Mirvac Accelerates Residential Sales and Secures Key Capital Partnerships in 3Q25

Robust Residential Sales Drive Momentum

Mirvac Group’s third quarter operational update for FY25 reveals a compelling growth trajectory, particularly in its residential segment. The company reported quarterly residential sales of 530 lots, marking a 76% increase compared to the prior corresponding period. This surge has propelled residential pre-sales to approximately $2.1 billion, underscoring strong demand across key markets including Queensland and Western Australia. Notably, the Everleigh masterplanned community in Brisbane and Henley Brook in Perth have seen 84% and 80% of released lots sold respectively during the quarter.

Despite some weather and productivity delays impacting apartment settlements in Brisbane, Mirvac remains on track to meet its FY25 target of 2,000 to 2,500 residential lot settlements. The company’s strategic focus on masterplanned communities and urban infill projects continues to resonate with buyers, supported by favourable government housing policies and a stable interest rate outlook.

Capital Partnerships Bolster Development Pipeline

Mirvac has made significant strides in de-risking its development pipeline through capital partnerships. The group signed heads of agreement for the sale of a 49% interest in Stage 1 of its industrial development at SEED, Badgerys Creek, valued at around $700 million. Additionally, exclusive due diligence is underway for the potential sell-down of up to 50% interest in the Harbourside mixed-use development in Sydney.

These partnerships not only provide capital recycling opportunities but also enhance Mirvac’s ability to accelerate project delivery and expand its development footprint. The company also secured a new heads of agreement at 55 Pitt Street, Sydney, increasing pre-leasing to approximately 42%, reflecting strong tenant demand in the commercial sector.

Strong Leasing and Occupancy Across Investment Portfolio

Mirvac’s investment portfolio remains resilient, with an overall occupancy rate of 96.2%. The office portfolio maintained a high occupancy of 95%, achieving approximately 70,200 square metres of leasing year-to-date, including a major long-term lease renewal with EY at 200 George Street, Sydney. Industrial assets also performed well, with occupancy at 96.5% and gross releasing spreads of 24.8%, significantly outperforming market incentives.

Retail assets continued to show positive momentum, with occupancy at 98.3%, specialty sales productivity rising to $11,460 per square metre, and foot traffic increasing by 5.7%. Notably, Broadway Sydney and Orion Springfield Central in Brisbane ranked highly in Shopping Centre News’ Big Gun awards for moving annual turnover per square metre.

Advancing Living Sector and Build to Rent Assets

Mirvac is expanding its living sector exposure through build to rent (BTR) and land lease developments. The LIV Anura BTR asset in Brisbane is nearing completion and expected to be operational by mid-2025, while LIV Aston in Melbourne has achieved 98% occupancy and stabilised within seven months. The land lease platform continues to grow, with a conditional contract exchanged for 200 additional lots at Everleigh, Brisbane, increasing the development pipeline to approximately 2,580 lots.

These living assets are delivering strong net releasing spreads and occupancy rates, benefiting from exposure to resilient markets in Queensland and Western Australia. The company’s focus on high-quality, sustainable developments positions it well to capture ongoing demand in these sectors.

Outlook and Guidance

Mirvac reaffirmed its FY25 operating earnings guidance of 12.0 to 12.3 cents per stapled security and distribution guidance of 9.0 cents per stapled security. The company highlighted its strong balance sheet, with a weighted average cost of debt expected to be 5.6%, and expressed confidence in its ability to capitalise on market opportunities as conditions improve.

Group CEO Campbell Hanan emphasised the positive momentum across Mirvac’s business segments and the strategic progress made on capital partnerships and leasing. With a robust development pipeline and resilient investment portfolio, Mirvac is well positioned to deliver sustainable earnings growth and value creation for securityholders.