Mirvac annual review affirms clear focus on shareholder value

Mirvac’s new leadership team’s annual strategic review has been delivered, resulting in a clear focus on delivering value to shareholders.

Newly appointed CEO and Managing Director, Susan Lloyd-Hurwitz commented on the Group’s quarterly update, reporting on the company’s office, retail, industrial and residential business portfolios.

Ms Lloyd-Hurwitz said, “I am pleased to announce that we remain on track to deliver our FY13 guidance and our target of 10 per cent Return on Invested Capital for the development Division in FY14.

“Our investment portfolio continues to perform strongly, underpinning the Group’s earnings and yield, and our Development Division is well positioned with further visibility of de-risked earnings into the future.”

It was recorded that Mirvac’s office portfolio maintained a strong occupancy of 97.2 per cent, excluding assets under development.

The retail portfolio included a strong occupancy of 99.2 per cent, manageable occupancy cost at 14.8 per cent and a strong moving annual turnover growth of 3 per cent.

The industrial portfolio showed an occupancy of 99.4 per cent.

Lastly, Mirvac recorded $971.9 million in exchanged residential business pre sales over the March 2013 quarter, attributable largely to strong sales at Harold Park, New South Wales and Yarra’s Edge, Victoria.

In order to deliver returns to securityholders, Mirvac reported on a greater focus on where and how they deploy capital, as well as where not to deploy capital.

“Investors can expect to see Mirvac deliver stable income and focussed growth. Stable income will be derived from our high quality portfolio of passive assets, whilst growth will be achieved via a range of opportunities including repositioning of existing assets,” said Ms Lloyd-Hurwitz.