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Mirvac profit slumps on writedowns

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AAP

2013-02-14

Property group Mirvac's first half profit has dropped 69 per cent because of a massive writedown on its development projects.

Mirvac made a net profit of $55.2 million in the six months to December 31, down from $176.6 million in the previous corresponding period.

The company last week announced it would write down the value of developments in Queensland and Western Australia by $273 million and that has impacted its net profit for the first half of the 2012/13 financial year.

Chief executive Susan Lloyd-Hurwitz said Mirvac's underlying performance was in line with expectations, and the company was on track to deliver its previously forecast full year operating earnings of about 10.7 cents per security.

The company declared an unfranked distribution of 4.2 cents per security, and expects to pay distributions of between 8.5 cents and and 8.7 cents in the full year.