Goodman Group, Mirvac, Sydney Airport, Origin Energy - First Impressions from reporting
Goodman Group: Net tangible assets (NTA) per security increased 3% to $4.24 (current price $7.22) | Total assets under management of $34.8 b, external assets under management increased to $30.1bn | Development WIP at $3.5 billion across 81 projects in 14 countries | Property fundamentals remain robust : Occupancy maintained at 96%, retention remains high at 81%, like-for-like rental growth 2.6% | Outlook: “For the full year, the Group is forecasting FY17 operating EPS growth of 7.5%, following strong first half performance with continued momentum into the second half.” (Goodman is revising up its FY17 operating EPS guidance to 43.1 cents, a 7.5% increase over FY16).
Mirvac: Reported net profit up 7% to $508m primarily on the back of property revaluations (Revaluation gains of $277m) | Net tangible assets (NTA) per stapled security up 5% to $2.01 ie from 30 June 2016- $1.92 ( current p rice $2.16) | Office portfolio: Occupancy 97.2%, Net operating income like-for-like growth 2.5% as compared to 1.0% in pcp | Retail: Occupancy 99.7%, Net operating income like-for-like growth 3.2% as compared to 2.2% in pcp | Industrial: Occupancy 99.7%, Net operating income like-for-like growth 0.7% as compared to 2.7% in pcp | Residential: Settled 977 residential lots, with the Group targeting over 3,300 residential lot settlements in FY17. | Outlook: Mirvac has tightened its FY17 operating EPS guidance to between 14.2 and 14.4 cents per stapled security, and reaffirms distribution guidance of between 10.2 to 10.4 cents per stapled security. “While we still have over 2,300 lots to settle in the remainder of the financial year, we are comfortable with our revised operating earnings outlook and remain on track to deliver a residential return on invested capital of greater than 15 per cent.”
Sydney Airport: Aeronautical rev up 17.4%, Aeronautical Security recovery up 4.8%, Retail up 12.2%, Property and car rental up 1.5% Parking and Ground Transport up 3.6% and Others up 3.6% | Total of 41.9 million passengers in 2016, up 5.6% on the pcp; international and domestic passengers grew 8.9% and 3.8% respectively. | Outlook: Sydney Airport has announced distribution guidance of 33.5 cents3 per stapled security for 2017 to be fully covered by net operating receipts, reflecting confidence in the business outlook. 2017-2021 capex guidance of $1.3 billion, $450 million in 2017 linked to 4.3% increase in international aeronautical prices.
Origin Energy: Reported loss of $1677m impacted by $1,861m post-tax impairments | Divisional EBIT: Energy Markets EBIT up 3.3% to $576m; Integrated Gas ($100m) as compared to ($63m) in pcp. | Net operating cash flow up 5.8% to $495m | FY18 APLNG break-even increases to US$45/bbl driven by reducing domestic revenue and ~US$2.50/boe of additional exploration & appraisal spend. Prior guidance was for an average break-even of US$42/boe from FY17-23 | Outlook: “Origin advises that its FY2017 Underlying EBITDA guidance range, which was previously $2,370 to $2,615 million, has improved to $2,450 to $2,615 million1, subject to market conditions. Underlying Profit guidance is $480 million to $590 million for FY2017. Origin’s remaining contribution to Australia Pacific LNG is expected to be $0.3 billion, a $0.2 billion reduction on previous guidance, reflecting higher revenue and lower capital spend than previously forecast.”
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