Mirvac 2013 profit pulls ahead of estimates despite $273 million hit

Weaker sales in Perth and Queensland soured the company’s profit predictions.

Mirvac Group (ASX: MGR) reported its full-year 2013 earnings today, pushing past guidance despite major write-offs on residential investments.

After-tax operating earnings clocked in at $378 million, but net profitable attributable to shareholders came out to just $140 million. The main culprit behind the difference is $273 million of impairments announced in February, when weaker sales in Perth and Queensland soured the company’s profit predictions.

For shareholders, operating earnings evened out to $0.109 per share, a smidgeon above the real estate company’s previous $0.107 prediction. Mirvac also added an extra $0.036 on to 2012’s distributions, putting 2013’s full-year distributions at $0.087 per share.

“Mirvac delivered earnings ahead of market guidance despite challenging conditions,” said CEO and Managing Director Susan Lloyd-Hurwitz in a statement today. “The continued focus on driving the portfolio through our internal leasing and asset management capabilities, combined with our strategy on delivering disciplined growth, means the Group is well positioned for the future.”

Looking ahead, Mirvac will continue to balance steady income from passive investments with profitable development projects. Fiscal 2014 operating EPS is expected to register between $0.117 and $0.12, with a per-share distribution range of $0.088 to $0.09.

Mirvac is boosting its dividend a bit next year, but The Motley Fool has found a real diamond dividend in the rough. Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

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Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.

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