Key Highlights

  • Operating profit after tax was A$508 million, up 7%, and operating EPS was 12.9 cents, up from 12.0 cents.
  • Group EBIT was A$826 million, up 12%.
  • Mirvac completed about A$2 billion of Capital partnering in FY26.
  • FY27 guidance is operating EPS of 13.2 to 13.4 cents and a distribution of 9.9 cents, up 4.2%.

How is Mirvac Group (ASX:MGR) lifting Earnings while also reducing debt? According to its FY26 results, released on 19 August 2026, the answer lies in a higher development result, steady rental income, about A$2bn of capital partnering and a fall in gearing.

The central development: earnings up, gearing down

For the year to 30 June 2026, Mirvac reported operating profit after tax of A$508m, up 7% from A$474m. Operating earnings per security were 12.9 cents, up from 12.0 cents. The distribution was 9.5 cents per security, up from 9.0 cents.

Statutory profit was A$677m, compared with A$68m in FY25. The difference between statutory and operating profit mainly reflects non-operating items such as property revaluations, and we have not itemised them here.

Headline gearing fell to 24.1% from 27.6%, with look-through gearing at 27.2%. Total drawn Debt was A$3,755m, down from A$4,309m. Available Liquidity rose to A$1,603m from A$1,201m. The average cost of debt rose to 5.7% from 5.4%, and the Credit rating was unchanged at A3/A-.

What Mirvac does

Mirvac is an integrated property group. It owns and operates a A$10.5bn Investment portfolio of office, industrial, retail and living assets, manages property for third-party investors, and develops residential and mixed-use projects. Total Assets under management were A$23.7bn, and third-party capital under management was A$18.1bn, up 12%.

Revenue drivers differ by arm. Investment earnings come from rent and are relatively stable. Funds earn management fees. Development earnings depend on settlement timing, which is lumpier and linked to housing Demand and buyer finance. The company reports its result on an operating basis, which strips out certain non-cash items, alongside the statutory figure.

Segment results

Group EBIT was A$826m, up 12% from A$736m. Investment EBIT was A$602m, flat on the prior year, and investment net Operating Income (NOI) was A$617m, also flat. Funds EBIT rose 9% to A$36m. Development EBIT rose 52% to A$270m, which accounts for most of the group's earnings growth.

On our own arithmetic, development EBIT rose A$92m while group EBIT rose A$90m, so the other lines and unallocated items netted to a small decline. This calculation uses reported rounded figures.

Investment portfolio conditions

Mirvac reported portfolio occupancy of about 98%, like-for-like NOI growth of 5.3% and valuation growth of 3.1%.

Office has A$5.0bn of invested capital, 96.2% occupancy, a weighted average Capitalisation rate of 6.08%, like-for-like growth of 4.3% and valuation growth of 0.8%. About 9% of office leases expire across FY27 and FY28.

Industrial has A$2.0bn invested, 99.2% occupancy and a weighted average Lease expiry of 5.9 years. Gross leasing spreads were 33.7%, like-for-like growth was 10.7% and valuations rose 6.5%.

Retail has A$2.2bn invested, 99.0% occupancy, specialty moving annual turnover growth of 5.1% and valuation growth of 5.0%. Occupancy cost was 14.5%.

Living has A$0.8bn invested. Build-to-rent comprises 2,467 apartments, with LIV Anura 95% leased and LIV Albert 69% leased. Land lease settled 453 homes, up 16%, at an average price of A$627k.

Residential and development

Unconditional exchanges rose 15% to 2,425 lots, while settlements were 2,130 against 2,122 in FY25. Pre-sales were about A$1.5bn, down from about A$1.9bn. Residential gross Margin was 23.9% excluding impaired projects and 20.1% including them. The 12-month rolling default rate was 0.3%.

The lower pre-sales figure is a point to watch against the FY27 settlement outlook, though we have no information on how the two are linked. The development pipeline is about A$27bn. Settlements are the point at which development earnings are recognised, so the guided range of 2,800 to 3,100 lots for FY27 is a key input into group results.

Capital partnering and funds

Mirvac completed about A$2bn of capital partnering in FY26 and has raised A$14.8bn over four years. The MWOF capital raise was equivalent to about A$630m, and the LIV Mirvac Fund brought in a new partner, with ART holding 48.5%. The ART-backed MIV venture has grown to over A$3.0bn. About A$500m of assets were sold, and 380 St Kilda Road has been exchanged, with settlement due in the first half of FY27.

FY27 guidance

Mirvac guided to operating earnings per security of 13.2 to 13.4 cents, roughly 2% to 4% growth, and a distribution of 9.9 cents, up 4.2%. It expects residential settlements of 2,800 to 3,100 lots and an average cost of debt of about 5.7%. Guidance is subject to no material change in the operating environment.

On our arithmetic, FY26 distributions were about 74% of operating earnings per security (9.5 divided by 12.9), and the FY27 guidance implies about 74% to 75%. This is our calculation, not a company statement.

Risks and what to monitor

Residential earnings depend on settlements and on buyers securing finance, and the company cited a default rate of 0.3%. Falling pre-sales and project impairments, which explain the gap between the two gross margin figures, are relevant. The average cost of debt rose in FY26 and is guided to stay near 5.7%, so lower gearing is partly offsetting higher borrowing costs. Capitalisation rates, office lease expiries, and construction costs also matter.

Mirvac's own announcement was the main source for all figures above.