Securities in property group, Mirvac fell more than 3% yesterday after investors gave the interim result a thumbs down.
The securities closed at $3.32, down 3.2% on the day after hitting a low of $3.15.
That was despite a boost to payout to security to an unfranked 6.1 cents a security from 5.3 cents for the December half in 2018.
Half-year operating profit rose 21% to $352 million, though the property group’s net result fell 5% to $613 million thanks to lower valuation gains on investment properties.
Revenue for the six months to December 31 rose 4% to $1.62 billion – driven by an increase in residential settlements during the period.
CEO Susan Lloyd-Hurwitz believes buyer sentiment in residential property is improving, and the market has rebounded in most locations.
The company also believes the Sydney CBD office market had moved past a recent trough.
The company is also looking forward to the first homes in its build-to-rent strategy.
Mirvac says it now look at building unit blocks focused on tenants, as more Australians rent for longer periods.
The company reaffirmed its 2019-20 operating earnings guidance of between 17.6 and 17.8 cents per stapled security.