Macquarie Group (ASX: MGR) – Macquarie Files FY26 Annual Report

Mirvac Group has reported operating profit of $508 million for the financial year ended 30 June 2026, up 7 percent on the prior year, representing a return to growth after several years of portfolio repositioning. The result reflects stabilisation across the property group’s three core businesses, investment, funds management and development, with operating earnings per stapled security reaching 12.9 cents, up 7 percent on FY25. Statutory profit surged to $677 million from $68 million, driven by asset revaluations across living, industrial and retail sectors as well as improved development valuations.

The company’s strategic pivot to higher-quality, higher-growth assets is beginning to pay dividends. The investment portfolio, now valued at $10 billion, delivered net operating income of $602 million while maintaining occupancy of 98 percent across office, industrial and retail holdings. Like-for-like income growth of 5.3 percent and leasing spreads of 4.5 percent demonstrate strong underlying asset performance, underpinned by disciplined capital deployment. Over the year, Mirvac leased 145,700 square metres of space, a testament to sustained tenant demand for modern, well-located properties, particularly in the industrial sector where Sydney operations grew net operating income by 49 percent over three years.

Capital management discipline remains evident throughout the result. Gearing was maintained at 24.1 percent, comfortably within the company’s 20-30 percent target range, while Moody’s and Fitch ratings were retained at A3 and A- respectively. The company raised $2 billion in third-party capital during the year and refinanced $2 billion of debt on favourable terms. Management announced an on-market buyback of up to $200 million, reflecting confidence in embedded value. Distributions per stapled security increased 6 percent to 9.5 cents, consistent with the company’s 60-80 percent payout ratio policy.

The development pipeline represents the next growth driver, with $27 billion in expected end value across commercial, mixed-use and residential projects. Development earnings recovered sharply, with FY26 EBIT up 52 percent to $270 million, supported by capital partnerships that reduce balance sheet risk. The funds management platform, managing $24 billion in assets with $18 billion in third-party capital, expanded through the recapitalisation of the $1.8 billion LIV Mirvac build-to-rent fund with Australian Retirement Trust and strong capital raises across office and retail ventures. Residential momentum is building, with 2,130 lots settled during the year and $1.5 billion in pre-sales on hand.

Investors should monitor execution on the $27 billion development pipeline, particularly the flagship Hunter Street East and Blackwattle Bay projects in Sydney and expansion of the build-to-rent platform. Credit metrics and capital partnership outcomes will remain critical given the scale of planned activations. The company’s ability to maintain occupancy and like-for-like growth in its investment portfolio while deploying capital across development will determine whether FY26 marks a sustainable earnings inflection.

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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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