Mirvac posts profit decline

Broadway shopping centreProperty developer and retail landlord Mirvac has reported net profit of $1.09 billion, down 6 per cent from $1.16 billion last year in its full-year results.

The result marks the third consecutive year Mirvac has achieved a statutory profit of more than $1 billion.

The company’s operating profit however jumped nine per cent to $580 million, up from the previous year’s $534 million.

Mirvac’s full-year revenue fell seven per cent to $2.2 billion.

“Our purpose to reimagine urban life and our urban asset creation strategy underpinned another excellent year in FY18, delivering strong earnings growth for our security holders and ensuring we have a resilient and sustainable business that is well-placed for the future,” said Susan Lloyd-Hurwitz, Mirvac’s CEO and managing director.

“This is reflected by a robust capital position with good visibility of future earnings and each business unit performing at the top of its class.”

Lloyd-Hurwitz said market conditions in the residential sector have normalised.

“We achieved our target of approximately 3,400 residential lot settlements during the financial year, and delivered a return on invested capital of 18.1 per cent,” she said.

Mirvac has provided an EPS guidance of between 16.8 to 17.1 cpss for FY19 which represents an increase in earnings of between two to four per cent and distribution guidance of 11.6 cpss which represents DPS growth of five per cent.

Retail highlights

Mirvac said it maintained high occupancy in its retail portfolio at 99.2 per cent, with comparable MAT sales growth of 3.1 per cent and comparable specialty sales growth of 3.7 per cent; and increased comparable specialty sales productivity to $10,085 per square metre.

“Our portfolio of bespoke urban retail centres has delivered solid results, despite a competitive retail environment,” said Lloyd Hurwitz.

“We have a strategy to deliver unique experiences for our customers, and this approach, along with our strategic weighting to the best and most resilient urban markets, has ensured a continued outperformance in this sector.”

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