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Mirvac is known as one of Australia’s largest residential developers, particularly apartments. Earnings from residential development are volatile, generating about a fifth of EBIT in fiscal 2019, despite only about 13% of the group’s invested capital being allocated there. We believe that was a cyclical high and that development earnings will moderate from the 2019-20 high point. About 80% of Mirvac’s earnings come from a relatively predictable commercial property portfolio, more than half of which is office and another fourth in retail, a small industrial portfolio, and a fledgling build-to-rent residential portfolio. The company is gradually allocating more capital to passive property ownership, and within that, trimming retail exposure and adding office, industrial, and residential.
Sydney, NSW, 2000, Australia