Mirvac Group (Mirvac) (ASX:MGR) reported a solid financial performance for the fiscal year ended 30 June 2024. The company achieved an operating profit of $552 million, in line with guidance, while delivering on key strategic initiatives.
A highlight of the year was the execution of $1 billion in non-core asset sales, strengthening the balance sheet and providing financial flexibility. Mirvac also secured a long-term capital partner for its flagship 55 Pitt Street, Sydney development and expanded its presence in the living sector through the Serenitas land lease platform.
The company’s Investment portfolio demonstrated resilience, with high occupancy and strong leasing activity. While cost pressures impacted development margins, Mirvac maintained a healthy pre-sales balance of $1.3 billion, positioning the business well for future growth.
Looking ahead, Mirvac expects a lower earnings contribution from development in FY25 due to margin pressures and higher interest costs. However, the company remains confident in its long-term growth prospects, supported by a diversified platform and a track record of navigating market cycles.
Overall, Mirvac delivered a solid financial performance and made significant progress on its strategic priorities. While short-term challenges persist, the company is well-positioned for long-term growth.
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