Mirvac Group 3Q17 Operational Update

Mirvac today provided an operational update for the third quarter of the 2017 financial year (FY17), with the Group expecting to achieve operating earnings of 14.4 cents per stapled security (cpss) and distributions of 10.4cpss, which is at the top end of previous guidance.

Mirvac’s CEO & Managing Director, Susan Lloyd-Hurwitz, commented, “Our focused urban strategy and our ability to create, own and manage quality urban assets means we are extremely well‑placed to deliver a strong set of results in FY17, including operating earnings growth of 11 per cent and distribution growth of 5 per cent, which is at the top end of our previous guidance.

“We have maintained strong metrics within our investment portfolio and continue to progress our commercial development pipeline, which will further improve the quality of our portfolios.

“Within our residential business, we have seen a solid amount of sales activity, up 18 per cent on the prior corresponding period, and we remain on track to achieve a full-year return on invested capital of more than 15 per cent. We also expect to settle approximately 3,300 residential lots in FY17.

“Our continued strong performance has been driven largely by our urban focus and our strategic overweight to Sydney and Melbourne, which remain the key contributors to Australia’s economic output and population growth.

“We believe we will continue to benefit from the densification of these cities in the years to come, through our urban asset creation and mixed‑use capabilities.

“With housing affordability becoming an increasingly concerning issue in Sydney, Mirvac launched its The Right Start initiative during the quarter to assist first time home buyers in securing their own home. The Right Start gave over 50 first home buyers the opportunity to purchase at our Sydney Olympic Park development, and we will continue to look at how we can address housing affordability in Sydney.”

Read the Mirvac Group 3Q17 Operational Update