Mustera Property Group reported a 45% revenue increase to $7.28 million for the half-year ending December 2025, driven by strong sales at its Forbes Residences project. Despite this growth, the company posted a net loss of $724,430, narrowing its deficit from the previous year as it advances its key North Fremantle development.
- Revenue up 45% to $7.28 million, led by Forbes Residences sales
- Net loss narrowed to $724,430 from $1.87 million prior year
- Verse on McCabe project in North Fremantle launched with $15 million in contracted sales
- Divestment of non-core Midland property to reduce debt
- No dividends declared; focus remains on development pipeline and refinancing
Revenue Growth Amid Challenging Market Conditions
Mustera Property Group Ltd (ASX: MPX) has delivered a notable 45% increase in revenue for the six months ending 31 December 2025, reaching $7.28 million. This uplift was primarily driven by the sale of apartments at its Forbes Residences project in Applecross, Western Australia, where two apartments settled during the period, generating nearly $5.9 million in revenue. The company’s improved top line contrasts with a continuing net loss of $724,430, though this represents a significant improvement from the $1.87 million loss recorded in the prior corresponding period.
Progress on Key Development Projects
Mustera is advancing its flagship residential development, Verse on McCabe, located in North Fremantle. The project comprises 42 apartments across eight storeys, offering ocean and river views. During the half-year, the company finalised design development and advanced project documentation, while actively engaging in builder procurement with plans to commence construction in the second quarter of 2026. The sales campaign, launched alongside an on-site display suite, has generated strong interest, with contracted sales totalling approximately $15.05 million as of December 31, 2025. This early sales momentum is expected to underpin project financing and support the company’s development ambitions.
Strategic Asset Management and Debt Reduction
In line with its strategy to focus resources on core projects, Mustera divested its non-core vacant land holding at Grace Quarter, Midland, for $1.375 million shortly after the reporting period. The proceeds were applied to reduce the company’s debt facilities, strengthening its balance sheet. Mustera also continues to generate rental income from its investment properties, including a leased car park site in East Perth and the Shoalwater Shopping Centre, maintaining steady cash flow while development plans progress.
Financial Position and Outlook
The Group’s net tangible assets per security slightly declined to 11.92 cents from 12.92 cents a year earlier, reflecting inventory write-downs of $1.49 million to align with current market valuations. Despite the ongoing loss, management remains confident in its ability to refinance existing debt facilities, with negotiations underway to extend or renew borrowings maturing in March 2026. The company’s cash position improved to $1.95 million at period end, supported by operational cash inflows and asset sales.
No Dividends as Focus Remains on Growth
Mustera did not declare any dividends for the half-year, consistent with its focus on reinvesting capital into its development pipeline. The company’s directors affirm the going concern status, supported by the strength of contracted sales, ongoing rental income, and a clear strategy to progress key projects while managing financial obligations prudently.
Bottom Line?
Mustera’s improved revenue and contracted sales set the stage for a pivotal construction phase, but refinancing and market conditions will be critical to watch.
Questions in the middle?
- Will Mustera secure refinancing on favourable terms to support Verse on McCabe’s construction?
- How will market conditions impact the sales velocity and pricing of remaining units at Forbes Residences and Verse on McCabe?
- What are the company’s plans for unlocking value from its East Perth site and other development opportunities?