Mirvac FY18 Annual General Meeting: Urban Powerhouse
According to Chairman, John Mulcahy, Mirvac has been transformed over the past 6 years into an urban powerhouse.
It's mantra "Reimaging Urban Life" has helped all its employees look beyond the balance sheet to see what other good can be created. Core to their purpose is the desire to build sustainable communities, constantly innovating and creating an engaged workforce.
On the ground, Mirvac has recently established a new set of values:
• We put people first
• We are passionate about quality and legacy
• We collaborate
• We are curious and bold
• We are genuine and we do the right thing, and
• How we work matters
Mirvac are facing the headwinds in the residential and retail sectors and sees a new phase of the cycle where passive income will be key and high-quality assets and reputation will be the differentiators. Mirvac expects passive earnings to accelerate from a growth rate of 1 per cent to 5 per cent pa over next three years as office developments come on line and very strong office market conditions drive income growth.
As the passive portfolio grows, Mirvac will keep the quantum of active capital (capital allocated to developments in our residential and office businesses) relatively consistent at around $1.7 - 2.0 billion, so that the proportion of group capital allocated to the active side of the business will reduce.
In its retail business, Mirvac believe that the right retail in the right markets will continue to outperform, while bringing the community together through the “urban living room” of retail and evolving Centres to include a greater focus on dining, entertainment, health and beauty to meet the changing consumer preferences.
The residential market will continue to be subdued with a lower contribution to earnings than in FY18. Mirvac expect this to be short lived with strong growth in FY20.