Mirvac Group (MGR) H2 2024 earnings summary

Executive summary

• Achieved all strategic objectives for FY 2024, with Group EBIT up 12% to AUD 860 million and operating profit after tax of AUD 552 million, despite a challenging macro environment and a statutory loss of AUD 805 million due to property revaluations.

• Maintained a strong balance sheet with gearing at 26.7% and available liquidity of up to AUD 1.4 billion, supported by AUD 1 billion in non-core asset disposals and AUD 1.6 billion in new capital partnerships.

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

• Settled 2,401 residential lots, restocked the development pipeline, and booked nearly AUD 150 million in commercial and mixed-use profits, including a 67% sell-down of 55 Pitt Street.

• Continued focus on sustainability, achieving carbon positive status on scope 1 and 2 emissions, diverting 96% construction waste from landfill, and progressing toward net positive carbon targets by 2030.

Financial highlights

• EBIT grew 12% year-over-year to AUD 860 million; operating profit after tax was AUD 552 million, down 5% year-over-year.

• Statutory loss of AUD 805 million, mainly due to AUD 1.1 billion in investment property devaluations.

• EPS at 14.0c, down 5%; distribution per share flat at 10.5c, matching guidance.

• NTA per security at AUD 2.36, down 11% from FY23.

• Net financing costs increased 61% due to higher average debt and cost of debt (5.6%).

Outlook and guidance

• FY 2025 operating EPS guidance of 12.0–12.3c and distribution of 9.0c, 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 FY 2025, with some apartment margins around 10%.

• FY 2025 expected to be a trough year, with recovery and margin normalization anticipated in FY 2026 and beyond.

• Positioned for future earnings growth with over AUD 90 million future NOI from committed developments and AUD 2.6 billion FUM growth underway.