Mirvac restructures business operations
Mirvac announced on Tuesday that operations would now be structured into four reporting segments: office and industrial; retail; residential; and corporate and other.
At Mirvac’s annual general meeting in November 2015, both chairman John Mulcahy and chief executive Susan Lloyd-Hurwitz said the company was working on identifying how it could unlock the full value from its business.
Mulcahy had said the market did not value Mirvac to reflect the performance of its high-quality assets.
There has been speculation of potential predators showing an interest in some of Mirvac’s commercial and residential assets, including China’s Ping An.
Mirvac has entered into two joint-ventures with Ping An Real Estate, a subsidiary of the Ping An Insurance Group of China, to develop residential projects at St Leonards Square in St Leonards and The Finery at Waterloo – both in Sydney.
Mirvac said on Tuesday that the new reporting structure would be simpler, focusing on business earnings inclusive of overhead costs.
It also strengthened accountability of the reporting of management and administration expenses within each business segment, and gave greater transparency over key operational measurements.
Mirvac said its 2016 annual results would reflect the new segment reporting structure.
Meanwhile, Mirvac affirmed its operating earnings guidance for 2016 of 12.9 to 13 cents per stapled security and its distribution guidance of 9.9 cents per security.
Mirvac securities were steady at $2.10.
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