Diversified property giant Mirvac says robust demand for its apartments and mixed-use developments should help it offset the challenges in the construction sector, as it aims to pocket up to $1.3 billion from the sale of its commercial property assets.

The strong development pipeline and a rise in home settlements has helped Mirvac post a 1 per cent rise in statutory profit to $906 million for the 2022 financial year. The operating profit after tax for the period came in at $596 million, a rise of 8 per cent on the previous year.

Mirvac chief executive Susan Lloyd-Hurwitz said on Thursday that despite a busy 12 months, which featured COVID-19 lockdowns, bad weather along the eastern seaboard and persistent supply chain issues, the company still settled 2,523 residential lots, ahead of its 2,500-lot settlement target and made progress on its $30 billion development pipeline.

Lloyd-Hurwitz warned that after a strong 2021 year for the housing market, price growth is starting to ease.

“The rate of price appreciation that we’ve had over the last two years is not sustainable, nor is it good for society in general. So, moderation is a welcome thing,” she said.

ASX-listed Mirvac, in its 50th year, has a market value of $8.2 billion. It owns and manages assets across office, retail, industrial and the burgeoning build-to-rent (BTR) housing businesses. Post June 30, Mirvac also won the management rights to the AMP Capital wholesale office fund to boost its funds under management to $10.2 billion.

Mirvac is the country’s largest medium to high-density residential developer.

The group delivered a final dividend of 5.1¢ per security taking the full year to 10.2¢, payable on August 31. Mirvac shares jumped 4 per cent on the back of the results to $2.18.

However, Lloyd-Hurwitz on Thursday warned that headwinds in the coming year will take a toll on operating margins. To help offset the hit, Mirvac is banking on its $1.3 billion asset sale program, which includes the office tower 60 Margaret Street and retail Met Centre, Sydney, Allendale Square, Perth and other non-core industrial assets.