Mirvac Group on Friday reported a 7% increase in FY2026 operating profit to A$508 million, driven by gains across its development, funds and living businesses. The result, which matched management’s prior guidance, pushed shares up 6.61% to close at A$1.86, valuing the company at A$9.4 billion.
The group’s development earnings before interest and tax rose more than 50% year-over-year, while funds EBIT increased 9% and living EBIT climbed 9%. Revenue for the 12 months to June 30 reached A$2.27 billion, up 11.8% from the prior year, with a gross profit margin of 50.3%. Headline gearing stood at 24.1%, below the target range midpoint, and available liquidity totaled A$1.6 billion. Mirvac maintained office occupancy above 96%, with premium-grade assets comprising about 60% of its office portfolio.
Chief Executive Campbell Hanan highlighted a return to growth in net tangible assets and statutory profit, alongside gearing below target. He noted FY2027 would mark the first year of net operating income growth in the investment portfolio since FY2023, eliminating the need for asset sales. The company guided FY2027 earnings-per-share growth of 4.2%, with EPS in a range of A$0.132 to A$0.134 and distribution per share of A$0.099.
Mirvac also announced an on-market share buyback of up to A$200 million, citing positive valuation growth across asset classes and confidence in future earnings. The buyback will be funded from existing capacity. Development returns are expected to exceed 10% in FY2027, while residential settlements are targeted at 2,800 to 3,100 units, with 63% of the volume already exchanged. Residential pre-sales totaled A$1.5 billion.
The group refinanced A$2 billion of debt on favorable terms during the year, with its weighted average cost of debt rising to 5.7% from 5.4%. Credit ratings remained unchanged at A3 and A-. Mirvac’s third-party capital under management surpassed A$18 billion, having raised about A$15 billion over the past four years.
