The ASX-listed developer and investor says the decline in office values will worsen this year after trimming its forecast earnings per share.
it gave in February from “at least” 15.5¢, and said residential settlements for the year would be closer to 2200 than the 2500 it had predicted as a result of weather delays and labour shortages.Settlements for the year came in at 2298 residential lots and the company exchanged a further 1638 residential lots worth $1.8 billion in presales. A year earlier it sealed 2523 settlements and ended the year with about 1920 presales worth $1.6 billion.
Devaluations cut the value of Mirvac’s investment portfolio by $528 million. Its office values fell 5.6 per cent and retail properties by 5.3 per cent, while industrial property valuations rose 6.2 per cent. A year earlier, Mirvac’s earnings were boosted by an upward revaluation gain of $305 million.
Valuations were moderating and the expansion in capitalisation rates – equivalent to yields – that was led by lower-quality assets would continue this calendar year, the company said. “We will continue to increase our exposure to the industrial and living sectors over time, and while we will moderate our exposure to the office sector, we will continue to focus on prime assets, which are attracting strong tenant and investor demand,” Mr Hanan said.
covers commercial and residential property, with a focus on housing and finance, construction, design & architecture. He also dabbles in the business of sport. Michael is based in Melbourne.
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