Mirvac Group (MGR) H2 2024 earnings summary

Executive summary

• Achieved FY24 Group EBIT of AUD 860 million, up 12% year-over-year, with operating profit after tax of AUD 552 million, down 5%, and a statutory loss of AUD 805 million due to AUD 1.1 billion in property devaluations.

• Maintained a strong balance sheet with gearing at 26.7% and available liquidity over AUD 1.4 billion.

• Executed AUD 1 billion in non-core asset disposals, expanded development pipeline, and secured AUD 1.6 billion in new capital partnerships.

• Increased exposure to the living sector, stabilized new industrial and BTR developments, and maintained high portfolio occupancy at 97%.

• Continued focus on sustainability, diverting 96% construction waste from landfill and progressing net positive carbon targets by 2030.

Financial highlights

• Group EBIT up 12% to AUD 860 million; operating profit after tax at AUD 552 million, down 5%; statutory loss of AUD 805 million due to AUD 1.1 billion in property revaluations.

• EPS at AUD 0.14, down 5%; DPS flat at AUD 0.105; NTA per security at AUD 2.36, down 11% from FY23.

• Net financing costs increased due to higher average debt balances and rising cost of debt (4.7% to 5.6%).

• Operating cash flow improved to AUD 542 million from negative AUD 57 million in FY23.

• Distribution of AUD 414 million (10.5cpss), 75% payout ratio, matching guidance.

Outlook and guidance

• FY25 operating EPS guidance of AUD 12–12.3c and distribution of AUD 0.09, assuming over AUD 500 million in non-core asset sales and 2,000–2,500 residential settlements.

• Lower development earnings and residential margins expected in FY25, with recovery anticipated in FY26 and beyond.

• Focus on capital partnering, maintaining cost of debt at around 5.6%, and progressing key developments.