PHOTO: Mirvac Group
Mirvac Group (ASX: MGR) has enjoyed a strong year on the ASX amid the Aussie property boom.
The residential real estate investment trust’s (REIT’s) shares have climbed 48.18% higher this year to $3.26 per share.
Why are Mirvac shares climbing higher this year?
Australia’s monetary policy has been a huge tailwind for Mirvac’s earnings in 2019.
The Reserve Bank of Australia (RBA) has slashed the official cash rate from 1.50% to just 0.75% in the space of a few months.
Many economists are tipping further rate cuts in early 2020, which has seen lenders load up on cheap debt.
Mirvac is heavily invested in residential real estate and the group’s shares have been rocketing higher on the back of the ongoing boom.
With house prices at record highs, and cheap credit on offer, it’s easy to see why the Aussie REIT is well positioned.
Mirvac shares have been carried along for the ride this year and its full-year earnings reflected its current market position.
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