounted cash flow (DCF): Projects a series of cash flows over the property’s life and a terminal value, discounted using a discount rate
to give the present value.
The projected cash flows incorporate expected rental income (based on contracts or market rates), operating costs, lease incentives, lease
fees, capital expenditure, and a terminal value from selling the property. The terminal value is calculated by applying the terminal yield
to the net market income. The discount rate is a market rate reflecting the risk associated with the cash flows, the nature, location and
tenancy profile of the property relative to comparable investment properties and other asset classes.
Capitalisation rate: The rate or yield at which the annual net income from an investment is capitalised to ascertain its capital value at a
given date. The annual net income is based on contracted rents, market rents, operating costs and future income on vacant space. The
capitalisation rate reflects the nature, location and tenancy profile of the property together with current market evidence and sales of
comparable properties.
Direct comparison approach: Utilises recent sales of comparable properties, adjusted for any differences including the nature, location,
town planning/zoning, flooding and environmental impediments.
Investment properties under construction: There generally is not an active market for investment properties under construction (IPUC).
Due to the inherent difficulty in valuing IPUC, fair value will typically be capitalised costs to date. Where a valuation is performed, fair value
is measured using the capitalisation rate, DCF or residual valuations. Capitalisation rate and DCF valuations for investment properties under
construction are as described above, but also consider the costs and risks of completing construction and letting the property.
Residual: Estimates the value of the completed project, less the remaining development costs which include construction, finance costs
and an allowance for the developer’s risk and profit. This valuation is then discounted back to the present value.
Note C2 explains the key inputs and sensitivity to changes in the measurement of fair value of investment properties.
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Notes to the consolidated financial statements
C PROPERTY AND DEVELOPMENT ASSETS continued
Lease incentives
The carrying amount of investment properties includes lease incentives provided to tenants. Lease incentives are capitalised and
recognised on a straight-line basis over the lease term.
Ground leases
A lease liability reflecting the leasehold arrangements of investment properties is separately disclosed in the consolidated SoFP and
the carrying value of the investment properties adjusted (i.e. increased) so that the net of these two amounts equals the fair value of
the investment properties. The lease liabilities are calculated as the net present value of the future lease payments discounted at the
incremental borrowing rate.
At 30 June 2023, $37m of lease liabilities for ground leases has been recognised on the consolidated SoFP (2022: $48m).
Lease liabilities are subsequently measured by:
> increasing the carrying amount to reflect interest on the lease liability;
> reducing the carrying amount to reflect the lease payments made; and
> remeasuring the carrying amount to reflect any reassessment or lease modifications.
Some ground leases contain variable payment terms that are linked to sales generated. Variable lease payments that depend on sales are
recognised in the consolidated SoCI in the period in which the condition that triggers those payments occurs.
Interest on the lease liabilities and any variable lease payments not included in the measurement of the lease liabilities are recognised in the
consolidated SoCI to the period in which they relate.
Derecognition of investment properties
Investment properties are reclassified from non-current to current assets held for sale when they satisfy the conditions under
AASB 5 Non‑current Assets Held for Sale and Discontinued Operations.
For reclassification to occur, the disposal of the investment property must be highly probable with an exchanged contract and settlement
pending. Once control of an investment property transfers to a purchaser, usually upon settlement, the Group will derecognise the book
value of the Investment property with any resultant gain or loss recognised in the consolidated SoFP. During the year, the Group transferred
$759m of investment properties to Assets classified as held for sale (2022: nil).
Occasionally, the Group will reassess the status of an investment property and determine that its highest and best use may be different
from its current use; for example, an office building may better suited to redevelopment and sale as apartments. In these cases, once
development commences with a view to resale, and the investment property ceases to be classified as an investment property, all or part is
reclassified from Investment properties to Inventory. During the year, a net of $487m of investment properties were transferred to inventory
(2022: $37m).
Commitments
Capital expenditure commitments
At 30 June 2023, capital commitments on Mirvac’s investment property portfolio were $191m (2022: $645m). There were no investment
properties pledged as security by the Group (2022: nil).
Lease commitments
Lease revenue from investment properties is accounted for as operating leases. The revenue from leases is recognised in the consolidated
SoCI on a straight-line basis over the lease term.
The future receipts are shown as undiscounted contractual cash flows.
Future operating lease receipts as a lessor
Within one year
Between one and five years
Later than five years
Total future operating lease receipts
2023
$m
466
1,461
1,119
3,046
2022
$m
521
1,666
1,481
3,668
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88
Notes to the consolidated financial statements
C PROPERTY AND DEVELOPMENT ASSETS continued
Property portfolio as at 30 June 2023
Note
Office
$m
Industrial
$m
Retail Build to Rent
$m
$m
Investment properties
Investment properties under construction
Total investment properties
C2
Investments in JVA 1
Assets classified as held for sale
Total property portfolio
5,325
254
5,579
1,819
718
8,116
1,324
244
1,568
185
—
1,753
2,366
240
2,606
—
41
2,647
—
—
—
396
—
396
1. Represents Mirvac’s share of the JVA’s investment properties which is included within the carrying value of investments in JVA.
Revaluation of investment properties
Office
Industrial
Retail
Build to Rent
Net revaluation (loss)/gain from fair value adjustments
C2 INVESTMENT PROPERTIES
2023
Total
$m
9,015
738
9,753
2,400
759
12,912
2023
$m
(378)
69
(129)
(42)
(480)
2022
Total
$m
10,782
1,407
12,189
1,350
—
13,539
2022
$m
265
208
(126)
—
347
Investment properties, including investment properties under construction, are held at fair value. Revaluation gains are recognised as Other income
and revaluation losses are recognised as an expense. The fair value movements are non-cash and do not affect the Group’s distributable income.
Movements in investment properties
Office
$m
Industrial
$m
Retail Build to Rent
$m
$m
Balance 1 July
Expenditure capitalised
Acquisitions
Disposals
Net revaluation (loss)/gain from fair value adjustments
Transfer to assets classified as held for sale
Transfer to inventories
Transfer to joint ventures and associates
Amortisation expense
7,054
261
1
(301)
(378)
(718)
(263)
—
(77)
1,583
93
140
—
69
—
(224)
(87)
(6)
2,918
35
—
(158)
(129)
(41)
—
—
(19)
Balance 30 June
5,579
1,568
2,606
634
272
—
(481)
(42)
—
—
(382)
(1)
—
2023
Total
$m
12,189
661
141
(940)
(480)
(759)
(487)
(469)
(103)
9,753
2022
Total
$m
11,821
666
1,036
(711)
347
—
(37)
(819)
(114)
12,189
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Notes to the consolidated financial statements
Financial report
89
C PROPERTY AND DEVELOPMENT ASSETS continued
Fair value measurement and valuation basis
The basis of valuation of investment properties is fair value. Fair values are based on market values, being the price that would be received to sell an
asset in an orderly transaction between market participants at the reporting date.
Investment properties are measured as Level 3 financial instruments. Refer to note E6 for explanation of the levels of fair value measurement. The
following are the unobservable inputs used in determining the fair value measurement of investment properties. Movement in any of the unobservable
inputs is likely to have an impact on the fair value of investment property. The higher the net market income or 10-year compound annual growth rate,
the higher the fair value. The higher the capitalisation rate, terminal yield or discount rate, the lower the fair value.
Unobservable inputs
Details
Capitalisation rate The rate at which net market income is capitalised to determine the value of a property.
Discount rate
The rate of return used to convert a monetary sum, payable or receivable in the future, into present value.
This should reflect the opportunity cost of capital; that is, the required rate of return the capital can earn if put to other
uses having regard to a similar risk profile.
Terminal yield
The capitalisation rate used to convert income into an indication of the anticipated value of the property at the end of
the holding period when carrying out a discounted cash flow calculation.
Market rent
and growth rate
The rent at which a tenancy could be leased in the market, including rental growth in future years at the date of valuation.
Market rent includes gross rent and net rent. Gross rent is where outgoings are incorporated in the rent being paid.
Net market rent is where the owner recovers outgoings from the tenant on a pro-rata basis.
Market rate
The market rate per square metre uses recent transactional evidence of comparable properties to determine the fair
value of the investment property under the direct comparison method.
The discounted cash flow, capitalisation rate, residual valuation and direct comparison methods all use unobservable inputs in determining fair value;
ranges of the inputs are included below per asset class:
Inputs used to measure fair value
Level 3
fair value
$m
Net market
income
$/sqm
10-year
compound
annual Capitalisation
rate
%
growth rate
%
Market
rate
$/sqm
Terminal
yield
%
Discount
rate
%
2023
Office
Industrial
Retail
Total investment properties
2022
Office
Industrial
Retail
Build to Rent
Total investment properties
5,579
1,568
2,606
9,753
7,054
1,583
2,918
634
12,189
1. Average net market income per apartment per week.
350 – 1,367
150 – 449
327 – 880
3.20 – 4.10
3.47 – 3.62
2.21 – 4.02
4.88 – 7.50
4.25 – 5.25
5.00 – 8.75
—
—
—
—
—
—
—
5.13 – 7.50
4.50 – 5.50
5.25 – 9.00
6.13 – 8.25
5.75 – 6.63
6.25 – 10.00
—
—
365 – 1,199
110 – 410
314 – 1,127
547 1
2.60 – 4.20
3.27 – 3.32
1.87 – 4.13
3.30
4.50 – 6.75
3.50 – 5.00
4.75 – 8.75
4.00
—
—
865 – 1,612
—
4.75 – 7.00
3.75 – 5.25
5.00 – 9.00
4.00
6.00 – 7.75
4.88 – 6.25
6.00 – 9.50
6.25
—
—
—
—
—
—
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Notes to the consolidated financial statements
C PROPERTY AND DEVELOPMENT ASSETS continued
Sensitivity analysis
Due to the uncertain economic climate and the judgement required to assess the fair value of the Group’s investment properties, a sensitivity analysis
has been undertaken to further stress test the Group’s assessment of fair value as at 30 June 2023.
The following sensitivity analysis is based on upward and downward movements of 25 bps and 50 bps on the movement of capitalisation rates, discount
rates and terminal yields per asset class compared to the capitalisation rates, discount rates and terminal yields adopted by the Group as at 30 June
2023. These are considered to be the key unobservable inputs that would be expected to have the most material impact on the fair values adopted if they
moved. Valuations use a blended capitalisation rate and DCF approach whereby the current market income and the cash flow of the investment property
are considered to determine the final fair value. Varying the capitalisation rates alone will only impact the valuations derived through the capitalisation
method and has no impact on the DCF analysis. A change in discount rate and terminal capitalisation rate will only impact the DCF valuation. Accordingly,
all three metrics need to be moved proportionately to ensure a consistent methodology when performing the sensitivity analysis.
Presented below is the outcome of the sensitivity analysis as the decrement or increment to the fair value of each asset class of the Group’s
investment property portfolio (including office JV but excluding IPUC and development assets) should the unobservable inputs increase or decrease
by 25 bps or 50 bps. For example, an increase of 25 bps of the capitalisation rate, discount rate and terminal yield in the Group’s office portfolio would
have resulted in a decrement of $342m in addition to the fair value presented as at 30 June 2023.
Investment properties at fair value assessed using DCF,
market capitalisation and capitalisation rate
Office
Industrial
Retail
Total
Capitalisation rate, discount rate and terminal yield movement by
25 bps
$m
(342)
(72)
(103)
(517)
50 bps
$m
(718)
(138)
(198)
(1,054)
25 bps
$m
383
81
113
577
50 bps
$m
805
172
229
1,206
For investment properties at fair value assessed using the direct comparison approach, a sensitivity analysis was performed. Using an increase
of 5 per cent in the rate per square metre and a decrease of 5 per cent in the rate per square metre, the impact to the fair value presented as at
30 June 2023 was not material.
C3 INVESTMENTS IN JOINT VENTURES AND ASSOCIATES
A joint venture is a joint arrangement where Mirvac has joint control over the activities and joint rights to the net assets. An associate is an
entity over which Mirvac has significant influence, and that is neither a subsidiary nor an interest in a joint venture. Refer to note G1 for details
on how Mirvac decides if it controls an entity. Refer to note I3 for the Group’s joint venture and associate entities and ownership percentages.
Mirvac initially records its investment in JVAs at cost and subsequently accounts for them using the equity method. Under the equity method, the
Group’s share of the JVA’s profit or loss is added to/deducted from the carrying amount each year. Distributions received or receivable are recognised
by reducing the carrying amount of the JVA.
When transactions between Mirvac and its JVAs create an unrealised gain, the Group eliminates the unrealised gain relating to Mirvac’s proportional
interest in the JVA. Unrealised losses are eliminated in the same way unless there is evidence of impairment, in which case the loss is realised.
Judgement in testing for impairment of investments in JVA
At each reporting period, the Group assesses whether there is any indication that its investments in JVAs may be impaired. If any such
indication exists, the Group estimates the recoverable amount of the asset. The recoverable amount is calculated as the estimated present
value of future distributions to be received from the JVA and from its ultimate disposal. There were no impairments of JVAs in 2023 (2022: nil).
All JVAs are established or incorporated in Australia. The movements in the carrying amount of the JVAs are as follows:
Movements in the carrying amount of JVA
Balance 1 July
Share of profit
Equity acquired
Other movements
Transfer from inventories
Transfer from investment properties
Business combinations 1
Return of capital
Distributions received/receivable
Balance 30 June
2023
$m
1,481
38
744
7
2
469
(310)
(1)
(128)
2022
$m
783
111
73
(33)
—
819
—
(174)
(98)
2,302
1,481
1. Represents the net liabilities (excluding inventories and investment properties which are disclosed separately) of entities that were formerly wholly owned subsidiaries and transferred to
JVAs during the year.
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Notes to the consolidated financial statements
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C PROPERTY AND DEVELOPMENT ASSETS continued
The tables below provide summarised financial information for those JVAs that are significant to the Group.
The information presented reflects the total amounts presented in the financial statements of the relevant JVAs and not the Group’s share, unless
otherwise stated. The information has been amended to reflect any unrealised gains or losses on transactions between Mirvac and its JVAs.
Summarised financial information for joint ventures and associates
The George
Street
Trust
Mirvac
Wholesale
Office Fund 1
LIV Mirvac
Property
Trust 2
Mirvac
(Old Treasury)
Trust 3
Mirvac
8 Chifley
Trust 3
Mirvac
Locomotive
Trust 3
MIV
Switchyards
Trust 4
Other joint
ventures and
associates
Total joint
ventures and
associates
2023
$m
2022
$m
2023
$m
2022
$m
2023
$m
2022
$m
2023
$m
2022
$m
2023
$m
2022
$m
2023
$m
2022
$m
2023
$m
2022
$m
2023
$m
2022
$m
2023
$m
2022
$m
Principal activities
Property
investment
Property
investment
Property
investment
Property
investment
Property
investment
Property
investment
Property
investment
Various
Accounting classification
Joint venture Associate
Joint venture Joint venture Joint venture Joint venture Joint venture
Various
Summarised SoFP
Cash and cash equivalents
Other current assets
Total current assets
1
9
10
4
12
16
65
—
3
2
5
Total non-current assets
1,087 1,159
7,359
— 897
Total assets
1,097 1,175
7,424
— 902
Borrowings
Other current liabilities
— —
18
11
Total current liabilities
11
18
652
—
Borrowings
Other non-current liabilities
— —
— —
—
37
37
250
—
Total non-current liabilities
— — 969
— 250
Total liabilities
Net assets
11
18
1,621
— 287
1,086 1,157
5,803
— 615
Group’s ownership of the joint
ventures and associates in %
50
50
8
—
44
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6
1
7
6
—
6
512
519
497
503
—
8
8
—
—
—
8
—
7
7
—
—
—
7
9
1
10
441
451
—
7
7
—
—
—
7
7
1
8
3
2
5
4
3
7
462
470
443
448
471
478
—
6
6
—
—
—
6
—
5
5
—
—
—
5
—
7
7
—
—
—
7
—
1
1
362
363
—
—
—
—
—
—
—
— 109
5
56
5
131
136
—
1
1
165
365
530
—
29
29
98
100
198
361
268
11,466
559 11,734
240
3,081
3,321
—
41
41
749
80
—
20
— 160
64
160
— 180
224 1,399
1
209
265
2,148
224
304
511
496
444
464
443
471
363
135
321
294 9,586
3,017
Group’s share of net assets in $m
544
579
459
— 272
— 255
248
50
50
50
222
50
232
51
51
226
240
51
185
51
69
—
161
—
—
—
148
2,324
1,516
Carrying amount in
Group’s consolidated SoFP
544
579
459
— 272
— 249
242
205
216
222
223
185
71
166
150 2,302
1,481
1. This entity became a JVA on 20 March 2023.
2. This entity was previously consolidated into the Group, however control was lost on 29 June 2023 and it is now accounted for as a JVA. Refer note G3.
3. The difference between the carrying amount and the Group’s share in the net assets of its investment is a result of eliminations due to the Group’s transactions with its investee.
4. This entity was formerly known as Duck River Auburn Trust. This entity was accounted for as a JVA up to 30 June 2022. Control was gained on 1 July 2022 at which point the entity was
consolidated into the Group. Control was then lost on 2 June 2023 and the entity is accounted for as a JVA again from this date. Refer note G3.
Reimagine Urban LifeGovernanceOtherPerformance by pillarRisk managementFinancial and operational results 92
Notes to the consolidated financial statements
C PROPERTY AND DEVELOPMENT ASSETS continued
The George
Street
Trust
Mirvac
Wholesale
Office Fund 1
LIV Mirvac
Property
Trust 2
Mirvac
(Old Treasury)
Trust
Mirvac
8 Chifley
Trust
Mirvac
Locomotive
Trust
MIV
Switchyards
Trust 3
Other joint
ventures and
associates
Total joint
ventures and
associates
2023
$m
2022
$m
2023
$m
2022
$m
2023
$m
2022
$m
2023
$m
2022
$m
2023
$m
2022
$m
2023
$m
2022
$m
2023
$m
2022
$m
2023
$m
2022
$m
2023
$m
2022
$m
Principal activities
Property
investment
Property
investment
Property
investment
Property
investment
Property
investment
Property
investment
Property
investment
Various
Accounting classification
Joint venture Associate
Joint venture Joint venture Joint venture Joint venture Joint venture
Various
Summarised SoCI
Revenue
Interest income
Other income 4
Total revenue
and other income
Interest expense
Depreciation and
amortisation expenses
Other expenses 4
(Loss)/profit from
continuing operations
Distributions received/
receivable by the Group from
joint ventures and associates
112
—
50
64
— —
6
—
64
56
— —
4
85
3
11
(25)
42
(558) —
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
42
—
11
53
—
—
8
42
—
5
47
—
—
9
23
—
—
23
—
—
31
23
—
2
25
—
—
5
31
—
—
31
—
6
36
28
—
—
28
—
3
5
45
38
(8)
20
(11)
20
—
—
—
—
—
—
—
—
606
407
— 334
—
2
15
2
264
—
2
15
—
338
266
2
6
—
4
— 199
3
188
15
133
69
(424)
204
23
19
5
—
—
—
15
15
10
10
8
10
—
—
67
44
128
98
1. This entity became a JVA on 20 March 2023.
2. This entity was previously consolidated into the Group, however control was lost on 29 June 2023 and it is now accounted for as a JVA. Refer note G3.
3. This entity was formerly known as Duck River Auburn Trust. This entity was accounted for as a JVA up to 30 June 2022. Control was gained on 1 July 2022 at which point the entity was
consolidated into the Group. Control was then lost on 2 June 2023 and the entity is accounted for as a JVA again from this date. Refer note G3.
4. Other income includes revaluation gain on investment properties. Other expenses includes revaluation loss on investment properties.
Capital expenditure commitments
At 30 June 2023, the Group’s share of its JVA’s capital commitments that have been approved but not yet provided for was $147m (2022: $56m).
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Notes to the consolidated financial statements
C PROPERTY AND DEVELOPMENT ASSETS continued
C4 INVENTORIES
The Group develops residential, commercial and mixed use properties for sale in the ordinary course of business. Inventories are classified as
current if they are expected to be settled within 12 months or otherwise, they are classified as non-current.
Development projects
Development projects are valued at the lower of cost and net realisable value (NRV). Following a review and assessment of the project forecasts
and new development opportunities, there were inventory impairments recognised during the year of $31m (2022: $15m); refer to note B3.
Cost includes the costs of acquisition, development, interest capitalised and all other costs directly related to specific projects. An
allocation of direct overhead expenses is also included.
Judgement in calculating NRV of inventories
NRV is the estimated selling price in the ordinary course of business less the estimated costs to complete and sell the development.
NRV is estimated using the most reliable evidence available at the time, including expected fluctuations in selling price and estimated costs
to complete and sell.
The key assumptions used in the project forecasts for the Group’s NRV assessments include:
Details of key assumption
Key assumption
Sales rates/volumes
The rate at which lots are sold over a given period.
Sales price
The price at which a given lot or asset is sold at.
Sales incentives
Recognised as a percentage of the purchase price, which is allocated to either direct or indirect expenditure
to induce the sale of a lot.
Settlement volumes
The number of lot settlements achievable over a given period.
Cost to complete
All remaining costs to complete the program of works and sell unsold stock, measured at reporting date.
Program duration
The duration of a project from commencement to completion of all stages, a project program generally
extends from the approval to purchase through to the final settlement of lots and may extend over many years.
Inventory represented by
Current inventory
Provision for impairment
Total current inventory
Non-current inventory
Provision for impairment
Total non-current inventory
Total inventories
Residential
Apartments
$m
823
(1)
822
621
(47)
574
1,396
MPC
$m
320
(32)
288
909
(4)
905
1,193
Commercial &
Mixed Use
Total
$m
394
—
394
263
(7)
256
650
Total
$m
1,143
(33)
1,110
1,530
(51)
1,479
2,589
2023
Total
$m
1,537
(33)
1,504
1,793
(58)
1,735
3,239
2022
Total
$m
627
(5)
622
1,703
(64)
1,639
2,261
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Notes to the consolidated financial statements
C PROPERTY AND DEVELOPMENT ASSETS continued
Movements in inventories
Balance 1 July 1
Costs incurred
Settlements
Provision for impairment of inventories
Inventory costs written off
Transfer from investment properties
Transfer to JVAs
Transfer to other assets
Balance 30 June
Residential
Apartments
$m
921
661
(180)
—
(6)
—
—
—
1,396
MPC
$m
1,202
368
(351)
(25)
—
—
—
(1)
1,193
Commercial &
Mixed Use
Total
$m
138
274
(247)
—
—
487
(2)
—
650
Total
$m
2,123
1,029
(531)
(25)
(6)
—
—
(1)
2,589
2023
Total
$m
2,261
1,303
(778)
(25)
(6)
487
(2)
(1)
3,239
2022
Total
$m
2,093
1,330
(1,161)
(5)
(10)
37
—
(23)
2,261
1. Opening balance restated to reflect transfer of a project from Residential to Commercial & Mixed Use with a carrying value of $2m.
Capital expenditure commitments
At 30 June 2023, capital commitments on Mirvac’s inventories were $2m (2022: nil).
D OPERATING ASSETS AND LIABILITIES
D1 RECEIVABLES
Receivables are initially recognised at their fair value. Receivables are subsequently measured at amortised cost using the effective interest rate
method, less loss allowance if required. Due to the short-term nature of current receivables, their carrying amount (less loss allowance) is assumed to
be the same as their fair value.
For the majority of the non-current receivables, the carrying amount is also not significantly different to their fair value. The expected credit loss (ECL)
of receivables is reviewed on an ongoing basis. The Group applies the simplified approach to measuring ECL as appropriate based on the different
characteristics of each financial asset class. To measure the ECL, management has grouped together its receivables based on shared credit risk
characteristics and the days past due. The Group uses judgement in making assumptions about risk of default and ECL rates and the inputs to the
impairment calculation, based on the Group’s past history, existing market conditions and future looking estimates at the end of each reporting period.
Receivables that are determined to be uncollectable are written off.
For loans receivable, at inception of a loan, an ECL provision is recognised which considers the following:
> The historical bad debt write offs incurred for similar loan arrangements; and
> The collateral held over the loan; and
> The creditworthiness of the borrower.
Over the life of the loan, the risk profile is reassessed in accordance with the three-stage approach.
> Stage 1 – Performing includes loans that have not had a significant increase in credit risk since initial recognition or that have low credit
risk at the reporting date. For these loans, 12-month expected credit losses are recognised and interest revenue is calculated on the gross
carrying amount of the loan.
> Stage 2 – Underperforming includes loans that have had a significant increase in credit risk since initial recognition but are not credit-
impaired. For these loans a lifetime ECL over the life of the loan is recognised, and interest revenue is still calculated on the gross carrying
amount of the asset.
> Stage 3 – Non-performing consists of loans that are credit-impaired, which is when one or more events that have a detrimental impact
on the estimated future cash flows of the loan has occurred. For these assets, a lifetime ECL is also recognised, but interest revenue is
calculated on the net carrying amount (net of the ECL provision).
The consideration of the stage of the loan requires significant judgement, in particular when assessing whether there has been a significant
increase in credit risk and in estimating ECL provision.
As at 30 June 2023, the Group did not have any stage 2 or stage 3 loans receivable (2022: nil).
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Notes to the consolidated financial statements
D OPERATING ASSETS AND LIABILITIES continued
Current receivables
Trade receivables
Loans to unrelated parties
Other receivables
Total current receivables
Non-current receivables
Loans to unrelated parties
Other receivables
Total non-current receivables
Total receivables
Movements in loss allowance
Balance 1 July
Loss allowance recognised
Amounts utilised for write-off of receivables
Balance 30 June
Ageing
Trade receivables 1
Loans
Other receivables
Loss allowance
Balance 30 June 2023
Trade receivables 1
Loans
Other receivables
Loss allowance
Balance 30 June 2022
2023
Loss
allowance
$m
Gross
$m
42
74
67
183
39
14
53
236
(10)
—
—
(10)
—
—
—
(10)
Net
$m
32
74
67
173
39
14
53
226
2022
Loss
allowance
$m
Gross
$m
40
70
53
163
16
14
30
193
(19)
—
—
(19)
—
—
—
(19)
2023
$m
(19)
—
9
(10)
Net
$m
21
70
53
144
16
14
30
174
2022
$m
(74)
(24)
79
(19)
Not past due
$m
1 – 30
$m
31 – 60
$m
31 – 60
$m
91 – 120
$m
Over 120
$m
Total
$m
Days past due
27
113
70
—
210
13
86
67
—
166
4
—
—
(1)
3
6
—
—
—
6
3
—
5
(1)
7
2
—
—
(1)
1
1
—
—
(1)
—
3
—
—
(2)
1
1
—
—
(1)
—
2
—
—
(2)
—
6
—
6
(6)
6
14
—
—
(14)
—
42
113
81
(10)
226
40
86
67
(19)
174
1. The Group has recognised a provision for impairment for all investment property tenant trade receivables that are greater than 30 days overdue.
The Group does not have any significant credit risk exposure to a single customer. The Group holds collateral of $153m (2022: $166m). The quantum,
terms and conditions of collateral are outlined in the lease agreements; however, generally as lessor, the Group has the right to call upon the collateral
if a lessee breaches their lease. Refer to note E5 for further details on the Group’s exposure to and management of credit risk.
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Notes to the consolidated financial statements
D OPERATING ASSETS AND LIABILITIES continued
D2 OTHER FINANCIAL ASSETS
Investments in unlisted entities
The Group holds units in unlisted entities that do not give Mirvac control, as explained in note G1, or significant influence, as explained in note C3. Distributions
received are recognised in revenue and any changes in fair value are recognised in the gain or loss on financial instruments in the consolidated SoCI.
Fair value measurement
Other financial assets are carried at fair value. Fair value is estimated as explained in note E6.
Non-current
Investments in unlisted entities
Total other financial assets
2023
$m
74
74
2022
$m
73
73
D3 INTANGIBLE ASSETS
Mirvac’s intangible assets consists of goodwill, management rights and software.
Goodwill
The goodwill acquired in a business combination is attributable to the profitability of the acquired business, as well as benefits derived from the
acquired workforce and other intangible assets that cannot be separately recognised. The goodwill is not expected to be deductible for income tax.
Management rights
Management rights are the rights to manage properties and funds and have been initially recognised at fair value as part of business combinations.
Management rights relating to office are estimated to have a useful life of 10 years and are carried at cost less accumulated amortisation and
impairment losses. Management rights relating to retail are considered to be open-ended and therefore have no expiry. Management considers the
useful life as indefinite and the management rights are tested annually for impairment.
Software
Software consists of purchased and internally generated capitalised development costs where it is evident that these costs will generate probable
future economic benefits. Software is held at cost less accumulated amortisation. Once ready for use, the Group amortises software using a straight-
line method over the estimated useful life.
Costs incurred to configure or customise cloud computing software, and the ongoing fees to obtain access to the cloud provider’s application software,
are recognised as an expense when the services are received. In a contract where the cloud provider provides both the SaaS configuration and
customisation, and the SaaS access over the contract term, the services are assessed to determine if they are distinct. Where the services are not distinct,
the configuration and customisation costs incurred are capitalised on the consolidated SoFP as a prepayment and expensed over the SaaS contract term.
The breakdown of intangible assets by type and operating segment is set out below.
Balance
1 July 2021
$m
Additions
$m
Balance
Transfers 30 June 2022
$m
$m
Balance
Additions Amortisation 30 June 2023
$m
$m
$m
Carrying amounts
Goodwill 1
Investment
Funds
Total goodwill
Management rights
Funds
Total management rights
Software under development
Unallocated
Total software under development
Software
Unallocated
Total software
Total intangible assets
36
31
67
9
9
2
2
—
—
78
—
—
—
—
—
1
1
—
—
1
—
—
—
—
—
(2)
(2)
2
2
—
36
31
67
9
9
1
1
2
2
79
—
—
—
—
—
1
1
1
1
2
—
—
—
(2)
(2)
—
—
(1)
(1)
(3)
36
31
67
7
7
2
2
2
2
78
1. Goodwill has been allocated between Investment and Funds following changes to the Group’s reporting segments. Refer to note A Basis of preparation and note B1 Segment Information.
The goodwill was allocated based on the segment to which the asset belongs.
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Notes to the consolidated financial statements
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D OPERATING ASSETS AND LIABILITIES continued
Management rights
Management rights include property management rights for office and retail properties managed by the Group. Management rights with a finite life
are amortised using the straight-line method over their useful life. For indefinite management rights, the Group tests for impairment at the reporting
date. Assets are impaired if the carrying value exceeds their recoverable amount. The recoverable amount is determined using a discounted cash
flow. A 13.5 per cent pre-tax discount rate and 2.0 – 4.2 per cent growth rate have been applied to the cash flow projections.
Goodwill
Goodwill acquired in a business combination is tested annually for impairment. Goodwill is impaired if the recoverable amount, calculated as
the higher of the value in use and the fair value less costs to sell, is less than its carrying amount. For the purpose of assessing impairment,
assets are grouped at the lowest levels for which goodwill is monitored for internal management purposes and allocated to cash generating
units (CGU). The estimation of the recoverable amount of goodwill depends on the nature of the CGU. The value in use is the discounted
present value of estimated cash flows that the CGU will generate.
In the prior year, the Group’s goodwill was allocated to the CGU of Integrated Investment Portfolio operating segment, however following the
change in the Group’s operating segments effective 1 March 2023, this has been reallocated to the Investment operating segment and the Funds
operating segment. These CGUs will directly benefit from the synergies realised from the business combination where the goodwill arose.
The key assumptions used to determine the forecast cash flows in the goodwill models include:
Investment
2023
Lease specific
assumptions,
including let
up periods and
incentives.
Cash flows from
the Management
& Administration
expense.
Inputs used
Funds
2023
Integrated
Investment Portfolio
2022
Not applicable.
Lease specific
assumptions,
including let
up periods and
incentives.
Cash flows from Asset
& Funds Management
and the associated
Management &
Administration
expense.
Cash flows from Asset
& Funds Management
and the associated
Management &
Administration
expense.
Investment property
assumptions based on
the age and condition
of the property.
Not applicable.
Investment property
assumptions based on
the age and condition
of the property.
3.2%
3.2%
3.0 – 3.5%
10 years
10 years
10 years
3.0%
6.3%
3.0%
13.1%
2.5%
5.8 – 11.5%
Key
assumption
Net market
rent
Details of key assumption
The rent at which a tenancy could be leased in the market,
including outgoings recovery.
Other cash
flows
Fees derived from investment management and asset
management services.
Capital
expenditure
The amount of additional investment required to upgrade
or maintain the Group’s investment properties.
Growth rate
Cash flow
period
The rate at which cash flows will grow over time. The growth
rate has been adjusted to reflect current market conditions
and does not exceed the long-term average growth rate.
The cash flow projections are based on management-
approved forecasts covering an initial period of five years
and the subsequent five years are based on a growth rate.
AASB 136 Impairment of Assets recommends that cash
flow projections should cover a maximum period of five years,
unless a longer period can be justified. As the cash flow
projections used for budgeting and forecasting are based on
long-term, predictable and quantifiable leases, with renewal
assumptions based on asset class and industry experience,
management is comfortable that a ten year cash flow
projection is appropriate.
Terminal
growth rate
The constant rate that cash flows are expected to grow
at into perpetuity.
Pre-tax
discount rate
The rate of return used to convert cash flows into present
value, these are specific to the risks of each of the
cash flows within the Investment and Funds segments.
The Investment segment uses the weighted investment
property portfolio discount rate. In the prior year, a premium
adjustment was applied to thisrate on the basis that a
prospective purchaser would expect there to be multiple
benefits to acquiring a portfolio of assets. The Funds
segment uses a price-to-earnings multiple.
Reimagine Urban LifeGovernanceOtherPerformance by pillarRisk managementFinancial and operational results 98
Notes to the consolidated financial statements
D OPERATING ASSETS AND LIABILITIES continued
Sensitivity
If the cash flow projections used in the value in use calculations increased or decreased the pre-tax discount rate by 50 bps and the terminal growth
rate or growth rate were increased or decreased by 50 bps, and 100 bps respectively, the Group would have sufficient headroom and this would not
result in an impairment.
Based on information available and market conditions as at 30 June 2023 and up to the date of this report, management have considered that a
reasonably foreseeable change in the other assumptions used in the goodwill assessment would not result in an impairment to the value of goodwill as
at 30 June 2023.
D4 PAYABLES
Payables are measured at amortised costs. Due to the short-term nature of current payables, their carrying amount is assumed to be the same as their
fair value. For the majority of non-current payables, the carrying amount is also not significantly different to their fair value.
Trade payables due more than 12 months after year end are classified as non-current.
Current
Trade payables
Accrued expenses
Deferred land payable
Annual leave accrued
Other payables
Total current payables
Non-current
Deferred land payable
Other payables
Total non-current payables
Total payables
2023
$m
68
455
313
26
68
930
373
6
379
1,309
2022
$m
47
510
91
26
56
730
569
2
571
1,301
D5 PROVISIONS
Long service leave (LSL)
Where the LSL provision is expected to be settled more than 12 months after year end, the expected future payments are discounted to present value.
The corporate bond rates used to discount the expected future payments have maturities aligned to the estimated timing of future cash flows.
In calculating the LSL provision, judgement is required to estimate future wages and salaries, on-cost rates and employee service periods.
Distribution payable
A provision is made for the amount of distribution declared at or before year end but not yet paid; refer to note F1.
Warranties
The Group is obliged to rectify any defective work during the warranty period of its developments. Warranties are also known as post-completion
maintenance costs.
Movements in each class of provision during the year are set out below:
Long service
leave
$m
Distribution
payable
$m
Warranties
$m
Other
$m
Balance 1 July 2022
Additional provisions
Payments made/amounts utilised
Balance 30 June 2023
Current
Non-current
21
4
(3)
22
15
7
202
414
(407)
209
209
—
20
20
(11)
29
26
3
—
11
—
11
10
1
Total
$m
243
449
(421)
271
260
11
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersOur strategyMegatrendsHow we create value
Notes to the consolidated financial statements
Financial report
99
E CAPITAL STRUCTURE AND RISKS
This section outlines the market, credit and liquidity risks that the Group is exposed to and how it manages these risks. Capital comprises
stapled securityholders’ equity and net debt.
E1 CAPITAL MANAGEMENT
Mirvac has a capital management framework, approved and monitored by the Board. The framework aims to address the market, credit and liquidity
risks while also meeting the Group’s strategic objectives.
These objectives include:
> The Group’s target allocation of capital is between 20 and 30 per cent to development, which includes IPUC and development inventory, with the
current allocation being 23 per cent;
> The Group’s distribution policy is a minimum of trust taxable earnings and up to 80 per cent of operating earnings. The payout ratio for FY23
was 71.4 per cent;
> The Group’s target credit rating is Fitch A- and Moody’s A3, which was maintained as at 30 June 2023; and
> The Group’s target gearing ratio is between 20 and 30 per cent and was 25.9 per cent as at 30 June 2023.
If the Group is required to change its gearing ratio, it could adjust its payout ratio, issue new equity, buy back securities, or realise capital through
disposals of investment properties to repay borrowings.
The Group was in compliance with all debt covenants in 2023 and in the prior year.
The Group uses derivatives to hedge its underlying exposures to changes in interest rates on its borrowings and to changes in foreign exchange rates
on its foreign currency transactions.
E2 BORROWINGS AND LIQUIDITY
The Group enters into borrowings at both fixed and floating interest rates and also uses interest rate derivatives to reduce interest rate risks.
At 30 June 2023, the Group had $1,352m of cash and committed undrawn facilities available.
Drawn debt sources and expiries as at 30 June 2023
$1,000m
$800m
$600m
$400m
$200m
0
FY24
FY25
FY26
FY27
FY28
FY29
FY30
FY31
FY32
FY33
FY34
FY35
FY36
FY37
FY38
FY39
FY40
MTN
USPP
EMTN
Bank
Reimagine Urban LifeGovernanceOtherPerformance by pillarRisk managementFinancial and operational results 100
Notes to the consolidated financial statements
E CAPITAL STRUCTURE AND RISKS continued
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs and are subsequently measured at amortised cost using the effective interest
rate method. Under the amortised cost method, any difference between the initial amount recognised and the redemption amount is recognised in the
consolidated SoCI over the period of the borrowings using the effective interest rate method.
Current
$m
Non-
current
$m
—
250
250
—
250
1,213
3,024
4,237
(11)
4,226
2023
Total
carrying
amount
$m
1,213
3,274
4,487
(11)
4,476
1,230
Total
fair value
$m
Current
$m
Non-
current
$m
2022
Total
carrying
amount
$m
Total
fair value
$m
1,213
3,274
4,487
(11)
4,476
—
281
281
—
281
818
3,123
3,941
(11)
3,930
818
3,404
4,222
(11)
4,211
810
818
3,397
4,215
(11)
4,204
8
56
64
64
8
72
80
80
Unsecured facilities
Bank loans
Bonds
Total unsecured borrowings
Prepaid borrowing costs
Total borrowings
Undrawn facilities
Other
Lease liabilities
The fair value of bank loans is considered to approximate their carrying amount. The fair value of bonds is calculated as the expected future cash
flows discounted by the relevant current market rates.
The following table sets out Mirvac’s net exposure to interest rate risk by maturity periods. Exposures arise predominantly from liabilities bearing
variable interest rates as the Group intends to hold fixed rate liabilities to maturity.
Fixed interest maturing in
Fixed interest maturing in
Floating
interest
rate
$m
Less
than
1 year
$m
1,213
2,221
(1,600)
1,834
—
250
150
400
1 to 2
years
$m
2 to 5
Over
years 5 years
$m
$m
—
25
550
—
150
1,100
—
582
(200)
2023
Total
$m
1,213
3,228
—
575
1,250
382
4,441
Bank loans
Bonds
Interest rate derivatives
Total
Floating
interest
rate
$m
Less
than
1 year
$m
1 to 2
years
$m
2 to 5
Over
years 5 years
$m
$m
818
2,515
(900)
2,433
—
50
400
450
—
250
300
550
—
75
400
475
—
382
(200)
182
4,090
2022
Total
$m
818
3,272
—
E3 CASH FLOW INFORMATION
For the purpose of presentation in the consolidated SoCF, cash and cash equivalents include cash at bank and short-term deposits at call.
Reconciliation of profit to operating cash flow
(Loss)/profit from continuing operations
Revaluation of investment properties
Share of net profit of joint ventures and associates
JVA distributions received
Net loss/(gain) on disposal of assets
Net gain on financial instruments
Impairment of inventory and other assets
Depreciation and amortisation expenses
Impairment loss on receivables
Security-based payments expense
Change in operating assets and liabilities
Net cash (outflows)/inflows from operating activities
1. The comparative amounts have been restated, refer to note A Basis of preparation.
2023
$m
(165)
480
(38)
130
23
(26)
66
55
—
14
(596)
(57)
2022 1
$m
906
(347)
(109)
95
(15)
(64)
15
77
24
15
298
895
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersOur strategyMegatrendsHow we create value
Notes to the consolidated financial statements
Financial report
101
E CAPITAL STRUCTURE AND RISKS continued
Net debt reconciliation
Liabilities from financing activities
Current Non-current
lease
liabilities
$m
lease
liabilities
$m
Current Non-current
liabilities
$m
borrowings
$m
Total
liabilities
$m
Cash
and cash
equivalents
$m
(4)
(12)
8
(8)
16
(16)
(8)
(64)
—
(8)
(72)
—
16
(56)
—
(219)
(62)
(281)
190
(159)
(250)
(3,922)
(173)
165
(3,930)
(536)
240
(3,990)
(404)
103
(4,291)
(330)
81
(4,226)
(4,540)
117
441
—
558
(436)
—
122
Total
$m
(3,873)
37
103
(3,733)
(766)
81
(4,418)
Balance 1 July 2021
Net cash flow movements
Other non-cash movements
Balance 30 June 2022
Net cash flow movements
Other non-cash movements
Balance 30 June 2023
E4 DERIVATIVE FINANCIAL INSTRUMENTS
Mirvac uses derivative financial instruments to hedge its exposure to movements in interest and foreign exchange rates and not for trading
or speculative purposes. Refer to note E5 for further details of how Mirvac manages financial risk.
Hedging profile at 30 June 2023
Derivatives are classified as held for trading and accounted for at fair value through profit or loss unless they are designated as hedges. All derivative
financial instruments used for hedge accounting are recognised initially at fair value and reported subsequently at fair value in the consolidated SoFP.
The chart below shows the net amount of debt subject to fixed interest rates and the maximum average fixed interest rate payable each year:
$3.0bn
$2.5bn
$2.0bn
$1.5bn
$1.0bn
$0.5bn
0
3.11%
3.30%
3.13%
3.02%
2.91%
4.0%
3.5%
3.0%
2.5%
2.0%
2.37%
FY23
FY24
FY25
FY26
FY27
FY28
Swap
Cap/Collar
Fixed
Average Rate
Derivatives that qualify for hedge accounting
Mirvac’s treasury policy sets out the hedging strategy and objectives to manage exposures arising from fluctuations in interest rates and foreign
currency exchange rates.
At implementation, Mirvac formally designates and documents the relationship between hedging instruments (cross currency interest rate swaps only)
and the hedged items (foreign currency bonds) as well as the proposed effectiveness of the risk management objective that the hedge relationship
addresses. On an ongoing basis, Mirvac documents its assessment of retrospective and prospective hedge effectiveness of all hedge relationships for
changes in fair values or cash flows.
Fair value hedge
A fair value hedge is a hedge of the exposure to changes in fair value of an asset or liability (such as a bond) that is attributable to a particular risk
(such as movements in interest rates).
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the consolidated SoCI, together with any
changes in the fair value of the hedged asset/liability that are attributable to the hedged risk.
Reimagine Urban LifeGovernanceOtherPerformance by pillarRisk managementFinancial and operational results
102
Notes to the consolidated financial statements
E CAPITAL STRUCTURE AND RISKS continued
Cash flow hedge
A cash flow hedge is a hedge of the exposure to variability in cash flows attributable to a particular risk associated with an asset, liability or highly
probable forecast transaction that could affect profit or loss.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in equity via the
cash flow hedge reserve. Any gain or loss relating to the ineffective portion is recognised in the consolidated SoCI.
Cost of hedging
Currency basis spread is a liquidity premium that is charged for exchanging different currencies, and the changes over time impacting the fair value of
cross currency swaps. Mirvac defers the change in fair value to currency basis spreads in the cost of hedging reserve.
All derivatives require settlement on a monthly or quarterly basis. Translation gains or losses on the net investment in foreign operations are recorded
through the foreign currency translation reserve.
Current
Interest rate derivatives – through profit or loss
Forward exchange contracts – through profit or loss
Cross currency interest rate swaps – cash flow hedge
Total current derivative financial instruments
Non-current
Interest rate derivatives – through profit or loss
Forward exchange contracts – through profit or loss
Cross currency interest rate swaps – cash flow hedges
Total non-current derivative financial instruments
Total derivative financial assets/liabilities
2023
2022
Asset
$m
Liability
$m
Asset
$m
Liability
$m
21
1
—
22
18
2
160
180
202
9
—
—
9
35
—
94
129
138
4
—
62
66
15
—
161
176
242
6
—
—
6
42
—
69
111
117
Master netting arrangements – not currently enforceable
Agreements with derivative counterparties are based on an ISDA Master Agreement. Under the terms of these arrangements, only where certain
credit events occur (such as default), may the net position owing/receivable to a single counterparty in the same currency be taken as owing and all
the relevant derivative arrangements terminated. As the Group does not presently have a legally enforceable right of set-off, these amounts have not
been offset in the consolidated SoFP. If a credit event had occurred, the ISDA Master Agreement would have the effect of netting, allowing a reduction
to derivative assets and derivative liabilities of the same amount of $122 million (2022: $101 million).
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersOur strategyMegatrendsHow we create value
Notes to the consolidated financial statements
Financial report
103
E CAPITAL STRUCTURE AND RISKS continued
E5 FINANCIAL RISK MANAGEMENT
Mirvac’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. Mirvac seeks to minimise the
potential impact of these financial risks on financial performance; for example, by using derivative financial instruments to protect against
interest rate and foreign exchange risk.
Financial risk management is carried out by a central treasury department (Mirvac Group Treasury) under policies approved by the Board. The Board
provides overall risk management principles and policies covering specific areas. Mirvac Group Treasury identifies, evaluates, reports and manages
financial risks in close cooperation with the Group’s operating units in accordance with Board policy.
The table below summarises key financial risks and how they are managed:
Exposures arising from
Risk
Management of exposures
Definition
Market risk –
interest rate
The risk that the fair value
or cash flows of financial
instruments will fluctuate
due to changes in market
interest rates
> Borrowings issued at fixed
rates and variable rates
> Derivatives
> Interest rate derivatives manage cash flow interest rate risk
by converting floating rate borrowings to fixed or capped
rates with target of 55 per cent
> Mirvac does not manage the fair value risk for debt instruments
from interest rates, as it does not have an impact on the
cash flows paid by the business
> Refer to note E2 for details on the interest rate exposure
for borrowings
Market risk –
foreign
exchange
The risk that the fair value
of a financial commitment,
asset or liability will fluctuate
due to changes in foreign
exchange rates
> Bonds denominated in
other currencies
> Receipts and payments
that are denominated
in other currencies
> Cross currency interest rate swaps to convert non-Australian
dollar borrowings to Australian dollar exposures. These cross
currency interest rate swaps have been designated as cash
flow hedges with the movements in fair value recognised
while they are still in an effective hedge relationship
Market risk –
price
Credit risk
The risk that the fair value
of other financial assets at
fair value through profit or
loss will fluctuate due to
changes in the underlying
share/unit price
The risk that a counterparty
will not make payments to
Mirvac as they fall due
> Other financial assets
at fair value through
profit or loss, with any
resultant gain or loss
recognised in other
comprehensive income
> Cash and cash
equivalents
> Receivables
> Derivative financial assets
> Other financial assets
Liquidity risk The risk that Mirvac will
not be able to meet its
obligations as they fall due
> Payables
> Borrowings
> Derivative financial
liabilities
> The Group is exposed to minimal price risk and so does not
manage the exposures
> Setting credit limits and obtaining collateral as security
(where appropriate)
> Diversified trading spread across large financial institutions
with investment grade credit ratings
> Regularly monitoring the exposure to each counterparty
and their credit ratings
> Refer to note D1 for details on credit risk exposure on
receivables. The Group deems the exposure to credit risk as not
significant for all other classes of financial assets and liabilities
> Regular forecasts of the Group’s liquidity requirements.
Surplus funds are only invested in highly liquid instruments
> Availability of cash, marketable securities and committed
credit facilities
> Ability to raise funds through issue of new securities
through placements or DRP
> Refer to note E2 for details of liquidity risk of the Group’s
financing arrangements
Reimagine Urban LifeGovernanceOtherPerformance by pillarRisk managementFinancial and operational results 104
Notes to the consolidated financial statements
E CAPITAL STRUCTURE AND RISKS continued
Market risk
Foreign exchange risk
The cross currency interest rate swaps (CCIRS) that are in place cover
100 per cent of the foreign denominated bonds (interest payments and
redemption value) with the same maturity profiles as the bonds. This removes
exposure to foreign exchange movements between the foreign currencies
and Australian dollar.
Foreign currency transactions are translated into the entity’s functional
currency using the exchange rate at the transaction date. Foreign exchange
gains and losses resulting from settling foreign currency transactions and
from translating foreign currency monetary assets and liabilities at year end
are recognised in the consolidated SoCI.
Sensitivity analysis – interest rate risk and foreign exchange risk
This sensitivity analysis shows the impact on profit after tax and equity if
Australian interest rates changed by 50 basis points (bps).
Notional amount and expiry of CCIRS
(Sm)
2,478
2,473
1,104
1,017
1,263
1,286
111
170
1 to 2 years
2 to 5 years
Over 5 years
Total
30 June 2023
30 June 2022
Given the Group is operating in an interest rate environment that is in a tightening cycle, a 50 bps movement is deemed an appropriate sensitivity to
consider for 30 June 2023. The Group has borrowings and CCIRS that reference foreign interest rates and foreign exchange rates; however, these are
hedge accounted in effective hedge relationships, therefore the net profit impact is nil.
Total impact on profit after tax and equity
Interest rate risk 1
Changes in:
Australian interest rates
Foreign exchange risk 2
Foreign interest rates
Foreign exchange risk 2
Foreign exchange rates
2023
50 bps
$m
2022
50 bps
$m
100 bps
$m
100 bps
$m
$8.1m decrease
$8.7m increase
$15.5m increase
$14.2m decrease
—
—
—
—
—
—
—
—
1. This calculation shows the impact on borrowings, cash and derivative financial instruments held as an economic hedge. It assumes that no interest is capitalised into qualifying assets as
discussed in note B3. If fair value movements were excluded, operating profit would reduce if interest rates were to rise.
2. The Group has borrowings and CCIRS that reference foreign interest rates and foreign exchange rates; however, these are hedge accounted in effective hedge relationships, therefore the
net profit impact is nil.
Effects of hedge accounting
The effects of the foreign currency-related hedging instruments on the Group’s financial position and performance are as follows:
Carrying amount
Original debt amount
Original hedged amount
Maturity date
Hedge ratio
Change in discounted spot value of outstanding hedging instruments since inception of the hedge
Change in value of hedged item used to determine hedge ineffectiveness
Weighted average hedged rate for outstanding hedging instruments against AU$1
2023
2022
$2,525m
$2,478m
$2,478m
Dec 2024 – Mar 2034
1:1
$48m
($65m)
US$0.78
YEN79.82
HK$5.74
$2,605m
$2,473m
$2,473m
Dec 2022 – Mar 2034
1:1
$136m
($151m)
US$0.79
YEN79.82
HK$5.74
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersOur strategyMegatrendsHow we create value
Notes to the consolidated financial statements
Financial report
105
E CAPITAL STRUCTURE AND RISKS continued
Liquidity risk
Maturities of financial liabilities and derivative financial assets
Mirvac’s maturity of financial liabilities and derivative financial assets is provided in the following table. The amounts disclosed in the table are the
contractual undiscounted cash flows:
Maturing in
Maturing in
Less
than
1 year
$m
974
53
382
8
1 to 2
years
$m
2 to 5
years
$m
Over
5 years
$m
402
336
306
9
—
889
1,477
17
—
—
2,197
30
2023
Total
$m
1,376
1,278
4,362
64
Less
than
1 year
$m
747
22
414
8
1 to 2
years
$m
2 to 5
years
$m
Over
5 years
$m
242
21
368
7
332
794
1,307
16
—
—
2,167
49
2022
Total
$m
1,321
837
4,256
80
(12)
(6)
10
8
—
1
1
16
15
33
162
(99)
265
(253)
1,422
(1,461)
1,510
(1,515)
3,359
(3,328)
1,468
1,059
2,354
2,230
7,111
289
(328)
1,153
131
(88)
1,360
(1,379)
1,545
(1,532)
3,325
(3,327)
682
2,446
2,244
6,525
Payables 1
Unsecured bank loans
Bonds
Lease liabilities
Net settled derivatives
Interest rate derivatives –
floating to fixed
Gross settled derivatives
(cross currency swaps)
Outflow
(Inflow)
1.
Includes deferred revenue.
E6 FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS
Mirvac measures various financial assets and liabilities at fair value, which in some cases, may be subjective and depend on the inputs used in
the calculations. The different levels of measurement are described below:
> Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
> Level 2: not traded in an active market but calculated with significant inputs coming from observable market data; and
> Level 3: significant inputs to the calculation that are not based on observable market data (unobservable inputs).
Mirvac holds no Level 1 financial instruments.
The methods and assumptions used to estimate the fair value of Mirvac’s financial instruments are as follows:
Derivative financial instruments
Mirvac’s derivative financial instruments are classified as Level 2, as the fair values are calculated based on observable market interest rates and
foreign exchange rates. The fair values of interest rate derivatives are calculated as the present value of the estimated future cash flows based on
observable yield curves.
Reimagine Urban LifeGovernanceOtherPerformance by pillarRisk managementFinancial and operational results
106
Notes to the consolidated financial statements
E CAPITAL STRUCTURE AND RISKS continued
Other financial assets
Other financial assets include units in unlisted entities; refer to note D2 for further details. The carrying value of other financial assets is equal to the
fair value.
Investments in unlisted entities are traded in inactive markets and the fair value is determined by the unit or share price as advised by the trustee
of the unlisted entity, based on the value of the underlying assets. The unlisted entity’s assets are subject to regular external valuations using the
valuation methods explained in note C1.
The following table summarises the financial instruments measured and recognised at fair value on a recurring a basis:
2023
2022
Level 1
$m
Level 2
$m
Level 3
$m
Total
$m
Level 1
$m
Level 2
$m
Level 3
$m
Total
$m
Financial assets carried at fair value
Investments in unlisted entities
Derivative financial instruments
Total financial assets carried at fair value
Financial liabilities carried at fair value
Derivative financial instruments
Total financial liabilities carried at fair value
—
—
—
—
—
—
202
202
138
138
74
—
74
—
—
74
202
276
138
138
—
—
—
—
—
—
242
242
117
117
73
—
73
—
—
73
242
315
117
117
There were no transfers between the fair value hierarchy levels during the year. The following table presents a reconciliation of the carrying value of
Level 3 instruments held by the Group (excluding investment properties):
Investments in unlisted funds
Balance 1 July
Acquisitions
Net (loss)/gain recognised in gain on financial instruments
Return of capital
Balance 30 June
Refer to note C2 for a reconciliation of the carrying value of investment properties, also classified as Level 3.
2023
$m
73
4
(2)
(1)
74
2022
$m
78
8
4
(17)
73
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F EQUITY
This section includes details of distributions, stapled securityholders’ equity and reserves. It represents how the Group raised equity
from its stapled securityholders in order to finance the Group’s activities both now and in the future.
F1 DISTRIBUTIONS
Half yearly ordinary distributions paid/payable and distribution per security:
10.5 cpss
10.2 cpss
5.2 cpss
5.1 cpss
5.3 cpss
5.1 cpss
$414m
paid/payable
$404m
paid
$205m
$205m
paid on
paid on
28 Feb 2023
28 Feb 2023
$202m
$202m
paid on
paid on
28 Feb 2022
28 Feb 2022
$209m
$209m
payable on
payable on
31 Aug 2023
31 Aug 2023
$202m
$202m
paid on
paid on
31 Aug 2022
31 Aug 2022
31 December
30 June
Annual
2023
2022
All distributions in the current and prior periods were unfranked. Franking credits available for future years, based on a tax rate of 30 per cent, total
$83m (2022: $30m).
F2 CONTRIBUTED EQUITY
Mirvac’s contributed equity includes ordinary shares in Mirvac Limited and ordinary units in MPT, which are stapled to create stapled securities.
Each ordinary security entitles the holder to receive distributions when declared, to one vote at securityholders’ meetings and on polls and to a
proportional share of proceeds on winding up of Mirvac.
When new securities or options are issued, the directly attributable incremental costs are deducted from equity, net of tax.
Contributed equity
Mirvac Limited – ordinary shares issued
MPT – ordinary units issued
Total contributed equity
2023
2022
No. securities
m
Securities
$m
No. securities
m
Securities
$m
3,945
3,945
2,165
5,368
7,533
3,942
3,942
2,165
5,362
7,527
The total number of stapled securities issued as listed on the ASX at 30 June 2023 was 3,946m (2022: 3,943m), which included 1m of stapled
securities issued under the LTI plan and EIS (2022: 1m). Securities issued to employees under the Mirvac employee LTI plan and EIS are accounted
for as options and are recognised in the security-based payments reserve, not in contributed equity.
Movements in paid up equity
Balance 1 July
Securities issued under EEP 1
LTI vested 2
Legacy schemes vested
Balance 30 June
2023
2022
Securities
$m
No. securities
Securities
$m
7,527
—
6
—
7,533
3,936,111,448
401,059
5,111,753
97,782
3,941,722,042
7,510
1
15
1
7,527
No. securities
3,941,722,042
—
2,790,895
84,869
3,944,597,806
1. Mirvac purchases or issues securities to employees as security-based payments; refer to note F4 for details.
2. Stapled securities issued for LTIs during the year, relate to LTIs granted in prior years.
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Notes to the consolidated financial statements
F EQUITY continued
F3 RESERVES
Cost of hedging reserve
The cost of hedging reserve is used to record gains or losses on derivatives that relate to the currency basis spread. Currency basis spread is the
liquidity premium that is charged for exchanging different currencies, and changes over time impacting the fair value of a cross currency swap.
Cash flow hedge reserve
The cash flow hedge reserve is used to record gains or losses on derivatives that qualify as cash flow hedges and that are recognised in other
comprehensive income.
Security-based payments (SBP) reserve
The SBP reserve recognises the SBP expense. Further details on SBP are explained in note F4.
Non-controlling interests (NCI) reserve
The NCI reserve was used to record the discount received on acquiring the non-controlling interest in Mirvac Real Estate Investment Trust in
December 2009.
Cost of
hedging
reserve
$m
Cash flow
hedge
reserve
$m
Note
SBP
reserve
$m
NCI
reserve
$m
Capital
reserve
$m
Total
reserves
$m
Balance 1 July 2021
Hedging reserve movements
Cash flow hedge movements
SBP movements
Balance 30 June 2022
Hedging reserve movements
Cash flow hedge movements
SBP movements
Balance 30 June 2023
F4 SECURITY-BASED PAYMENTS
F4
F4
9
(7)
—
—
2
2
—
—
4
(34)
—
24
—
(10)
—
(4)
—
(14)
31
—
—
(7)
24
—
—
2
26
8
—
—
—
8
—
—
—
8
(1)
—
—
—
(1)
—
—
—
(1)
13
(7)
24
(7)
23
2
(4)
2
23
Mirvac currently operates the following SBP schemes:
> Employee Exemption Plan (EEP);
> Long-term Incentives Plan (LTI); and
> Short-term incentive (STI) awards.
The total of all securities issued under all employee security schemes is limited to five per cent of the issued securities of the stapled group
in any five year period.
EEP
The EEP provides eligible employees with up to $1,000 worth of Mirvac securities at no cost. Employees cannot sell the securities for three years or
until they cease employment with the Group, in which case they keep any securities already granted. Other than the restriction on selling, holders have
the same rights and benefits as other securityholders.
LTI
The LTI provides senior executives with performance rights to both reward and retain executives and strengthen the alignment between the
performance of the Group and the executives. The performance rights vest based on Mirvac’s TSR and ROIC performance over a three-year period.
STI
The STI is to motivate and reward employees for contributing to the delivery of annual business performance. For Executive KMP, 75 per cent of any
STI award is paid as cash and 25 per cent is deferred into rights. The rights vest in two equal tranches: 50 per cent of the rights vest after one year and
50 per cent after two years.
Accounting for the SBP schemes
On 2 March 2023, the Group purchased securities on market for the EEP at a stapled security price of $2.22. These securities were recognised as an
expense. At 30 June 2023, a total of 9.8m (2022: 9.3m) stapled securities have been issued to employees under the EEP.
In the prior year, EEP securities were issued by the Group and were recognised as an expense and a movement in contributed equity.
The LTI, STI and legacy EIS are accounted for as equity-settled SBP. The fair value is estimated at grant date and recognised over the vesting period
as an expense and in the SBP reserve. When the SBP vest, ordinary securities are issued and recognised as a transfer from the SBP reserve to
contributed equity.
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F EQUITY continued
Reconciliation of rights outstanding under SBP schemes
LTI
STI
Total rights FY22
LTI
STI
Balance
1 July
10,629,320
394,801
11,024,121
11,665,219
646,225
No. securities
Issued
Vested
Forfeited
(2,789,136)
(349,583)
(2,058,072)
—
(3,138,719)
(2,058,072)
Balance
30 June
11,665,219
646,225
12,311,444
(4,026,752)
(345,723)
(2,412,510)
—
15,004,876
1,080,140
5,883,107
601,007
6,484,114
9,778,919
779,638
Total rights FY23
12,311,444
10,558,557
(4,372,475)
(2,412,510)
16,085,016
The weighted average remaining contractual life of SBP schemes as at 30 June 2023 was 1.56 years (2022: 1.45 years). SBP expense recognised
within employee benefits expenses is as follows:
LTI
STI
Total SBP expense taken to SBP reserve
EEP recognised directly in contributed equity
Total SBP expense
The movements in the SBP reserve are as follows:
Balance 1 July
Total SBP expense taken to SBP reserve
LTI vested and taken to contributed equity
STI vested
Transfer of unvested awards to retained earnings
Balance 30 June
2023
$000
11,693
1,459
13,152
1,173
14,325
2023
$000
24,332
13,152
(6,171)
(722)
(4,122)
26,469
2022
$000
9,925
3,515
13,440
1,322
14,762
2022
$000
31,362
13,440
(15,284)
(1,037)
(4,149)
24,332
Judgement in calculating fair value of SBP
To calculate the expense for equity-settled SBP, the fair value of the equity instruments at grant date has to be estimated. The fair value
is determined using the Monte Carlo simulation for the relative TSR component (key judgements and assumptions include exercise price,
vesting and performance criteria, security price at grant date, volatility, distribution yield and risk-free interest rate) and a binomial tree
method for the ROIC component. These judgements and assumptions relating to fair value measurement may impact the SBP expense
taken to profit or loss and reserves.
Assumptions used for the fair value of performance rights awarded during the current year are as follows:
Grant date
2 December 2022
Relative TSR and ROIC
Performance hurdles
1 July 2022
Performance period start
30 June 2025
Performance period end
$2.24
Security price at grant date
Exercise price
Expected life
Volatility
Risk-free interest rate (per annum)
Dividend/distribution yield (per annum)
$nil
2.6 years
28.40%
3.02%
4.55%
The valuation of rights is conducted by an independent advisor.
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Notes to the consolidated financial statements
G GROUP STRUCTURE
This section explains how the Group is structured, the Deed of Cross Guarantee between Group companies and disclosures for the parent entity.
G1 GROUP STRUCTURE AND DEED OF CROSS GUARANTEE
Controlled entities
The consolidated financial statements of Mirvac incorporate the assets, liabilities and results of all controlled entities. Controlled entities are all entities
over which the Group has power to direct the activities of the entity and an exposure to and ability to influence its variable returns from its involvement
with the entity.
Controlled entities are fully consolidated from the date control is obtained until the date that control ceases. Intra-group transactions and balances are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of impairment of the assets transferred.
Refer to note I2 for Mirvac’s controlled entities.
Structured entities
A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity.
Mirvac considers that all funds and trusts in which it currently has an investment, or from which it currently earns income, to be structured entities.
Depending on the Group’s power to direct the activities of the entity and its exposure to and ability to influence its own returns, it may consolidate the
entity. In other cases, it may sponsor or have some form of exposure to a structured entity but not consolidate it.
If Mirvac does not control a structured entity but has significant influence, it is treated as an associate.
Funds and trusts
Mirvac invests in a number of funds and trusts that invest in real estate as investment properties. The funds and trusts finance their operations
through borrowings and through equity issues. The Group determines whether it controls or has significant influence over these funds and trusts as
outlined above.
Closed Group
Mirvac Limited and certain wholly owned entities (collectively the Closed Group) are parties to a Deed of Cross Guarantee. The members of the
Closed Group guarantee to pay any deficiency in the event that another member winds up.
Refer to note I2 for the members of the Closed Group.
Closed Group SoCI
Revenue
Other income
Revaluation gain on investment properties
Share of net profit of joint ventures
Gain on financial instruments
Total revenue and other income
Development expenses
Cost of goods sold interest
Impairment of inventory and other assets
Selling and marketing expenses
Investment properties expenses and outgoings
Depreciation and amortisation expenses
Employee expenses
Finance costs
Loss on financial instruments
Other expenses
(Loss)/profit before income tax
Income tax (benefit)/expense
(Loss)/profit for the year
2023
$m
1,218
1
38
31
1,288
741
17
33
35
2
13
113
250
30
100
(46)
(14)
(32)
2022
$m
2,128
38
23
60
2,249
1,589
25
58
39
1
14
110
143
—
51
219
77
142
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Notes to the consolidated financial statements
G GROUP STRUCTURE continued
Closed Group SoFP
Current assets
Cash and cash equivalents
Receivables
Inventories
Derivative financial assets
Other assets
Total current assets
Non-current assets
Receivables
Inventories
Investment properties
Investments in joint ventures
Derivative financial assets
Other financial assets
Property, plant and equipment
Right-of-use assets
Intangible assets
Deferred tax assets
Other assets
Total non-current assets
Total assets
Current liabilities
Payables
Deferred revenue
Borrowings
Lease liabilities
Derivative financial liabilities
Provisions
Current tax liabilities
Total current liabilities
Non-current liabilities
Payables
Deferred revenue
Borrowings
Derivative financial liabilities
Provisions
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Accumulated losses
Total equity
2023
$m
21
4,694
1,128
22
19
5,884
2,317
1,243
29
320
180
1,336
8
40
40
106
6
5,625
11,509
4,129
32
250
12
9
49
167
4,648
341
23
4,261
129
10
36
4,800
9,448
2,061
2,429
9
(377)
2,061
2022
$m
457
3,781
657
66
19
4,980
1,914
1,783
70
41
176
1,181
10
45
40
—
27
5,287
10,267
3,069
51
281
12
6
29
128
3,576
570
3
3,957
111
11
41
4,693
8,269
1,998
2,340
8
(350)
1,998
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Notes to the consolidated financial statements
G GROUP STRUCTURE continued
G2 PARENT ENTITY
The financial information for the parent entity, Mirvac Limited, is prepared on the same basis as the consolidated financial statements, except as
set out below:
Tax consolidation legislation
Mirvac Limited is the head entity of a tax consolidated group as discussed in note B5. As the head entity, Mirvac Limited recognises the current tax
balances and the deferred tax assets for unused tax losses and credits assumed from other members as well as its own current and deferred tax
amounts. Amounts receivable from or payable to the other members are recognised by Mirvac Limited as intercompany receivables or payables.
Parent entity
Current assets
Total assets
Current liabilities
Total liabilities
Equity
Contributed equity
SBP reserve
Retained earnings
Total equity
Loss for the year
Total comprehensive loss for the year
2023
$m
6,810
7,682
5,420
5,420
2,166
26
70
2,262
(33)
(33)
2022
$m
5,852
6,319
4,031
4,031
2,164
24
100
2,288
(1)
(1)
The parent entity is party to the Deed of Cross Guarantee outlined in note G1 and therefore guarantees the debts of the other Closed Group members.
At 30 June 2023, the parent entity did not provide any other guarantees in relation to the debts of its subsidiaries (2022: $nil), have any contingent
liabilities (2022: $nil), or any capital commitments for the acquisition of property, plant or equiment (2022: $nil).
G3 BUSINESS COMBINATIONS
Refer to the 30 June 2022 Annual Report for details of business combinations made in the prior period.
MIV Switchyards Trust
On 1 July 2022, the Group entered an agreement culminating in the Group gaining control of MIV Switchyards Trust (formerly named Duck River
Auburn Trust), which was previously accounted for as an investment in joint venture. The Group consolidated the assets and liabilities held by MIV
Switchyards Trust, which included investment property at 300 Manchester Road, Auburn NSW. The carrying amount of the Group’s previously held
interest in this entity approximated its fair value. Accordingly, no gain or loss as a result of the remeasurement of the equity interest in these entities to
fair value was recognised in the consolidated SoCI. On consolidation, the Group reclassified 51 per cent of the investment property to inventory on a
fair value basis of $69m.
On 8 September 2022, the Group acquired the remaining 49 per cent of the units in MIV Switchyards Trust for consideration of $138m resulting in the
Group recognising additional investment property of $59m.
On 2 June 2023, the Group disposed of 49 per cent of the units in MIV Switchyards Trust. Following the sale, the Group lost control of MIV Switchyards
Trust and reclassified it’s remaining 51 per cent interest to investment in joint venture.
The consideration received from the sale of the 49 per cent interest in MIV Switchyards Trust was $155m. As the cash disposed of following
deconsolidation was nil, the net cash outflow, being the total proceeds less cash disposed, was also $155m. The carrying value of the Group’s interest
in the net assets disposed was $108m at the time of the sale. This resulted in a gain of $47m of which $40m was recognised in the consolidated SoCI
and $7m was recognised as deferred revenue on the SoFP.
LIV Mirvac Property Trust
LIV Mirvac Property Trust holds a 100 per cent interest in the Group’s Build to Rent property portfolio. This entity was formerly a wholly owned
subsidiary of the Group. On 29 June 2023, LIV Mirvac Property Trust issued units to entities outside of the Group, reducing the Group’s ownership
to 44 per cent. Following this transaction, the Group lost control of LIV Mirvac Property Trust and reclassified its remaining 44 per cent interest to
investment in joint venture. Cash disposed of at the time of the transaction was $3m.
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Notes to the consolidated financial statements
H OTHER DISCLOSURES
This section provides additional required disclosures that are not covered in the previous sections.
H1 CONTINGENT LIABILITIES
A contingent liability is a possible obligation that may become payable depending on a future event or a present obligation that is not probable
to require payment/cannot be reliably measured. A provision is not recognised for contingent liabilities.
Bank guarantees and insurance bonds granted in the normal course of business
Health and safety claims
Payments for investment properties, inventory and other assets contingent on approvals
Total contingent liabilities
2023
$m
280
2
4
286
2022
$m
226
4
29
259
As at 30 June 2023, the Group had no contingent liabilities relating to joint ventures and associates (2022: $nil).
H2 EARNINGS PER STAPLED SECURITY
Basic earnings per stapled security (EPS) is calculated by dividing:
> the profit attributable to stapled securityholders; by
> the weighted average number of ordinary securities (WANOS) outstanding during the year.
Diluted EPS adjusts the WANOS to take into account dilutive potential ordinary securities from security-based payments.
(Loss)/profit attributable to stapled securityholders
used to calculate basic and diluted EPS ($m)
WANOS used in calculating basic EPS (m)
WANOS used in calculating diluted EPS (m)
H3 RELATED PARTIES
2023
(165)
3,944
3,946
2022
906
3,941
3,942
Basic and diluted EPS
(cents)
23.0
FY22
(4.2)
FY23
A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless
of whether a price is charged.
Key management personnel compensation
The Remuneration report on pages 49 to 69 provides detailed disclosures of key management personnel compensation.
The total expense is summarised below:
Short-term employment benefits
Security-based payments
Post-employment benefits
Other long-term benefits
Termination benefits
Total key management personnel compensation
There are no outstanding loans to directors or employees (2022: nil).
2023
$000
11,474
5,354
298
99
1,100
18,325
2022
$000
10,313
4,372
239
81
—
15,005
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Notes to the consolidated financial statements
H OTHER DISCLOSURES continued
Transactions with key management personnel
From time to time key management personnel participate in arrangements available to directly purchase Mirvac developed residential property. These
transactions are made on terms equivalent to those that prevail in arm’s length transactions and are at market rates. The deposits received and the
amounts committed by key management personnel for Mirvac developed residential property exchanged are summarised below:
Mirvac developed property purchased by key management personnel
Exchanges
Deposits received
Outstanding commitments
Transactions with JVAs
Interest income
Project development fees
Development rental guarantees
Management and service fees
Trustee fees
Property rental revenue
Total transactions with JVAs
Loans due from JVAs and other related parties
Balance 1 July
Interest capitalised
Loans advanced
Loan payments received
Balance 30 June
2023
$000
1,440
72
7,477
2023
$000
—
35,605
7,479
11,403
24,059
9,805
88,351
2023
$000
—
—
8,850
(4,425)
4,425
2022
$000
5,027
251
6,108
2022
$000
175
88,976
—
7,943
10,398
—
107,492
2022
$000
5,104
175
—
(5,279)
—
Transactions between Mirvac and its related parties were made on commercial terms and conditions. Distributions received from JVAs were on the
same terms and conditions that applied to other securityholders. Equity interests in JVAs are set out in note I3.
H4 AUDITOR’S REMUNERATION
During the year, the following fees were paid or payable for services provided by PricewaterhouseCoopers Australia (PwC) as the auditor of the Group,
and by PwC’s related network firms.
Audit services
Audit and review of financial reports
Other assurance services
Total audit services
Other services
Advisory services
Total other services
Total auditor’s remuneration
2023
$000
2,680
891
3,571
362
362
3,933
2022
$000
2,444
761
3,205
262
262
3,467
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Notes to the consolidated financial statements
I APPENDICES
This section provides detailed listings of Mirvac’s properties and controlled entities.
I1 PROPERTY PORTFOLIO LISTING
This table shows details of Mirvac’s properties portfolio. Refer to notes C1 to C3 for further details.
Office
1 Darling Island, Pyrmont NSW
101-103 Miller Street, North Sydney NSW (50% interest)
10-20 Bond Street, Sydney NSW (50% interest)
189 Grey Street, Southbank QLD 1
2 Riverside Quay, Southbank VIC (50% interest)
23 Furzer Street, Phillip ACT
275 Kent Street, Sydney NSW (50% interest)
367 Collins Street, Melbourne VIC 2
380 St Kilda Road, Melbourne VIC
383 La Trobe Street, Melbourne VIC
40 Miller Street, North Sydney NSW
477 Collins Street, Melbourne VIC (50% interest)
60 Margaret Street, Sydney NSW (50% interest) 2
65 Pirrama Road, Pyrmont NSW
664 Collins Street. Melbourne VIC (50% interest)
699 Bourke Street, Melbourne, VIC (50% interest)
75 George St, Paramatta NSW
80 Ann Street, Brisbane QLD (50% interest)
90 Collins Street, Melbourne VIC
Allendale Square, 77 St Georges Terrace, Perth WA 1
Locomotive Carpark, South Eveleigh NSW
Riverside Quay, Southbank VIC
South Eveleigh Precinct, Eveleigh NSW (33.3% interest)
Various lots, 53 Walker Street &
97 Pacific Highway, North Sydney NSW
Total investment properties
Investment properties under construction
55 Pitt Street, Sydney NSW
7-23 Spencer Street, Melbourne VIC
377 Botany Road, Zetland NSW
Harbourside, Sydney NSW
Total investment properties under construction
Total investment properties and investment
properties under construction
Investment properties held in joint
ventures and associates
200 George Street, Sydney NSW (50.1% interest)
Locomotive Workshop, South Eveleigh NSW (51% Interest)
8 Chifley Square, Sydney NSW (50% interest)
David Malcolm Justice Centre,
28 Barrack Street, Perth WA (50% interest)
Mirvac Wholesale Office Fund property portfolio 3
Total investment properties held in joint
ventures and associates
Fair
value
2023
$m
Lease
liability
gross up
2023
$m
Book
value
Capitalisation
rate
Discount
rate
2023
$m
2022
$m
2023
%
2022
%
2023
%
2022
%
317
301
325
—
151
375
865
—
218
100
191
450
—
206
158
79
73
409
248
—
21
347
462
29
5,325
108
80
25
41
254
5,579
545
222
220
255
577
1,819
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
317
301
325
—
151
375
865
—
218
100
191
450
—
206
158
79
73
409
248
—
21
347
462
29
319
326
349
93
155
380
922
427
196
121
180
462
377
220
166
106
87
400
263
207
21
380
465
31
5,325
6,653
108
80
25
41
254
252
128
21
—
401
5,579
7,054
545
222
220
255
577
581
223
231
248
—
1,819
1,283
5.63
5.38
5.50
—
5.38
5.63
4.88
—
5.88
6.50
5.63
4.88
—
5.75
5.13
5.50
6.00
5.00
5.50
—
7.50
5.63
5.00
5.25
—
—
—
—
4.75
5.00
5.13
5.38
—
5.38
5.00
5.00
6.63
5.00
5.25
4.50
5.25
5.75
5.13
5.38
4.75
5.13
5.50
4.88
5.00
5.38
4.88
5.25
6.75
6.00
5.25
4.88
—
—
—
—
—
4.38
4.88
4.88
5.25
—
6.38
6.25
6.25
—
6.25
6.25
6.13
—
6.50
6.50
6.38
6.13
—
6.25
6.25
6.50
6.63
6.13
6.25
—
8.25
6.25
6.13
7.00
—
—
—
—
6.13
6.25
6.25
6.63
—
6.13
6.00
6.13
7.00
6.25
6.00
6.00
6.25
6.25
6.25
6.13
6.00
6.13
6.13
6.00
6.00
6.25
6.00
6.25
7.25
7.75
6.25
6.00
—
—
—
—
—
5.88
6.13
6.00
6.50
—
Investment property was disposed of during the year.
1.
2. Transferred from investment property to assets classified as held for sale during the year.
3. This entity was acquired during the year.
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Notes to the consolidated financial statements
I APPENDICES continued
Office continued
Assets classified as held for sale
367 Collins Street, Melbourne VIC 1
60 Margaret Street, Sydney NSW (50% interest) 1
Total assets classified as held for sale
Total office property portfolio
Fair
value
2023
$m
371
347
718
8,116
Lease
liability
gross up
2023
$m
Book
value
Capitalisation
rate
Discount
rate
2023
$m
2022
$m
2023
%
2022
%
2023
%
2022
%
—
—
—
—
371
347
718
—
—
—
8,116
8,337
1. Transferred from investment property to assets classified as held for sale during the year.
Industrial
1-47 Percival Road, Smithfield NSW
274 Victoria Rd, Rydalmere NSW
34-38 Anzac Avenue, Smeaton Grange NSW
36 Gow Street, Padstow NSW
39 Britton Street, Smithfield NSW
39 Herbert Street, St Leonards NSW
8 Brabham Drive, Huntingwood NSW
Calibre, 60 Wallgrove Road, Eastern Creek NSW (50% interest)
Hoxton Distribution Park, Hoxton Park NSW (50% interest)
Nexus Industry Park, Lyn Parade, Prestons NSW
Total investment properties
Investment properties under construction
1669A Elizabeth Drive, Badgery Creek NSW
788-882 Mamre Road, Kemps Creek NSW
Total investment properties under construction
Total investment properties and investment
properties under construction
Investment properties held in joint ventures
Switchyard, 300 Manchester Road, Auburn (51% Interest)
Total investment properties held in joint ventures
Total industrial property portfolio
Retail
1-3 Smail Street, Ultimo NSW (50% interest)
80 Bay St, Glebe, Sydney NSW (50% interest)
Birkenhead Point Brand Outlet, Drummoyne NSW
Broadway Sydney, Broadway NSW (50% interest)
Cooleman Court, Weston ACT
East Village, Zetland NSW
Greenwood Plaza, North Sydney NSW (50% interest)
Kawana Shoppingworld, Buddina QLD (50% interest)
Metcentre, Sydney NSW (50% interest) 1
Moonee Ponds Central, Moonee Ponds VIC
Orion Springfield Central, Springfield QLD
Rhodes Waterside, Rhodes NSW (50% interest)
Fair
value
2023
$m
73
73
61
59
42
277
37
202
241
259
1,324
135
109
244
1,568
185
185
1,753
Fair
value
2023
$m
35
15
394
354
70
312
68
180
—
99
473
171
Lease
liability
gross up
Book
value
Capitalisation
rate
Discount
rate
2023
$m
2023
$m
2022
$m
2023
%
2022
%
2023
%
2022
%
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
73
73
61
59
42
277
37
202
241
259
70
77
57
54
40
254
35
184
246
225
1,324
1,242
135
109
244
221
120
341
1,568
1,583
185
185
67
67
1,753
1,650
5.00
4.25
4.75
5.00
4.50
4.25
4.00
4.00
4.50
4.00
4.75-5.25 4.75-5.00
4.25
4.38-4.50 3.50-4.13
4.38-4.50 3.63-3.88
3.88-4.50
4.50
4.50
6.50
5.88
6.25
6.38
6.00
5.50
5.38
5.38
5.75
5.50
6.00-6.63 6.00-6.25
5.50
5.75-6.00 5.25-5.38
5.00-5.25
5.88-6.00 4.88-5.50
6.00
6.50
—
—
—
—
—
—
—
—
—
—
—
—
Lease
liability
gross up
Book
value
Capitalisation
rate
Discount
rate
2023
$m
2023
$m
2022
$m
2023
%
2022
%
2023
%
2022
%
—
—
6
1
—
—
—
—
—
—
—
—
35
15
400
355
70
312
68
180
—
99
473
171
40
16
408
369
76
327
89
186
57
105
467
179
5.25
5.50
5.00
5.25
5.75-8.75 5.50-8.75
4.75
5.50
5.00
5.75
5.75
5.75
5.75
5.25
5.50
5.00
5.75
5.25
6.00
6.00
—
6.00
5.50
5.75
6.25
6.25
6.00
6.00
6.75-10.00 6.50-9.50
6.00
6.00
6.25
6.50
6.75
6.50
6.50
6.50
6.25
6.25
6.25
6.50
6.75
7.00
—
6.75
7.00
6.50
1. Transferred from investment property to assets classified as held for sale during the year.
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Notes to the consolidated financial statements
Financial report
117
I APPENDICES continued
Retail continued
South Village, Kirrawee NSW
Stanhope Village, Stanhope Gardens NSW 1
Toombul, Nundah QLD
Total investment properties
Investment properties under construction
Harbourside, Sydney NSW
Total investment properties under construction
Total investment properties and investment
properties under construction
Assets classified as held for sale
Metcentre, Sydney NSW (50% interest) 2
Total assets classified as held for sale
Total retail property portfolio
Fair
value
2023
$m
93
—
95
2,359
210
210
2,569
41
41
2,610
Lease
liability
gross up
Book
value
Capitalisation
rate
Discount
rate
2023
%
5.75
—
—
2022
%
5.50
5.50
—
2023
%
6.75
—
—
2022
%
6.25
6.75
—
—
—
—
—
2023
$m
2023
$m
2022
$m
—
—
—
7
30
30
37
—
—
37
93
—
95
103
154
90
2,366
2,666
240
240
252
252
2,606
2,918
41
41
—
—
2,647
2,918
Investment property was disposed of during the year.
1.
2. Transferred from investment property to assets classified as held for sale during the year.
Build to Rent
LIV Indigo, 2 Figtree Drive, Sydney Olympic Park NSW 1
Total investment properties
Investment properties under construction
LIV Albert Fields, Brunswick VIC 2
LIV Anura, Newstead QLD 2
LIV Aston, Melbourne VIC 2
LIV Munro, Melbourne VIC 3
Total investment properties under construction
Total investment properties and investment
properties under construction
Investment properties held in joint ventures
LIV Mirvac Property Trust property portfolio 4
Total investment properties held in joint ventures
Total build to rent property portfolio
Property portfolio
Total investment properties and investment
properties under construction
Total investment properties held in
joint ventures and associates
Total assets classified as held for sale
Total property portfolio
Fair
value
2023
$m
—
—
—
—
—
—
—
—
396
396
396
Fair
value
2023
$m
9,716
2,400
759
12,875
Lease
liability
gross up
Book
value
Capitalisation
rate
Discount
rate
2023
%
—
2022
%
4.00
2023
%
2022
%
—
6.25
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2023
$m
2023
$m
2022
$m
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
396
396
396
221
221
70
44
86
213
413
634
—
—
634
Lease
liability
gross up
Book
value
2023
$m
2023
$m
2022
$m
37
—
—
37
9,753
12,189
2,400
759
1,350
—
12,912
13,539
Investment property was transferred to JVA during the year.
1.
2. IPUC was transferred to JVA during the year.
3. IPUC was transferred to investment property and then transferred to JVA during the year.
4. This entity was established during the year and acquired the LIV BTR property portfolio.
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Notes to the consolidated financial statements
I APPENDICES continued
I2 CONTROLLED ENTITIES
All entities controlled by the Group are shown below. Unless otherwise noted, they are wholly owned and were incorporated or established in Australia
during the current year and prior years.
Members of the Closed Group
CN Collins Pty Ltd
Hoxton Park Airport Pty Ltd
Mirvac (Docklands) Pty Limited
Mirvac (WA) Pty Limited
Mirvac Capital Investments Pty Limited
Mirvac Constructions (QLD) Pty Limited
Mirvac Constructions (VIC) Pty Limited
Mirvac Constructions (WA) Pty Limited
Mirvac Constructions Pty Ltd
Mirvac Design Pty Limited
Mirvac Doncaster Pty Ltd
Mirvac Finance Pty Ltd
Mirvac Group Finance Limited
Mirvac Group Funding Pty Ltd
Mirvac Holdings Limited
Mirvac Home Builders (VIC) Pty Limited
Mirvac Homes (NSW) Pty Limited
Mirvac Industrial Developments Pty Limited
Mirvac International Investments Pty Ltd
Mirvac Limited
Mirvac National Developments Pty Limited
Mirvac Office Developments Pty Ltd
Mirvac Pacific Pty Ltd
Mirvac Projects Pty Ltd
Mirvac Queensland Pty Limited
Mirvac Real Estate Pty Ltd
Mirvac Residential (NSW) Developments Pty Ltd
Mirvac Retail Developments Pty Ltd
Mirvac Rockbank Pty Ltd
Mirvac Spring Farm Pty Ltd
Mirvac Treasury Ltd
Mirvac Treasury No. 3 Limited
Mirvac Victoria Pty Limited
Mirvac Wholesale Funds Management Pty Ltd
Mirvac Wholesale Industrial Developments Pty Ltd
Mirvac Woolloomooloo Pty Limited
Interests in controlled entities of Mirvac not included in the Closed Group
197 Salmon Street Pty Limited
477 Collins Street No. 2 Trust
699 Bourke Street Services Pty Limited
A.C.N. 087 773 859 Pty Limited
A.C.N. 110 698 603 Pty Ltd
A.C.N. 150 521 583 Pty Ltd
A.C.N. 165 515 515 Pty Ltd
ABTRC Head Trust A
ABTRC Head Trust B
Ascot Chase Nominee Stages 3-5 Pty Ltd
Banksia Unit Trust
BL Developments Pty Ltd
Bligh Street Office Trust
BTR Head Company Pty Limited
BTR QLD Pty Limited
BTR Vic Head Trust A
BTR Vic Head Trust B
Eveleigh Commercial Holdings Pty Limited
Eveleigh Commercial Pty Limited
Eveleigh Precinct Pty Limited
EZ Power Pty Ltd
Fast Track Bromelton Pty Limited
Gainsborough Greens Pty Ltd
HIR Boardwalk Tavern Pty Limited
HIR Golf Club Pty Limited
HIR Golf Course Pty Limited
HIR Property Management Holdings
Pty Limited
HIR Tavern Freehold Pty Limited
Home Loans by Mirvac Pty Ltd
HPAL Holdings Pty Limited
Industrial Commercial Property Solutions
(Constructions) Pty Limited
Industrial Commercial Property Solutions
(Finance) Pty Limited
Industrial Commercial Property Solutions
(Holdings) Pty Limited
Industrial Commercial Property Solutions
(Queensland) Pty Limited
Industrial Commercial Property Solutions
Pty Limited
1. This entity was established during the year.
2. This entity is registered in Singapore.
JF ASIF Pty Limited
JFM Hotel Trust
Joynton North Pty Ltd
Kirrawee South Centre Pty Ltd
Kirrawee South Centre Trust
La Trobe Office Trust
LIV Opco Pty Ltd 1
Magenta Shores Finance Pty Ltd
Magenta Shores Unit Trust
Magenta Unit Trust
Marrickville Projects Pty Limited
MGR Insurance International Pte. Ltd. 2
Mirvac (Beacon Cove) Pty Limited
Mirvac (Old Treasury Development
Manager) Pty Limited
Mirvac (Old Treasury Hotel) Pty Limited
Mirvac (Retail and Commercial) Holdings Pty Limited
Mirvac (Walsh Bay) Pty Limited
Mirvac 275 Kent Street Services Pty Ltd
Mirvac 699 Bourke Street Trust
Mirvac 90CS No.2 Trust
Mirvac Advisory Pty Limited
Mirvac Aero Company Pty Ltd
Mirvac Altona North Pty Ltd
Mirvac AOP SPV Pty Limited
Mirvac Auburn Industrial Trust
Mirvac Badgerys Creek Industrial Trust
Mirvac Birkenhead Point Marina Pty Limited
Mirvac Blue Trust
Mirvac Bourke Street No. 3 Sub-Trust
Mirvac BST Pty Limited
Mirvac BTR Developments Pty Ltd
Mirvac BTR Head Company A Pty Ltd
Mirvac BTR Head Company B Pty Ltd
Mirvac BTR Head SPV Pty Ltd
Mirvac BTR Sub Company A Pty Ltd
Mirvac BTR Sub Company B Pty Ltd
Mirvac BTR Sub SPV Pty Ltd
Mirvac BTR Trust
Mirvac Capital Assurance Pty Ltd
Mirvac Capital Partners Pty Ltd
Mirvac Capital Pty Limited
Mirvac Chifley Holdings Pty Limited
Mirvac Commercial Finance Pty Limited
Mirvac Commercial Sub SPV Pty Limited
Mirvac Constructions (Homes) Pty. Limited
Mirvac Constructions (SA) Pty Limited
Mirvac Developments Pty Limited
Mirvac Duck River Pty Ltd
Mirvac Elizabeth Trust
Mirvac Energy Pty Limited
Mirvac ESAT Pty Limited
Mirvac Funds Limited
Mirvac Funds Management Australia Limited
Mirvac Funds Management Limited
Mirvac George Street Holdings Pty Limited
Mirvac George Street Pty Limited
Mirvac Green Square Pty Limited
Mirvac Green Trust
Mirvac GS Commercial Trust 1
Mirvac Harbourside Sub-Trust
Mirvac Harbourtown Pty Limited
Mirvac Harold Park Pty Limited
Mirvac Harold Park Trust
Mirvac Hatch Pty Ltd
Mirvac Hoist Pty Ltd
Mirvac Holdings (WA) Pty Limited
Mirvac Homes (QLD) Pty Limited
Mirvac Homes (SA) Pty Limited
Mirvac Homes (VIC) Pty Limited
Mirvac Homes (WA) Pty Limited
Mirvac Hotel Services Pty Limited
Mirvac ID (Bromelton) Pty Limited
Mirvac ID (Bromelton) Sponsor Pty Limited
Mirvac Industrial No. 2 Sub-Trust
Mirvac Industrial Sub SPV Pty Limited
Mirvac International (Middle East)
No. 2 Pty Limited
Mirvac Investment Manager Pty Ltd
Mirvac JV’s Pty Limited
Mirvac Kemps Creek Trust
Mirvac Kensington Pty Ltd
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Financial report
119
I APPENDICES continued
Interests in controlled entities of Mirvac not included in the Closed Group continued
Mirvac Kent Street Holdings Pty Limited
Mirvac King Street Pty Ltd
Mirvac Leader Pty Limited
Mirvac Living Investment Company Pty Ltd
Mirvac Living Investment Manager Pty. Ltd.
Mirvac Living Real Estate Services Pty. Ltd.
Mirvac Lucas Real Estate Unit Trust
Mirvac Maker Space Pty Limited
Mirvac Mandurah Pty Limited
Mirvac McCormacks Road Pty Limited
Mirvac Newcastle Pty Limited
Mirvac NIC Trust
Mirvac Nike Holding Pty Limited
Mirvac North Sydney Office Holdings Pty Limited
Mirvac North Sydney Office Holdings Trust
Mirvac Old Treasury Holdings Pty Limited
Mirvac Parking Pty. Limited
Mirvac Parramatta Sub-Trust No. 2
Mirvac Pennant Hills Residential Trust
Mirvac Ping An Residential Developments
Pty Limited
Mirvac Ping An Waterloo Development Trust
Mirvac Pitt Street Trust No. 2
Mirvac Precinct 2 Pty Limited
Mirvac Precinct Trust
Mirvac Procurement Pty Ltd
Mirvac Project Trust
Mirvac Projects (Retail and Commercial) Pty Ltd
Mirvac Projects Dalley Street Pty Limited
Mirvac Projects Dalley Street Trust
Mirvac Projects George Street Pty Limited
Mirvac Projects George Street Trust
Mirvac Projects No. 2 Pty. Limited
Mirvac Projects Norwest No. 2 Trust
Mirvac Projects Norwest Trust
Mirvac Properties Pty Ltd
Mirvac Property Advisory Services Pty. Limited
Mirvac Property Services Pty Limited
Mirvac Property Trust
Mirvac Real Estate Debt Funds Pty Limited
Mirvac REIT Management Pty Ltd
Mirvac Retail Head SPV Pty Limited
Mirvac Retail Sub SPV Pty Limited
Mirvac SDA Pty Limited 1
Mirvac SDA Trust 2
Mirvac Services Pty Limited
Mirvac Showground Pty Ltd
Mirvac Showground Trust
Mirvac SLS Development Pty Limited
Mirvac SLS Development Trust
Mirvac South Australia Pty Limited
Mirvac Spare Pty Limited
Mirvac SPV 1 Pty Limited
Mirvac St Leonards Pty Limited
Mirvac St Leonards Trust
Mirvac T6 Pty Ltd
Mirvac T6 Trust
Mirvac Trademarks Pty Limited
Mirvac TS Pty Limited
Mirvac Ventures Pty Limited
Mirvac Wholesale Office Investments Pty Limited
Mirvac Wholesale Sub Pty Limited
MirvacX Retail Solutions Pty Limited
MIV Aspect North Trust 2
MIV Aspect South Trust 2
MIV Elizabeth Enterprise 1 Trust 2
MIV Elizabeth Enterprise 2 Trust 2
MLJV Pty Ltd
MRV Hillsdale Pty Limited
MWID (Brendale) Pty Limited
MWID (Brendale) Unit Trust
MWID (Mackay) Pty Limited
Newington Homes Pty Limited
Oakstand No.15 Hercules Street Pty Ltd
Picket & Co Development Pty Limited
Picket & Co NSW Head Trust
Picket & Co Operations Pty Limited
Picket & Co Property Pty Limited
Picket & Co Pty Ltd
Pigface Unit Trust
Planned Retirement Living Pty Ltd
Rovno Pty. Limited
Spring Farm Finance Pty Limited
Springfield Development Company Pty Limited
SPV Magenta Pty Limited
Suntrack Holdings Pty Limited
Suntrack Property Trust
Treasury Square Trust
TS Triangle Pty Limited
TS Triangle Trust
Tucker Box Management Pty Limited
Walker Investment Services II Pty Ltd 3
WMQ Commercial Trust 4
1. Previously registered as Mirvac Spare No.2 Pty Limited.
2. This entity was established during the year.
3. This entity was acquired during the year.
4. This entity was established during the year and 25% is held by a third-party.
Interests in controlled entities of MPT
10-20 Bond Street Trust
367 Collins Street No. 2 Trust
367 Collins Street Trust
380 St Kilda Road Trust
477 Collins Street No. 1 Trust
Australian Office Partnership Trust
Eveleigh Trust
James Fielding Trust
Joynton North Property Trust
Joynton Properties Trust
Meridian Investment Trust No. 1
Meridian Investment Trust No. 2
Meridian Investment Trust No. 3
Meridian Investment Trust No. 4
Meridian Investment Trust No. 5
Meridian Investment Trust No. 6
Mirvac 90 Collins Street Trust
Mirvac Allendale Square Trust
Mirvac Ann Street Trust
Mirvac Bay St Trust
Mirvac Bourke Street No. 1 Sub-Trust
1. This entity was established during the year.
2. This entity was acquired during the year.
Mirvac Broadway Sub-Trust
Mirvac BTR Head Trust
Mirvac BTR Sub-Trust 1
Mirvac Capital Partners 1 Trust
Mirvac Collins Street No. 1 Sub-Trust
Mirvac Commercial No. 3 Sub-Trust
Mirvac Commercial Trust
Mirvac Group Funding No.2 Pty Limited
Mirvac Group Funding No.3 Pty Limited
Mirvac Hoxton Park Trust
Mirvac Industrial No. 1 Sub-Trust
Mirvac Kensington Trust
Mirvac Kirrawee Trust No. 1
Mirvac Kirrawee Trust No. 2
Mirvac La Trobe Office Trust
Mirvac Living Trust
Mirvac Padstow Trust No. 1
Mirvac Parramatta Sub-Trust No. 1
Mirvac Pitt Street Trust
Mirvac Property Trust No. 3
Mirvac Property Trust No. 4
Mirvac Property Trust No. 5
Mirvac Property Trust No. 6
Mirvac Property Trust No. 7
Mirvac Real Estate Investment Trust
Mirvac Retail Head Trust
Mirvac Retail Sub-Trust No. 1
Mirvac Retail Sub-Trust No. 2
Mirvac Retail Sub-Trust No. 3
Mirvac Retail Sub Trust No. 4
Mirvac Rhodes Sub-Trust
Mirvac Rydalmere Trust No. 1
Mirvac Rydalmere Trust No. 2
Mirvac Smail St Trust
Mirvac Spencer Trust 1
Mirvac Toombul Trust No. 1
Mirvac Toombul Trust No. 2
Old Treasury Holding Trust
Springfield Regional Shopping Centre Trust
Walker Sub-Trust 2
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Notes to the consolidated financial statements
I3 JOINT VENTURE AND ASSOCIATE ENTITIES
This table shows details of Mirvac’s interests in joint ventures and associates.
Ownership %
2023
2022
Barangaroo EDH Pty Ltd
BuildAI Pty Ltd
Domaine Investments Management Pty Ltd
Googong Township Pty Ltd
Googong Township Unit Trust
Harold Park Real Estate Trust
HPRE Pty Ltd
Leakes Road Rockbank Pty Ltd
Leakes Road Rockbank Unit Trust
LIV Mirvac Property Trust
LIV Mirvac Services Trust
Mirvac (Old Treasury) Pty Limited
Mirvac (Old Treasury) Trust
Mirvac 8 Chifley Pty Ltd
Mirvac 8 Chifley Trust
Mirvac Locomotive Trust
Mirvac Wholesale Office Fund 1
MIV Switchyards Trust 2, 3
MVIC Finance 2 Pty Ltd
The George Street Trust
TM Management Services Pty Ltd 4
Tucker Box Hotel Group
Walsh Bay Finance Pty Ltd 4
Walsh Bay Properties Pty Ltd 5
Walsh Bay SPV Pty Ltd 4
WL Developer Pty Ltd
WL Developer Trust
33
37
50
50
50
50
50
50
50
44
44
50
50
50
50
51
8
51
50
50
—
50
—
—
—
50
50
33
37
50
50
50
50
50
50
50
—
—
50
50
50
50
51
—
51
50
50
50
50
50
50
50
50
50
1. This entity became a JVA on 20 March 2023.
2. This entity was previously registered as Duck River Auburn Trust.
3. This entity was accounted for as a JVA up to 30 June 2022. Control was gained on 1 July 2022 at which point the entity was consolidated into the Group. Control was then lost on
2 June 2023 and the entity is now accounted for as a JVA. Refer note G3.
4. This entity was deregistered on 27 January 2023.
5. This entity was deregistered on 24 March 2023.
MIRVAC GROUP ANNUAL REPORT 2023Business overviewLetters to securityholdersOur strategyMegatrendsHow we create value
Financial report
121
Directors’ declaration
In the Directors’ opinion:
a) the financial statements and the notes set out on pages 71 to 120 are in accordance with the Corporations Act 2001, including:
i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and
ii) giving a true and fair view of the consolidated entity’s financial position at 30 June 2023 and of its performance for the financial year
ended on that date;
b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable; and
c) at the date of this declaration, there are reasonable grounds to believe that the members of the extended Closed Group identified in note I2 will be
able to meet any obligations or liabilities to which they are, or may become, subject by virtue of the Deed of Cross Guarantee described in note G1.
The basis of preparation note confirms that the financial statements also comply with IFRS as issued by the IASB.
The Directors have been given the declarations by the CEO & Managing Director and Chief Financial Officer required by section 295A
of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Directors.
Campbell Hanan
Director
Sydney
16 August 2023
Reimagine Urban LifeGovernanceOtherPerformance by pillarRisk managementFinancial and operational results 122
Independent auditor’s report
to the members of Mirvac Limited
Independent auditor’s report
To the stapled securityholders of Mirvac Limited
Report on the audit of the financial report
Our opinion
In our opinion:
The accompanying financial report of Mirvac Limited (the Company) and its controlled entities
(together the Group) is in accordance with the Corporations Act 2001, including:
(a) giving a true and fair view of the Group's financial position as at 30 June 2023 and of its
financial performance for the year then ended; and
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
What we have audited
The Group’s financial report comprises:
●
●
●
●
●
●
the consolidated statement of financial position as at 30 June 2023
the consolidated statement of comprehensive income for the year then ended
the consolidated statement of changes in equity for the year then ended
the consolidated statement of cash flows for the year then ended
the notes to the consolidated financial statements, which include significant accounting policies
and other explanatory information
the Directors’ declaration.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
PricewaterhouseCoopers, ABN 52 780 433 757
One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001
T: +61 2 8266 0000, F: +61 2 8266 9999
Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124
T: +61 2 9659 2476, F: +61 2 8266 9999
Liability limited by a scheme approved under Professional Standards Legislation.
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Our audit approach
An audit is designed to provide reasonable assurance about whether the financial report is free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.
We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial report as a whole, taking into account the geographic and management
structure of the Group, its accounting processes and controls and the industry in which it operates.
Materiality
Audit scope
Key audit matters
For the purpose of our audit we
used overall Group materiality of
$29.93 million, which represents
approximately 5% of the Funds
from Operations of the Group.
We applied this threshold,
together with qualitative
considerations, to determine the
scope of our audit and the nature,
timing and extent of our audit
procedures and to evaluate the
effect of misstatements on the
financial report as a whole.
We chose Funds from Operations
of the Group because, in our view,
it is the benchmark against which
the performance of the Group is
most commonly measured.
We utilised a 5% threshold based
on our professional judgement,
noting it is within the range of
commonly acceptable thresholds.
Our audit focused on where the
Group made subjective
judgements; for example, significant
accounting estimates involving
assumptions and inherently
uncertain future events.
The Group operates across
Sydney, Melbourne, Brisbane,
Canberra and Perth and has three
key business units: Investment,
Funds and Development.
The accounting processes are
structured around a Group finance
function at its head office in
Sydney.
Amongst other relevant topics, we
communicated the following key
audit matters to the Audit, Risk
and Compliance Committee:
• Carrying value of
inventories
•
Fair value of investment
properties
• Recognition of
developments and
construction
management services
revenue
These are further described in the
Key audit matters section of our
report.
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Independent auditor’s report
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report for the current period. The key audit matters were addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. Further, any commentary on the outcomes of a
particular audit procedure is made in that context.
Key audit matter
How our audit addressed the key audit matter
Carrying value of inventories
(Refer to note C4) $3,239m
Inventories are recognised at the lower of cost and
net realisable value for each development project.
The Group’s estimate of net realisable value includes
assumptions about future market and economic
conditions which are inherently subject to the risk of
change.
This was a key audit matter given:
● The relative size of the inventories balance
in the Consolidated Statement of Financial
Position; and
● The significant judgement and uncertainty
involved in estimating net realisable value.
We evaluated the design of the Group’s relevant
controls over the carrying value of inventories and
assessed whether a sample of these controls
operated effectively throughout the year including:
● The Group’s approval process for
capitalising costs relating to new
development projects; and
● The Group’s process for review of key
assumptions used in the estimation of net
realisable value across the development
project portfolio.
We performed a risk assessment over the Group’s
development project portfolio to determine those
projects at greater risk of being carried at an amount
in excess of their recoverable amount. Our risk
assessment was informed by our understanding of
the significant assumptions relevant to the net
realisable value of each project, consideration of the
results of the Group’s process for estimation of net
realisable value, the stage of development progress
of each project, our observations made through site
visits during the year and our understanding of
relevant project status.
For those projects which were assessed as being at
greater risk, we performed procedures to assess the
appropriateness of key assumptions used in the
Group’s estimate of net realisable value. In our audit
procedures we:
● Obtained the project feasibility model that
the Group uses to assess net realisable
value and held discussions with
management to develop an understanding of
the basis for assumptions used in the model.
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● Assessed the appropriateness of key
assumptions by:
○ Comparing estimated sales prices
to supporting market data.
○ Considering the basis for other key
assumptions including whether
costs to complete are consistent
with the expected project
completion programmes, the
planned sales incentives and any
allocation of costs across stages on
multistage projects.
● Assessed whether the carrying value was
the lower of cost and net realisable value.
We also assessed the reasonableness of the Group’s
disclosures against the requirements of Australian
Accounting Standards.
Key audit matter
How our audit addressed the key audit matter
Fair value of investment properties
(Refer to note C2) $9,753m
Investment properties are recognised at fair value.
The Group’s estimate of fair value of investment
properties includes assumptions about unobservable
inputs including future market and economic
conditions which are inherently subject to the risk of
change.
At each reporting period, the Directors determine the
fair value of the Group’s investment property portfolio
having regard to the Group’s valuation policy which
requires all properties to be externally valued by
valuation experts at least once every two years. In the
period between external valuations the Directors’
valuation is supported by internal Mirvac valuation
models.
Fair value of investment properties was a key audit
matter because:
●
Investment property balances are financially
significant in the Consolidated Statement of
Financial Position.
We evaluated the design of the Group’s relevant
controls over investment property valuations and
assessed whether a sample of these controls
operated effectively throughout the year including:
● The Group’s compliance with its policy to
externally value all properties at least once
in the last two years and to rotate valuation
firms.
● The approval of the adopted fair values for
all individual properties by the Directors.
We evaluated the appropriateness of the valuation
methodologies used against the requirements of
Australian Accounting Standards.
We agreed the fair values of all properties to the
external valuation or internal valuation model
(together, the ‘valuations’) and assessed the
competency, capability and objectivity of the relevant
external or internal valuer.
We read recent independent property market reports
to develop our understanding of the prevailing market
conditions in which the Group invests.
We engaged PwC valuation experts as part of
developing an understanding of the prevailing market
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Independent auditor’s report
● The impact of changes in the fair value of
investment properties can have a significant
effect on the Group’s total comprehensive
income.
●
Investment property valuations are
inherently subjective due to the use of
unobservable inputs in the valuation
methodology.
● Fair values are highly sensitive to changes in
key assumptions.
conditions and their expected impact on the Group’s
investment properties.
We met with management to discuss the specifics of
the property portfolio including, amongst other things,
any significant leasing activity, capital expenditure or
vacancies impacting the portfolio.
We evaluated the completeness and accuracy of
tenancy schedules used in the valuations on a
sample basis to evaluate whether the relevant leasing
information had been correctly input.
We performed a risk assessment over the Group’s
investment property portfolio to determine those
properties at greater risk of fair value being materially
misstated. Our risk assessment was informed by our
understanding of each property, consideration of the
results of the Group’s estimate of fair value and our
understanding of current market conditions.
For those properties which were assessed as being at
greater risk, we performed procedures to assess the
appropriateness of key assumptions used in the
Group’s assessment of fair value including the
performance of the following procedures over the
valuations:
● Obtained the valuation and held discussions
with management to develop an
understanding of the basis for assumptions
used.
● Assessed the appropriateness of the
methodology adopted and the mathematical
accuracy of the valuations.
● Assessed the appropriateness of the
capitalisation rate, discount rate and market
rents used in the valuation by comparing
them against market data for comparable
properties.
● Assessed the appropriateness of rental
income data used in the valuation against
rental income recorded in the general ledger
in FY23 for each property.
We also assessed the reasonableness of the Group’s
disclosures against the requirements of Australian
Accounting Standards.
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Key audit matter
How our audit addressed the key audit matter
Recognition of development & construction
management services revenue
(Refer to note B2) $346m
Development and construction management services
revenue is recognised based on the satisfaction of
performance obligations.
There is judgement required by the Group to
determine when performance obligations are met. In
particular, where revenue is recognised on a
percentage of completion basis, it involves the use of
forward-looking assumptions including forecast costs
of completion and the date of project completion.
Revenue recognition on construction projects was a
key audit matter because:
● There is significant judgement in determining
the amount of revenue to be recognised in
the year;
We evaluated the design of the Group’s relevant
controls over the recognition of development &
construction management services revenue and
assessed whether a sample of these controls
operated effectively throughout the year, including:
● The Group’s process for review of key
assumptions used in the estimation of
forward-looking assumptions including
forecast costs of completion and the date of
project completion.
For a sample of projects we:
● Obtained the relevant development
agreements executed between the Group
and the external customer(s) and evaluated
the terms of the agreement to obtain an
understanding of the performance
obligations and transaction price.
● Performed site visits to obtain an
● These revenue streams are significant to the
Group’s comprehensive income; and
understanding of the overall project scope
and stage of progress.
● Changes in the assumptions used to
estimate the percentage of completion on
construction projects can have a significant
effect on the Group’s comprehensive
income.
We performed audit procedures over a sample of
projects for which revenue was recognised in the
year. In our audit procedures we:
● Obtained and discussed the project
feasibility model with management to
develop an understanding of project status
and risks and the basis of the assumptions
used by the Group in their assessment of
revenue and costs for the year.
● Obtained and assessed the appropriateness
of evidence used by the Group to support
forecast project revenue.
● Performed look-back procedures, comparing
current year revenue recognised to prior
year revenue forecasts for FY23.
● Obtained and assessed the appropriateness
of evidence used by the Group to support
forecast costs of completion and date of
project completion.
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● Performed look-back procedures, comparing
current year costs recognised to prior year
cost forecasts for FY23.
● Assessed the appropriateness of
capitalisation of costs incurred to date and
forecast costs to completion.
We also assessed the reasonableness of the Group’s
disclosures against the requirements of Australian
Accounting Standards.
Other information
The directors are responsible for the other information. The other information comprises the
information included in the annual report for the year ended 30 June 2023, but does not include the
financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
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if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our
auditor's report.
Report on the remuneration report
Our opinion on the remuneration report
We have audited the remuneration report included in pages 49 to 69 of the directors’ report for the
year ended 30 June 2023.
In our opinion, the remuneration report of Mirvac Limited for the year ended 30 June 2023 complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the remuneration report, based on our audit conducted in accordance with
Australian Auditing Standards.
PricewaterhouseCoopers
Voula Papageorgiou
Partner
Joe Sheeran
Partner
Sydney
16 August 2023
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Securityholder information
MANAGING YOUR SECURITYHOLDING
Securityholders with queries concerning their holding, distribution payments or other related matters should contact Mirvac’s registry, Link Market
Services Limited, as follows:
> Mirvac information line (toll free within Australia): +61 1800 356 444; or
> Website: www.linkmarketservices.com.au
When contacting the registry, please quote your current address details together with your Securityholder Reference Number (SRN) or Holder
Identification Number (HIN) as shown on your Issuer Sponsored or CHESS statements. The most efficient way to access your securityholding details
is online at www.linkmarketservices.com.au. You will need your SRN or your HIN (this reference number is recorded in statements that you receive
about your holding in Mirvac) when you log-in online.
You can do the following online at www.linkmarketservices.com.au:
> elect to receive important communications by email;
> choose to have your distribution payments paid directly into your bank account;
> provide your tax file number (TFN) or Australian Business Number (ABN);
> lodge your votes for securityholder meetings; and
> Complete Tax Residency Certification (CRS/FATCA).
Managing your securityholding online is speedier, cost-effective and environmentally friendly. If it is easier for you to update your securityholding
information by post, you can download the forms from www.linkmarketservices.com.au or by contacting the Mirvac information line (toll free within
Australia) on +61 1800 356 444 to request the appropriate forms to be sent out to you.
The information set out below was prepared at 31 July 2023 and applies to Mirvac’s stapled securities (ASX code: MGR). As at 31 July 2023 there were
3,945,860,217 stapled securities on issue.
SUBSTANTIAL SECURITYHOLDERS
As disclosed in substantial holding notices lodged with the ASX at 31 July 2023:
Name
BlackRock Group (BlackRock Inc. and subsidiaries)
The Vanguard Group, Inc
State Street Corporation and subsidiaries
APG Asset Management N.V.
1. Percentage of issued equity held as at the date notice provided.
RANGE OF SECURITYHOLDERS
Range
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Date
of change
29/11/2021
15/11/2021
9/02/2023
27/01/2023
Number of
stapled
securities
Percentage of
issued equity 1
%
410,682,477
375,102,424
329,552,649
243,681,056
10.41
9.51
8.35
6.18
Number
of holders
Number
of securities
Percentage of
issued equity 1
%
7,909
10,551
4,799
5,698
233
3,655,846
28,926,909
35,380,611
135,544,514
3,742,352,337
0.09
0.73
0.90
3.44
94.84
Total number of securityholders
29,190
3,945,860,217
100.00
1. Percentage of issued equity held as at the date notice provided.
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Securityholder information
20 LARGEST SECURITYHOLDERS
Name
1. HSBC Custody Nominees (Australia) Limited
2.
J P Morgan Nominees Australia Pty Limited
3. Citicorp Nominees Pty Limited
4. National Nominees Limited
BNP Paribas Noms Pty Ltd
5.
6. BNP Paribas Nominees Pty Ltd
7. Citicorp Nominees Pty Limited
8. Australian Foundation Investment Company Limited
9. HSBC Custody Nominees (Australia) Limited
10. BNP Paribas Noms(Nz) Ltd
11. HSBC Custody Nominees (Australia) Limited
12. BNP Paribas Nominees Pty Ltd Hub24 Custodial Serv Ltd
13. Solium Nominees (Australia) Pty Ltd
14. HSBC Custody Nominees (Australia) Limited – A/C 2
15. Warbont Nominees Pty Ltd
16. Djerriwarrh Investments Limited
17. Mutual Trust Pty Ltd
18. Medich Capital Pty Ltd
19. Argo Investments Limited
20. Sobeda Pty Ltd
Total for 20 largest securityholders
Total other securityholders
Total stapled securities on issue
Other
131
Percentage of
Number of stapled
securities
issued equity
%
1,803,564,894
810,409,142
475,867,496
160,687,214
149,855,880
43,237,381
40,496,524
29,350,000
27,032,103
14,855,676
12,744,460
10,942,153
10,789,324
9,229,737
8,926,148
8,896,500
8,652,842
6,533,980
6,000,551
5,464,083
3,643,536,088
302,324,129
3,945,860,217
45.71
20.54
12.06
4.07
3.80
1.10
1.03
0.74
0.69
0.38
0.32
0.28
0.27
0.23
0.23
0.23
0.22
0.17
0.15
0.14
92.34
7.66
100.00
Number of securityholders holding less than a marketable parcel (being 213 securities at the closing market price of $2.34 on 31 July 2023): 2,024.
VOTING RIGHTS
Subject to the Constitutions of Mirvac Limited and of MPT and to any rights or restrictions for the time being attached to any class or classes of
shares, units or stapled securities:
> on a show of hands, each Member present in person or by proxy, attorney, or representative has one vote; and
> on a poll, each Member has:
– in the case of a resolution of Mirvac Limited, one vote for each share in Mirvac Limited held; and
– in the case of a resolution of MPT, one vote for each whole $1.00 of unit value in MPT held.
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Australian Accounting Standards Board
LTI
Long-term incentives
Australian business number
Annual General and General Meeting
Audit, Risk & Compliance Committee
Australian Registered Scheme Number
LTIFR
Lost time injury frequency rates
MPC
MPT
MTN
Masterplanned communities
Mirvac Property Trust
Medium-term notes
Australian Securities and Investments Commission
NABERS National Australian Built Environment Rating System
132
Glossary
AASB
ABN
AGM
ARCC
ARSN
ASIC
ASX
AUD
BTR
Australian Securities Exchange
Australian dollar
Build to Rent
CCIRS
Cross currency interest rate swap
CEO
Chief Executive Officer
CEO/MD Chief Executive Officer/Managing Director
CFO
CGU
Chief Financial Officer
Cash generating unit
CHESS
Clearing House Electronic Subregister System
CPSS
Cents per stapled security
DCF
DRP
EBIT
Discounted cash flow
Dividend/distribution reinvestment plan
Earnings before interest and taxes
EBITDA Earnings before interest, taxes, depreciation and amortisation
ECL
EEP
EIS
ELT
EPS
FFO
FY22
FY23
GLA
HIN
HRC
HSE
Expected credit loss
Employee Exemption Plan
Employee Incentive Scheme
Executive Leadership Team
Earnings per stapled security
Funds From Operations
Year ending 30 June 2022
Year ending 30 June 2023
Gross leasable area
Holder Identification Number
Human Resources Committee
Health, safety and environment
HSE&S Health, safety, environment and sustainability
IASB
IFRS
IP
IPUC
JVA
KMP
LSL
International Accounting Standards Board
International Financial Reporting Standards
Investment properties
Investment properties under construction
Joint ventures and associates
Key management personnel
Long service leave
NED
NOI
NRV
PPE
PwC
RAP
ROIC
SBP
SaaS
SoCE
SoCI
SoFP
SRN
STI
TFN
TGS
TSR
TTC
USPP
WACC
WALE
Non-Executive Directors
Net operating income
Net realisable value
Property, plant and equipment
PricewaterhouseCoopers
Reconciliation action plan
Return on invested capital
Security-based payments
Software-as-a-Service
Statement of changes in equity
Statement of comprehensive income
Statement of financial position
Securityholder Reference Number
Short-term incentives
Tax file number
Tax Governance Statement
Total shareholder return
Tax Transparency Code
US Private Placement
Weighted average cost of capital
Weighted average lease expiry
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133
Directory & Upcoming Events
Registered office/Principal office
Mirvac Group (comprising Mirvac Limited ABN 92 003 280 699
and Mirvac Funds Limited ABN 70 002 561 640, AFSL 233121
as responsible entity of MPT ARSN 086 780 645)
Level 28, 200 George Street
Sydney NSW 2000
Telephone +61 2 9080 8000
Facsimile +61 2 9080 8111
www.mirvac.com
Securities exchange listing
Mirvac is listed on the Australian Securities Exchange (ASX code: MGR).
Directors
Robert Sindel (Chair)
Campbell Hanan (CEO/MD)
Christine Bartlett
Damien Frawley
Jane Hewitt
James M. Millar AM
Samantha Mostyn AO
Peter Nash
Company Secretary
Michelle Favelle
Stapled security registry
Link Market Services Limited
Parramatta Square, Level 22, Tower 6
10 Darcey Street, Paramatta NSW 2150
Telephone +61 1800 356 444
Securityholder enquiries
Telephone +61 1800 356 444
Correspondence should be sent to:
Mirvac Group
C/- Link Market Services Limited
Locked Bag 14
Sydney South NSW 1235.
Further investor information can be located in the
Investor Centre tab on Mirvac’s website at www.mirvac.com
Auditor
PricewaterhouseCoopers
One International Towers Sydney,
Watermans Quay Barangaroo NSW 2000
Annual General and General Meeting
Mirvac Group’s 2023 AGM will be held at 11.00am (AEDT)
Thursday, 16 November 2023
Upcoming events
25 October 2023
16 November 2023 Annual General and General Meetings
First Quarter Operational Update
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