Real estate group Mirvac expects to deliver strong growth in its earnings in fiscal 2017, backed by strong growth in its residential business.
Mirvac has booked a 69 per cent jump in its net profit for the 12 months to June 30 to $1.03 billion, boosted by office asset sales of $787 million.
The group’s operating profit lifted by six per cent to $482 million.
Mirvac expects earnings per stapled security of 14 to 14.4 cents in fiscal 2017 and distributions in the range of 10.2 to 10.4 cents.
“We have done a considerable amount of work to transform the business over the past four years, and this has positioned us extremely well to deliver strong operating EPS growth of eight to 11 per cent in FY17, the potential to deliver at least a nine per cent average ROIC (return on invested capital) over the next three years, and importantly, long-term value for our securityholders,” Mirvac chief executive Susan Lloyd-Hurwitz said.
Mirvac anticipates strong earnings growth in its residential business in fiscal 2017, with an increase of more than 15 per cent in expected lot settlements to more than 3,300.
Ms Lloyd-Hurwitz said Mirvac had a strong residential pipeline, providing the group with more than 14,000 potential lot settlements over the next four years.
Mirvac secured a record $2.9 billion in residential pre-sales and settled 2,824 residential lots in fiscal 2016 – up 24 per cent on fiscal 2015.
Ms Lloyd-Hurwitz said Mirvac had delivered another solid result in fiscal 2016, at the top of the company’s guidance range.
MIRVAC PROFIT UP 69 PER CENT
- Annual net profit up 69pct to $1.03b
- Revenue up 42pct to $3.05b