Mirvac Group (MGR) H2 2025 earnings summary

Executive summary

• FY2025 marked a turnaround, with strategic initiatives executed to reposition the portfolio and improve returns, setting up for growth into FY2026 and beyond.

• Statutory profit reached $68m, up 108% on FY24, while operating profit was $474m, down 14% year-over-year, reflecting lower development earnings and increased construction costs.

• Strong competitive advantage in living, best-in-class investment portfolio, and creation expertise drove momentum and growth.

• Assets under management stood at $22bn, with $16.2bn in third-party capital and gearing at 27.6%, within the 20-30% target range.

• Board and management focused on capital partnering, portfolio resilience, and sustainability, with a strong balance sheet and positive outlook for FY26.

Financial highlights

• Group EBIT reached $736 million and operating profit was $474 million, with operating EPS of $0.12, in line with guidance.

• Statutory profit: $68m (up 108% year-over-year); operating profit: $474m (down 14%).

• Distribution per security was $0.09; NTA stands at $2.26.

• Gearing: 27.6%; liquidity: $1.2bn in undrawn debt facilities; weighted average debt maturity: 4.2 years.

• Total securityholder return: 14.5% (vs. -18.3% prior year); ROE: 0.7%; ROIC: 1.9%.

Outlook and guidance

• FY2026 EPS guidance is $0.128–$0.13, representing 6.7%–8.3% growth; dividend guidance is $0.095, up 5.6% YoY.

• Market conditions expected to improve in FY26, with stabilising asset valuations, improved leasing, and supportive interest rates.

• Expecting $500 million in asset sales and 2,000–2,300 residential settlements in FY2026.

• Visibility of $100 million new investment income from development completions and $2.7 billion of future fund growth.

• Focus remains on capital efficiency, non-core asset sales, and investment in the development pipeline.