Real EstateHighlights

  • Mirvac Group (ASX:MGR) reported FY26 statutory profit of $677 million, compared with $68 million in FY25.
  • Operating profit increased 7 per cent to $508 million, reflecting underlying Earnings growth.
  • Residential settlements and exchanges increased, supporting development earnings.
  • Gearing reduced to 24.1 per cent from 27.6 per cent, strengthening Balance Sheet flexibility.

Mirvac Group (ASX:MGR) reported a significant increase in FY26 statutory profit, supported by improved property valuations and stronger residential development activity. The company also increased operating earnings, reduced gearing and expanded its funds-management platform.

The result reflects improving conditions across parts of the property market, although future performance remains linked to housing demand, interest rates and broader commercial property conditions.

Why this result matters

Mirvac Group’s FY26 result reflects a changing environment for listed property companies after several years of valuation pressure and higher funding costs.

The company reported a substantial increase in statutory profit, supported by stabilising asset values and stronger residential performance. Investors are assessing whether the recovery represents a sustained improvement or a rebound from previous valuation declines.

Statutory versus operating performance

Mirvac Group’s statutory profit increased to $677 million in FY26 from $68 million in FY25.

The significant percentage increase was influenced by property valuation movements. FY25 statutory earnings were affected by asset devaluations, particularly across office properties, while improved valuations during FY26 supported reported profit.

Operating profit, which reflects recurring earnings performance, increased 7 per cent to $508 million from $474 million.

Operating earnings were 12.9 cents per stapled security, while group Earnings Before Interest and Tax (EBIT) increased 12 per cent to $826 million.

Residential development leads performance

Residential development was a key contributor to FY26 performance.

Mirvac settled 2,130 lots during the year, while exchanged contracts increased to 2,425 lots, up 15 per cent compared with FY25.

Residential earnings before tax increased 52 per cent, with gross development margins of 24 per cent.

The company’s residential pipeline benefited from improving buyer activity, although Demand remains influenced by affordability conditions and interest rates.

Investment portfolio performance

Mirvac’s Investment portfolio continued supporting earnings through stable occupancy and rental growth.

Occupancy remained at 98 per cent, while like-for-like income increased 5.3 per cent.

Property valuations increased 3.1 per cent, representing approximately $253 million in valuation uplift.

Industrial and logistics Assets recorded valuation growth of 6.5 per cent and leasing spreads of 33.7 per cent.

The LIV build-to-rent platform expanded to approximately 2,200 operational apartments across five assets, with additional projects under development.

Asset-light strategy and funds management

Mirvac continued expanding its capital-partner model, with third-party Capital under management exceeding $18 billion, up 12 per cent.

The Mirvac Wholesale Office Fund raised approximately $630 million in additional Equity during FY26.

The funds-management strategy provides additional fee-based earnings opportunities while reducing the amount of balance sheet capital required for growth.

Distribution and balance sheet

Mirvac increased its full-year distribution by 6 per cent to 9.5 cents per stapled security, representing approximately $376 million.

The company reduced headline gearing to 24.1 per cent from 27.6 per cent, remaining within its target range of 20 per cent to 30 per cent.

Mirvac also announced an on-market buyback program of up to $200 million.

Housing market and Interest Rate outlook

Mirvac’s future performance remains linked to housing market conditions and borrowing costs.

Australia’s housing shortage continues supporting long-term residential demand, while affordability pressures remain a consideration for buyers.

A lower interest rate environment could support housing activity, although recovery conditions remain dependent on consumer confidence and economic factors.

FY27 outlook and guidance

Mirvac expects FY27 operating earnings of 13.2 cents to 13.4 cents per security, representing growth of 2 per cent to 4 per cent.

The company expects residential settlements of 2,800 to 3,100 lots during FY27 and has guided to a distribution of 9.9 cents per stapled security.

Key areas of focus include residential delivery, funds management growth and continued balance sheet management.

Catalysts and risks

Potential catalysts include increased residential settlements, further growth in funds-management activities, continued property valuation stabilisation and execution of the buyback program.

Key risks include slower housing recovery, higher construction costs, weaker buyer demand, office property conditions and interest rate movements affecting property valuations.

The outlook

Mirvac Group’s FY26 result reflected improving residential activity, higher operating earnings and a stronger balance sheet position.

The company continues transitioning towards a more diversified earnings model through residential development, investment assets and funds management. Future performance will depend on maintaining residential momentum and navigating broader property market conditions.