Macquarie Group (ASX: MGR) – Macquarie FY26 Results Presentation Slides

Mirvac has reported a significant swing to a FY26 statutory profit of $677 million, up more than 100 percent from $68 million in FY25, though this reflects substantial revaluation gains across both development and investment portfolios. Underlying operating metrics paint a more measured but solid picture, with group EBIT rising 7 percent to $508 million and earnings per share increasing to 12.9 cents from 12.0 cents. The company has guided to 2-4 percent EPS growth in FY27, with a distribution increasing to 9.9 cents, up 4.2 percent year-on-year.

The results reflect successful execution of a platform reset strategy pursued over the past two years. Mirvac has disposed of approximately $3 billion of non-core assets while completing around $2 billion of development projects. More importantly, the company has rebalanced its investment portfolio away from lower-grade office exposure (down from 66 percent to approximately 50 percent of the portfolio) toward premium office, industrial and living assets. The investment portfolio delivered 5.3 percent like-for-like net operating income growth and 98 percent occupancy across a $10.5 billion invested capital base.

Residential development margins have recovered to the target 18-22 percent range following completion of all impaired projects, with 2,425 unconditional exchanges up 15 percent year-on-year. The company has secured approximately 15,000 new lots through restocking initiatives and now has a $27 billion development pipeline to activate over coming years. Development return on invested capital is targeting above 10 percent in FY27, representing a meaningful recovery from lower levels in recent periods.

The funds platform has grown to manage $18.1 billion of third party capital, up 12 percent year-on-year, with $3.2 billion of future funds under management secured from committed development pipeline. Mirvac has recapitalised key unlisted funds through capital partnerships with strategic investors, reducing funding pressure and improving project returns and funding certainty. The wholesale office fund outperformed its benchmark over multiple timeframes and the build-to-rent platform now comprises 2,467 apartments with a target to grow to 3,000 units.

Balance sheet strength has improved materially, with headline gearing reduced to 24.1 percent from 27.6 percent despite raising $14.8 billion of capital over the past four years. Available liquidity stands at $1.6 billion and the company has initiated a $200 million share buyback facility. Debt has been refinanced on favourable terms with a weighted average cost of debt of approximately 5.7 percent. Credit ratings remain at A3/A- from Moody’s and Fitch.

The FY27 guidance of 13.2-13.4 cents EPS represents modest growth from FY26, implying modest earnings accretion from current levels. Investors should monitor progress on the $27 billion development pipeline activation, particularly residential settlement volumes which are expected to reach 2,800-3,100 lots, and the delivery of approximately $130 million of new investment income from committed development completions and portfolio stabilisation.

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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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