Mirvac Profit Drops 69% on Decline in Revenue, Asset Writedowns

Mirvac Group, Australia’s third- biggest diversified property trust by assets, said first-half profit slumped 69 percent after asset writedowns and a decline in development revenue.

Net income fell to A$55.2 million ($57.2 million) in the six months to Dec. 31 from A$176.6 million a year earlier, the Sydney-based company said in a statement to the Australian stock exchange. Operating profit declined 4 percent to A$194.2 million, it said.

Mirvac last week announced a A$273.2 million writedown on residential projects after weaker than expected sales. The move brought writedowns to more than A$1 billion since 2007, figures from Morgan Stanley research show.

“The group is on track to deliver its full year operating earnings guidance,” Susan Lloyd-Hurwitz, who took over as managing director on Nov. 5, said in the statement today.

Operating earnings per share for the year ending June 30 will be between 10.7 cents and 10.8 cents, and its dividend will be between 8.5 cents and 8.7 cents, it said. Mirvac will pay a dividend of 4.2 Australian cents for the half, it said.

To contact the reporter on this story: Nichola Saminather in Sydney at nsaminather1@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

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