Mirvac Group (ASX: MGR) shares are back in the red today, with the property giant slipping to a fresh multi-year low.
This comes as weakness across the real estate sector continues following a global sell-off caused by the Middle East crisis.
In early afternoon trade, the Mirvac share price is down 0.29% to $1.71. Earlier in the session, the stock fell as low as $1.685, marking its weakest intraday level since September 2015.
That leaves Mirvac shares down 20% in 2026, extending what has become a persistent de-rating for the ASX property stock.
Let's take a closer look at what may be keeping pressure.
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The rate backdrop is still working against property stocks
Mirvac's latest weakness still appears to be driven more by broader sector conditions.
Listed property stocks remain highly sensitive to interest rate expectations. That pressure has stayed elevated as bond yields remain high and inflation risks continue to cloud the rate outlook.
Mirvac is especially exposed because it spans both residential development and commercial property, with earnings linked to apartment settlements as well as office and retail asset values.
This leaves the stock vulnerable whenever markets push rate cuts further out, or long-term yields move higher.
Its February half-year result was still solid, with operating profit after tax up 5% to $248 million, residential sales rising 38%, and net tangible assets increasing to $2.26 per stapled security. The interim distribution also lifted to 4.7 cents.
Management also reaffirmed FY26 guidance for operating earnings of 12.8 cents to 13 cents per security and distributions of 9.5 cents, supported by expected residential settlements of 2,000 to 2,300 lots.
That suggests the share price weakness is still more about valuation pressure across the REIT sector.
The valuation backdrop is starting to look more interesting
At $1.71, Mirvac is now trading at a notable discount to its latest book value per share of $2.329.
The stock is also offering a trailing yield above 5%, based on annual distributions of 9.2 cents.
That mix of discounted asset backing and income appeal is likely keeping value-focused investors interested, even while price momentum remains weak.
For now, the chart still suggests the market is applying a larger risk premium to office exposure, residential settlements, and businesses closely tied to the path of interest rates.
With the shares now back at levels last seen more than a decade ago, Mirvac is moving back onto the radar for ASX property investors.
