MGR) Banks Sell Assets, Solid Housing Margins Against Headwinds

Diversified property giant Mirvac says strong demand for apartments and mixed-use developments will help offset challenges in the construction sector as it aims to pocket up to $1.3 billion from the sale of commercial real estate assets. says.

A strong development pipeline and residential growth helped Mirvac increase statutory earnings by 1% to $906 million in fiscal 2022. After-tax operating income for the period was $596 million, up 8% from the previous year.

Mirvac Chief Executive Susan Lloyd-Hurwitz said Thursday that despite a busy 12 months marked by COVID-19 lockdowns, severe weather along the East Coast and persistent supply chain issues, The company said it had settled 2,523 residential lots ahead of 2,500. Achieved settlement goal and advanced $30 billion development pipeline.

Mirvac chief Susan Lloyd-Hurwitz said:credit:Janie Barrett

Lloyd-Hurwitz warned that price growth is starting to slow after a strong housing market in 2021.

“The rate of price increases over the past two years has not been sustainable and is not good for society as a whole, so moderation is welcome,” she said.

ASX-listed Mirvac is celebrating its 50th anniversary and has a market capitalization of $8.2 billion. It owns and manages assets in the office, retail, industrial and fast-growing residential rental (BTR) residential businesses. Since June 30, Mirvac has also acquired a controlling interest in his AMP Capital wholesale office fund, increasing his funds under management to $10.2 billion.

The group took a full year to pay 10.2 cents on August 31st, delivering a final dividend of 5.1 cents per security. Mirvac shares rose 4% to $2.18 on the result.

But Lloyd Hurwitz warned Thursday that headwinds next year will hit operating margins. To offset this blow, Mirvac is using his $1.3 billion asset sale program. This includes the 60 Margaret Street office tower and retail Met Centre, Sydney, Allendale Square, Perth and other non-core industrial assets.

“Fiscal 2022 has undoubtedly presented a more challenging business environment,” said Lloyd-Hurwitz. “Uncertainty in the macroeconomic and geopolitical environment is expected to continue.”

MGR) Banks Sell Assets, Solid Housing Margins Against Headwinds

Source link MGR) Banks Sell Assets, Solid Housing Margins Against Headwinds

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