Property asset managers Mirvac Group [ASX:MGR] posted dismal progression in the form of its interim results for the half year ending December 2022, claiming it went up just 3% in operating profit.
The group’s statutory profit is down on 1H22, moving from last year’s $565 million to $215 million.
‘Challenging market conditions’ were to blame, lowering property revaluations and resulting in the distribution of 7.7 cents per stapled security (cpss).
The MGR share price was $2.28 on Thursday afternoon, flat on the week but up more than 7% so far in 2023.
Source: TradingView
Mirvac Group reports lower statutory profit but holds fast to goals
Earlier on Thursday, Mirvac dished out its interim results for the half year ending December 2022, announcing that challenging market conditions have been a disrupter for company profits for the period.
The group’s statutory profit moved from 1H 2022’s $565 million to the total of $215 million for the first half of 2023 — this was said to have been a result, most primarily, of lower investment property revaluations that manifested in the most recent period.
Investments EBIT totalled $335 million, which increased 24% on the first half 2022, when the total was $270 million. Cash collection, development income, and like-for-like net operating income growth of $9 million helped by inflation-high fees from clients boosted this result.
Mirvac reported a $305 million operating profit, up 3% in the first half of 2022, which manifested 7.7 cents per stapled security (cpss).
Other highlights included the company providing a half-year distribution of $205 million, 5.2 cpss, and an increase of 2%.
Mirvac’s CEO and Managing Director Susan Lloyd-Hurwitz provided her final statements today, as she will be soon passing over the helm to Campbell Hanan, who is to become the new Group CEO and Managing Director at the beginning of March.
Lloyd-Hurwitz commented:
‘We have made good progress on our asset sales program, improving our portfolio composition, and while conditions across the residential sector have softened, our pre-sales grew to $1.7bn, providing us with good visibility of future earnings.
‘While ongoing supply chain constraints, labour shortages, wet weather, inflationary pressures, and higher interest rates continued to impact our business, our integrated and diverse business model, the quality of our portfolio, our strong balance sheet, and disciplined capital management have positioned us well to navigate through the cycle.’
The company will focus on a disciplined approach to capital management to help it deliver on asset creation and curation capabilities.
Mirvac reaffirmed its FY23 operating earnings target of at least 15.5 cpss and distributions of at least 10.5 cpss, along with the goal of reaching a count of at least 2,500 residential settlements for the fiscal year.
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Regards,
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For Money Morning
