Mirvac Group (ASX:MGR): FY27 Residential Activity, FY26 Earnings and Property Portfolio

Aditi Sarkar

23 October 2026 07:49 PM AEDT

Mirvac Group (ASX:MGR): FY27 Residential Activity, FY26 Earnings and Property Portfolio

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Highlights

Mirvac Group (ASX:MGR) recorded 429 residential net deposits and lots exchanged in 1Q27.
The group reported 291 residential settlements and approximately AUD 1.4 billion in pre-sales.
FY26 operating profit after tax increased 7% to AUD 508 million, with 9.5 cents per security distributed.
FY27 guidance remains 13.2–13.4 cents in operating earnings and 9.9 cents in distributions per security.

Mirvac Group (ASX:MGR) develops, owns and manages Australian property across residential, office, industrial, retail and living sectors. Its October 2026 first-quarter FY27 update outlined residential sales, investment-property occupancy and construction milestones following its August full-year earnings release. Mirvac Group (ASX:MGR) ended the trading session on 23 October 2026 at AUD 1.81 per stapled security. The latest disclosures place residential settlement timing and rental-property performance alongside the group’s FY27 earnings and distribution guidance.

Company Business

Mirvac Group (ASX:MGR) combines an investment portfolio with property development and funds-management activities. Recurring income comes principally from commercial property, industrial facilities, retail assets and living investments, while its development business delivers residential communities, apartments and commercial projects. The group operates in major Australian metropolitan markets, including Sydney, Melbourne, Brisbane and Perth. Its investment activities also involve assets held through managed funds and capital partnerships.

Financial outcomes therefore depend on different business cycles. Contracted rental income is affected by occupancy, lease incentives and rent reviews. Development earnings depend on project completions and settlement dates, which can vary between reporting periods. Capital partnerships and asset transactions can change the scale and mix of assets reported on the balance sheet.

Recent Development

In its 22 October 2026 update, Mirvac Group (ASX:MGR) recorded 429 residential net deposits and lots exchanged during the first quarter of FY27, 17% below the preceding quarter. The group completed 291 residential lot settlements and disclosed approximately AUD 1.4 billion of residential pre-sales. Its outlook incorporates 2,800–3,100 lot settlements for FY27, with a greater share expected during the second half of the financial year. These targets remain subject to execution and market conditions.

The stabilised investment portfolio reported occupancy around 97%, with office at approximately 96%, industrial at 97% and retail at 99%. During the period, major development works progressed at Harbourside and 55 Pitt Street in Sydney, while the group continued its industrial development program. The office fund also deployed about AUD 600 million in acquisitions. The company reported that approximately three-quarters of its AUD 200 million on-market security buy-back had been completed by 20 October 2026.

Financial Performance and Sector Context

For the year ended 30 June 2026, Mirvac Group (ASX:MGR) reported operating profit after tax of AUD 508 million, up 7% from AUD 474 million. Operating earnings were 12.9 cents per stapled security, compared with 12.0 cents in FY25. Statutory profit attributable to securityholders rose to AUD 677 million from AUD 68 million, a measure that differs from operating earnings because statutory results include accounting and valuation effects.

Total revenue and other income increased 13% to AUD 3.075 billion from AUD 2.730 billion. Distributions totalled AUD 376 million, equivalent to 9.5 cents per stapled security, comprising 4.7 cents for the first half and 4.8 cents for the second half. Net tangible assets per stapled security were AUD 2.33 at June 2026 compared with AUD 2.26 a year earlier, and headline gearing was 24.1%, down from 27.6%.

The October update reaffirmed FY27 operating earnings guidance of 13.2–13.4 cents per stapled security and a distribution target of 9.9 cents. The guidance depends partly on achieving the planned residential settlements. Borrowing costs, household purchasing capacity, commercial occupancy and property valuations remain relevant external variables for the group’s operating and statutory outcomes.

Risks to Consider

Mirvac Group (ASX:MGR) faces settlement and construction timing risk across its development projects. Weaker residential enquiries or a rise in buyer defaults could alter pre-sale conversion, while planning approvals, labour availability and material costs can affect completion schedules. Its investment portfolio is sensitive to tenant demand, lease incentives, financing costs and valuation assumptions. Changes to capital-market conditions can also affect asset sales, fund raising and the cost of refinancing.

What to Watch Next

Subsequent FY27 updates will clarify whether residential exchanges and settlements progress towards the 2,800–3,100-lot target, particularly in the second half. For Mirvac Group (ASX:MGR), rental occupancy, leasing spreads, cash generation and development completion schedules will also be relevant. The 17 November 2026 annual general meeting and the next reporting period provide further scheduled opportunities for management to discuss operational conditions and capital allocation.

Key Insights

Mirvac’s latest quarterly disclosure combined moderated new residential sales with continued investment-property occupancy and development progress. FY26 operating profit increased to AUD 508 million, while FY27 guidance calls for modestly higher per-security operating earnings and distributions. Settlement execution, property leasing, financing conditions and the timing of project completions remain the principal reported measures to monitor.

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