Property and retailing group Mirvac (ASX:MGR) has recorded statutory losses totaling $366 million for the 18 months ending December 31, with an additional $201 million loss for the six months leading up to that date. The company experienced a significant downturn, transitioning from a $215 million profit in December 2022 to a loss of $201 million in December 2023. Mirvac attributes these losses primarily to investment property devaluations, amounting to $396 million, alongside diminished operating earnings.
Mirvac's net tangible assets per security decreased from $2.79 to $2.56 over the past year, with operating profit after tax falling to $252 million from $305 million. Despite these setbacks, the market responded positively, with Mirvac securities rising over 5% in morning trade to $2.25, albeit still below the net tangible asset value of $2.56.
The company's directors highlighted the impact of capitalization rate expansion on office and industrial portfolios, alongside lower income from the investment portfolio due to non-core asset sales. They anticipate an earnings recovery in the second half of the financial year, driven by development programs and capital partnership opportunities.
CEO Campbell Hanan expressed confidence in the company's ability to improve earnings, projecting a rebound in distribution to match the previous year's 10.5 cents per security and an increase in operating earnings per security to 14.7 cents.
