This article is from the Australian Property Journal archive
PROPERTY group Mirvac has downgraded its FY23 guidance citing adverse weather conditions which have delayed residential projects.
CEO Campbell Hanan said sustained adverse weather conditions have impacted residential settlement timelines and delayed settlement expectations at Aspect North into FY24.
As a result Mirvac has revised its operating FY23 EPS guidance to at least 14.7cpss from at least 15.5cpss previously. Distribution guidance is 10.5cpss, representing 2.9% growth.
The group settled 319 residential lots during the quarter, taking to the total to 1,126 in the current financial year to date. Default rate remained low at 0.2%.
FY23 residential settlements are now expected to be around 2,200 lots down from the previous expectations of over 2,500, with the remaining lots now expected to complete and settle in FY24.
During the quarter, the group also exchanged 288 lots, noting that sales remained subdued as a result of higher interest rates, fewer product launches, and lower first-home buyer activity.
Residential pre-sales were $1.8 billion, with continued solid sales across established apartment precincts, Green Square, Sydney (76% pre-sold), Isle at Waterfront, Brisbane (80% pre-sold), Ascot Green, Brisbane (74% pre-sold), and Pavilions, Sydney (100% sold).
“We continued to execute against our strategy during the quarter, despite ongoing economic uncertainty. Our modern, sustainable investment portfolio is well occupied at 97.5%, with elevated leasing activity, particularly in Build to Rent, with our newly opened asset, LIV Munro in Melbourne, already 54% leased,” he added.
“We made strong progress on our asset sales program, with 60 Margaret Street/Met Centre in Sydney expected to be finalised and settle in Q4, while capital partnering and development initiatives are progressing across Office, Industrial and Build to Rent.
“Residential sales were slower during the quarter, however, an acutely undersupplied market, strong population growth, and stabilisation of established house prices and interest rates are expected to support ongoing demand in the medium term,” said Hanan.
