This article is from the Australian Property Journal archive
MIRVAC has revised its FY16 earnings and distribution guidance to the higher end for FY16.
It narrowed its FY16 operating EPS guidance to 12.9 to 13.0 cents per stapled security, and revised its FY16 distribution guidance to 9.9 cents per stapled security, at the top end of previous guidance.
Mirvac’s CEO Susan Lloyd-Hurwitz said the group had maintained positive metrics across its office, retail and industrial portfolios, and expects to deliver around 25% growth in residential lot settlements this year.
“The residential team completed 682 lots settlements valued at over $300 million in the third quarter, in line with expectations, while maintaining a default rate of less than 1%,” she added.
Around $320 million of new residential sales were achieved in the quarters, maintaining $2.6 billion on exchanged pre-sales contracts. At the end of the quarter, 93% of development EBIT for FY16 was secured and 72% secured FY17.
The group leased about 34,400 sqm of lettable space in the quarter, bringing total leasing over the year to date to more than 267,900 sqm.
Lloyd-Hurwitz said Mirvac remained on track to achieve its asset sales target of between $400 million to $600 million by the end of FY16.
“1 Woolworths Way, valued at approximately $336 million, settled in March 2016, and we have received strong levels of enquiry for Como centre in Melbourne, 16 Furzer St in Canberra and Rider Boulevard in Rhodes, Sydney, which are currently marketed for sale,” she continued.
Lloyd-Hurwitz said the group’s outlook for the office portfolio remains positive, supported by improved tenant demand in Sydney and Melbourne, where approximately 80% of the portfolio is located, and minimal near-term expiries in Brisbane and Perth.
Similarly, Mirvac’s industrial portfolio occupancy remained high at 99.5% on the back of strong demand in Sydney, which is home to 90% of the portfolio.
Its retail portfolio retained a high occupancy of 99.2%. Comparable specialty sales productivity increased by 1.6% to $9,437 per sqm, with the group reporting a 15.0% decrease in occupancy costs. More than 100 leasing deals were finalised in the quarter, covering 13,400 sqm.
Australian Property Journal
