MGR
Mirvac guiding lower today due to weather. Interesting that the office stats are holding up, given the relentlessly negative commentary in the market.
Here’s the headlines:
And the Office centric detail.
MGR point to seemingly decent releasing spreads of 4.5%, but note that is gross, and makes you immediately wonder why they wrote that, and what it implies about net spreads.
Still, it seems good, at least at face value. High occupancy, some spread.
Stockland’s quarterly also pointed to higher occupancy, relative to the previous quarter, although they didn’t mentioned the leasing spread outcomes (always a worry when they leave obviously useful information out, because it is bad).
The point, however, is that Sydney is not New York, where Office saturation is a sight to behold.
Anything below A-grade is legitimately on the nose, but decent space, new space, green space, remains attractive, as the MGR vacancy of 3.9% relative to broader market at c13% suggests.
The slide on net absorption (new leasing space entered, vs leasing space exited, in sqr meters) is also illustrative.
Terrible problems with tenants vacating space in secondary, lower tier assets, and those problems are affecting valuations on prime assets, but, they still have dramatically different fundamentals, which matters.
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