Mirvac Group (MGR) H1 2025 earnings summary

Executive summary

• Strategy reset focused on reallocating capital to the living sector, asset disposals, and improving capital velocity through partnerships, with strong progress in a challenging market.

• Expanded Living sector exposure, strong build-to-rent leasing, and residential sales recovery, with highest pre-sales since 2018.

• Maintained strong operating metrics across investment portfolio, with high occupancy and positive leasing spreads in all sectors.

• Net loss attributable to stapled unitholders of $40m for 1H25, a significant improvement from $193m loss prior year, with operational results impacted by $1bn in non-core asset disposals.

• Balance sheet remains strong, with gearing at 26% and $1bn in liquidity.

Financial highlights

• Operating profit after tax for the half was $236m, or 6.0c per stapled security, in line with expectations; EBIT $361m (down 3% YoY).

• Net loss for the half year was $40m, compared to $193m loss prior year, with revenue at $302m.

• Investment segment contributed $302m (down 2%), funds $14m (down 13%), and development $81m (down 6%).

• $1.7bn of debt refinanced, $340m of asset sales, and $1bn in residential capital partnering (with $300m received to date).

• Distribution of $178m, or 4.5c per stapled unit, was declared.

Outlook and guidance

• On track to deliver FY25 EPS guidance of 12.0–12.3c and 9.0c distribution, with strong visibility of earnings growth into FY26 and beyond.

• Over $100m of new stabilized NOI expected from committed developments; margin normalization and cost stabilization anticipated in FY26.

• Assumes >$500m non-core asset sales, 2,000–2,500 residential settlements, and continued capital partnering.

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

• Living segment expected to benefit from population growth, low supply, and tax concessions for build-to-rent.