- Operating profit after tax up 8% to $596 million
- Fun year distribution of $404 million, representing 10.2 cpss
- Net tangible assets up 4% to $2.79
Mirvac Group (ASX: MGR) has announced its full-year results, with the company announcing a $5 million increase in statutory profit and 8% increase in operating profit after tax.
“There is no doubt that FY22 presented a more challenging operating environment. We experienced the ongoing impacts of COVID-19, supply chain issues, labour shortages, rising inflation and interest rates, geopolitical tension, and extreme wet weather, particularly across the east coast of Australia,” said Mirvac CEO and MD, Susan Lloyd-Hurwitz.
| Statutory profit | $906 million | Up $5 million |
| Operating profit after tax | $596 million | Up 8% |
| Operating EBIT | $773 million | Up 10% |
| Full year distribution | $404 million / 10.2 cpss | Up 3% |
| Operating EPS | 15.1 cpss | Up 8% |
| Net tangible assets | $2.79 | Up 4% |
Source: Mirvac.
Mirvac’s capital management highlights include gearing of 21.3%, at the lower end of the target range of 20 to 30%.
Operating cash flow for FY22 was $896 million, up 41% on last financial year. Mirvac also maintained its A-/A3 ratings with stable outlooks from Fitch Ratings and Moody’s Investors Service.
EBIT for commercial and mixed use developments up 173%
In MGR’s commercial and mixed use developments news for FY22, EBIT was $90 million, up 173% on FY21, driven by earnings from $1.3 billion of development completions. Mirvac also achieved practical completion on its Locomotive Workshop in South Eveleigh, Sydney, along with Heritage Lanes in Brisbane.
“Our $12.4bn commercial and mixed use development pipeline progressed well during the financial year and we achieved a number of key milestones on our major development projects,” said Ms Lloyd-Hurwitz.
“While cost inflation remains a headwind, our integrated design and construction capabilities provided a strong base from which to manage these risks, allowing us to continue to deliver value for our stakeholders.
“Overall, our extensive pipeline has the potential to deliver approximately $250 million of recurring annual income over time, along with approximately $1.8 billion in potential development value creation.”
Mirvac’s Integrated Investment Portfolio delivered an EBIT of $570 million, down 1% from last year. The portfolio maintained a high occupancy of 97.3% and a WALE of 5.6 years. Investment property revaluations provided an uplift of $305 million.
The company’s residential saw a 16% rise in EBIT to $195 million, driven by settlements being weighted towards stronger EBIT contributing projects across masterplanned communities and apartments.
Mirvac settled 2,523 residential lots, exceeding the 2,500 target, and achieved gross margins of 25%, above the company’s through-cycle target of 18-22 per cent.
Subject to no material change in the operating environment, MGR is targeting operating earnings in FY23 of at least 15.5 cpss and distributions of at least 10.5 cpss, along with greater than 2,500 residential lot settlements.
