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Highlights:
- The S&P/ASX MidCap 50 index was up by 2.12% on a year-to-date basis as of Friday.
- Mirvac Group’s (ASX:MGR) FY23 distribution guidance is 10.5cpss, reflecting an increase of 2.9%.
- In FY23, Vicinity Centres (ASX:VCX) expects FFO and AFFO a share to fall between 14 to 14.6 cents and 11.8 to 12.4 cents, respectively.
The S&P/ASX MidCap 50 index represents ASX-listed companies in mid-cap space. It consists of the companies of the S&P/ASX 100, excluding those in the S&P/ASX 50. The index was up by 2.12% on a YTD basis and ended Friday, 5 May 2023, higher by 0.344% to 9,106.8 points.
Let’s now discuss 2 ASX mid-cap stock-MGR and VCX, from the REIT sector, which closed Friday in the green zone.
Mirvac Group (ASX: MGR)
One of the 50 companies, with an incorporated asset creation and curation capability ended Friday, increasing by 1.287% to AU$2.360 despite no price-sensitive update. However, in the last week of April, MGR released its 3Q 2023 ended 31 March 2023, which contained operational and business updates, along with an earnings guidance update for FY23.
In 3Q 2023, MGR maintained increased occupancy of 97.5% throughout its investment portfolio, with nearly 139K sqm leased. It consists of high office occupancy of 96.1%.
MGR advanced its nearly AU$30 billion development pipeline with Switchyards, Auburn approaching practical conclusion nearly 84% pre-leased.
Further, MGR would retain balance sheet flexibility to take advantage of prospects, expansion of the funds management offering throughout a wider suite of asset classes, along with product types consisting of living sectors, etc.
On the earnings guidance FY23 front, MGR mentioned that the operating FY23 EPS guidance had been adjusted to 1.47 cpss from 15.5 cpss earlier. Distribution guidance is 10.5cpss, reflecting an increase of 2.9%.
Vicinity Centres (ASX: VCX)
One of Australia’s leading retail property groups with a 100% incorporated asset management platform closed Friday, rising by 0.975% to AU$2.070. VCX, like MGR, did not release any news today. However, on Tuesday, it provided its 3Q FY23 report ended 31 March 2023.
In the reported quarter, portfolio retail sales increased 13% compared to pcp since retailer confidence and retail sales increase stayed resilient. Also, VCX concluded 249 comparable leasing deals reflecting a substantial enhancement on the previous year.
The collection of gross rental billings with regard to the reported quarter was 96%, mostly in accordance with the collection rate reported over 1H FY23. In the third quarter, customer visitation improved, with nearly 16 million more visits in 3Q FY23 compared to pcp.
On the guidance front, VRX anticipates FFO and AFFO to be almost the top end of the guidance ranges. In its 1H FY23 results published in February this year, the company had guided FY23 FFO and AFFO a share to fall between 14 to 14.6 cents and 11.8 to 12.4 cents, respectively.
