Mirvac [ASX:MGR] lays down the groundwork for a strong and consistent growth pattern throughout the financial year. Their recent update revealed strong operating earnings and a consistent amount of residential pre-sales.
The company managed to achieve their consistent up-scale result by conditioning their brand to solid employment growth, a competitive lending environment, and a powerful urban population expansion across eastern states.
Management believe that Mirvac is currently in excellent shape and are confident that they will achieve further guidance across the 2018FY.
Mirvac’s share price is currently trading at $2.16, up from $2.14 yesterday — an increase of 1.17%.
Strong Residential pipeline helps Mirvac establish portfolio
A $2.1 billion office development pipeline has progressed from its pre-leased figures by 2% across the span of three months.
The completion of 664 Collins Street and Building 1 at the Australian Technology Park has pushed forth Mirvac’s transition towards a modern differentiation to their business.
The Urban Developer reports that Mirvac’s managing director, Susan Lloyd-Hurwitz stated,
‘We have seen market conditions return to more moderate levels, and sales in some sub-markets are slower, as we had anticipated; however, we are still seeing demand for land and quality medium density residential product, particularly in Melbourne.’
Mirvac announced that they had achieved their target of 3,400 residential lots during the financial year, while retaining positive visibility of its future earnings — which scale to a total of 2.8 billion of pre-sales in total.
Their balance sheet has remained positive, striving towards a consistent percentage in its target range. They have also achieved a consistent sales volume, while maintaining their growth and pushing forth their planning for their Tullamore, Olivine and Woodlea releases.
Despite weak housing prices, Mirvac has still benefited from high demand in their residential products, securing a total of 95% of their expected growth result for FY18 – thanks to strong pre-sales with their main residential projects across the country.
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