Mirvac Group (MGR) H1 2025 earnings summary

Executive summary

• Strategy reset and capital redeployment over the past 18 months focused on expanding the Living sector, strengthening the balance sheet, and improving capital velocity through asset disposals and new JV partnerships.

• Operating profit after tax was $236m for 1H25, with operating EPS of 6.0cpss, and statutory profit of $1m, reflecting a turnaround from a $201m loss in 1H24.

• Residential sales volumes surged 51% year-over-year to 947, with pre-sales reaching $1.9bn, the highest since 2018.

• Strong progress in development, leasing, and capital partnering, with a robust pipeline expected to deliver over $100m in future net operating income.

• Net loss attributable to stapled unitholders was $40m for the half year, a significant improvement from a $193m loss in the prior period, with total assets at $10,646m.

Financial highlights

• Operating profit after tax for H1: $236m (down 6% YoY); operating EPS: 6.0c (vs 6.4c 1H24); EBIT: $302m (down 2% YoY); distribution of $178m, or 4.5cpss, unchanged YoY.

• Statutory profit of $1m, reversing a $201m loss in 1H24; net loss for the Trust of $40m, improved from $193m loss prior year.

• Revenue for the half year was $302m, down from $342m in the prior year period.

• Investment property revaluation loss: $(139)m; development revaluation loss: $(33)m.

• Cash and undrawn borrowing facilities totaled ~$1bn at 31 December 2024.

Outlook and guidance

• FY25 guidance: Operating EPS 12.0–12.3c; distribution 9.0c; targeting 2,000–2,500 residential settlements and >$500m non-core asset sales.

• Business positioned for EPS and NAV growth in FY26+ via new NOI from developments, margin recovery, and value creation from commercial pipeline.

• Residential margins expected to normalize to 18%-22% in FY2026, with improved market conditions and cost stabilization.

• Office sector shows renewed optimism with stabilising valuations and strong demand for premium assets.

• Multiple drivers for earnings growth in FY26 and beyond, supported by a strong project pipeline and high-quality investment portfolio.