Morningstar | Mirvac Well Aligned with Buoyant Office and Industrial Sectors
Earnings growth is underpinned by Mirvac Group's higher-quality commercial property portfolio of office and retail assets. Mirvac's key point of differentiation from passive REITs is its development business (mostly residential), which accounts for 20%-30% of operating profit. Margins for development have been boosted in recent years by across-the-board house price appreciation, but we expect prices and margins to moderate in the long term, weighing on margins and hence earnings growth. Still, earnings are set to grow during the next two years, underpinned by the development division (residential and commercial), with a series of major projects on track to settle in the coming years. However, earnings visibility reduces significantly for the development division for fiscal 2021 and beyond.Mirvac Group is engaged in real estate investment, development, third party capital management and property asset management. Co. performs these activities across three primary segments: Office & Industrial, which manages the office and industrial property portfolio to produce rental income along with developing office and industrial projects; Retail, which manages the retail property portfolio, including shopping centers, to produce rental income; and Residential, which designs, develops, markets and sells residential properties to external customers including masterplanned communities and apartments in primary metropolitan markets in conjunction with strategic partners.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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