Structured settlements

Mirvac Group (MGR) reiterated its latest earnings guidance of 13.4c per stapled security for fiscal 2009. The company said it had completed a detailed review of its earnings as the magnitude of the change in economic circumstances became clear.

Chairman James MacKenzie told shareholders at the company's AGM the revised development earnings reflected a conservative assessment of forecast residential settlements and sales based on the new market conditions.

"Negative consumer sentiment and low home ownership affordability are very real challenges for Mirvac," Mr MacKenzie said.

"Notwithstanding, we are starting to see, what we hope are early signs that the residential market and consequent demand for Mirvac product being stimulated by the Rudd Government's First Home Owners grant scheme."

He added that the NSW Rees Government's announcement last weekend of a $3,000 increase in the grant for First Home Owners, falling interest rates along with rising residential rents and the general undersupply of housing were also positive.

Mr MacKenzie said they were early signs, not factored in to Mirvac's projections, but nonetheless cause for some cautious optimism and hopefully some good news in the not too distant future. read more