ASX property shares outperformed the market on Wednesday.
The S&P/ASX 200 A-REIT (ASX: XPJ) finished the session just inside the green, up 0.09% to 1,347.2 points.
While that may sound dismal, it was the only one of the 11 market sectors to close higher today.
The S&P/ASX All Ordinaries Index (ASX: XAO) finished down 1.4% in a depressing day of trading.
2 ASX property shares rise on full-year results
Two ASX property shares stood out today.
They were property developer Mirvac Group (ASX: MGR) and shopping centre real estate investment trust (REIT) Vicinity Centres (ASX: VCX).
Both shares finished higher after the companies released their FY23 full-year results.
Let's take a look.
Mirvac Group share price up 5% despite profit fall
The Mirvac Group share price closed the session up 5.26% to $2.40.
In its full-year results, Mirvac revealed an operating profit of $580 million, which is 3% down on FY22 but in line with revised guidance provided in April.
The company exchanged 1,638 properties during FY23. Sales were impacted by rising interest rates, lower first home buyer activity, and fewer development launches.
The ASX property share paid a full-year distribution of 10.5 cents per share (cps), up 3% on FY22.
Group CEO Campbell Hanan, said:
We delivered on our key strategic priorities, despite a challenging economic backdrop.
We established new build to rent and industrial ventures with aligned partners, increased our third-party capital under management to $17.1bn, and maintained a healthy balance sheet, underpinned by non-core asset sales and a disciplined focus on capital allocation.
Vicinity Centres shares rise 2.4% as rental income returns to pre-COVID levels
The Vicinity Centres share price closed the session up 2.43% to $1.89.
In its full-year results, Vicinity Centres reported a statutory net profit after tax (NPAT) of $271.5 million, down 77% on FY22, largely due to the non-cash reduction in asset valuations.
Funds from operations came in at $684.8 million, up 14.5% on FY22, mainly due to a 12.1% uplift in net property income (NPI) to $900.2 million. This represents a return to pre-COVID levels.
The ASX property share will pay a final distribution of 6.25 cps on 11 September. The total FY23 distribution is 12 cps, up 15% on FY22.
CEO Peter Huddle said:
FY23 has been a year of resilience and growth at Vicinity.
During the year, we deliberately executed at pace while the retail sector was favourable.
We delivered a significant level of high-quality leasing outcomes, focused on enhancing the retail mix of each centre and reducing our income at risk, while simultaneously negotiating favourable leasing spreads which support current and future NPI growth.
Fellow ASX property share Dexus (ASX: DXS) finished lower after the company also released its results today.
