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
Now in its fourth year, our innovation program, Hatch, has become more than just an experimental project; it’s now a fundamental part of how we do business. Over the past year, we’ve made some great headway on our missions, from finding radical new ways to build, to creating new offerings at the forefront of the future of work.
With innovation playing a role in a number of projects across the Group, and to meet the growing demand for Hatch services, Mirvac established a core innovation team in FY17, with lead innovators each aligned to a business unit. The Hatch team continues to be supported by Innovation Champions, with 160 Champions having received training across the business in the past 12 months.
Hatch Helpers was also introduced for those wanting the chance to be involved with innovation projects on a casual basis. Inspired by the idea of crowdsourcing, Hatch Helpers allows Mirvac employees to volunteer for projects when they have capacity, whether that means participating in ideation sessions, conducting experiments, or assisting with bids. There are currently 100 employees registered as Hatch Helpers, giving Mirvac a fantastic pool of additional talent and energy to draw from.
In 2016, the University of Technology Sydney (UTS) interviewed 21 leaders from Australia’s top ASX-listed businesses to explore their approach to innovation. Following their research, the UTS team produced a report entitled ‘View from the Top: 2016 Innovation Report’, with Hatch identified as a best practice innovation program. As well as being a great achievement and fantastic recognition of Hatch, it has led to an ongoing collaboration with UTS MBA students.
Identifying customer problems led to some exciting experiments in FY17, including Shopping Nanny, which has been trialled at our Rhodes Waterside, Broadway Sydney and Kawana Shoppingworld retail centres. Shopping Nanny gives customers the option to book a nanny to accompany them while they shop, keeping their children entertained and enhancing their experience. Following the success of the experiment, Shopping Nanny has now been implemented at Kawana Shopping world and Rhodes Waterside for 12 months, with extremely positive feedback from our customers to date.
At our Ascot Green apartment project in Brisbane, we are running experiments to explore our customers’ attitudes to solar energy. Here, we are giving customers the option to upgrade to have solar panels on their apartment roof, testing various propositions to see which people respond to best. Our goal is to learn what drives behavioural change, so we can deliver solar energy to our customers more effectively.
One of our goals for the year ahead is to roll out Group-wide innovation training further, empowering even more of our people to use the Hatch way of thinking. In addition, we are also exploring the idea of creating an open innovation platform, where we will invite the outside world to engage with us, paving the way for many more exciting collaborations.