Mirvac Group (ASX:MGR): What FY27 Leasing and Residential Trends Reveal

Aditi Sarkar

10 November 2026 06:47 PM AEDT

Mirvac Group (ASX:MGR): What FY27 Leasing and Residential Trends Reveal

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Highlights

Mirvac (ASX:MGR) reported AUD 508 million in FY26 operating profit after tax.
The stabilised Investment portfolio recorded 97% occupancy in 1QFY27.
Residential settlements reached 291 lots during 1QFY27, with approximately AUD 1.4 billion in pre-sales.
Mirvac reaffirmed FY27 operating Earnings guidance of 13.2–13.4 cents per stapled security.

Mirvac Group (ASX:MGR) owns, develops and manages Australian residential, office, industrial, retail and living-sector property, with investment and development operations. Mirvac Group (ASX:MGR) securities closed at AUD 1.923 on 10 November 2026. Its October operational update outlined occupancy across investment properties, slower residential sales activity and progress on commercial construction during the first quarter of FY27.

FY26 Earnings and Balance Sheet

For the year ended 30 June 2026, Mirvac (ASX:MGR) recorded 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. The statutory measure differs from operating earnings and includes accounting movements affecting reported results. The group declared FY26 distributions of 9.5 cents per stapled security, representing AUD 376 million in total.

Headline gearing stood at 24.1% at 30 June 2026, down from 27.6% a year earlier. Available Liquidity was approximately AUD 1.6 billion in cash and committed undrawn facilities. Mirvac also announced an on-market buy-back of up to AUD 200 million in August; approximately 75% had been completed by 20 October 2026. These measures inform Capital allocation.

Investment Occupancy and Leasing

The investment portfolio maintained 97% occupancy in the September 2026 quarter, excluding co-investments and measured across stabilised properties. Office occupancy was 96%, industrial 97% and retail 99%. Mirvac (ASX:MGR) completed approximately 24,460 square metres of office leasing and 9,470 square metres of retail leasing during 1QFY27. Industrial gross leasing spreads were approximately 22%, while retail specialty sales growth reached 4.7%.

In living assets, the stabilised build-to-rent portfolio was 93.7% leased at 30 September 2026, with net leasing spreads of 3.5%. Mirvac’s wholesale office fund deployed approximately AUD 600 million into two premium-grade office acquisitions in Sydney and Melbourne. The LIV Mirvac Fund launched a capital raise. Fundraising is not completed earnings.

Residential Demand and Construction Progress

Residential activity moderated during 1QFY27. Mirvac (ASX:MGR) recorded 429 net deposits and lots exchanged, down 17% from the preceding quarter, and settled 291 lots. The company described softer conditions in New South Wales and Victoria, with Queensland demand also weakening, while Western Australia remained more resilient. Its approximately AUD 1.4 billion pre-sales balance represents contracted future activity, not Revenue already recognised.

Construction milestones included topping out at Harbourside and 55 Pitt Street in Sydney and Trielle in Melbourne. At 30 September, Harbourside’s commercial component was approximately 30% pre-leased and 55 Pitt Street approximately 43% pre-leased, including preliminary agreements. Construction began on the first Warehouse at SEED, Badgerys Creek, with completion expected in mid-2027. These projects remain subject to construction, leasing and delivery risks.

FY27 Guidance and Execution Risks

Mirvac (ASX:MGR) reaffirmed FY27 operating earnings guidance of 13.2–13.4 cents per stapled security and a distribution target of 9.9 cents. The outlook assumes 2,800–3,100 residential lot settlements, weighted towards the second half, and an average Debt cost of approximately 5.8%. Management made the guidance conditional on operating conditions and delivery of key initiatives. Residential demand, project schedules, leasing commitments and financing costs remain relevant variables.

Key Insights

Mirvac (ASX:MGR) enters FY27 with high investment occupancy and a substantial residential pre-sales balance, while its September-quarter update also records moderated housing demand. Delivery against settlement guidance and the conversion of development projects into income will be important operational measures.

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