Key Highlights

  • Mirvac reported FY26 results on 19 August 2026.
  • Operating profit rose 7% to AUD 508mn and operating Earnings per stapled security increased 7% to 12.9 cents.
  • Statutory profit was AUD 677mn, a sharp turnaround from AUD 68mn in FY25 as valuation pressures eased.
  • The distribution lifted 6% to 9.5 cents per stapled security, net tangible assets rose 3% to AUD 2.33 and gearing fell to 24.1% from 27.6%.

After several years of asset sales, write-downs and Balance Sheet repair, Mirvac Group (ASX:MGR) has told the market its reset is finished. The FY26 result delivered on 19 August 2026 showed operating profit, distributions and net tangible assets all moving higher, gearing at the low end of its range and a share buyback on the table.

Company Business

Mirvac is an integrated Australian property group listed on the ASX since June 1999, combining development and Investment management in one platform. It operates across residential development, office and industrial property, retail centres, build-to-rent housing under the LIVMirvac brand, and third-party funds management. Residential projects span New South Wales, Victoria, Queensland and Western Australia, and the retail portfolio comprises eight shopping centres. The group manages more than AUD 18bn of third-party capital.

Sector Context

Mirvac reported FY26 results on 19 August 2026. Operating profit rose 7% to AUD 508mn and operating earnings per stapled security increased 7% to 12.9 cents. Statutory profit was AUD 677mn, a sharp turnaround from AUD 68mn in FY25 as valuation pressures eased. The distribution lifted 6% to 9.5 cents per stapled security, net tangible assets rose 3% to AUD 2.33 and gearing fell to 24.1% from 27.6%. The group also announced an on-market buyback of up to AUD 200mn. Residential activity strengthened through FY26, with 2,425 lots unconditionally exchanged, up 15%. Group EBIT grew 12%, development EBIT rose more than 50% and build-to-rent EBIT increased more than 70% as recently completed projects stabilised, delivering a total return of 9.5%. Funds EBIT grew 9%. The Mirvac Wholesale Office Fund raised AUD 310mn during FY26 and AUD 632mn since April 2025. Investment portfolio occupancy stood at 98%, with office occupancy above 96%. Available Liquidity was AUD 1.6bn at balance date. Residential pre-sales of roughly AUD 1.5bn covered about 63% of expected FY27 settlements, and the residential pipeline extends to around 26,000 lots. The wider development pipeline is valued at approximately AUD 27bn, with about AUD 5bn of commercial and mixed-use projects currently committed. Only 9% of office leases expire over the next two years. Mirvac targets development returns above 10% in FY27, up from 8% achieved in FY26.

Risks to Consider

Residential settlement volumes depend on construction delivery, buyer finance conditions and interest rates. Office valuations remain sensitive to Capitalisation rates and tenant Demand despite high occupancy. Development returns above 10% are a target, not a commitment. Funds management growth relies on third-party investors continuing to allocate capital, and higher Debt costs would weigh on earnings if rates move against the group.

What to Watch Next

FY27 guidance points to operating earnings of 13.2 to 13.4 cents per stapled security and a distribution of 9.9 cents, with a weighted average cost of debt of about 5.7%. Settlement volumes of 2,800 to 3,100 lots are the key operational target. Progress on the AUD 200mn buyback, further Capital raising in the funds platform and the Annual General Meeting expected in November 2026 are other identifiable checkpoints.