Highlights

• Operating profit after tax rose 7% to $508 million, while the distribution grew 6% to 9.5 cents per security.

• Mirvac announced an on-market buy-back of up to $200 million, with gearing at 24.1% and about $1.6 billion in liquidity.

• Investment portfolio occupancy held at 98%, and industrial and living assets drove a $253 million valuation uplift.

• FY27 guidance targets 2,800 to 3,100 residential settlements, with 63% of the target secured and pre-sales at $1.5 billion.

A $200 million on-market buy-back and a steep step-up in housing settlements frame the year ahead for Mirvac Group (ASX:MGR). The diversified property group used its FY26 result on 19 August 2026 to report higher earnings, a lower-geared balance sheet and guidance for further growth in FY27. Shares were trading at A$1.810 on 23 October 2026, down 0.55%.

Earnings Climb on Development and Funds Growth

Operating profit after tax reached $508 million for the year to 30 June 2026, up from $474 million, with operating earnings of 12.9 cents per security against 12.0 cents. The distribution rose 6% to $376 million, or 9.5 cents per security. Statutory profit was $677 million, compared with $68 million a year earlier, and net tangible assets per security rose to $2.33 from $2.26. The result was in line with guidance.

Headline gearing fell to 24.1% from 27.6%, inside the 20% to 30% target range, and liquidity stood at about $1.6 billion in cash and committed undrawn facilities. Average borrowing cost was 5.7%, and credit ratings are A- and A3 with stable outlooks.

Rents, Funds and a Residential Engine

The investment portfolio generated $602 million of EBIT, flat on the prior year, with 98% occupancy and like-for-like growth of 5.3%. Valuations added $253 million, led by industrial assets, up 6.5%, and living assets, up 6%. Mirvac expects about $130 million of new investment income from committed and recently completed developments.

Funds management EBIT edged up to $36 million from $33 million, and third-party capital under management passed $18 billion, up more than 12%. The $3 billion Mirvac Industrial Venture acquired Stage 2 of the SEED site at Badgerys Creek alongside Australian Retirement Trust, which also joined the $2 billion LIV Mirvac Fund as a capital partner.

Residential EBIT rose to $233 million from $179 million on 2,130 settlements, in line with guidance. Sales reached 2,425 lots, up 15%, and gross margin was 24%. Commercial and mixed-use EBIT almost doubled to $88 million, helped by the completion of Aspect North and South at Kemps Creek and practical completion of 7 Spencer Street in Melbourne, which is 24% leased.

Pipeline Secured for the Next Phase

Mirvac secured Blackwattle Bay in Sydney, about 800 lots with the NSW Government, and Karnup in Perth, about 1,500 lots with Development WA. It also secured Hunter Street East, which has an end value of about $3 billion. New communities at Kindira in Brisbane, Everdene in Sydney and Darling in Perth are expected to deliver first settlements in the first half of FY27.

What Management Expects for FY27

For FY27, Mirvac guides to operating earnings of 13.2 to 13.4 cents per security and a distribution of 9.9 cents. It expects 2,800 to 3,100 residential settlements and a weighted average cost of debt near 5.7%. The guidance assumes no material change to the operating environment, and the company noted some moderation in residential markets and continued uncertainty.

About 63% of the settlement target is already secured, supported by $1.5 billion of pre-sales and a default rate of 0.3%. Management points to development completions, a larger pipeline, growing funds under management and greater exposure to living as earnings drivers.