Mirvac Group has reaffirmed its FY27 guidance of operating earnings between 13.2 and 13.4 cents per stapled security and a distribution of 9.9 cents per stapled security, signalling confidence in its earnings trajectory despite a softer residential market. The company’s high-quality investment portfolio continues to underpin financial performance, with occupancy stable at 97% and positive leasing spreads across office, industrial and retail sectors supporting rental income resilience.
The investment portfolio delivered solid operational metrics during the quarter. Office occupancy held at 96%, supported by 24,460 square metres of leasing including a renewed Google lease at 1 Darling Island in Sydney. The company settled on the sale of 380 St Kilda Road in Melbourne, generating further capital efficiency. Industrial occupancy remained at 97%, while retail occupancy climbed to 99% with specialty sales growing 4.7% and specialty sales productivity increasing to $12,574 per square metre. These results demonstrate that Mirvac’s core investment business remains resilient despite broader economic headwinds.
Residential sales activity moderated as expected, with 429 net deposits and lots exchanged during the quarter, down 17% from the prior quarter. Management attributed this slowdown to interest rate rises and tax changes impacting consumer sentiment, particularly in New South Wales, Victoria and Queensland. However, the company settled 291 residential lots during 1Q27 and maintains a substantial pre-sales buffer of approximately $1.4 billion, providing earnings visibility into FY27. The low default rate of 1.1% reflects the quality of the residential order book and customer commitment.
Development progress continues on track across the portfolio. Building structures reached topping-out stage at Harbourside and 55 Pitt Street in Sydney, along with the Trielle apartment project in Melbourne. Pre-leasing on Harbourside’s commercial component improved to approximately 30%, while 55 Pitt Street achieved pre-leasing of approximately 43%. Construction commenced on the first warehouse at SEED, Badgerys Creek, with completion expected in mid-2027. The satisfaction of condition precedents on Hunter Street East in Sydney also expanded the development pipeline by $3 billion.
On capital allocation, Mirvac is completing a $200 million on-market buy-back program, with approximately 75% executed by 20 October. The Mirvac Wholesale Office Fund deployed approximately $600 million into two new premium-grade CBD assets in Sydney and Melbourne following a successful capital raise, while the LIV Mirvac Fund launched a capital raise to accelerate growth in the build-to-rent platform. These moves demonstrate disciplined capital deployment across core income generation and growth initiatives.
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Investors should monitor the trajectory of residential sales as project activations ramp up and assess whether pre-sales conversion trends accelerate in the second half of FY27. Watch for commentary on the build-to-rent sector’s performance, including fund inflows and asset valuations, as this represents a key growth driver for the group. The announcement has been flagged as price sensitive and material to shareholders by the ASX.
View the full ASX announcement (PDF)
About Mirvac Group (ASX: MGR)
Mirvac Group is an ASX top 100 property group founded in 1972 that creates and manages urban places across the residential, office, industrial, retail and living sectors. It develops and invests in residential communities, build to rent assets, landmark offices and logistics centres, for its own portfolio and on behalf of capital partners. It is focused on Sydney, Melbourne, Canberra, Brisbane and Perth.
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