Real estate group Mirvac (ASX:MGR) released its full financial year 2015 results this morning. The company reported growth in both statutory and operating profit as well as promising growth in net tangible assets per security.
Results have come in at the top end of last year’s forecasts. Coming into 2015 the company forecasted earnings per share of 12 - 12.3 cents and distributions of 9.2 – 9.4 cents. Full year results reported an operating profit after tax of $454.8 million, representing earnings per share of 12.3 cents, and full year distributions of 347.6 million, representing 9.4 cents per share. Statutory profit came in at $609.9 million, up 36 per cent on the previous year. Net tangible assets grew by 3 per cent, coming in at $1.74 per stapled security.
During FY15 the company executed approximately $940 million of acquisitions in key strategic locations across the retail, industrial and residential property sectors as well as asset sales of $406.7 million, including the sale of five office assets and two retail assets. The company maintained an occupancy ratio of 96.5 per cent and a weighted average lease expiry of 4.5 years, putting the group in a solid position going forward.
Future revenue looks bright as the group secured $2.0 billion in residential pre-sales and settled 2,271 residential lots, in line with the Groups target of greater than 2,200 lots. Additionally, Mirvac has secured 67 per cent of expected Development EBIT for FY16 and 57 per cent for FY17 as well an 11.1 per cent Development return on invested capital.
Mirvac’s CEO and MD, Susan Lloyd-Hurwitz commented, “We have delivered a solid result for FY15 at the top of our guidance range, which reflects our continued focus and discipline around executing our strategy.”
Looking into FY16, the group has offered EPS guidance in the range of 12.7 – 13 cents per share and distribution guidance of 9.7 – 9.9 cents per share. The group has indicated that earnings will be skewed to the second half of FY16. The forecasted growth is very much in line with growth experienced over FY15 and is largely on par with investors’ expectations.
Author: Ben Visser
Aug 13, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.