Mirvac Group's half-year earnings (EPS) of 7.0 cents was above Morgan Stanley's 6.5 cent estimate, with the beat due to a strong retail result, whereby only -$18m of rent was waived/ provisioned (versus -$35m factored into the broker's assumptions).

The broker finds it increasingly hard to attain a line-of-sight to future active profits, as the Office segment development profits cease with 80 Ann St next year and no new commitments are imminent.

In addition, the average duration of new leases of 3.5 years and the apparent strong tenant inquiries for 2026/27 do not excite the analyst for now.

Morgan Stanley maintains its Equal Weight rating and lowers the target price to $2.50 from $2.55, reflecting the softer outlook for Residential/Office. Industry view is In-Line.

Sector: Real Estate.

Target price is $2.50.Current Price is $2.32. Difference: $0.18 - (brackets indicate current price is over target). If MGR meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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