Key Highlights

  • Mirvac Group reported FY26 operating profit after tax of $508 million, up 7% from $474 million in FY25, while operating Earnings increased to 12.9 cents per stapled security from 12.0 cents.
  • FY26 distribution rose 6% to $376 million, or 9.5 cents per stapled security, while statutory profit increased to $677 million from $68 million.
  • Headline gearing declined to 24.1% from 27.6%, with approximately $1.6 billion in available Liquidity and Debt Maturity extending to 4.4 years.
  • Residential sales increased 15% to 2,425 lots and residential EBIT rose to $233 million, although pre-sales were lower than FY25 and average borrowing costs increased to 5.7%.

Mirvac Group (ASX:MGR) reported its financial results for the year ended 30 June 2026, with operating profit after tax reaching $508 million, compared with $474 million in FY25. Operating earnings per stapled security increased to 12.9 cents from 12.0 cents.

Statutory profit recorded a much larger increase, reaching $677 million compared with $68 million a year earlier. Net tangible Assets also increased to $2.33 per stapled security from $2.26. The group distributed $376 million for FY26, up from $355 million in FY25, with distribution per stapled security rising to 9.5 cents from the previous year's 9.0 cents.

Investment Portfolio Maintains High Occupancy

Mirvac's Investment portfolio generated EBIT of $602 million, unchanged from FY25. Like-for-like income increased 5.3%, while occupancy remained at 98%. Investment property valuations increased by $253 million, including valuation growth of 6.5% in industrial assets and 6% in living assets.

Leasing activity included 303 deals covering approximately 145,750 square metres. Gross leasing spreads were 33.7% for industrial assets, 12.9% for land lease, 5.7% for retail and 4.0% for build-to-rent properties.

Earnings from industrial and living assets increased 12%. The investment portfolio's performance also included the effect of $1.1 billion in non-core asset disposals over the preceding two years.

Residential Development Earnings Increase

The residential Business recorded EBIT of $233 million, compared with $179 million in FY25. Mirvac settled 2,130 residential lots during the year, while exchanged sales reached 2,425 lots, an increase of 15% from FY25.

Residential gross margins increased to 24%, excluding impaired lots. Including impaired lots, gross margins were 20%. Residential defaults remained at 0.3%, while pre-sales stood at $1.5 billion. The company noted that pre-sales were lower than FY25, partly reflecting the 50% sell-down of Harbourside, Sydney into a joint-venture capital partnership.

Mirvac also secured development opportunities at Blackwattle Bay in Sydney and Karnup in Perth, adding approximately 800 and 1,500 potential residential lots respectively, subject to stated conditions.

Funds Platform Expands

Funds EBIT increased to $36 million from $33 million. Third-party capital under management rose more than 12% to above $18 billion. The Mirvac Wholesale Office Fund raised the equivalent of $310 million during FY26 and approximately $630 million since April 2025.

The LIV Mirvac Fund expanded to approximately 2,200 operational lots across five assets. Mirvac also launched a new retail venture seeded by a 50% interest in East Village, Sydney.

Balance Sheet and FY27 Outlook

Headline gearing fell to 24.1% from 27.6%, within Mirvac's stated target range of 20% to 30%. Available liquidity was approximately $1.6 billion, while weighted average debt maturity increased to 4.4 years from 4.2 years.

Debt hedging increased to 66% from 57%, although average borrowing costs rose to 5.7% from 5.4%. Mirvac retained A-/A3 ratings with stable outlooks from Fitch Ratings and Moody's.

For FY27, Mirvac expects operating earnings of 13.2 to 13.4 cents per stapled security and a distribution of 9.9 cents, subject to no material changes in operating conditions. The guidance assumes 2,800 to 3,100 residential lot settlements and an expected weighted average cost of debt of approximately 5.7%.

Conclusion

Mirvac's FY26 result featured higher operating profit, distributions, residential earnings and net tangible assets, alongside a reduction in headline gearing. The investment portfolio maintained 98% occupancy and recorded like-for-like income growth, while the funds platform increased capital under management. At the same time, pre-sales declined from the prior year and borrowing costs increased, providing important context for the group's FY27 operating outlook.