Mirvac’s urban strategy delivered excellent results in FY17, with operating earnings up 11 per cent and distributions up 5 per cent, at the top end of guidance provided.
Dear Securityholders,
The 2017 financial year was an outstanding year for Mirvac, and our ambition to reimagine urban life by creating, owning and managing high-quality assets in Australia’s largest cities has delivered strong results across the Group, positioning us well for the future.
Mirvac is an integrated, urban property group and a key contributor to Australia’s major cities.
Mirvac’s urban strategy and a strong focus on capital management delivered growth in FY17, and has ensured the Group is well placed for the year ahead.
In February this year, we launched Marrick & Co in Sydney’s inner west: a 220-apartment development on the old Marrickville Hospital site.
Mirvac has a priority focus on the health and safety of its employees, contractors and customers, and in FY17, we launched a refreshed policy and focus to strengthen our safety practices, behaviours and culture across our business, while supporting the wellbeing of our people, places and the communities in which we operate.
Developing a Reconciliation Action Plan (RAP) has been one of Mirvac’s key cultural goals over the past 12 months.
This Changes Everything is Mirvac’s sustainability strategy, comprised of four focus areas with long-term missions.
This Changes Everything FY17 at a glance
PROFIT attributable to the stapled securityholders of Mirvac increased to (June 2016: $1.03bn), driven by substantial property revaluation uplifts across the investment portfolio
OPERATING PROFIT1 (June 2016: $482m), representing 14.4 cents per stapled security (cpss)
OPERATING CASHFLOW
GEARING 2 at the lower end of the Group’s target range of between 20.0 to 30.0 per cent
FULL-YEAR DISTRIBUTIONS representing 10.4 cpss
NET TANGIBLE ASSETS (NTA) 3 per stapled security(June 2016: $1.92 )
SUBSTANTIAL AVAILABLE LIQUIDITY
of cash and undrawn committed bank facilities held, with $200m of debt due for repayment in December 2017
WEIGHTED AVERAGE DEBT MATURITY INCREASED from 4.0 years (June 2016) following over $1bn of debt issuance over the past 12 months
AVERAGE BORROWING COSTS REDUCED as at 30 June 2017 following the issuance of new debt and the repayment of maturing debt
1. Excludes specific non-cash items, significant items and related taxation. 2. Net debt (at foreign exchange hedged rate) excluding leases/(total tangible assets-cash). 3. NTA per stapled security, based on ordinary securities including Employee Incentive Scheme securities.
2017 Annual Report
2017 Annual Report
