Mirvac may have had a record financial year for apartment settlements but residential pre-sales were down by $729 million.
The groups financial results revealed a 42.9 per cent drop in pre-sales, which slowed from $1.7 billion to $971 million over the financial year.
The group made a statutory profit of $558 million, down 45 per cent, driven by the impact of Covid-19 and valuation changes to the portfolio.
The pandemic also had a $86 million impact on earnings including $48 million in rental waivers and $23 million in write-offs and other items including lower income from its Tuckerbox (Travelodge Hotels) investment.
However, Mirvac had 98.3 per cent occupancy for its office portfolio, 99.4 per cent occupancy in industrial and a 98.3 per cent occupancy across its retail portfolio.
There was also a $32 million net impact from delays in residential settlements and payments.
Through this, the group's residential team made 1,800 sales and settlements sat at 2,563 lots including a record 1,130 apartments compared to 2,611 residential lot settlements last year.
Mirvac’s chief executive Susan Lloyd-Hurwitz said the group was preparing for the recovery to come and would have to take a careful approach to their development pipeline.
“Remarkably, the group maintained momentum throughout the year with over 1,800 sales despite disruptions,” Lloyd-Hurwitz said.
“We are also setting ourselves up for the coming years to deliver into a period of reduced supply.”
During the financial year the group won the tender to develop Waterloo Metro Quarter, Sydney in consortium with John Holland and added new development sites at Milperra and Willoughby in Sydney and Newstead Brisbane.
They also received multiple approvals on residential projects in Menangle, Georges Cove and Green Square in Sydney, as well as rezoning at 55 Coonara Avenue and planning consent at 505 George Street, Sydney.
Mirvac also put forth plans to grow its build-to-rent pipeline to 1,700 homes and started pre-leasing its first project in the asset class LIV Indigo at Sydney Olympic Park and acquired two additional sites in Melbourne.
Mirvac shares edged 2.4 per cent higher at the close of day Thursday.
Mirvac will collaborate with Melbourne developer Milieu on the new Albert Fields build-to-rent project in Melbourne's inner north.
The major property development partnership was announced this week with plans to build a 500-home project on a one-hectare site in Brunswick.
Fieldwork, Breathe Architecture and Openwork have been appointed for architecture, interior design and landscape architecture respectively.
A development application is planned for November with the entire project scheduled for completion in late 2024.