Booming home sales have helped Mirvac deliver a 69 per cent jump in annual profit, with the property group saying rising demand for capital city houses and apartments will drive earnings further this year.
Strong residential demand and office asset sales helped Mirvac book an annual net profit of $1.03 billion on Tuesday, while operating profit lifted by six per cent to $482 million.
The earnings contribution from Mirvac's residential business was up 51 per cent to $196 million, reflecting improved margins and a big lift in lot settlements.
Chief executive Susan Lloyd-Hurwitz said the group had generated fantastic results in 2015/16 at the top of the company's guidance range and the outlook was exceptionally strong for 2017.
"There isn't a part of the business that we're not exceptionally proud of," Ms Lloyd-Hurwitz said.
Markets were supported by very low interest rates and a competitive lending environment, and there was a high level of repeat buyers.
Foreign buyers remained active, with 27 per cent of pre-sales made to offshore buyers, including 21 per cent to mainland China.
Mirvac anticipates an increase of more than 15 per cent in expected lot settlements to more than 3,300.
Ms Lloyd-Hurwitz said Mirvac had a strong residential pipeline, providing the group with more than 14,000 potential lot settlements over the next four years.Mirvac sold 3,830 residential lots in 2015/16, up from 3,540 a year earlier. Seventy-two per cent of sales were in Sydney and Melbourne.
The Woodlea and Tullamore community projects in Melbourne and the Googong (near Canberra) and Brighton Lakes (Sydney) projects in NSW generated strong sales.
Apartment sales were strong at Harold Park in central Sydney, Yarra's Edge in Melbourne, and Hope St in Brisbane.
Mirvac secured a record $2.9 billion in residential pre-sales - up 45 per cent on fiscal 2015.
The group settled 2,824 residential lots in fiscal 2016 - up 24 per cent.
In Mirvac's other businesses - office and industrial, and retail - earnings from office and industrial fell to $358 million, from $388 million, as a result of the asset sales.
Mirvac has been selling some suburban office assets to build a higher-quality portfolio, mainly in the Sydney and Melbourne CBDs or on their fringes.
The earnings contribution from retail lifted slightly to $117 million, from $113 million.
Mirvac has forecast an eight to 11 per cent rise earnings per stapled security for 2016/2017 .
Mirvac securities were seven cents, or 3.3 per cent, higher at $2.22 at 1454 AEST.
MIRVAC PROFIT LIFTS
* Annual net profit up 69pct to $1.03b
* Revenue up 42pct to $3.05b
* Final distribution 5.2 cents per stapled security. Full year distribution 9.9 cents, up 0.5 cents on 2014/15
Share
