Mirvac Powers Ahead with 10% EBIT Growth and Strategic Capital Partnerships

Strong Financial Performance and Operational Momentum

Mirvac Group has delivered a solid first half of 2026, reporting a 10% increase in Group EBIT to $398 million and a statutory profit of $319 million, a remarkable turnaround from just $1 million in the prior corresponding period. This growth was underpinned by strong contributions across its Living, Industrial, Office, and Funds Management segments, reflecting the company’s diversified and resilient business model.

Residential sales momentum remains a standout, with unconditional exchanges rising 38% year-on-year to 1,304 and over 90% of the FY26 lot settlement target already secured. Gross margins improved to 22.5%, signalling a recovery in profitability within the residential development pipeline.

Strategic Capital Partnerships and Portfolio Repositioning

Mirvac has executed significant capital partnering initiatives to enhance its development returns and funding certainty. Notably, it formed a 50% joint venture with Mitsubishi Estate Co. Ltd for the Harbourside project in Sydney, unlocking approximately $1 billion in capital and improving internal rates of return. Additionally, the LIV Mirvac Fund, the company’s flagship Build to Rent vehicle, was recapitalised with Australian Retirement Trust acquiring a 48.5% stake, setting the stage for further growth in this expanding sector.

The investment portfolio continues to deliver strong results, with positive like-for-like net operating income growth of 4.4% and occupancy levels near 98%. The portfolio has been strategically repositioned towards premium office, industrial, and living assets, supported by asset disposals such as the $300 million sale of 23 Furzer Street, Canberra.

Robust Development Pipeline and Future Earnings Visibility

Mirvac’s development pipeline remains substantial at approximately $28 billion, with $2.3 billion of future funds under management secured over the next three years. Key projects include the Blackwattle Bay precinct in Sydney, the Karnup masterplanned community in Western Australia, and the Hunter Street Metro East commercial tower, all expected to contribute to earnings growth beyond FY28.

The company’s guidance for FY26 reflects confidence in continued growth, targeting operating earnings per security of 12.8 to 13.0 cents, representing 6.7% to 8.3% growth, and a distribution of 9.5 cents per security, up 5.6%. These targets assume successful execution of capital partnering initiatives and residential settlements of 2,000 to 2,300 lots.

Sustainability and Governance at the Forefront

Mirvac continues to prioritise sustainability and governance, reaffirming its net positive carbon target by 2030 and maintaining high employee engagement scores. The company’s portfolio includes 15 buildings rated 5 stars or higher under NABERS, and it has achieved zero waste to landfill, underscoring its commitment to environmental stewardship.

With a strong balance sheet, headline gearing reduced to 25.8%, and available liquidity of $1.126 billion, Mirvac is well positioned to capitalise on market opportunities while managing risks prudently.