Charter Hall, Mirvac
Image – Charter Hall, Mirvac.
  • Mirvac operating profit down 9%, statutory profit up 61%
  • CQE statutory profit up 103.4%, operating EPS down 3%

More full year results have come through, the latest from Charter Hall Social Infrastructure REIT (ASX: CQE) and Mirvac (ASX: MGR) were released today.

Charter Hall Social Infrastructure REIT

If you’re wondering about Charter Hall Long WALE REIT (ASX: CLW), more information can be found here.

CQE finances are generally on the up, with the exception of operating earnings per unit, down 3%.

FY21 Change Direction
Statutory profit $174.1 million 103%
Operating earnings $58.0 million 13.50%
Operating EPS 16 cents 3%
DPS 19.7 cents
Gross assets $1.6 billion 13.30%
NTA $3.25 11.30%
WALE 15.2 years 2.5 years
Portfolio valuations increase $119.4 million 11.10%

Across the financial year, the company extended 106 Goodstart lease expiries by an average of 13 years and acquired Mater Health corporate headquarters ($122.5 million) and South Australian Emergency Services Command Centre ($80 million).

The company also divested 44 childcare assets for $85.3 million, including 20 remaining New Zealand assets and interest in the unlisted Charter Hall CIB Fund for $18.4 million.

“CQE is well positioned with low gearing and $207 million of investment capacity to deliver secure income and capital growth to investors,” said Charter Hall Social Infrastructure REIT’s Fund Manager, Travis Butcher.

Portfolio occupancy remains strong at 100%. WALE also increased from 12.7 years to 15.2 years.

Mirvac

“We saw momentum accelerate right across the business in FY21, with our powerhouse asset creation capability continuing to generate significant value,” said Mirvac’s CEO & Managing Director, Susan Lloyd-Hurwitz.

The business also recorded the highest number of residential sales since FY16.

FY21 Change Direction
Statutory profit $901 million 61%
Operating profit $550 million 9.0%
Operating EBIT $704 million 12%
DPS 9.9 cents 9%
EPS 14 cents
Gearing 22.80%
Group ROIC 7.20% 200 bps
NTA $2.67 5%
Residential sales 3375.00%

Like Goodman Group, Mirvac has been putting effort into reducing its impact on the environment. Mirvac reported a carbon footprint reduction of 80% across the investment portfolio.

“A continued focus on prudent capital management during FY21 has enabled the Group to manage the volatility caused by the global pandemic, providing us with flexibility and sufficient financial headroom to capitalise on improving market and business conditions,” added Ms Lloyd-Hurwitz.

The company’s operating cashflow is $635 million, up 41%, and has reduced average borrowing costs to 3.4% per annum. In June 2020, the figure was 4.0%.

Mirvac’s integrated investment portfolio also recorded gains, EBIT is up 6% to $576 million, NOI up 5% to $581 million, and cash collection rate was 98%. The portfolio also had an occupancy of 97.4% and WALE of 5.6 years.

The investment portfolio also saw AUM increase to $25 billion, with other highlights including an 11% valuation uplift on EY Centre 200 George Street in Sydney.

EBIT for the company’s commercial and mixed-use was $33 million and had a valuation gain of $121 million.

Residential had an operating EBIT of $168 million, which was 25% lower than the last financial year. The company attributed the change as “driven by a greater contribution from master planned community projects in FY21, compared to FY20 which benefited from record level apartment settlements.”

Mirvac also launched a number of ‘flagship’ projects including Quay at Waterfront (Brisbane), Green Square (Sydney) and George’s Cove (Sydney).

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