Stockland's Profit May Not Face Same Pressure as Mirvac — Market...

Stockland's Profit May Not Face Same Pressure as Mirvac — Market Talk

Aug 8, 202411:30 GMT+10

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Investors shouldn't assume Stockland is facing the same profit headwinds as Mirvac, says Citi. That's because Mirvac is more exposed to apartments than Stockland, analyst Suraj Nebhani says in a note. Mirvac's share price is down 9.5% to A$1.91 after the homebuilder forecast weaker FY 2025 earnings and a lower distribution. Drivers of the downbeat outlook are a lower contribution from the development business and higher net interest costs related to development activities. Margins at some Queensland and New South Wales apartments projects are likely lower, Mirvac said. "We don't expect direct read-throughs from Mirvac's earnings miss to Stockland given the difference in the residential business," Citi says. ([email protected]; @dwinningWSJ)