Mirvac Group

Section 1: Company Overview and Fundamentals Insights

1.1 Company Overview

Mirvac Group (ASX: MGR) operates in the diversified REITs sector, and it is involved in real estate investment, development, property asset management, and capital management business. The company owns and manages the assets across domains like industrial, office, retail, and build-to-rent.

 1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top 10 Shareholders: The top 10 shareholders together form ~34.87% of the total shareholding. The Vanguard Investments Australia Ltd. and APG Asset Management N.V are holding a maximum stake in the company at ~9.51% and ~5.14%, respectively.

1.4 Key Metrics: The company has improved its efficiency by achieving a gross margin of 25%, above the company's specific cycle target of 18-22%. Additionally, the company reported a gearing ratio of 21.3%, which is lower than the group estimated range of 20-30%.

Section 2: Business Updates and Financial Highlights

2.1 Recent Developments:

2.2 Results Highlights of FY22 & Investment Portfolio Cash Collection: The recent FY22 results depicted operating profit after tax of AUD 596mn relative to AUD 550mn in FY21. High cash collection was maintained across the industrial segment (100%), office (99%), and retail (91%).

Total Investment Portfolio Cash Collection for Q4FY22 is Highlighted Below:

2.3 Dividend History: MGR shows a clear track record of paying a dividend to shareholders. The group issued a dividend of AUD 0.051 per share in August-2022. The group is targeting distributions of at least AUD 10.5cpss in FY23

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is August 11, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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