REPORTING SEASON: Mirvac Group (MGR)
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Figure 1: Mirvac Group 12 month chart
Mirvac Group (MGR) reaps rewards through strong housing market
– Mirvac Group’s (MGR) 2015 full year result came in at the top end of the company and market’s guidance. Strong demand in residential and commercial property boosted the result. Positive returns and increased valuations of newly purchased assets also allowed Mirvac’s operating profit to beat market expectations. Development profit margins lifted to 10.7% from 8.6%. MGR is targeting 12% stgelopment return on invested capital (ROIC) by FY17 after posting 11.1% in FY15. Mirvac listed a 23.6% improved residential gross margins.
– Mirvac’s Net income increased by 36% to $609.9million, with the value of all properties on its books totalling $172.1Million. Mirvac’s occupancy in its investment portfolio is now just below 97%, with an average lease expiry of 4.5 years.
– Today Mirvac said it is looking into the possible acquisition of the Investa Office Management Platform, alongside part ownership of Investa Commercial Property Fund, Investa Property Trust and Investa Office Fund.
– Mirvac announced it is expecting FY16 operational profit of between $470- $482Million. This is slightly below market guidance, with earnings per share (EPS) to normalise back to $0.127- $0.13
– Mirvac will pay a distribution to shareholders of $0.49 a share on 26 August 2015