MGR - Mirvac Group

[qldfrog]

well actually decision is quickly made:
at $1.69 a share, it is higher than the EOD price yesterday so why bother and risk.
let's keep it aside in case of a rebound....

 

[ASAP]

big swings lately anyone have any idea why?

 

[nulla nulla]

big swings lately anyone have any idea why?

Because Mirvac also develops residential propery, drops in the Reserve Bank Interest Rate encourage property buyers and the share price rises. Because of the sell down of the Aud$, off-shore investors are dumping aussie stocks including A-REIT's like Mirvac, so Mirvac share prices falls until it becomes attractive to local investors and/or the Aud$ stabilises and it becomes attractive to off-shore investors again.

 

[ASAP]

I am new to this new whole forum thing....
But is it common knowledge that Mirvac pre GFC was positioning it's self to be taken over by a bigger REIT or international buyer.
They pretty much wanted to be taken over.

 

[rbgmauq]

Momentum picking up. Technical indicator shows a buy with the 2.088 target price in six months. http://au.stoxline.com/q_au.php?symbol=mgr&c=ax

 

[skc]

I am new to this new whole forum thing....
But is it common knowledge that Mirvac pre GFC was positioning it's self to be taken over by a bigger REIT or international buyer.
They pretty much wanted to be taken over.

It may have been the case but who cares... GFC was over 5 years ago?!

Whatever rationale that applied back then surely doesn't apply anymore.

MGR is a $6B entity and there hasn't been a deal that big for years.

 

[magnate]

Looks like a confirmed break of a fairly strong uptrend. See attached weekly chart

 

[VSntchr]

Am I reading this correctly that MGR has their USD denominated debt only hedged 64%?

 

[notting]

Their US Denominated debt appears to be creating a bit of a short squeez.
Short again me thinks

 

[notting]

Double top in turning with property?

 

[notting]

Gee looking at that break you would think we were about to have a housing boom -
Hmm, wonder how that 2.37 support line will hold?!

 

[notting]

Fail?

 

[Ann]

This looks to have slipped by everyone. Rising Twiggs weekly Money Flow, Bullish Positive and Negative Volume indicators, rising price. 4.12% divie

 

[Cam019]

This looks to have slipped by everyone. Rising Twiggs weekly Money Flow, Bullish Positive and Negative Volume indicators, rising price. 4.12% divie

View attachment 93224

I'm in it. Only for the last 2 weeks though, not since January.

 

[Trav.]

MGR trying to break out of the recent sideway action.

Weekly chart below

 

[Trav.]

Just revisiting this thread and MGR did break out above $2.35 for a high of $2.84 in December and closed at $2.65 today.

I am looking at the possibility of a retracement < $2 as per chart marked up below, long shot but it did catch my eye

 

[divs4ever]

REQUISITION OF MEETING BY AWOF UNITHOLDERS

Mirvac Group (“Mirvac”) [ASX: MGR] understands that unitholders have written to AMP Capital Investors Limited (“AMPCI”) as trustee of AMP Capital Wholesale Office Fund I and AMP Capital Wholesale Office Fund II (“AWOF”) to requisition a unitholder meeting to vote on the replacement of AMPCI as trustee of AWOF with Mirvac Funds Management Australia Limited (“Change of Trustee”), and other proposed amendments to the constitutions of AWOF.
To pass the resolutions for the Change of Trustee, at least 50% of the total votes that may be cast by AWOF unitholders entitled to vote on the resolutions are required to vote in favour. Michelle Favelle Group Company Secretary +61 2 9080 8376

i hold MGR ( 'free-carried ' )

am not sure how much a successful vote to change trustee will affect MGR share-holders ( but am damned glad i got out of AMP in late 2018 )

 

[divs4ever]

Mirvac Group (“Mirvac”) [ASX: MGR] has been notified that the requisite majority of unitholders of AMP
Capital Wholesale Office Fund (“AWOF”) has approved a resolution to replace the current trustee, AMP
Capital Investors Limited ("AMPCI"), with Mirvac Funds Management Australia Limited (“Mirvac Trustee”).
AWOF is comprised of 11 prime grade assets concentrated in the Sydney and Melbourne markets. The
portfolio is underpinned by high quality modern assets such as Quay Quarter Tower, Sydney, along with
iconic assets such as Collins Place, Melbourne, and features a WALE of 5.5 Years, an occupancy rate of
92.5% (by income) and NABERS Energy Rating of 5.3 Stars1.
It is expected that the Mirvac Trustee will become trustee of AWOF in mid-October 2022 (“Effective Date”).
From the Effective Date, Mirvac will be the investment manager and property manager (in respect of
AWOF’s wholly owned assets) of AWOF.
The required majority of AWOF unitholders did not vote in favour of the constitutional amendments relating
to the governance of AWOF and to give effect to the liquidity facility (described below). It is, however,
expected that the Mirvac Trustee will propose equivalent constitutional amendments at a subsequent
meeting of the AWOF unitholders within 20 business days following the Effective Date. Once these
constitutional changes are made, AWOF will be known as the Mirvac Wholesale Office Fund. Subject to
those amendments being approved by AWOF unitholders, Mirvac will then offer AWOF a total of $500m of
liquidity. It is expected that this liquidity will be utilised within six months of the Effective Date.
As a result of the transaction, Mirvac’s third-party capital under management will grow by ~76%, increasing
to ~$18.1bn2.
Mirvac’s CEO & Managing Director, Susan Lloyd-Hurwitz, said “We are pleased to have been entrusted
by AWOF unitholders with the management of one of Australia’s leading unlisted office funds. The
addition of the $7.7bn fund is an acceleration of Mirvac’s long stated strategy to grow our third-party
funds under management with aligned capital partners, and further enhances our position as a top
tier manager of prime office assets in Australia.
“We are pleased to offer AWOF unitholders reduced fees, a standalone trustee with a majority
independent board and access to Mirvac’s market-leading, integrated asset creation and curation
capabilities and platform including our $9.2bn3 office and mixed use development pipeline. Today’s
vote by AWOF unitholders demonstrates their faith in Mirvac as a stable platform with a clear focus
on governance and a long track record of delivering unitholder value.
“AWOF’s modern, high-quality portfolio, recently enhanced by the completion of Quay Quarter, is
strongly aligned with Mirvac’s investment strategy and existing portfolio. We look forward to working
with unitholders to continue to enhance the performance of AWOF over time.”

=========================================================

DYOR

i hold MGR ( 'free-carried ' )

hmmm , i hadn't been watching this lately

 

[Country Lad]

I understand that the Singaporeans have been wanting to exit the Serenitas joint venture for quite a while. Probably a good result for them and Tasman Equity.

Pacific Equity Partners, Mirvac sign $1 billion Serenitas acquisition​

Sources said PEP has partnered with ASX-listed Mirvac Group to buy the business, which comprises a portfolio of lifestyle communities around the country, including the Western Australian National Lifestyle Villages brand, Thyme Lifestyle Resorts and National Lifestyle Villages.

The two are expected to each take a 47.5 per cent stake in Serenitas. It is understood local mid-market private equity firm Tasman Capital, led by Rob Nichols, will retain a 5 per cent stake, alongside an equity syndication right for 14.99 per cent (taking it to 19.99 per cent) of the deal.

Mirvac joins PEP in $1 billion buyout of Serenitas​

One of Australia's leading land lease community operators Serenitas is set for an ownership reshuffle as Mirvac Group (ASX: MGR) and Pacific Equity Partners Secure Assets (PEP) team up with existing investor Tasman Capital Partners for a $1 billion-plus buyout of the group.

With a portfolio of 27 over 50's communities comprising 6,200 sites in WA, QLD, NSW and VIC, Serenitas was established in 2017 as a joint venture between Tasman and GIC, Singapore’s sovereign wealth fund. Almost a third of its sites are yet to be developed, 98 per cent of which are development approved.

 

[divs4ever]

MIRVAC DELIVERS SOLID 1H24 RESULT

Mirvac Group (Mirvac) [ASX: MGR] today released its interim result for the half year ended 31 December 2023.
We delivered an operating profit of $252m, down 17% on 1H23, which represents 6.4 cents per stapled security (cpss).
Our statutory loss of $201m was also down on 1H23, driven by property devaluations.
Financial metrics:
• operating profit after tax of $252m (1H23: $305m)
• operating earnings before interest and tax (EBIT) of $372m (1H23: $387m)
• half-year distribution of $178m, representing DPS of 4.5cpss
• operating EPS of 6.4cpss
• statutory loss of ($201m) (1H23: $215m profit)
• net tangible assets of $2.56 (1H23: $2.79)

Group highlights:
• executed ~$480m in non-core asset sales, helping to strengthen our balance sheet and improve the quality of the Investment portfolio • maintained high occupancy of 96.9% in our Investment portfolio1 and leased ~90,000sqm of net lettable area across Office, Industrial and Retail
• contracted to acquire a 47.5% interest in the ~$1bn Serenitas platform, alongside Pacific Equity Partners (PEP) and Tasman Capital Partners (Tasman), expanding our residential customer offering into the land lease communities sector
• achieved practical completion at Switchyard, Auburn delivering new, recurring income to the Group
• secured Aspect North into the Mirvac Industrial Venture
• settled 1,131 residential lots, with defaults remaining low at 0.7%2
• restocked our Residential pipeline with ~8,400 lots, securing ~7,200 lots on capital efficient terms in Qld and ~1,200 lots in Mulgoa, NSW
• achieved Australia’s first 6 Star Green Star Buildings certified rating at Heritage Lanes, Brisbane.

Mirvac’s Group CEO & Managing Director, Campbell Hanan, said: “We delivered a solid first-half result, executing our key strategic objectives.
This included progressing our $1.2bn non-core asset sales program, expanding into the land lease sector through the acquisition of Serenitas, and increasing our industrial exposure with the completion of Switchyard in Sydney.

“Our high-quality investment portfolio remains resilient, with a particularly strong period of leasing, high occupancy of 97 per cent, continued like-for-like NOI growth, and positive momentum across our build to rent assets, with LIV Munro 92 per cent leased at the end of January and LIV Indigo 98 per cent occupied.

“We settled 1,131 residential lots and continued to see good levels of enquiry at our projects, indicating strong underlying demand. While residential sales activity remained subdued during the first half, we have a flexible launch program with well-located product that is ready to benefit from improved buyer sentiment.
“Our focus on growing our relationships with aligned capital partners and selectively deploying capital across our development pipeline will deliver growth and balance sheet resilience over time.”
1. Excluding build to rent.
2. 12-month rolling default rate to 31 December 2023.

Capital management key metrics and highlights:
• gearing of 27.2%1 , within the Group’s target range of 20 to 30%
• substantial available liquidity of ~$1.1bn in cash and committed undrawn bank facilities held
• weighted average debt maturity of 4.7 years, with no debt maturing in FY24
• debt is 73% hedged
• average borrowing costs increased to 5.5% as at 31 December 2023 (FY23: 5.4%), in line with the market
• total debt portfolio now comprised of 43% green loans
• maintained A-/A3 ratings with stable outlooks from Fitch Ratings and Moody’s Investors Service. Investment update:
• delivered EBIT of $309m (1H23: $320m2 ), driven by additional income from completed developments and our co-investment in MWOF, offset by non-core asset sales • investment property devaluations of $396m
• achieved strong leasing activity, with 198 leasing deals completed across ~90,000qm3 . Leasing across the office portfolio was particularly strong, with ~36,000sqm leased during the period (up 47% on 1H23) and a further 32,500sqm under heads of agreement
• maintained high portfolio occupancy at 96.9%4 (1H23: 97.6%) and a WALE of 5.2 years5
• contracted to acquire a 47.5% interest in Serenitas platform, alongside PEP and Tasman, for an enterprise value of ~$1bn (100% basis). The transaction is due to complete in February 2024
• completed ~$480m of non-core asset sales, including 60 Margaret Street and MetCentre, Sydney, and exchanged contracts for 383 La Trobe Street, Melbourne
• increased our Industrial exposure with the completion of Switchyard, Auburn (96% leased).
Mr Hanan said: “Our modern, sustainable investment portfolio, with low capital expenditure, continues to outperform the market benchmark, helping us to attract high-quality tenants and customers to our business.
This is particularly evident within our office portfolio, where we have seen strong leasing momentum, driven by tenant and capital preference for Premium, core-CBD assets with high sustainability credentials.
“We’ve seen positive income growth across office, industrial and retail, while our build to rent portfolio, supported by strong market fundamentals, is delivering resilient earnings to the Group.
“Our expansion into land lease through our acquisition of the Serenitas platform, together with Pacific Equity Partners and Tasman Capital Partners, is also expected to deliver attractive cash returns, and establishes Mirvac as the only residential developer in Australia delivering across a wide spectrum of housing typologies. “We expect the living sectors will make up a greater share of the portfolio over time.”

Funds update:
• delivered EBIT of $16m (1H23: $15m), driven by a full six months’ contribution from new funds on the platform, offset by the absence of a performance fee recorded in 1H23
• expanded the Mirvac Industrial Venture with Australian Retirement Trust, following the exchange of Aspect North, Sydney
• MWOF continued to perform solidly, with the fund outperforming the benchmark over the two-, three-, five-, and seven-year periods and $600m of debt successfully raised.

1. Net debt (at foreign exchange hedged rate)/ (total tangible assets – cash).
2. Restated to reflect Mirvac’s new segment reporting structure, which commenced the financial year ended 30 June 2023.
3. Across Office, Retail, and Industrial.
4. By area, excluding Build to Rent.
5. By income, excluding Build to Rent. Mr Hanan said: “We continued to expand our relationships with existing partners during the first half of the year, with Aspect North secured into the Mirvac Industrial Venture.

We expect that our recently established funds vehicles will deliver future embedded growth to the business, as our commercial and mixed-use pipeline projects complete over the coming years.
“We are focused on exploring opportunities to further broaden our external funds offering, with capital partnering discussions progressing for 55 Pitt Street and Harbourside, Sydney.”

Development update:
Commercial & Mixed-Use:
• delivered EBIT of $19m (1H23: $67m1 ), driven by recognised earnings on Switchyard, Auburn, and on projects under construction, including 7 Spencer Street, Melbourne
• topped out at LIV Aston, Melbourne, with completion expected in June 2024.
Our ~$1.2bn build to rent development pipeline continues to progress, with LIV Anura, Brisbane (396 apartments) and LIV Albert Fields, Melbourne (498 apartments) under construction
• progressed construction at Aspect Industrial Estate, Kemps Creek, with the first warehouse expected to be our first carbon neutral embodied carbon development.

The project is currently ~57% pre-leased, with firm tenant engagement on the remaining space
• commenced early works at our mixed-use project, Harbourside, Sydney, with DA approval received. The residential component is expected to be launched to market in mid-2024
• progressed civil works at 55 Pitt Street, Sydney, and increased pre-leasing to ~27%, including agreements for lease and heads of agreements.
Mr Hanan said: “Our integrated model provides us with considerable flexibility in our deployment of capital. The consolidation of our development division has also allowed us to drive efficient capital allocation and leverage skills across the business, while providing diversity and resilience of earnings through cycles.
“During the first half, we continued to selectively unlock value within our active commercial and mixed-use development pipeline, with a focus on progressing our build to rent and industrial development projects.
We achieved practical completion at Switchyard, which is already contributing income to the Group, and topped out at LIV Aston in Melbourne, which will be our third operational build to rent asset.”
Residential:
• delivered EBIT of $94m, up 62% (1H23: $58m1 ), driven by apartment project settlements at NINE Willoughby, Green Square and The Langlee in Sydney, along with increased MPC settlements at Smiths Lane and Olivine in Melbourne
• settled 1,131 residential lots, with defaults remaining low at 0.7%2
• exchanged 629 lots, impacted by rising interest rates, fewer product launches, and lower first home buyer activity • grew our residential development pipeline to ~30,000 lots, with contracts exchanged for a new ~7,200 lot masterplanned communities project in Qld and a site secured at Mulgoa, NSW, for ~1,200 lots
• residential pre-sales of ~$1.5bn, skewed to upgraders and right-sizers.
Mr Hanan said: “Taking advantage of market conditions, we have prudently restocked our residential development pipeline on capital efficient terms, securing approximately 8,400 masterplanned communities lots.
These new opportunities, combined with upcoming apartment completions and a number of ready-to-release projects, position us well to take advantage of the deep undersupply of housing and continued population growth across Australia.
1. Restated to reflect Mirvac’s new segment reporting structure, which commenced the financial year ended 30 June 2023.
2. 12-month rolling default rate to 31 December 2023.

“Despite subdued sales activity over the period, we are encouraged by underlying residential market fundamentals and high levels of enquiry at our projects, particularly from upgraders and right-sizers - who make up the majority of our customer base and are attracted to Mirvac’s track record for delivery and reputation for quality.”

Outlook

Mr Hanan said: “Signs that interest rates are at or near peak level and falling inflation are positive, and we are well positioned to capitalise on a market recovery across all of our operating segments.
Our modern investment portfolio, with low capital expenditure, is well located and will continue to deliver a resilient and stable passive income stream over time.
“Our key priorities for the remainder of the financial year are to achieve our planned residential lot settlement target, progress tenant pre-commitments and secure capital partners for 55 Pitt Street in Sydney, and finalise the sell-down of Aspect South.
“We are also in discussions with capital partners in our residential business.
Combined with the other transactions, this will ensure we have headroom on our balance sheet.

“Subject to no material change in the operating environment and to delivering on key initiatives, we have reaffirmed guidance of operating earnings per security of 14.0-14.3 cents in FY24 and distribution per security of at least 10.5 cents.
” Mirvac’s half-year reporting suite sets out the Group’s financial and operational performance for the half year ended 31 December 2023 and is accompanied by this announcement.

Securityholders are able to watch the 1H24 results webcast live on our website here.


i hold MGR ( 'free-carried ' )

hmmm

i am underwhelmed , but i doubt the share price will drop enough to tempt me to add extras
i guess it will rely on market expectations