Mirvac Posts $736M EBIT, Eyes 8% EPS Growth in FY26

Robust FY25 Performance Amid Strategic Expansion

Mirvac Group has delivered a resilient financial performance for FY25, reporting a group EBIT of $736 million and an operating profit of $474 million. Earnings per stapled security stood at 12.0 cents, with a dividend per security of 9.0 cents. These results reflect the company’s strategic focus on expanding its Living and Industrial portfolios, sectors that showed more than 50% year-on-year growth in net operating income.

The company successfully completed its 4th and 5th Build-to-Rent (BTR) projects, LIV Anura in Brisbane and LIV Albert in Melbourne, adding 2,174 operating apartments to its portfolio. This expansion, alongside a 16% increase in Land Lease sites to approximately 7,500 lots, underscores Mirvac’s commitment to growing its Living sector exposure, which now contributes significantly to earnings with EBIT up 184% to $54 million.

Investment Portfolio Strength and Leasing Momentum

Mirvac’s $10.1 billion investment portfolio demonstrated strong operating metrics, maintaining occupancy rates near 98% and achieving average positive leasing spreads of 8.6%. The portfolio’s quality was enhanced by the disposal of approximately $340 million in non-core office assets, allowing the group to focus on high-quality, sustainable assets across Living, Industrial, and Retail sectors.

Industrial assets, particularly in Sydney, benefited from development completions and tight market conditions, with occupancy reaching 99.8% and gross leasing spreads soaring by 49.1%. The office portfolio, predominantly premium grade and modern, maintained a 95.1% occupancy rate with modest leasing spreads, signaling a cyclical upswing in this segment.

Capital Management and Balance Sheet Resilience

Mirvac’s balance sheet remains robust with headline gearing at 27.6%, comfortably within its target range of 20-30%. The group refinanced $1.8 billion of debt and issued a $400 million green bond with a 6.5-year tenor, with 45% of debt facilities certified green by the Climate Bonds Initiative. Available liquidity stood at $1.2 billion, providing ample funding flexibility.

Capital partnering initiatives were a highlight, raising approximately $1.6 billion in FY25 and unlocking value through strategic partnerships across residential and industrial projects. Non-core asset sales contributed an additional $340 million, supporting the company’s capital recycling strategy and enabling reinvestment into growth sectors.

Outlook and FY26 Guidance

Looking ahead, Mirvac has set FY26 guidance with operating EPS expected between 12.8 and 13.0 cents, representing growth of 6.7% to 8.3%, and a distribution per security of 9.5 cents, up 5.6%. This outlook assumes residential settlements of 2,000 to 2,300 lots and non-core asset sales exceeding $0.5 billion. The weighted average cost of debt is forecast to slightly improve to around 5.3%.

The company anticipates continued earnings growth driven by new income from development completions, further capital partnering, and a residential market recovery. Mirvac’s focus on sustainability remains a core pillar, with net positive carbon targets by 2030 and ongoing investments in energy efficiency and renewable energy across its portfolio.

Sustainability and Innovation as Growth Enablers

Mirvac’s commitment to sustainability is evident in its operational strategy, including electrification of assets, waste reduction, and use of renewable electricity. The group has achieved net zero carbon emissions for Scope 1 and 2 and is progressing towards net positive carbon status by 2030. These initiatives not only align with global environmental goals but also enhance asset desirability and tenant demand, particularly in premium office and industrial sectors.

Innovation in construction methods, such as modularisation and 3D printing, is being leveraged to improve build efficiency and reduce costs, supporting margin recovery and faster project delivery. These technological advances, combined with active procurement and design optimisation, position Mirvac well to capitalise on improving market conditions.