Mirvac Group reported a robust half-year result with a 5% rise in operating profit and a significant boost in residential sales, underpinned by a $1 billion joint venture with Mitsubishi Estate. The company’s strategic pipeline restocking and strong leasing performance signal promising growth ahead.
- Operating profit up 5% to $248 million
- Residential sales surged 38%, with 1,304 lots exchanged
- Secured $1 billion joint venture with Mitsubishi Estate for Harbourside Sydney
- Strong leasing spreads and 98% portfolio occupancy
- Reaffirmed FY26 earnings guidance of 12.8 to 13.0 cents per security
Solid Financial Performance
Mirvac Group has delivered a strong first half for FY26, reporting an operating profit of $248 million, a 5% increase on the previous year. Earnings per stapled security rose to 6.3 cents, reflecting steady growth across the business. The company reaffirmed its full-year guidance, targeting operating earnings between 12.8 and 13.0 cents per security and distributions of 9.5 cents, signaling confidence in its ongoing momentum.
Residential Sales and Development Pipeline
The residential segment was a standout, with sales volumes jumping 38% to 1,304 lots exchanged and settlements up 22%. This surge was driven by strong demand in masterplanned communities, particularly in New South Wales and Victoria. Mirvac also significantly replenished its development pipeline, securing major projects such as Blackwattle Bay in Sydney and a new masterplanned community in Karnup, Perth. These initiatives provide a clear runway for sustained earnings growth over the coming years.
Strategic Joint Ventures and Capital Partnerships
Mirvac’s ability to attract high-quality capital partners remains a key differentiator. The company entered a 50% joint venture with Mitsubishi Estate Co. Ltd, raising approximately $1 billion for the Harbourside Sydney development. Additionally, the recapitalisation of the LIV Mirvac Build to Rent Fund with Australian Retirement Trust and strong capital inflows into the Mirvac Wholesale Office Fund underscore the firm’s growing funds management platform and capital efficiency.
Commercial Development and Leasing Strength
Progress on Mirvac’s commercial pipeline is notable, with projects like 7 Spencer Street and 55 Pitt Street in Sydney advancing well and pre-leasing activity gaining traction. The company also secured the Hunter Street Metro East commercial tower development, further enhancing its industrial and office portfolio. The investment portfolio maintained a high occupancy rate of 98%, with positive leasing spreads across asset classes, reinforcing the quality and resilience of Mirvac’s holdings.
Capital Management and Outlook
Mirvac’s balance sheet remains robust, with headline gearing at 25.8% and substantial liquidity of around $1.1 billion. The company’s stable credit ratings and hedged debt profile provide a solid foundation for future growth. CEO Campbell Hanan highlighted the company’s strategic focus on premium assets and integrated asset creation as key to capturing value in a higher interest rate environment. With a refreshed development pipeline and strong third-party capital partnerships, Mirvac is well positioned to deliver on its FY26 objectives and beyond.
Bottom Line?
Mirvac’s strong half-year momentum and strategic partnerships set the stage for sustained growth amid evolving market dynamics.
Questions in the middle?
- How will Mirvac’s joint venture with Mitsubishi Estate influence future capital partnerships?
- What impact will the restocked residential pipeline have on margins amid market fluctuations?
- Can Mirvac maintain high occupancy and leasing spreads as new developments come online?