Mirvac defies property downturn with near 40% increase in profits
Mirvac have posted a surprise boost in profits in their in their half year results ended 31 December 2018.
Their operating profit after tax increased by 26 percent to $290 million from $260 million.
Mirvac’s CEO and managing director Susan Lloyd-Hurwitz, said the results were driven primarily by their high-performing investment portfolio.
"Our proven in-house asset creation capability remains a key competitive advantage for the Group, allowing us to generate value through the strength of our integrated model," Lloyd-Hurtwitz said.
Mirvac's biggest profit increase was seen in the residential sector, where their operating results have jumped from $34 million in 1H18 to $58 million in 1H19, an increase of over 70%.
The increase however reflects timings of settlements Mirvac advised, which were skewed more to 1H19 compared to 1H18.
Mirvac said they are on track to deliver FY19 lot target with a greater proportion of settlements coming from masterplanned community projects.
“Despite the challenging residential market, we believe our high-quality residential product, located close to amenity and transport, will continue to outperform the wider market," Lloyd-Hurtwitz added.
"The resilience of our residential division along with the robustness of our investment portfolio, means we remain confident in our ability to deliver operating earnings growth of between 3 and 4 per cent and distribution growth of 5 per cent in FY19.”
Mirvac posted residential pre-sales of $2 billion, with an existing pipeline that supports over 12,000 lot releases over the next four years.
They are on track to achieve over 2,500 lot settlements for FY19.
They completed 1,067 settlements in 1H19 and over 110 settlements in January 2019.
