Mirvac’s urban strategy delivered excellent results in FY17, with operating earnings up 11 per cent and distributions up 5 per cent, at the top end of guidance provided.
The 2017 financial year was an outstanding year for Mirvac, and our ambition to reimagine urban life by creating, owning and managing high-quality assets in Australia’s largest cities has delivered strong results across the Group, positioning us well for the future.
Mirvac is an integrated, urban property group and a key contributor to Australia’s major cities.
Mirvac’s urban strategy and a strong focus on capital management delivered growth in FY17, and has ensured the Group is well placed for the year ahead.
In February this year, we launched Marrick & Co in Sydney’s inner west: a 220-apartment development on the old Marrickville Hospital site.
Mirvac has a priority focus on the health and safety of its employees, contractors and customers, and in FY17, we launched a refreshed policy and focus to strengthen our safety practices, behaviours and culture across our business, while supporting the wellbeing of our people, places and the communities in which we operate.
Developing a Reconciliation Action Plan (RAP) has been one of Mirvac’s key cultural goals over the past 12 months.
This Changes Everything is Mirvac’s sustainability strategy, comprised of four focus areas with long-term missions.
This Changes Everything FY17 at a glance
Mission: To demonstrate investment in communities within and beyond our boundaries by 2018
Creating vibrant and inclusive communities is a fundamental part of Mirvac’s vision to Reimagine Urban Life. From our safe, neighbourly residential developments to the vertical communities in our office buildings, we create places where people can connect and collaborate.
This year, we’ve carried on driving better community outcomes through a range of initiatives, from employees donating their time and money to charity, to supporting public art projects. With our community framework now complete and our Reconciliation Action Plan launched in July this year, we’ve also made great progress towards achieving our strategy goals.
Our measurement of community investment is validated independently through the LBG Australia and New Zealand. Our total contribution this year was $1,749,961, down from $2,065,960 last year, which had included big initiatives such as the auction of a home for the Make-A-Wish Foundation. The total investment includes a management contribution of $263,462. Leverage contributions (including contributions for customers, partners and employees) was up this year to $637,893 from $321,957 in FY16. We are measuring social return on investment and outcomes in the community in order to predict, demonstrate and influence future community engagement at Mirvac, focussing on managing social risk and co creating opportunities with our neighbours.
From engaging with local Indigenous communities at Australian Technology Park, to running the Mums & Co program across our retail centres, we have made many great community connections this year. One highlight was our public art initiative at Broadway Shopping Centre, Sydney, which you can read about here.
Whether it’s through giving time, money, or both, we take our responsibilities to engage with, and contribute to, the not-for-profit sector seriously. We also recognise that in this exchange, we gain as much as we give. We learn more about our operating context, about the communities from which we gain skills and resources, and we understand our social risks and opportunities more deeply.
We understand that social cohesion is good for business. We can both contribute to and grow from these partnerships.
Our relationship with national charity partner, The Smith Family, now in its third year, has gone from strength to strength. In FY17, we supported The Smith Family through a number of activities, the most notable being the Share campaign. You can read more about it here.
Our employees have also supported a wide range of causes and organisations, and in doing so they have gained valuable insights and understanding of the communities in which we operate. For a full overview here.
After developing our social return on investment (SROI) measurement process, which was validated externally, we have now piloted it nationally by embedding it in to the project delivery process. This means that, for the first time, we have a step in our development planning process to capture and predict the social impact of each proposed development.
What does that mean for our business? It means that we are measuring the key elements we know are important to our customers about their communities, like feeling safe and engaging with their neighbours. Having this data enables us to design and plan with these elements in mind, and it facilitates a range of constructive conversations with local and state governments about what it’s like to partner with Mirvac. It helps us to build relationships with potential partners that are rooted in trust that Mirvac cares about and delivers on community needs.
As a result, our development managers can now see how their investments compare to other similar Mirvac developments when it comes to things like open space and community facilities. Based on the predicted SROI, our teams are able to consider whether they have enough funding, and whether it’s been allocated to the right areas. The SROI research and prediction tool is also allowing development managers to engage in external conversations with local authorities about proposed design and investment decisions. By providing predicted social outcomes, we can model and negotiate different development scenarios, and clearly demonstrate the Mirvac difference.
of investment (including $263,462 of management cost)
value of hours of support
Leverage contributions up from $321,957 in FY17
fundraising effort in one day for NSW hard hat day
We recognise the importance of incorporating community assessments to understand local needs and values in our project delivery processes; from the early consultation stages, through the creation of ongoing plans for existing assets, these assessments help us to better understand social risks and opportunities.