Mirvac Dividend Higher As Valuations Drag On Profit

By Glenn Dyer | More Articles by Glenn Dyer

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.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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