The Domain Holdings Australia Ltd (ASX: DHG) share price is up 2.2% in early morning trade following the release of its full year FY 2020 results.

A challenging year for Domain

Domain recorded total underlying revenues of $261.6 million in FY 2020. This was a sharp 9.1% fall on a like-for-like base, taking into account various adjustments. The real estate media and technology services provider found the second half of the financial year particularly challenging due to the coronavirus pandemic.

Full year earnings before interest, taxes, depreciation and amortisation (EBITDA) declined by 17.4% to $84.4 million, while EBIT declined more significantly by 32.7% to $43.3 million.

Domain did, however, manage to reduce its like-for-like annual expenses by 5%. This achievement was partly due to a strategy to reduce overall costs that has been in place for several years now.

By the end of June 2020, Domain also managed to achieve a net debt of $105.8 million. This was a significant reduction from Domain’s net debt of $147.9 million last year.

Decline in core digital revenues

Core digital revenues declined by 6.4% during FY 2020 for Domain, while core digital EBITDA fell 6.6%.

Within this division, residential revenues declined by 6.7% during FY 2020 and 4% on a like-for-like basis. Meanwhile, residential subscription revenue dropped 15% compared to FY 2019.

However, the residential division achieved solid annual growth across a range of metrics. This includes a 14% increase in unique digital audience, as well as a strong 43% increase in app launches during the first six months of 2020.

Domain CEO Jason Pellegrino said: “In our residential business, the number of paid depth contracts increased in all states, underpinning record depth penetration. The introduction of our flexible pricing model and continued implementation of targeted market-by-market strategies, supported a 6% increase in controllable yield, with further gains from favourable market mix.”

The media, developers and commercial division saw a sharp 8.6% decline in revenues during FY 2020.

Mr Pellegrino said: “Media continued to see the impact of its new operating model during the first quarter. Broad weakness in the advertising market was exacerbated by COVID-19 in H2, with reduced spending in key advertising categories. Despite lower revenue, the new operating model is delivering an improved margin.”

However, it was the print division that took the biggest hit for Domain. Print revenues declined by 41% and print EBITDA was down a massive 56%.

Market outlook for the Domain share price

On a positive note, Domain noted that during the month of July it had witnessed strong year-on-year growth in both Sydney and Melbourne. However, the outlook for the full year FY 2021 remains uncertain. Melbourne’s stage 4 lockdown in particular is likely to have a negative impact on full year results.

Domain did not declare a dividend in light of market uncertainty in FY 2021.

More reading

• If an ASX share announces a demerger, here’s why you should listen
• Will the Domain share price follow auction clearance rates higher?
• ASX 200 down 0.45%: REA Group impresses, IAG profit slump, ResMed downgraded
• House prices are falling – which ASX shares are in the firing line?
• Where is the Domain share price headed in August?

Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The IDP Education Ltd (ASX: IEL) share price is rocketing significantly higher this morning after the release of its FY 2020 results.

In early trade the student placement and language testing company’s shares were up a massive 45% to $21.60.

How did IDP Education perform in FY 2020?

IDP Education had a tough 12 months in FY 2020 because of the impact of the pandemic on the international education market.

Nevertheless, the company still managed to deliver a solid full year result this morning.

In FY 2020, IDP Education reported a 2% decline in revenue to $587.1 million and a 29% increase in EBITDA to $148.6 million. The latter was driven by a sizeable reduction in both direct and overhead costs. Direct costs fell 8% to $241.9 million and overhead costs were reduced by 10% to $196.2 million.

However, due to a significant jump in depreciation, its net profit after tax and amortisation was up just 3% to $70.4 million

While no final dividend was declared, the company will now pay its deferred interim dividend on 24 September.

Andrew Barkla, IDP’s Chief Executive Officer and Managing Director, commented: “Our results reflect strong momentum in the first of the half year, followed by a pivot towards disciplined capital management and product innovation in the second half.”

How did its segments perform?

The company’s Student Placement business was on form in FY 2020 and recorded a 12% increase in revenue to $190.6 million. While the Australian side of this business posted a 13% decline in revenue to $90.4 million, the Multi-destination side of the business made up for this with a 52% increase in revenue to $100.2 million.

Also delivering growth were its English Language Teaching and Digital Marketing and Events businesses. They both grew revenue by 4% year on year.

However, the company’s English Language Testing business offset this positive growth. Its largest segment reported a 9% decline in revenue to $325.5 million in FY 2020.

Outlook.

No guidance was given for FY 2021 given the uncertain operating environment. However, management advised that IELTS volumes are at the early stages of recovery as testing centres reopen.

It also notes that student intentions are strong, with research showing that only 7% of students no longer intend to commence study as planned.

More reading

• The highest paid CEOs in the ASX 200
• Investing $1,000 in these ASX shares could be a smart move
• 50% off: 2 dirt cheap ASX shares to buy today
• Why I would buy ResMed and these ASX growth shares
• Leading brokers name 3 ASX shares to buy today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Beacon Lighting Group Ltd (ASX: BLX) share price is falling lower this morning following release of the company’s FY20 results. At the time of writing, the Beacon Lighting share price has fallen 1.5% to $1.32 after closing yesterday’s session at $1.34.

FY20 Results

The group had a strong financial year with revenue from ordinary activities increasing 2.6% to $252.2 million in FY20. Underlying sales increased 8% to $250.9 million. International sales increased 22.9% to $8.5 million.

Additionally, net profit after tax increased 38.5% to $22.2 million in FY20 from $16.04 million in FY19. Underlying net profit after tax increased 16.8% to $19.1 million. 

Earnings before interest, taxation, depreciation and amortisation (EBITDA) was up 111% to $62.53 million from $29.64 million in FY19. 

Beacon Lighting said stores experienced significant growth in sales as its customers were spending more time working, educating and completing projects at home. Additionally, company store comparative sales increased 7.2% based on a 52 week comparative basis. 

Online sales showed pleasing growth of 50.6% to $16.2 million with significant qrowth in Q4.

Earnings per share was 10.11 cents in FY20 up from 7.37 earnings per share in the prior corresponding period. This exceeded analyst expectations of 8.8 cents per share.

Gross margin was impacted by exchange rate volatility. As a result, gross margin in FY20 was down 63.9% in FY20 compared to 64.0% in FY19.

The company had a strong net operating cash flow generated by strong sales, margins and decline in inventory. This was supported by the sale of the distribution centre in Parkinson Queensland, debt reduction, two acquisitions and the Masson manufacturing factory in Epping, Victoria. 

The group declared a dividend of 2.4 cents per share. The annual dividend for FY20 is 5 cents per share up from 4.55 cents in FY19.

What’s next for the Beacon Lighting share price?

Beacon Lighting will continue to target growth in Australia and around the world by keeping up to date with the latest lighting technologies, opening new stores and introducing new product ranges. It remains encouraged by the continued support from all stakeholders. However, the group remains cautious regarding the high level of uncertainty globally because of the coronavirus pandemic.

Stage 4 restrictions are applying to its 28 Melbourne metropolitan stores and stage 3 restrictions are applying to 4 regional stores. Despite the restrictions, customers are still able to shop online with home delivery or click and collect. Regional stores remain open during this time but are subject to safety measures.

Beacon Lighting didn’t apply for the JobKeeper program. Having said that, the group advises significant uncertainties remain as to whether current sales trends will continue. Strong Q4 sales have continued into the start of FY21. 

The Beacon Lighting share price has increased 207% since its March lows and is 10.9% higher in year-to-date trading.

More reading

• Qantas demands national action to avoid horrible ‘cliff’
• Star Entertainment share price rises 6% as profits fall due to shutdowns
• Pro Medicus share price drops 5% despite strong FY 2020 growth
• Domain share price rises on FY 2020 earnings release
• IDP Education share price rockets 45% higher on surprisingly strong FY 2020 result

Motley Fool contributor Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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FAANG has become an acronym that almost every investor in the world is familiar with now.

It stands for (of course): Facebook, Apple, Amazon.com, Netflix and Google (now called Alphabet Inc). This group of companies have become the face of ‘big tech’ over in the United States — and their mindblowing success stories have had investors clambering over them for more than a decade now.

Unfortunately for ASX investors, all of the FAANG stocks are listed on US exchanges, which makes it relatively difficult for Aussies to own shares of them, at least compared with our own ASX shares.

Fortunately, it has never been easier for Aussies to get a slice of the FAANG pie than it is today.

So here are 3 easy ways ASX investors can access the FAANG stocks today.

1) A FAANG-dominated index fund

The BetaShares Nasdaq 100 ETF (ASX: NDQ) is the first easy way to get a hold of the FAANG stocks within your own portfolio. This exchange-traded fund (ETF) actually holds the largest 100 companies on the US Nasdaq exchange. Fortunately, the FAANG stocks make up a huge chunk of this index due to their sheer size. At the time of writing, Apple comprises the largest holding in NDQ at a 13.6% weighting. Next up is Amazon with 11.2%. Down the line, Alphabet has a 7.1% weighting, Facebook a 4.3% and Netflix at 1.9%. NDQ has a management fee of 0.48% per annum.

2) A FAANG-focused ETF

A second option for ASX investors looking for FAANG exposure is the ETFS FANG+ ETF (ASX: FANG). This is a relatively new ETF, only incepted back in February 2020. Even so, I think it’s a great alternative to NDQ if you’re looking for more concentration. This ETF holds the 5 FAANG stocks, as well as another 5 tech companies that are fellow tech heavyweights (hence the +). It’s currently weightings are as follows:

• 15.2% to Tesla Inc.
• 10.7% to NVIDIA Corporation
• 10.7% to Apple
• 10% to Amazon
• 9.5% to Alibaba Group
• 9.2% to Twitter Inc.
• 8.9% to Facebook
• 8.8% to Alphabet
• 8.8% to Netflix
• 8.2% to Baidu Inc.

FANG charges a management fee of 0.35%.

3) Buy the shares yourself

It used to be extremely difficult for ASX investors to buy US-listed shares directly, but this is no longer the case. All of the major brokerage platforms run by the ASX banks (such as Commonwealth Bank of Australia‘s (ASX: CBA) CommSec) now offer international trading, usually with an additional fee.

Further, there is a bevvy of other brokers that offer international options too, such as Stake and Charles Schwab. If you’re dead keen on owning the FAANGs, then you might just want to go straight to the source.

More reading

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• Here are the top 5 US shares ASX investors have been buying
• Tech shares race to record highs as Bank of America tips BHP and Rio shares
• New rule threatens free Google search and YouTube in Australia
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Facebook, Baidu and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Amazon, Apple, Facebook, Netflix, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Amazon, Apple, BETANASDAQ ETF UNITS, Facebook, and Netflix. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The ASX Ltd (ASX: ASX) share price is on watch after reporting a 4.4% surge in net profit after tax.

Why is the ASX Ltd share price worth watching?

Underlying NPAT totalled $513.8 million with statutory NPAT climbing 1.4% to $498.6 million.

That saw the Aussie share market operator report a 4.4% increase in underlying earnings per share (EPS). Impressively, that is the 8th consecutive year of growth as EPS climbed to 265.4 cents.

The ASX Ltd share price could be on the move after also reporting a 4.5% dividend increase. The company’s dividends per share totalled 238.9 cents for the year including a 122.5 cent second-half distribution.

Operating revenue was up 8.6% to $938.4 million thanks to heightened trading activity in 2020. That follows a huge spike in average trading volume during the coronavirus pandemic and March 2020 bear market.

The largest business unit, Derivatives and OTC Markets, reported a 4.5% increase in operating revenue to $317.6 million.

Listings and Issuer Services had a strong year despite second-half challenges, with operating revenue up 7.3% to $237.1 million.

There was also strong growth across Equity Post-Trade Services (17.0%) and Trading Services (11.5%) to $127.4 million and $256.3 million, respectively.

ASX reported 7 million trades registered in CHESS with 24.5 million futures contracts traded in March 2020. $169 billion of bonds settled in Austraclear in the month, up 29% versus any previous pre-COVID daily settlement record from March 2019.

Total expenses climbed 9.0% to $286.2 million due to unexpected COVID-19 related costs while earnings before interest and tax (EBIT) was up 8.5%.

The Reserve Bank of Australia’s three interest rate cuts weighed on ASX’s interest income figures. That was evident in the Group net interest income decline of 67.5% to $7.6 million with a 15.1% in total interest income to $83.8 million.

Which segments are supporting the ASX Ltd share price?

The ASX Ltd share price will be one to watch this morning after reporting strong performance across its business units.

Total capital raised climbed 12.8% to $97 million with an increase in secondary capital offsetting a decline in IPOs. That was largely driven by a spate of equity raisings in Q4 2020 as companies looked to secure their balance sheets.

Cash market trading in 2H FY20 rocketed 52.4% compared to the previous year and was up 30.5% for the full-year.

ASX noted market trends had been accelerated by the pandemic. That includes increased reliance on technology and process digitisation. Data and security were also among the factors cited by the exchange operator.

Outlook

There was little in the way of guidance provided by management amid the current uncertainty. Market volatility and low interest rates look set to create more headaches in FY21.

However, the ASX Ltd share price could be in demand after reporting an increased dividend and its 10th consecutive year of consecutive EBIT growth.

More reading

• How to turn $20,000 into over $200,000 in 10 year with ASX shares
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There’s good news for those who feel they’ve missed out on the share price surge of ASX stocks that delivered better-than-expected results. It may not be too late to buy them after the fact.

History shows us that these reporting season champs have on average continued to climb in the months after they post their results.

There are plenty of ASX winners to pick from too. The list of ASX stocks that have surged ahead or broken new records on the back of good results is pretty long, and we are only little more than half way through the busiest part of reporting season.

Profit season record breakers

A few recent examples include the CSL Limited (ASX: CSL) share price, Monadelphous Group Limited (ASX: MND) share price, Cochlear Limited (ASX: COH) share price and Wesfarmers Ltd (ASX: WES) share price.

Good on those who’ve been able to pick these stocks before their earnings numbers were made public. But trying to pick the winners before the results is fraught with risks. Not even the experts can do this consistently.

Buying the best reporting season winners

It could be a much safer strategy to buy the outperformers the day after they release their profit news.

Data over the last nine reporting season complied by Bell Potter’s high-profile trader Richard Coppleson showed that the top 20 stocks of the reporting season continued to outperform months later.

These top 20 movers jumped on average 14.7% the day they released their results, and they continued to climb another 1.4% over the next four months.

Tiny drops make an ocean

This may not sound like much, but what’s also clear is that this group managed to keep ahead of the S&P/ASX 200 Index (Index:^AXJO) over that four months in every instance.

Even if you missed the first day share price surge, as many of us do, the group still kept ahead of the ASX 200 by 0.1%.

Before you thumb your nose at the small margin, remember that most portfolios outperform over the longer-term not by picking the big winners, but by avoiding the big losers.

Reading the fine print

But as with anything, there are caveats you need to be aware of. Firstly, just because it’s happened in the past, doesn’t mean it will in the future. Current macro conditions are very different to the last nine reporting seasons, although fortunately, record low rates are supportive of equities.

The other thing to remember is that Bell Potter’s numbers are averages. This means you need to buy enough of the top 20 profit season winners to get similar results and you need pretty deep pockets to do this.

Picking only a few of the top 20 will likely give you a big skew to the upside or downside, you can never really know.

I am also not advocating that you use this as your primary investment strategy. What I find most interesting about the data is how it can help limit the risk of investing in a loser.

More reading

• Mirvac share price on watch as profit slumps 45%
• Why the Carsales share price is still a buy at an all time high
• Wesfarmers share price on watch after cautious outlook overshadows strong FY 2020 result
• Where to next for the McMillan share price following Wednesday’s results?
• 5 things to watch on the ASX 200 on Thursday

Brendon Lau has no position in any of the stocks mentioned. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. and CSL Ltd. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Cochlear Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Qantas Airways Limited (ASX: QAN) share price will be on close watch when trade opens this morning, follow the release of its full year 2020 financial year results.

A very challenging second half for our national carrier

The Qantas Group reported an underlying profit before tax of $124 million for the 12 months ended 30 June 2020. This was a massive 91% fall on the prior year.

The first half year saw strong growth for Qantas, with a $771 million underlying profit before tax. However, the airline then spiralled into a $4 billion revenue drop in the second half as the coronavirus pandemic wreaked havoc on the travel industry. This pulled down its full year underlying profit before tax into negative territory.

Qantas Group’s revenue fell sharply by 82% between April and June. However, the airline managed to reduce cash costs by 75% during this time, which significantly softened the blow. This saw Qantas’s underlying profit before tax in 2H FY2020 fall to only $1.2 billion.

The group reported a full year loss before tax of $2.7 billion. This loss was mainly due to a $1.4 billion non-cash write down of assets.

Available liquidity amounted to $4.5 billion at 30 June 2020. This includes $1 billion of undrawn facilities

Qantas Group CEO Alan Joyce said COVID-19 was reshaping the competitive landscape and that presented a mix of challenges and opportunities.

“Most airlines will come through this crisis a lot leaner, which means we have to reinvent how we run parts of our business to succeed in a changed market,” he said.

Domestic division shows resilience

Qantas Domestic recorded full year earnings before interest and taxes (EBIT) of $173 million. Jetstar performed relatively strongly, achieving EBIT of $112 million. A strong performance by the domestic division during the six months to December 2019 was more than able to offset a 50% decline in revenue in the second half as lockdown restrictions kicked in.

Qantas International recorded a modest $56 million profit for FY 2020.  This profit was mainly due to a record performance by Qantas Freight as well as a massive increase in e-commerce activity.

Market Outlook for FY 2021

Qantas remains confident it is well-positioned to take advantage of the eventual return of domestic services as the pandemic eases. However, it acknowledges that a high degree of uncertainty remains in the short-term regarding demand.

Qantas has scheduled 20 per cent of pre-pandemic group domestic capacity for the month of August. The carrier noted that its international network was unlikely to recommence before July 2021. However, the Trans-Tasman route could possibly start earlier.

“COVID will continue to have a huge impact on our business and we’re expecting a significant underlying loss in FY21,” Mr Joyce said.

“Looking further ahead, we’re in a good position to ride out this storm and make the most of the recovery. Our market position is set to strengthen as the only Australian airline with a full service and low fares domestic offering as well as long haul international services.”

The Qantas share price was trading at $3.76 at yesterday’s close.

More reading

• The highest paid CEOs in the ASX 200
• 5 things to watch on the ASX 200 next week
• Qantas share price is facing this new challenge in FY21
• Will the Qantas share price fly high again in 2020?
• 3 ASX shares I would buy right now at these prices

Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Orora Ltd (ASX: ORA) share price is on watch this morning after the packaging provider delivered increased revenue but decreased profits. Tough trading conditions in North America were exacerbated by COVID-19 which adversely impacted results. 

What does Orora do? 

Orora is a packaging provider supplying customers with glass bottles, aluminium cans, caps and closures, boxes, cartons, and more. Packaging is a modern day necessity, demand for which has not been dented by COVID-19. Orora had previously estimated any negative financial impact from the pandemic would be limited to $25 million. Orora sold its Australiasian Fibre business in April netting some $1,550 million. The company then returned $600 million to shareholders via a special dividend of $450 million and a capital return of $150 million. 

How did Orora perform in FY20? 

Orora reported a 5.2% increase in sales revenue from continuing operations which reached $3,566.2 million. The Australasia sector delivered sales of $785.9 million, in line with the prior corresponding period. North American sales revenue was also steady at US$1,86.4 million, but EBIT declined 29.6% to US$51.8 million due to market weakness and margin pressure. The estimated net impact of COVID-19 on North American EBIT was ~US$15 million. 

Group underlying EBIT fell 14.3% to $224.3 million. This gave underlying NPAT from continuing operations of $127.7 million, a decrease of 22.8% on the prior corresponding period. Earnings per share were 13.2 cents. A final ordinary dividend of 5.5 cents per share (unfranked) was declared. Orora also announced an on-market buyback of up to 10% of issued share capital commencing in September. This is expected to cost ~$230 million. 

Managing Director, Brian Lowe, said, “Despite the near-term impact of COVID-19, the overall Orora business retains its strong balance sheet, which combined with the strong cash generation capability of its business, provides capacity and flexibility to return value to shareholders…and to preserve optionality for future growth opportunities.”

What’s next for the Orora share price? 

Orora expects challenging and uncertain market conditions to persist for the foreseeable future. A review of strategy was completed during the second half which identified actions to address challenges in the existing portfolio and opportunities to improve productivity. This refined strategy is expected to continue to generate strong cash flows from core business operations. Cash flow will be deployed into investments in the core business, distributions to shareholders, and strategic acquisitions that enhance the company’s product and service offerings. 

The Orora share price has fallen 39.5% lower in year-to-date trading.

More reading

• 3 ASX dividend shares for dependable income

Motley Fool contributor Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Mirvac Group (ASX: MGR) share price is one to watch this morning after the real estate investment trust (REIT) reported a 45% drop in net profit after tax (NPAT).

What could move the Mirvac share price?

For the year ended 30 June 2020 (FY20), Mirvac reported a 17% slump in revenue to $2,312 million. 

Operating earnings before interest and tax (EBIT) fell 6% to $796 million as the coronavirus pandemic impacted the result.

That included an $86 million net impact on earnings in the form of provisions and project write-offs. The Aussie REIT reported a further $32 million from delays in development and settlements.

NPAT fell 45% to $558 million, down from $1,019 million the year prior thanks to the pandemic and valuation changes.

That saw basic and diluted earnings per share (EPS) fall to 14.2 cents – down from 27.6 cents in FY19. The group’s full-year distributions fell 19% to $357 million or 9.1 cents per security.

The Mirvac share price will be one to watch as investors process the latest full-year result.

Net tangible asset (NTA) backing per security edged 1.6% higher to $2.54 per share during the year.

On the capital management side, Mirvac reduced its average borrowing costs to 4.0%, down from 4.8% in FY19.

Mirvac’s 22.8% gearing ratio fell within its target range while liquidity increased to over $1.4 billion in cash and undrawn bank facilities.

Segment performance

Mirvac has four main business units: Office, Industrial, Retail and Residential. The Mirvac share price could be volatile in early trade given the mixed performances across the portfolios.

Occupancy rates remained high in the Office portfolio at 98.3% with a weighted average lease expiry (WALE) of 6.4 years.

Net operating income (NOI) totalled $348 million with like-for-like growth of 3.8%. Total office asset revaluations provided a 4.0% ($282 million) uplift with assets under management (AUM) increasing to $17 billion.

The Industrial portfolio reported a 99.4% occupancy rate with a WALE of 7.4 years. The group’s $1.2 billion future development pipeline in Sydney continued to progress with 43,000 square metres of leasing activity in FY20.

Retail occupancy was 98.3% with 92% of gross lettable area (GLA) open and trading as at 30 June. However, moving annual turnover (MAT) fell 4.1% with NOI falling 19% or $33 million due to COVID-19 support.

Mirvac’s Residential operating EBIT climbed 12% to $225 million with 2,563 residential lots settled, including a record number of apartments.

FY21 outlook

The Mirvac share price could be on the move in early trade but management was unable to provide guidance given the current uncertainty.

The REIT will target a distribution payout ratio of 65-75% of operating earnings in line with its policy of up to 80% payout.

Prior to the market open, the Mirvac share price was down 35.7% for the year compared to a 7.8% decline in the S&P/ASX 200 Index (ASX: XJO).

More reading

• Why it may not be too late to chase ASX reporting season record breakers
• Why the Carsales share price is still a buy at an all time high
• Where to next for the McMillan share price following Wednesday’s results?
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises 0.7%, CSL soars 6.4%

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The year 2020 has not been kind to ASX bank shares. Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking GrpLtd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB) share prices are all still between 20-30% below where they started the year. Commonwealth Bank of Australia (ASX: CBA) is something of a saving grace, but even the yellow diamond is down more than 11% year to date, and more than 22% down from its February peak.

What’s happened?

A chief reason why these shares have been smashed in 2020 is dividends – or more specifically a lack thereof. When the coronavirus pandemic became apparent, it was quickly obvious that the banks’ capacity to pay dividends in 2020 would be strained. Even before the pandemic emerged, the banks were struggling on this front. It seems like a lifetime ago now, but CBA was actually the only ASX bank not to cut its dividend or franking in 2019.

But 2020 has been a whole different ballgame.

In the midst of the initial wave of the pandemic, NAB was the only ASX bank to offer any dividends – a 30 cents per share interim payment that was partially funded through a capital raising. ANZ and Westpac decided to defer the decision on dividend payments, whilst CBA paid out its interim dividend of $2 per share back in February.

Back to the present, and ANZ has decided to pay a 25 cents per share dividend (a substantial decrease from the 80 cents per share investors have been accustomed to). CommBank has announced a final dividend of 98 cents per share (down from $2.31 last year), whilst Westpac has scrapped its interim payment altogether.

So, now all of the banks have dealt their cards, which is the best bank for ASX dividend income?

And the banking winner is…

Well, firstly, it’s difficult to judge the ASX banks on the dividends paid this year alone. NAB did offer 30 cents per share in the midst of the crisis when uncertainty forced Westpac and ANZ to defer their own payments. If the picture was as clear as it is today back in March (relatively speaking), NAB might have offered shareholders more.

But on the face of it, I think we have to give CommBank the crown here. Commonwealth Bank has proven it can fund a substantial payout (again, relatively speaking) without having to launch a capital raise. If CBA’s 98 cents per share dividend is annualised, it works out to be a 2.76% yield on current pricing. If we take NAB’s 30 cents per share and ANZ’s 25 cents per share, it equates to a yield of 3.35% and 2.67% respectively for comparison.

Even though NAB looks to be offering a higher yield on paper, I would still prefer CBA if I were desperate to add a bank share to my portfolio today.

More reading

• Is the Westpac share price a buy for future dividends?
• This ASX fund manager is going back to value in a post-COVID world. Here’s why.
• Top brokers name 3 ASX 200 shares to buy today
• ASX 200 up 0.8%: ANZ to pay dividend, a2 Milk tumbles, CSL impresses
• What you need to know about the ANZ share price and profit result today

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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