By a staff reporter
Investors have welcomed Mirvac Group Ltd's plans to continue to focus on delivering disciplined growth in the year ahead, after it posted a fall in full-year net profit.
At 1205 AEST, shares in Mirvac rose 3.2 per cent to $1.6925, against a benchmark rise of 1.18 per cent.
In the year June 30, Mirvac's net profit was $139.9 million, a 66.6 per cent fall on the $416.1 million recorded in the previous year.
The result was impacted by a $273.2 million worth of writedowns in the value of developments in Queensland and Western Australia announced to the market in February.
Revenue in the same period was $1.57 billion, a 10 per cent decline on the previous year.
Operating profit, which excludes significant items, was up three per cent to $377.6 million.
Mirvac's total dividend for the year was 8.7 cents, unfranked. The group paid an interim dividend of 4.2 cents on January 25 and a final dividend of 4.5 cents on July 26, both of which were unfranked.
Mirvac chief executive Susan Lloyd-Hurwitz said the outlook for the company's development division was strong, with major projects in Sydney and Melbourne on track to deliver earnings in the next three years.
"Our capacity to balance recurring income from our passive investment assets with earnings from our active developments positions us well to deliver strong returns to our securityholders," she said.
The group set operating EPS guidance for fiscal 2014 of between 11.7 and 12 cents per share, and dividend guidance of between 8.8 and 9 cents.
Ms Lloyd-Hurwitz said the group delivered earnings ahead of market guidance despite challenging conditions.
"The continued focus on driving the portfolio through our internal leasing and asset management capabilities, combined with our strategy on delivering disciplined growth, means the group is well positioned for the future," she said.
"Our balance sheet remains robust and we will continue to monitor and access diversified sources of capital including equity, domestic and international debt and wholesale capital."
She said the company was seeing signs of improvement in its residential business, although the outlook for the sector was mixed.
"Residential markets remain mixed in terms of current performance and outlook. However, we are seeing signs of recovery as a result of improving housing affordability, population growth and low rental vacancy," she said.
The results come a day after chairman James MacKenzie announced he will step down from the position at the property group's November annual general meeting.