The Mirvac Group (ASX: MGR) share price is in focus after the company delivered a strong 1Q26 operational update, highlighted by a 79% surge in residential lot sales and a major $450 million capital release from a new joint venture.
What did Mirvac Group report?
- Residential lot exchanges soared to 619, up 79% on 1Q25, with pre-sales of $1.6 billion and 97% of target FY26 settlements in production
- Capital partnership with Mitsubishi Estate unlocked ~$450 million to fund projects and deliver development fees
- Investment portfolio occupancy stayed high at 97%, with strong leasing activity across office, industrial, and retail
- Build to Rent portfolio grew to 2,174 operational lots, with new assets stabilising and robust leasing
- Operating earnings per security guidance reaffirmed at 12.8–13.0 cents for FY26; distribution guidance of 9.5 cents per security maintained
What else do investors need to know?
Mirvac's partnership with Mitsubishi Estate to deliver Harbourside in Sydney not only returns capital but also secures upfront and future profits, especially with residential settlements anticipated in FY28. The group's development pipeline is progressing well, with key commercial projects like 7 Spencer Street in Melbourne reaching construction milestones, and strong tenant interest in new assets.
The Living segment continues to thrive. Mirvac reports positive leasing in its new Build to Rent assets and an expanding land lease portfolio, with new sites acquired and more under due diligence, bringing the land lease portfolio to over 8,400 lots.
What did Mirvac Group management say?
Commenting on the announcement, Mirvac's Group CEO & Managing Director, Campbell Hanan, said:
We saw a significant uplift in residential sales in the first quarter, with 619 lots exchanged, driven by strong momentum at our Sydney and Melbourne masterplanned communities – up 150 per cent and 125 per cent on the same time last year, respectively. Our business is well placed to benefit from the federal government's new first-home buyer guarantee scheme introduced earlier this month, with over 1,400 of our expected lot releases in FY26 falling within the updated pricing caps… It has been a strong start to FY26, and with market fundamentals improving, the Group is well positioned to execute on its objectives and continue the strong momentum into 2026.
What's next for Mirvac Group?
Looking ahead, Mirvac remains focused on growing its Living platform, progressing landmark commercial and mixed-use developments in Sydney and Melbourne, and attracting further funds into its capital platform. With guidance reaffirmed for FY26, performance hinges on key settlement targets and continued momentum in capital partnering.
Development activity is set to continue at major projects including Harbourside, 55 Pitt Street, and several residential releases. The company is also targeting low gearing and active asset management to navigate market conditions.
Mirvac Group share price snapshot
Over the past year, the Mirvac Group share price has risen 11%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has increased around 8% over the same period.
