Mirvac profit dips in ‘challenging market’

Mirvac has reported a 6.0 per cent dip in full-year profit to $1 billion as the property group says trust in its brand is helping sustain it as the residential building industry goes through a rough patch.

Revenue for the 12 months to June 30 was down 1.0 per cent on the previous year to $2.78 billion and Mirvac will pay an unfranked final distribution of 6.3 cents, up from 5.5 cents in the previous corresponding period.

“Despite a challenging market, we have seen sustained sales throughout the financial year, and we achieved our settlement target and maintained our default rate at less than two per cent,” said Susan Lloyd-Hurwitz, Mirvac chief executive.

“This is testament to the enduring quality of our products and our trusted brand.”

The company’s earnings from residential building fell 33 per cent from the previous year to $201 million – a result it said was as expected and due to fewer apartment lot settlements.

Earnings before interest and taxes from Mirvac’s office and industrial division rose 26 per cent and its retail segment edged up 4.0 per cent.

Lloyd-Hurwitz said their retail division delivered another solid result, which is pleasing news given the highly competitive and rapidly evolving retail sector.

“Our commitment to constantly curating retail mixes and creating unique experiences has created a portfolio of thriving retail centres that offers the right retail in the right urban locations – densely populated with low unemployment, high incomes and strong population growth,” she said.

“We are also seeing the increase in value that our retail expertise is able to deliver to our office and residential portfolio.”

Mirvac shares were up 4.23 per cent to $3.325 at 1305 AEST on Thursday.

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