Mirvac Group (MGR) H1 2025 earnings summary

Executive summary

• Operating profit after tax was AUD 236 million for 1H25, with operating EPS of 6.0c, and statutory profit of AUD 1 million, marking a turnaround from a significant loss in 1H24.

• Strategy reset focused on reallocating capital to the living sector, asset disposals, and capital partnering, resulting in strong progress and improved capital velocity.

• Residential sales volumes surged 51% year-over-year, with pre-sales at AUD 1.9 billion, the highest since 2018.

• Living sector EBIT rose to AUD 26 million, with robust build-to-rent leasing and expanded land lease pipeline.

• Balance sheet remains strong, with gearing at 26.3% and liquidity of approximately AUD 1 billion.

Financial highlights

• Operating profit after tax for the half was AUD 236 million (down 6% YoY), with operating EPS of 6.0c and DPS of 4.5c.

• Investment segment contributed AUD 302 million, funds segment AUD 14 million, and development segment AUD 81 million.

• Statutory profit was AUD 1 million, reversing a large loss in 1H24, but impacted by office sector devaluations.

• Refinanced AUD 1.7 billion of debt, completed AUD 340 million of asset sales, and raised AUD 1 billion in residential capital partnering.

• Weighted average cost of debt increased to 5.7%, with 58% hedged and average maturity of 4.5 years.

Outlook and guidance

• FY25 guidance reaffirmed: operating EPS 12.0–12.3c, distribution 9.0c, with strong visibility of earnings growth into FY26 and beyond.

• Over AUD 100 million of new stabilized NOI expected from committed commercial and mixed-use developments.

• Residential margins expected to normalize to 18%-22% in FY26, with margin challenges in Queensland ring-fenced to FY25.

• Assumes over AUD 500 million in non-core asset sales and 2,000–2,500 residential settlements.