Mirvac shares lift on better-than-expected earnings, strong outlook
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More news: Shares in Mirvac jumped 5.4% to $2.26 in early trading on the ASX despite the property developer swinging to a statutory loss because of revaluations in its portfolio. However, analysts said the company's $252 million operating profit reflected stronger-than-expected results. Mirvac has also reaffirmed its full-year EPS guidance.
What they said: "FY24 guidance suggests a 9% to 13% year-on-year growth in the second half... we see Mirvac as being in a strong position to benefit from a more stable interest rate environment," Jarden analyst Lou Pirenc said in a note.
Mirvac swings to half-year loss amid higher rates
The news: Property developer Mirvac has swung to a half-year loss on the back of devaluations amid high interest rates.
The numbers: It reported a statutory net loss of $201 million for the six months to 31 December, compared to a $215 million profit a year ago.
Excluding devaluations in its portfolio, operating profit was down 17% to $252 million. Total revenue rose 47% to $1.26 billion, while interim distribution was at 4.5 cents a share.
The context: Chief executive Campbell Hanan said the company had delivered a solid first half result with its investment portfolio remaining resilient with a strong period of leasing and high occupancy.
The company reaffirmed its full-year guidance of operating earnings per security of 14.0-14.3 cents and distribution per security of at least 10.5 cents, subject to no material change in the operating environment.
What they said: “Our key priorities for the remainder of the financial year are to achieve our planned residential lot settlement target, progress tenant pre-commitments and secure capital partners," Hanan said.
The source: ASX announcement
