With the construction boom taking place across Australia, substantial share growth in one day is not out of the ordinary. Real estate giant Mirvac Group [ASX:MGR] is no exception, growing in share value by 4.05% today.
Mirvac have displayed a strong capital position while being able to maintain a flexible balance sheet.
Mirvac have gone above and beyond to innovate the market with new developments and projects, such as its Olympic Park project.
Mirvac increases residential portfolio
Mirvac have also been busy gaining settlements on their residential portfolio, properly lifting the company into a higher value, allowing them to upgrade its credit rating.
During the end of last year, they managed to gain 735 settlements while adding another 429 at the beginning of 2018.
This contributed to high sales and price growth at its sites all over Melbourne.
Mirvac have plans to further develop sites in Victoria over the next 20 years.
In its financial report, Mirvac stated:
‘Victoria’s population is forecast to grow by around 560,000 in the five years to 2022 or 112,900 people per annum. 2 Melbourne is estimated to require an additional 42,000 dwellings per year in the 20 years to 2031.’
With Mirvac already representing 72% of total residential lots in Sydney and Melbourne, and with the increase in population forecast over the next few years, things are looking positive for the company.
For Money Morning
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