The Mirvac Group (ASX: MGR) share price could be on the move on Thursday following the release of the diversified property group's full year results this morning.
What did Mirvac Group report?
According to the release, for the 12 months ended June 30, Mirvac Group reported a 4% increase in operating profit to $631 million. On a per security basis, this came in at 17.1 cents, which was at the top end of guidance.
Management advised that this was driven by strong performances by its Office and Industrial businesses.
Mirvac's CEO and managing director, Susan Lloyd-Hurwitz, said, "The strength and resilience of our business were evident throughout the year, underpinned by our award-winning urban asset creation capability, our high-quality investment portfolio and our diversified model. Our robust capital position and the acceleration of passive earnings growth means we are well placed to continue to generate strong returns for our securityholders, while making a positive contribution to our urban landscape."
The company paid a total distribution of $440 million (11.6 cents per security) in FY 2019, up 5% year on year. However, Mirvac's final distribution was declared in June and its securities traded ex-distribution soon after.
So investors will need to wait until the end of the year before Mirvac declares another distribution. But it may be worth the wait as the company's guidance for FY 2020 was positive.
Mirvac has provided operating earnings per security guidance of between 17.6 to 17.8 cents for FY 2020, which represents an increase in earnings of between 3% to 4%. Its distribution guidance is 12.2 cents per security, which represents a 5% increase year on year once again. And based on its last close price, this represents a forward distribution yield of 3.8%.
Speaking about FY 2020, Ms Lloyd-Hurwitz advised: "In FY19 we continued our strong growth trajectory with financial results in line with expectations, and operational excellence which continues to differentiate the Group. We continue to grow our highly visible and secure passive income while also carefully managing our active development portfolio. Our passionate team, the high calibre of our projects and our commitment to making a difference, as well as delivering financial returns, have created a brand that inspires the trust and loyalty of our customers, partners and our securityholders."
Overall, I expect the market to be satisfied with both Mirvac Group's result and its guidance for FY 2020. In light of this, I wouldn't be surprised to see its shares push higher today.
Also on watch will be AGL Energy Limited (ASX: AGL) after its full year result release and Kathmandu Holdings Ltd (ASX: KMD) following the release of a trading update.
