Business Description:
Mirvac Group (MGR) is an internally managed, diversified property group. The principal continuing activities of Mirvac consist of real estate investment, development, hotel management and investment management. It has a stapled security structure, comprising Mirvac Property Trust (MPT) and Mirvac Limited. It owns a diversified property portfolio of retail, commercial, residential and car park properties across Australia. Mirvac has two core divisions: Investment (comprising MPT) and Development (comprising residential and commercial development).

Strategy Analysis:
Following the sale of non-core assets and businesses MGR has returned to its core competencies - property investment and development. It is actively seeking acquisitions to boost these areas and is fast tracking developments to increase exposure to improving property markets. Its main focus is on growing its investment portfolio and targets 80% of earnings to come from this stable source in the medium-term. It is possible MGR will look to divest non-core and overseas businesses. The current strategy of MGR's Development division is on re-stocking across all sectors and continuing to develop integrated projects across Australia. MGR has a sizeable development pipeline that it intends to develop in coming years. It mainly concentrates on housing and lifestyle developments. Interests in developments will increasingly be sold to external investors to allow MGR to increase the number of active projects, thus utilising its capital more efficiently. Mirvac Group reported NPAT down 22.3% to $182.3m for the year ended 30 June 2011. Included in the statutory profit was a provision for loss on inventories totalling $295.8m (2010: $nil). Revenues from ordinary activities were $2.05bn, up 19.1% from last year. Diluted EPS was 5.36 cents compared to 7.90 cents last year. Net operating cash flow was $248.5m compared to $340.0m last year. The final dividend declared was 2.2 cents, taking the full year dividend to 8.2 cents compared with 8.0 cents last year. Looking ahead, Mirvac will continue to focus on its core strengths. Within the Development Division, the focus is to redeploy capital into core markets to maximise commercial and residential development returns.