Mirvac Group delivered earnings growth of 7% in FY26, with operating profit reaching $508 million and earnings per stapled security climbing to 12.9 cents, matching guidance and reflecting three years of disciplined portfolio repositioning. The result demonstrates that the group’s strategy to improve asset quality and drive higher returns is delivering tangible results.
Residential operations were particularly strong, with the group settling 2,130 lots and achieving 15% growth in sales to 2,425 lots. Gross residential margins expanded to 24%, above the group’s target range, suggesting pricing power in the development market. The investment portfolio also performed well, with occupancy maintained at 98%, like-for-like rental income growth reaching 5.3%, and valuations rising 3.1%. These operational gains underscore the quality of Mirvac’s assets and the resilience of its core earnings streams.
The balance sheet reflects careful capital management. Headline gearing fell to 24.1%, comfortably within the group’s 20-30% target range and down from 27.6% a year ago. Liquidity is substantial at approximately $1.6 billion in cash and undrawn facilities, providing strategic flexibility. Debt is well-managed, with a weighted average maturity of 4.4 years and 66% hedged against interest rate movements. These metrics position Mirvac well to weather economic uncertainty.
Third-party capital under management expanded to over $18 billion, a key metric of the group’s ability to attract capital and manage assets on behalf of others. The $3 billion Mirvac Industrial Venture and $2 billion LIV Mirvac Fund secured additional partnerships, while the Wholesale Office Fund raised $630 million in equity. These partnerships allow Mirvac to recycle capital efficiently and participate in returns without carrying all the balance sheet risk, improving capital efficiency across the platform.
Management signaled confidence in the business through a $200 million on-market share buyback, reflecting their view that Mirvac securities are undervalued. This comes alongside a distribution of $376 million, up 6%, representing 9.5 cents per security. The combination of buybacks and growing distributions suggests management sees the business as well-positioned to deliver value to securityholders.
Investors should focus on residential demand trends in a higher interest rate environment and the ongoing success of capital partnerships in attracting third-party funds and generating fees. Net tangible assets of $2.33 per security provides a valuation reference point for assessing the buyback. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Macquarie Group Limited (ASX: MGR)
Macquarie Group Limited is an Australian multinational investment banking and financial services firm operating across 34 markets worldwide. The company provides comprehensive financial services including asset management, investment banking, corporate banking, private equity, wealth management, and capital markets services, with approximately A$938.3 billion in assets under management. It is Australia’s largest infrastructure asset manager and one of the world’s leading mergers and acquisitions advisers.
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