Mirvac Group (ASX:MGR): FY27 Operational Update, Residential Sales and Property Portfolio

Aditi Sarkar

22 October 2026 10:11 PM AEDT

Mirvac Group (ASX:MGR): FY27 Operational Update, Residential Sales and Property Portfolio

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Highlights

Mirvac Group (ASX:MGR) reaffirmed FY27 operating earnings guidance of 13.2–13.4 cents per stapled security.
First-quarter FY27 portfolio occupancy was 97%, with 291 residential lot settlements.
FY26 operating profit after tax reached AUD 508 million, compared with AUD 474 million in FY25.
Mirvac reported approximately AUD 1.4 billion in residential pre-sales at the end of September 2026.

Mirvac Group (ASX:MGR) develops, owns and manages Australian property across residential, office, industrial, retail and living markets. On 22 October 2026, Mirvac Group (ASX:MGR) closed at AUD 1.82. The company also released its first-quarter FY27 operational update, outlining leasing conditions, residential sales, development progress and its earnings guidance for the year ending June 2027.

Company Business

Mirvac operates an integrated property business combining investment assets, property development and funds management. Its investment portfolio includes commercial offices, logistics facilities, shopping centres, build-to-rent apartments and land-lease communities. Residential activities encompass apartments and masterplanned housing communities across several Australian states. The group also develops mixed-use precincts and manages investment vehicles alongside external capital partners.

This structure exposes Mirvac Group (ASX:MGR) to both recurring rental income and earnings linked to construction, asset transactions and residential settlements. Its investment, funds management and development activities respond to different property cycles, while projects such as Harbourside and 55 Pitt Street in Sydney and Trielle in Melbourne remain part of its active development program.

Recent Development

In its 22 October update, Mirvac reported 97% occupancy across its stabilised investment portfolio, unchanged from the corresponding quarter. Office occupancy was 96%, industrial occupancy 97% and retail occupancy 99%. Industrial gross leasing spreads were approximately 22%, while specialty retail sales increased 4.7%. The stabilised build-to-rent portfolio was 93.7% leased at 30 September 2026.

Residential activity moderated during the quarter. Mirvac Group (ASX:MGR) recorded 429 net deposits and lots exchanged, a 17% decline from the preceding quarter, alongside 291 settlements versus 265 in the comparable prior-year quarter. The company reported fewer enquiries in New South Wales and Victoria, with demand also softening in Queensland. Its approximately AUD 1.4 billion pre-sales balance supports visibility over contracted projects but remains subject to completion and settlement.

Construction reached structural topping-out milestones at Harbourside, 55 Pitt Street and Trielle. The first warehouse at SEED, Badgerys Creek, also entered construction. Separately, the Mirvac Wholesale Office Fund deployed approximately AUD 600 million into two office assets, while the group reported that about 75% of its AUD 200 million on-market buy-back had been completed as at 20 October.

Financial Performance and Sector Context

For FY26, Mirvac Group (ASX:MGR) reported operating profit after tax of AUD 508 million, compared with AUD 474 million in FY25. Operating earnings were 12.9 cents per stapled security, while statutory profit reached AUD 677 million. Distributions totalled AUD 376 million, equivalent to 9.5 cents per security. Net tangible assets stood at AUD 2.33 per security at 30 June 2026.

Investment EBIT was AUD 602 million in FY26, unchanged year on year. Residential EBIT increased to AUD 233 million from AUD 179 million, and commercial and mixed-use development EBIT rose to AUD 88 million from AUD 46 million. The group settled 2,130 residential lots during FY26. Headline gearing stood at 24.1%, with approximately AUD 1.6 billion of available liquidity at year-end.

Rental demand, interest costs, construction capacity and residential affordability continue to shape the property sector. Mirvac attributed slower first-quarter residential enquiries partly to higher interest rates and tax changes. The group expects its weighted average debt cost to move from approximately 5.7% to 5.8% in FY27 following a September cash-rate increase.

Risks to Consider

Mirvac Group (ASX:MGR) faces exposure to housing demand, settlement timing, construction costs, planning approvals and leasing conditions. Slower enquiries could affect the pace of new sales, while delayed project completions may shift development earnings between periods. Office vacancies and funding costs also affect the investment business. The reported pre-sales balance does not eliminate cancellation, financing or delivery risks.

What to Watch Next

The company reaffirmed FY27 operating earnings guidance of 13.2–13.4 cents per stapled security and distributions of 9.9 cents, subject to its stated assumptions. It anticipates 2,800–3,100 residential lot settlements, weighted towards the second half. Monitoring points include project completions, leasing at recently delivered office assets, residential sales conversion, capital partnering and the remaining buy-back activity. Its annual general meeting is scheduled for 17 November 2026.

Key Insights

Mirvac Group (ASX:MGR) enters FY27 following higher FY26 operating profit, reduced headline gearing and a portfolio spanning several property uses. The October update showed stable occupancy and progress across major projects, alongside a slowdown in residential sales enquiries. Earnings delivery will depend on settlements, rental operations, development execution and financing conditions.

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