You wouldn't normally expect to see a real estate investment trust among a list of the 10 best performing large cap shares over the past 52 weeks, but Mirvac Group (ASX: MGR) has returned 43% over the past year. As such it's one of the 10 best-performing shares that popular retail broker Commse labels as 'large cap'.
Mirvac shares have risen from $2.26 to $3.17 today and it's also paid 11.6 cents per share in dividends over the period.
The shares have soared despite the company making no changes to its guidance for financial year 2019 operating earnings per share to come in between 16.9c and 17.1c, with dividends of 11.6cps.
Using conventional valuation metrics that puts Mirvac on 18.6x the mid-point of forecast earnings per share with a yield of 3.66%.
Both these metrics are high versus historical averages and on a conventional basis, which shows how the yield hunt due to Australia's ultra-low 1% interest rate environment is starting to inflate asset prices.
Mirvac also has a property development business largely focused on Sydney and Melbourne in additional to its real estate investment management business, but has still been traditionally valued as a defensive REIT.
Others in the sector starting to sport some high valuations include Scentre Group Ltd (ASX: SCG) and DEXUS Property Group (ASX: DXS).
