Lending Association

Australian earnings season begins with property companies leading the way

The Australian December half and full-year earnings season kicks off this week with several ASX 200 stocks set to reveal their figures. Property groups are leading the way, likely setting an unwanted tone of impairments and losses.

A string of early results from these property companies will include Mirvac, Centuria Industrial, Charter Hall Long Wale, BWP (which is merging with Newmark – both are landlords for Wesfarmers companies like Bunnings, K-Mart, and Officeworks), and REA.

Will any of these players reveal asset valuation downgrades?

Most will, although Mirvac took a significant hit in its 2022-23 results, resulting in a statutory loss of $165 million for the year.

AMP’s Chief Economist, Shane Oliver, says consensus expectations are for a 4.9% fall in earnings for the year to June (2023-24), driven by a sharp drop in energy sector profits but with strong gains in profits for utilities, healthcare, and industrials.

“Key to watch will be guidance around how the consumer is coping with high-interest rates and the cost of living pressures,” he added.