Mirvac reaffirms earnings guidance

Real estate group on track for earnings per share forecasts, return on capital.

Mirvac Group (MGR) has reaffirmed operating earnings per share guidance for fiscal 2014, saying housing volumes and pricing are starting to improve.

In its first quarter update, Mirvac restated earnings per share forecasts of 11.7 cents to 12 cents per stapled security and distribution guidance of 8.8 cents to 9 cents per stapled security.

The integrated real estate group said it is on track to achieve a development return on invested capital of greater than 10 per cent.

Mirvac chief executive officer Susan Lloyd-Hurwitz said the group is comfortable with the outlook for its passive assets due to the quality of its office portfolio and the positioning of its retail portfolio towards high quality catchments and non-discretionary spending. 

"While we are finally starting to see housing volumes and pricing improve, albeit off a low base, we believe that in order to best take advantage of the residential markets it's all about having the right product, price point and location," Ms Lloyd-Hurwitz said.

Mirvac also noted that ratings agency Standard & Poor's had upgraded its credit rating from BBB to BBB , and said it had completed a seven-year, $200 million medium term notes issuance.

The group said its office portfolio occupancy was 97.3%, its retail portfolio occupancy was 99.2% and its industrial portfolio occupancy was 99.5%.

"Our investment portfolio continues to perform strongly, underpinning the group's earnings, and as evidenced from the metrics, Mirvac's internal leasing teams have been proactively working to de-risk the portfolio," Ms Lloyd-Hurwitz said.

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