The Mirvac Group (ASX: MGR) share price hit a record high of $2.75 today after the residential construction and commercial property group reported a stronger-than-expected profit for the half year ending December 31 2018.
For the period Mirvac reported a 26% increase in operating profit to $290 million and guided for operating earnings per share for fiscal 2019 to come in between 16.9 cents to 17.1 cents. It also confirmed distribution guidance for 11.6 cents per stapled security, which would represent growth of between 3% t0 4% and distribution growth of around 5%.
Based on a share price of $2.75 it trades on 16x its forecast earnings per stapled security. The group's result is even more impressive given the weakness in residential house prices in Sydney over the six-month period. While its investment and commercial property portfolio also continued to deliver solid results.
Mirvac has a consistent track record of profit and dividend growth with exposure to the generally rock-solid asset class of east coast property markets.
As such it's an option to research for conservatively minded dividend seekers, although the price earnings multiple is now above historical norms. Others in the space include Dexus Property Group (ASX: DXS) and Westfield's Scentre Group (ASX: SCG).
