Mirvac profits down eight percent but executives remain optimistic

Mirvac profits down eight percent but executives remain optimistic

Property group Mirvac's (ASX: MGR) half year profit has dropped slightly by eight per cent due to lower gains on revaluation of its property investment portfolio.

The company reported a half year profit of $465 million, down eight per cent from last year's $508 million.

Revenue dropped by 28 per cent to $984 million from $1.3 billion and the company declared an unfranked final dividend of 5 cents per share, up from 4.9 cents last year.

Despite the dips, chief executive Susan Lloyd-Hurwitz says she remains confident the company will deliver a strong full year report.

"Our urban strategy, diversified and integrated business model, and our proven asset creation capability ensures we are on track to deliver strong growth in FY18," says Lloyd-Hurwitz.

"We remain confident in our earnings outlook, with clear visibility of future cash flows in FY18 and beyond."

In line with the group's guidance provided in the FY17 results, Lloyd-Hurwitz says there will be a strong skew of earnings to the second half of the financial year because of the timing of residential settlements.

The company has announced plans to initiate an on-market buy-back program for up to 2.6 per cent of Mirvac securities.

Shares in Mirvac are up 0.49 per cent to $2.06 per share at 12.30pm AEDT.

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