MENU

Mirvac Group confirms earnings guidance despite slowing housing market

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.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tommaso Autorino has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.