Diversified property company Mirvac Group (ASX: MGR) released a positive quarterly update on Monday, despite house prices weakening throughout the first three months of 2018.
While most residential markets were slow in the quarter, Mirvac benefited from high demand for medium-density residential products, particularly in Melbourne, and secured 95% of its expected FY2018 residential EBIT thanks to a strong level of pre-sales across its main residential projects in New South Wales and Victoria.
Other property markets generated positive metrics. In the office and industrial segments, the company registered occupancy levels of 97% and 98% respectively, with a long weighted average lease expiry (WALE) of nearly 7 years. Occupancy was close to 100% also in the retail segment, and merchants in Mirvac's properties enjoyed an increase in sales throughout the period, despite the general weakness of the retail sector.
The solid quarterly result allowed the company to confirm operating earnings guidance of between 15.3 and 15.6 cents per stapled security, and distributions of 11 cents per stapled security in FY2018. Shares in Mirvac are currently trading flat at $2.16, or 14x forward earnings, with a 5% dividend yield.
If you are looking for companies that have raised their dividends, check out the link below.
