Mirvac shares defy gloomy results to lift 3.73%
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More news: Mirvac shares jumped 3.73% to $2.37 by midday, after reporting weaker earnings that were in line with guidance provided in April.
Mirvac swings to $165m loss as costs and rates bite
The news: Mirvac has recorded a statutory full-year loss of $165 million after posting a $906 million profit in the previous year. The property group said tighter availability, higher cost of capital and the high interest rate environment contributed to the result.
The numbers: Mirvac's operating profit fell 3% to $580 million, while earnings per share dropped 3% to 14.7 cents. The group settled 2,298 residential lots but only exchanged 1,638 across apartments and master-planned communities due to high rates, fewer product launches and low first home-buyer activity.
The context: The high interest, high inflation environment continues to put pressure on property development, lifting costs while demand drags under the cost of borrowing. Group CEO and managing director Campbell Hanan said despite market pressures, Mirvac's multi-sector development pipeline, including upcoming apartment completions and further product launches, should capture expected demand in an undersupplied market.
The source: ASX Announcement
