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.”

More reading

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

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

person reading news on mobile phone
⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »