From a credit perspective, Mirvac’s third quarter update offered no real surprises.   The group’s residential business seems to be offering the highest growth prospects as management have outlined a 25% increase in residential lot settlements is expected to be achieved by year end ($320 million of new sales in the third quarter). As a result, development EBIT (primarily involved in residential projects) that was given as guidance is now 93% secured and 72% secured for the following year. However, we still remain cautious of Mirvac’s customer profile in the residential sub-sector which derived 26% of its settlements from investors during the quarter. Given the current state of the property market, we believe investor demand will display some volatility over the rest of 2016 and could have some impact of group performance.   Industrial, Office and Retail segments appear to remain solid and we expect Mirvac will meet its guidance in its full year results on the 16th of August 2016 in the absence of no adverse movements in the property market.   Mirvac indicated that gearing has be maintained within its target range of 20-30%.