Highlights

  • Operating profit after tax rose 7% to $508 million, with operating EPS climbing to 12.9 cents from 12.0 cents.
  • Residential EBIT surged 28% to $233 million, with exchanged sales up 15% to 2,425 lots.
  • Headline gearing fell to 24.1% from 27.6%, well within the 20–30% target band.
  • FY27 guidance points to operating Earnings of 13.2–13.4 cents per security and a distribution of 9.9 cents.

Mirvac Group (ASX:MGR) shares climbed to $1.86 on 19 August 2026, up 7.04%, after the company delivered FY26 results that demonstrated resilient operational performance and improving financial flexibility. Operating profit after tax reached $508 million, up 7% from $474 million, while operating earnings per stapled security climbed to 12.9 cents from 12.0 cents. Statutory profit surged to $677 million from $68 million, and net tangible Assets per security increased to $2.33 from $2.26.

Investment Portfolio Holds Steady

The Investment portfolio — spanning industrial, retail and living assets — maintained fortress-like stability. Portfolio EBIT remained flat at $602 million year-on-year, with like-for-like income growth of 5.3% offsetting asset valuation shifts. Occupancy stayed locked at 98%, while investment property valuations climbed by $253 million, buoyed by 6.5% gains in industrial assets and 6% in living assets.

Residential Is the Real Earnings Driver

EBIT from residential surged 28% to $233 million from $179 million, generating significant Leverage for the group. Mirvac settled 2,130 lots during the year, while exchanged sales — a leading indicator of future earnings — jumped 15% to 2,425 lots. Gross residential margins improved to 24% excluding impaired lots, a meaningful gain in a market where margins have been under pressure. Defaults remained minimal at 0.3%, and pre-sales stood at $1.5 billion, though this was lower than FY25 partly due to the Harbourside Sydney sell-down into a joint-venture arrangement.

Balance Sheet Deleveraging

Headline gearing fell to 24.1% from 27.6%, moving away from the upper end of the company's 20–30% target band. Available Liquidity reached approximately $1.6 billion, while weighted average Debt Maturity extended to 4.4 years from 4.2 years. Debt hedging increased to 66% from 57%, though average borrowing costs rose to 5.7% from 5.4%, reflecting the higher Interest Rate environment.

Funds Platform Expansion

Mirvac's funds platform also expanded meaningfully, with third-party Capital under management rising more than 12% to above $18 billion. The Mirvac Wholesale Office Fund raised $310 million during FY26, and the LIV Mirvac Fund expanded to 2,200 operational lots across five assets.

Distributions and FY27 Outlook

Mirvac maintained its FY26 distribution at 9.5 cents per stapled security, totalling $376 million, a 6% increase from the prior year despite flat-to-declining pre-sales. For FY27, the company expects operating earnings of 13.2–13.4 cents per stapled security and a distribution of 9.9 cents, assuming 2,800–3,100 residential lot settlements.

Conclusion

Mirvac's FY26 result shows a Business executing well through a challenging property cycle, with residential earnings doing the heavy lifting and the Balance Sheet strengthening meaningfully. The FY27 guidance points to continued growth, contingent on residential settlement volumes holding up.