Mirvac (ASX:MGR) records AU$906M as net profit for FY2022; shares gain

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Mirvac (ASX:MGR) records AU$906M as net profit for FY2022; shares gain

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 Mirvac (ASX:MGR) records AU$906M as net profit for FY2022; shares gain
Image source: © Jirsak | Megapixl.com

Highlights:

  • During the early trading hours on Thursday, Mirvac shares were trading 4.07% up on the ASX.
  • During the full year 2022, the company has seen 8% rise in the operating profit.
  • The group would distribute a dividend of AU$0.051 per share, payable on 31 August 2022.

Australian real estate company, Mirvac Group (ASX:MGR), on Thursday, released its full-year results for the financial year 2022 (FY22) as per which its statutory profit for the given period stands at AU$906 million, 1% higher than FY21’s AU$901 million.

In FY22, the company operated in a challenging environment. The group experienced the impact of rising inflation, labour shortage, supply chain-related issues, Covid-19 related woes and so on. Despite this, Mirvac reported an 8% increase in the operating profit after tax and a 10% increase in the operating EBIT (earnings before interest and tax). However, the statutory profit inched only 1% higher.

On the back of this update, the share price of Mirvac surged by 4.07% to AU$2.18 per share at 10:49 AM AEST. Meanwhile, the ASX 200 (INDEXASX:XOJ) gained 64.60 points to 7,057.30 at 11:11 AM AEST.

Key highlights of Mirvac’s FY22 results

  • Operating profit increased to AU$596 million, up by 8% on prior corresponding period (pcp).
  • Statutory profit grew by 1% on pcp to AU$906 million.
  • Operating cash flow rose to AU$896 million, up by 41% on pcp.
  • Earnings per share was 15.1 cents, 8% higher than the previous year.
  • The gearing dropped by 1.5% to 21.3%.
  • The company ended the year with substantial liquidity of AU$1.4 billion.

Category wise performance of Mirvac

Image source: © Nicoelnino | Megapixl.com

In the commercial and mixed-use development category, the EBIT surged by 173% to AU$90 million. The AU$1.3 billion development drove these earnings.

The investment property revaluations in the integrated investment portfolio category offered an uplift of AU$305 million. The occupancy rate was 97.3%, with a WALE of 5.6 years. The company intends to improve its portfolio quality by the planned disposal of AU$1.3 billion of retail and office assets over the coming year.

In the residential sector, the company targeted 2500 lot settlements and settled 2523 residential lots. Pre-sales in the residential surged by around AU$1.6 billion.

Big achievements during the FY22

The most eye-catching update provided by the group is that it achieved scope 1 and 2 emission targets, nine years ahead of the target. Also, the company achieved the number one award in the ‘2022 AFR BOSS Best Place to Work List’ for the transport, construction and property sector. Equileap named Mirvac as number one in gender equality.

Outlook for the FY23

In the coming financial year, the company will continue to focus on improving the high-quality investment portfolio and actively developing its pipeline actively. Along this, the company intends to focus on a disciplined and prudent approach to capital management.

Under the assumption of no material change in the operating environment, the expected operating earnings for FY23 is 15.5cpss with the distribution of a minimum of 10.5cpss. Also, the company expects more than 2500 residential lot settlements.

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