Mirvac's Pivot: From Balance Sheet Repair to Growth
FY26 delivers 7% operating profit growth, positive valuations, and a $200M buyback as the residential and development cycle turns.
MGR.AX · Earnings Call · 2026-08-18
The Earnings Picture: From Stability to Growth
Mirvac Group's FY26 results mark a clear inflection point after three years of strategic reset. The company delivered operating profit of $508 million, up 7% on the prior corresponding period, while statutory profit improved significantly on the back of positive valuations across every major asset class. Gearing fell to 24.1%, below the midpoint of the target range, and available liquidity rose to $1.6 billion. As CEO Campbell Hanan put it: “We set a clear strategy 3 years ago, and we are delivering on this strategy, which continues to drive growth across multiple fronts.” — Campbell Hanan, CEO and Managing Director · 2026-08-18 The balance sheet is now in a position of strength. CFO Courtenay Smith noted, “We finished the year with a stronger balance sheet and the capacity to deploy capital selectively into attractive opportunities.” — Courtenay Smith, Chief Financial Officer (CFO) · 2026-08-18 That capacity is being put to work: the company announced an on-market buyback of up to $200 million, representing a disciplined use of capital at a 25% discount to NTA.Development Resurgence and the Residential Recovery
The most notable shift is in development. Residential unconditional exchanges rose 15%, and the company guided FY27 to between 2,800 and 3,100 settlements — well above consensus. Stuart Penklis, CEO Development, said: “We delivered a strong year in Development. Residential margins recovered, unconditional exchanges increased 15%.” — Stuart Penklis, CEO, Development · 2026-08-18 The development business is entering a growth phase with a restocked pipeline, five new master planned community launches, and five apartment projects settling in the next nine months. Key to this is the development pipeline which has been secured on capital-efficient terms, and the apartment projects that are now nearing completion. The company's capital partnering model has been instrumental in funding growth without over-leveraging the balance sheet. The recent recapitalization of the LIV Mirvac Fund with Australian Retirement Trust and the expansion of the wholesale office fund demonstrate how Mirvac is leveraging third-party capital to scale.The Funds Platform and Living Sector
Third-party funds under management have grown to more than $18 billion, with approximately $15 billion raised over four years. The build-to-rent platform is scaling, with market rents growing at twice the rate of inflation over three years. Land lease is also performing strongly, with new home settlements up 16%. The living sector remains a high-conviction growth theme. The office portfolio has been repositioned to 60% premium, and industrial NOI has grown 50% over three years. The recent commencement of SEED, a 380,000 sqm industrial precinct, provides a clear runway. Meanwhile, the Green Square planning approval unlocks a significant development opportunity, further underpinning the development pipeline. What matters most is the renewed clarity on earnings growth. Mirvac expects NOI growth in the investment portfolio for the first time since FY23, driven by completions across build-to-rent, industrial, and office. With the portfolio repositioned toward premium office and logistics, and a visible development pipeline, the company is positioned to deliver sustained EPS and NTA growth. As Campbell Hanan concluded:In a week where many reporters are focused on tariff refunds and supply chain disruptions, Mirvac's steady, company-specific recovery stands out. The buyback, the resi volume guidance, and the funds growth are all concrete signals that the reset is complete and the compounding is beginning.We believe Mirvac enters FY '27 as a stronger, higher-quality business with a visible pathway to sustained EPS, NTA and shareholder value growth.