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Mirvac Group has forecast flat profit growth and says it is on track with its ongoing sale of non-core assets.
In an update to the market on its first quarter performance, the diversified property group reaffirmed guidance for operating profit for the full 2012/13 year at be between $366 million and $370 million.
This compared with operating profit after tax of $366 million in 2011/12.
Operating earnings per share was forecast at between 10.7 cents and 10.8 cents per stapled security, Mirvac said on Thursday.
The distribution to securityholders was expected at between 8.5 cents and 8.7 cents per stapled security.
"We remain on track for FY13," Mirvac's chief executive for development, Brett Draffen, said on Thursday.
Mirvac chief executive, investment, Andrew Butler, said the company was making good progress with its program of selling non-core assets.
"We've still got $150 million to $200 million of non-core assets sales to go through the year," Mr Butler said.
Mirvac, which manages retail centres including the Broadway Shopping Centre in Sydney and holds investments in many office, retail and industrial properties, has been working since 2008 to simplify its operations by offloading non-core assets and activities.
Mr Draffen said the residential property market was continuing to improve, although conditions varied from state to state.
"The combination of soft property prices and lower borrowing costs has resulted in an improvement in housing affordability, while home ownership is becoming financially attractive compared to renting," Mr Draffen said.
"We are pleased to see the bias towards medium-density accommodation continuing, particularly in the south-eastern states."
Mr Draffen said he expected the trend to gain momentum in the period ahead given the lack of housing affordability, ageing population, smaller households and changing preferences among new migrants.
Mirvac closed up 2.5 cents, at $1.545.
Based on information provided by and with the permission of the Western Australian Land Information Authority (2013) trading as Landgate.