Mirvac says its strong performance in the first-quarter positions it well to achieve its full-year targets, as the company eyes improved conditions across investment grade sectors.
In its first-quarter operational update today, Mirvac said it was on track to achieve its full-year operating earnings guidance of 12.7c to 13c per stapled security, as well as its full-year distribution guidance of 9.7c to 9.9c per stapled security.
“The progress we have made during the first quarter positions us well to deliver on our objectives for the 2016 financial year," chief executive Susan Lloyd-Hurwitz said.
“We have maintained positive metrics across our office, retail and industrial portfolios, and we remain focused on extracting value from our existing assets and managing our lease expiry profile.
Ms Lloyd-Hurwitz said Mirvac was generally seeing improved conditions across its investment grade sectors, which when combined with expected further cap rate compression, should deliver strong valuation uplifts across the company's portfolios.
Mirvac still expects to achieve its target development return on invested capital (ROIC) of 12 per cent by fiscal 2017.
The group also said its balance sheet remained strong with gearing within the target range of between 20 and 30 per cent.
In a separate statement, Mirvac announced it would partner with PAYCE Consolidated in the purchase of a stake in the East Village retail and commercial centre situated at Zetland, Sydney, for $154.7 million.
Completion of the transaction remains subject to conditions.