Stock Spotlight: Mirvac Group (ASX:MGR)

This week's Stock Spotlight is ASX-listed Mirvac Group.


About Mirvac Group.


Founded in 1972, Mirvac is an Australian Securities Exchange (ASX) listed company, with an integrated asset creation and curation capability. We own and manage assets across office, retail, industrial and the living sectors in our investment portfolio, with approximately $22 billion of assets under management. Our development activities span commercial and mixed-use and residential, with a development pipeline of approximately $29 billion. We focus on delivering high-quality, innovative and sustainable real estate for our customers, while driving long-term value for our securityholders.


Source: Yahoo Finance



Key Stats

Source: Yahoo Finance, ASX. Data as of 27/08/24.


Price Performance

Growth Potential

  • Potential uplift in property valuations and income.
  • FY25 should be a trough in earnings. We forecast high single digit earnings (EBIT) growth over the next 5 years.
  • High quality portfolio composition with stronger weighting towards Melbourne and Sydney urban areas minimizing risk from submarket weakness from Brisbane.
  • Balance sheet gearing of 27.6% within the target range of 20%-30% and
  • MGR pays a solid dividend yield.
  • MGR operates the largest Build to Rent (BTR) portfolio in Australia with almost 2,200 apartments and another site secured.
  • Continuing recovery in weak retail sales especially for supermarkets.
  • Strong management team.
  • Potential corporate activity.

Key Risks


  • Deterioration in property fundamentals for Office, Industrial and Retail portfolio, such as delays with development or lower than expected rental growth causing downward asset revaluations.
  • Tenant defaults as the economic landscape changes (increasingly competitive retail sector especially from online retailers such as Amazon). For instance, retailer bankruptcies are causing rising vacancies in the retail portfolio.
  • Generally softening outlook on the broader retail market.
  • Residential settlement risk and defaults.
  • Higher interest rates impact debt margins.
  • Consumer sentiment towards impact of higher interest rates and effect on retail and residential businesses.

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Disclaimer: This article does not constitute financial advice nor a recommendation to invest in the securities listed. The information presented is intended to be of a factual nature only. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking financial, legal and taxation advice before investing.

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