Highlights

• FY26 operating profit after tax rose 7% to A$508 million, while operating Earnings per security increased to 12.9 cents.

• Development EBIT increased to A$270 million, led by residential and mixed-use activity.

• Investment portfolio occupancy remained at 98%, with like-for-like net Operating Income growth of 5.3%.

• Gearing declined to 24.1% and Liquidity stood at A$1.60 billion at year-end.

• FY27 guidance targets 2,800 to 3,100 residential settlements.

Mirvac Group (ASX:MGR) is an Australian property group spanning investment assets, residential and commercial development, living sectors and third-party funds management. Its FY26 result showed that earnings growth was increasingly supported by development rather than relying only on rental income. Operating profit improved, development margins recovered and gearing fell as the group entered FY27 with a sizeable project pipeline.

Development Earnings Lift FY26 Performance

For the year ended 30 June 2026, Mirvac reported operating profit after tax of A$508 million, up 7%, while operating earnings per security rose to 12.9 cents from 12.0 cents. Group EBIT increased 12% to A$826 million. The distribution was 9.5 cents per security, or about A$376 million in total. Statutory profit was A$677 million, but operating profit is the cleaner measure of Business performance because property revaluations can move statutory earnings materially.

Development EBIT rose to A$270 million. Residential contributed A$233 million, up 30%, while commercial and mixed-use activities added A$88 million. Mirvac recorded 2,425 unconditional lot exchanges, up 15%, and gross margins recovered to 23.9%. The Margin improvement indicates that newer projects are contributing at better Economics than older projects affected by construction cost pressure.

Investment Portfolio Remains Stable

The investment portfolio remained a large and relatively stable earnings contributor. Occupancy was 98%, like-for-like net operating income increased 5.3% and leasing spreads were 4.5%. Office Assets were 96.2% occupied, industrial assets 99.2% and retail assets 99.0%. Investment EBIT was broadly flat, partly because more than A$500 million of assets were sold during the year, which reduced rental income while supporting balance-sheet management.

The living segment, covering build-to-rent and land Lease communities, generated EBIT of A$59 million, up 9%. Mirvac also manages more than A$18 billion of third-party capital, while funds management EBIT was A$36 million. These activities add earnings sources beyond directly owned property assets.

Balance Sheet and Pipeline

Gearing declined to 24.1% from 27.6%, while drawn Debt fell to A$3.76 billion from A$4.31 billion. Net tangible assets per security rose to A$2.33 and liquidity stood at A$1.60 billion. Financing costs remain a headwind, with net financing costs rising to A$269 million as the weighted average cost of debt reached 5.7%. Mirvac expects the average cost to remain near that level in FY27, with 66% of debt hedged.

The committed development pipeline is about A$5 billion and includes 55 Pitt Street in Sydney and the SEED industrial project. The group also announced an on-market buy-back of up to A$200 million, giving it another capital-management option alongside development spending.

FY27 Guidance and Risks

For FY27, Mirvac has guided to 2,800 to 3,100 residential settlements and plans to launch five new master-planned communities, with about A$1.5 billion of residential pre-sales expected. These targets depend on buyer demand, settlement timing and project execution. Higher interest rates, construction costs, office leasing conditions and changes in property valuations remain key risks.

Key Insights

Mirvac’s FY26 result showed a broader earnings base, with development driving growth while the investment portfolio remained stable and gearing improved. FY27 will test whether higher residential settlements and project delivery can offset financing costs and execution risks across a large development pipeline.