Morningstar says Australia's Mirvac well prepared for residential downturn

Mirvac

13/11/2022 21:26

** Morningstar says real estate firm Mirvac Group  MGR.AX  is
well prepared for residential downturn and poised to benefit
from eventual recovery 
    ** Says it expects challenges in FY23 & 24 from higher
interest rates and declining dwelling prices.
    ** It expects the residential division of company to be well
positioned based on large number of sales contracts already
signed 
    ** Brokerage expects steady volumes & prices in FY23, as
settlements should be based on sales made in 2022, when prices
were solid 
    ** We assume a decline in 2024, and modest growth thereafter
as we assume Mirvac gains market share in the new dwellings
market, which we believe will take a larger share of Australia’s
new dwelling mix going forward - Morningstar 
    ** Brokerage assumes rental waivers, deferrals and
incentives in FY22 largely abate in 2023 for company's office
business
    ** Assumes recovery witnessed in 2022 to continue into 2023
in retail portfolio
    ** Eight of 13 analysts rate the stock "buy" or higher,
three "hold" and two "sell" or lower; their median PT is A$2.36
– Refinitiv data
    ** Stock has fallen 25.1% this year, as of last close 
 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))