Property exposed companies have reported “tremendously successful” and “best ever” results thanks to the booming housing market.
Developer Mirvac saw its full year profit spike 220 per cent to $447 million dollars.
Shareholders will receive a final dividend of 4.6 cents a share, taking the full year payout to 9 cents unfranked.
Strong residential sales lifted the result, with a total $1.2 billion of exchanged pre-sales contracts in hand and a slightly better than forecast 2,482 properties settled.
Chief executive Susan Lloyd-Hurwitz says the year has been “tremendously successful” and has set the company up for the future.
That future is very focused on building apartments to feed what it believes will continue to be high demand, particularly in Sydney and Melbourne.
Chief investment officer Brett Draffin says the strong sales and price momentum seen over the past financial year is set to continue, albeit at a “slightly more moderate level.”
He is not concerned about the flood of units that is expected to come onto the market in the near term.
“Fundamentally increased stock levels are insufficient to overcome the national undersupply, there is a high level of activity from offshore buyers in select locations and product types,” he told investors.
“We expect demand volumes to continue to grow driven by tight rental vacancy population growth and a strengthening of the economy.”
Mirvac has spent $248 million on new sites, two-thirds of these acquisitions were in NSW, less than a fifth were in Victoria, and the remainder in Queensland and Western Australia.
Half of the lots to be released this year are in Sydney, and almost all of them are units.
Mirvac believes the major acquisitions it has made will see residential development drive earnings from two years time onwards.
Mortgage broker boosts earnings
Mortgage broker Mortgage Choice has also benefitted from the fever that has swept the residential property market over the past year-and-a-half, boasting a best ever full-year result.
Full-year net profit rose 6 per cent to $19.85 million, and cash profit jumped 19 per cent to $18.7 million.
The final dividend was boosted to 8 cents a share, fully-franked.
The company says it “managed to capitalise on the industry tailwinds and significantly grow its core business.”
The business wrote $12.2 billion in loan approvals, which is almost 20 per cent higher on the prior year, and the loan book rose to $47.4 billion.
Chief executive Michael Russell says it is the best result so far for the company.
“We have embraced the opportunities that the strong market has presented us with and managed to deliver some of our best financial results to date,” he said.
The company says it is well on its way to achieving its goal of becoming a recognised diversified financial services provider.
“We will continue to focus on our growth and diversification moving forward.”