Mirvac's streamlining strategy and favourable property revaluations have contributed to a significant rise in its full year net profit, despite problems in its development business.Mirvac made a net profit of $416.1 million in the year to June 30, more than double its $182.6 million profit in the previous year.Contributing to the profit was a $148.7 million increase in the value of its investment properties, which the company said reflected its strategy to shed some properties and improve the quality of its portfolio.Mirvac owns office and retail properties across Australia, the largest including Westpac Place and the Broadway Shopping Centre, both in Sydney.Its portfolio is worth more than $6 billion, and the rise in property values represented about three per cent of its value.Mirvac also made a $21.4 million profit in the year to June from the sale of its hotel management business."Today's result is very pleasing and has been achieved at a time when conditions in many parts of the property sector are not buoyant," managing director Nicholas Collishaw said in a statement.The group had been working since 2008 to simplify its operations by selling what it deemed as non-core assets and activities, he said."The FY12 result highlights the progress that has been made on this journey and the benefits flowing from our resilient and high quality (investments)," Mr Collishaw said.The company's development business, which designs and builds apartment blocks and masterplan communities, returned a loss for the year to June.Mr Collishaw said the company was working to "de-risk" its development business by securing more pre-sales for residential lots.It settled 1,807 lots in the year to June, and targets a similar result in the year ahead.At one of Mirvac's largest developments, at Harold Park in inner Sydney, 64 per cent of lots in the first stage of the project have been sold, it said.Mirvac has forecast an operating profit, which excludes one-off financial items such as asset sales, in the range of $366 million to $370m in the 2012/13 financial year.That compares to an operating profit of $366 million in 2011/12.Mirvac shares were down 2.5 cents at $1.345 at 1439 AEST.
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