The results were in line with market expectations, with analysts forecasting improved contributions from residential. The company also said it remained on track to meet the target of more than 2500 residential lot settlements this financial year and that defaults remained under 2 per cent.
The developer said it would pay an interim dividend of 6.1¢ on February 28 and reaffirmed full-year distribution guidance of 12.2¢ per security, which would represent a 5 per cent increase on last year’s payout.
Mirvac said it would focus on more build-to-rent projects under its new LIV banner in the coming year. It already has four developments underway, with the first, in Sydney’s Olympic Park, due to open later this year.
Mirvac chief executive Susan Lloyd-Hurwitz said there was potential for its build-to-rent portfolio to grow to 5000 apartments over the medium-term, funded through a combination of balance-sheet and third-party capital.
Ms Lloyd-Hurwitz noted the overall earnings were driven by an increase in residential settlements during the period, the result of a more balanced payment profile across both halves. But while retail remained strong, there has been anecdotal evidence of a decline in visitors to some centres due to concerns about the coronavirus.
The chief executive also said home buyer sentiment was improving and that the residential market had rbounced back in most areas.
Mirvac securities were down more than 3 per cent in late trade at $3.325.