- MGR shares closed lower at $2.55
- Development helped offset the retail focused Integrated Investment Portfolio
- Group EBIT was $391 million
Mirvac (ASX: MGR) is the latest to release its half-yearly results, with an overall increase in statutory profit recorded. This is despite the hit from the company’s retail portfolio, residential made up for the losses.
The company started trading today at $2.61, moving up to $2.64 shortly afterwards. It was down from then onwards, the lowest was after lunch at $2.50. MGR share prices recovered slightly in the afternoon, closing at $2.55.
“As we expected, the extended lockdowns in the first half of the financial year impacted the performance of our Integrated Investment Portfolio, concentrated in retail,” said Mirvac CEO and MD Susan Lloyd-Hurwitz.
“However, this was offset by a strong performance in our development businesses. In residential, for example, we continued to see strong sales momentum despite the roll-off of government stimulus, with 95 per cent of forecast EBIT for FY22 already secured.
“Successful pre-leasing and execution in commercial & mixed use also supported earnings and asset revaluations, as we continue to focus on creating and curating high-quality assets that will deliver future income to the Group.”
| 2021 $m |
2020 $m |
||||
| Total revenue and other income | up | 38% | to | 1,654 | 1,196 |
| Profit for the half year attributable to stapled securityholders | up | 44% | to | 565 | 392 |
| Operating profit after tax | up | 9% | to | 297 | 273 |
| Distributions | Record date | Amount per security |
Franked amount per security | ||
| Interim distribution payable on 28 February 2022 | 31 December 2021 | 5.1 cents | – | ||
| Interim distribution paid on 1 March 2021 | 31 December 2020 | 4.8 cents | – | ||
Source: Mirvac.
Ms Lloyd-Hurwitz also praised the company’s environmental credentials:
“We also made significant strides in our commitment to having a positive impact on the planet during the reporting period, becoming the first Australian property group to be net positive carbon for our scope 1 and 2 emissions, nine years ahead of our 2030 target.
“This tremendous achievement delivers a number of benefits to our business, customers, and partners, and underscores our view that companies like ours must exist for more than just profit.”
| Ratios | 2021 | 2020 |
| Profit before income tax / Total revenue and other income | 37.2% | 34.4% |
| Profit for the half year attributable to stapled security holders / Total equity | 5.1% | 3.8% |
| Earnings per stapled security (EPS) | 2021 | 2020 |
| Basic EPS | 14.3 cents | 10.0 cents |
| Diluted EPS | 14.3 cents | 10.0 cents |
| Net tangible asset (NTA) backing per ordinary security | 2021 | 2020 |
| Excluding EIS securities | $2.76 | $2.58 |
| Including EIS securities | $2.76 | $2.58 |
In other highlights, Mirvac Group’s EBIT was up 8% to $391 million, the company settled 21% more residential lots (1,303), and exchanged over 1,800 residential lots (up 33% on previous corresponding period).
Mirvac gearing is 22.3%, and has an operating cash flow of $413 million.
Across the company’s other portfolios, EBIT for commercial & mixed-use was up 248% to $73 million, integrated investment portfolio was down 5% to $270 million, and residential was up 17% to $89 million.
