MGR +3.13%: the property group was out with a 3rd quarter trading update today which buoyed the real estate space. The company talked to “strong momentum leading into the final quarter with rent collection rates improving” in a sign the headwind to the REITs was abating at a quickening pace. Couple that with the residential business that has seen nearly 1,800 settlements already in FY21, well on track to top the 2,200 guidance minimum.
Mirvac is a good barometer of the market given it has exposure across residential, retail and office space so the update led to buying across the sector. While the residential recovery has been well discussed, today shows that retail and office have signs of life. My bus was full before I was halfway into the city this morning – tenants are losing leverage in the fight for reduced rents given workers and shoppers are now out and about again. Mirvac upgraded its EPS to at least 13.7cps, a worst case being a 5% beat to the market.
