Mirvac’s Growth Hinges on JV Execution and Settlement Delivery in FY26

Strong Residential Sales Momentum

Mirvac Group has kicked off the 2026 financial year with impressive operational momentum, particularly in its residential segment. The company reported a 79% year-on-year increase in residential lots exchanged during the first quarter, reaching 619 lots compared to 346 in 1Q25. This surge was driven by strong demand in Sydney and Melbourne masterplanned communities, where sales uplifted by 150% and 125% respectively. Additionally, Mirvac holds 432 conditional sales on hand, signaling sustained buyer interest.

Strategic Capital Initiatives Unlocking Growth

In a major strategic move, Mirvac entered into a 50% joint venture with Mitsubishi Estate Co. Ltd to develop the Harbourside precinct in Sydney. This partnership unlocks approximately $450 million in capital, providing significant funding for Mirvac’s development pipeline while generating development management fees during construction. The selldown also crystallizes upfront profits on the residential land component, with the bulk of earnings expected to materialize upon settlements in FY28, offering clear visibility on future earnings streams.

Robust Leasing and Portfolio Performance

Mirvac’s investment portfolio remains resilient, maintaining high occupancy rates across key sectors – 95.1% in office, 98.9% in industrial, and 98.8% in retail. The company achieved positive leasing spreads across all asset classes, including a notable 9% uplift in its land lease portfolio. Pre-leasing activity is also strong, with 50% of 7 Spencer Street in Melbourne pre-leased and 86% of the warehouses at Aspect North and South pre-leased. The build-to-rent segment continues to expand, with assets like LIV Anura in Brisbane now over 46% leased.

Funds Platform and Development Pipeline

Mirvac’s Wholesale Office Fund has successfully raised approximately $415 million since its launch in April, reflecting strong investor confidence in the group’s asset management and governance capabilities. The company also progressed several key developments, including topping out at 7 Spencer Street and advancing construction at 55 Pitt Street in Sydney, which is already 40% pre-leased. Residential developments continue apace, with the new Everdene community at Mulgoa, Sydney, achieving 86% pre-sales just 12 months after acquisition.

Outlook and Guidance

Mirvac reaffirmed its FY26 operating earnings per security guidance of 12.8 to 13.0 cents and distribution per security of 9.5 cents. The company expects to settle between 2,000 to 2,300 residential lots this financial year, supported by the federal government’s first-home buyer guarantee scheme, which aligns well with Mirvac’s lot pricing. With a weighted average cost of debt forecast at 5.3%, Mirvac’s leadership expressed confidence in sustaining growth and executing strategic objectives throughout 2026.