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Source: Mirvac Group
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  • Mirvac Group (MGR) has posted its interim half-year results, revealing its financials are beginning to recover from the COVID-19 economic crisis
  • The property giant posted an operating profit after tax of $276 million, a 22 per cent reduction year on year (YoY), but a 10 per cent increase on H2 FY20
  • Its operating earnings before interest and tax (EBIT) also dropped from $460 to $364 million YoY while increasing 8 per cent compared to the last half-year
  • Mirvac is hopeful the recovery will continue in 2H FY21, posting an operating earnings guidance of between 13.1 to 13.5 cents per stapled share (CPSS)
  • The real estate company has $28 billion worth of future projects in its pipeline, including 27,800 residential lots
  • Shares in Mirvac Group ended the week down 1.69 per cent at $2.32 each

Mirvac Group (MGR) has posted its interim half-year results for FY21, revealing its financials are beginning to recover from the COVID-19 economic crisis.

The ASX-50 lister owns and manages office, industrial, retail, residential and build-to-rent assets across Australia.

It posted an operating profit after tax of $276 million at the end of December, which represents a 22 per cent reduction year on year (YoY).

However, when compared to the previous half-year result, the figure represents a 10 per cent increase on H2 FY20’s profit of $250 million.

The property giant’s earnings before interest and tax (EBIT) also followed a similar trend, dropping from $460 million to $364 million YoY.

But, when compared to the second half of FY20, the EBIT increased by 8 per cent.

Mirvac Group CEO Susan Lloyd-Hurwitz is hopeful that this recovery will continue for the rest of the 2021 financial year, regardless of the pandemic.

“Australia has managed the pandemic effectively to date and the vaccine roll-out is likely to boost confidence and the economy, so we expect the reactivation of cities and urban areas to strengthen even further over the coming months,” she said.

The ASX-50 lister has posted an operating earnings guidance of between 13.1 to 13.5 cents per stapled share (CPSS) for FY21.

“Our proven asset creation capability and our $28 billion total development pipeline will enable Mirvac to continue to deliver city shaping, mixed-use precincts that cater to our customers’ changing lifestyles,” the CEO added.

Of that $28 billion pipeline, $12 billion is from commercial development and $16 billion is from active and future residential development, including 27,800 lots.

“Our residential division continues to benefit from current government housing stimulus measures which have boosted residential housing demand and the economy,” Susan said.

“With a robust pipeline of approximately 27,800 lots we are focused on enhancing the designs of our homes and communities to meet changing customer needs, including home offices and flexible family spaces,” she concluded.

Shares in Mirvac Group have ended the week down 1.69 per cent at $2.32 each.

MGR by the numbers
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