Mirvac Property Group has reaffirmed its operating earnings and distributions forecasts for fiscal 2015, while warning Australia's home price boom is being driven by a lack of properties rather than foreign investors.
At the group's annual general meeting in Sydney, Mirvac chairman John Mulcahy says more than half of people buying apartments are investors, foreign and domestic, a historic high for the group.
But, he said, he did not believe Australia was experiencing a housing bubble, and that the investor activity was being driven in part by record low interest rates.
"But the key driver of higher pricing is driven primarily by a lack of supply, particularly in Sydney," he told shareholders in a speech at Mirvac's annual general meeting on Thursday.
Chief executive Susan Lloyd-Hurwitz said Mirvac had sold almost 2,500 residential property lots last financial year and was on track to settle 2,200 in 2014/15.
"Taking advantage of the positive residential market conditions, we are accelerating releases to over 2,700 lots in FY15, driven by our Sydney and apartment exposures," she said.
She said Mirvac was continuing to restock its residential portfolio and would focus on medium- and high-density urban developments.
Mirvac would accelerate releases and push price when appropriate.
Ms Lloyd-Hurwitz stood by operating earnings guidance of 12c to 12.3c per stapled security, as well as full-year distribution guidance of 9.2c to 9.4c per stapled security.
Ms Lloyd-Hurwitz also told shareholders Mirvac has set a return on invested capital target of 12 per cent by fiscal 2017 for its development business.
The Mirvac chief executive said the group was aiming to divest around $200 million to $400 million worth of assets in the current financial year, so as to redeploy capital within the company.