Mirvac's residential revenue down 33 percent

Mirvac Group announced its full-year results for the financial year ended 30 June 2019.

The group achieved an overall statutory profit of $1 billion for the fourth consecutive year, delivered at the top end of guidance.

Mirvac’s Susan Lloyd-Hurwitz, suggested it was its "award-winning urban asset creation capability" that helped keep it in a robust capital position.

It settled 2,611 residential lots, exceeding the Group’s FY19 target. 90% of exchanges were domestic.

Defaults remained below 2 per cent; with secured future income with $1.7 billion of residential pre-sales.

Mirvac’s existing pipeline supports the ability to release over 10,000 lots over the next four years.

The residential division delivered gross development margins of 27 per cent, above their target of 18-22 per cent.

It supplemented the group’s residential pipeline of 28,000 lots with the acquisition of a 33.5-hectare site at Henley Brook, WA, 22 kilometres north of Perth and a 171-hectare, quarry site at Wantirna South, VIC, 25 kilometres south-east of Melbourne.

“Despite a challenging market, we have seen sustained sales throughout the financial year, and we achieved our settlement target and maintained our default rate at less than 2 per cent," Lloyd-Hurwitz stated.

"This is testament to the enduring quality of our products and our trusted brand.

“Looking forward, our strong residential gross margin reflects the capital efficiency of our development structures, and we have carefully restocked in the changing market, with a number of new development opportunities in established Mirvac sub-markets including Henley Brook, WA and Wantirna South, VIC, putting us in a strong position to take advantage of the anticipated upswing.”