The Mirvac Group (ASX: MGR) share price is on the radar today after announcing a 7% lift in operating profit to $508 million and a 6% increase in distributions to $376 million for FY26, both in line with guidance.
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What did Mirvac Group report?
- Operating profit after tax rose 7% to $508 million (FY25: $474 million)
- Operating earnings per stapled security up to 12.9 cents (FY25: 12.0 cpss)
- Statutory profit jumped to $677 million (FY25: $68 million)
- Distribution increased 6% to $376 million, or 9.5 cpss
- Net tangible assets per security of $2.33 (up from $2.26)
- Gearing improved to 24.1% from 27.6%
What else do investors need to know?
Mirvac's residential divisions saw a 15% increase in sales, with 2,130 residential lots settled and gross margins improving to 24%. The commercial and mixed-use portfolio delivered $88 million in EBIT, supported by project completions and new developments.
Occupancy across the investment portfolio was a strong 98%, with like-for-like income growth at 5.3%. The company also completed over $500 million in asset sales, boosting liquidity and helping to recapitalise its funds platform, which now manages over $18 billion in third-party capital. Mirvac announced an on-market buy-back of up to $200 million in securities as part of its capital management strategy.
What did Mirvac Group management say?
Mirvac's CEO & Managing Director, Campbell Hanan, said:
FY26 was a year of execution, with earnings growth of 7 per cent. Our results today reflect the work we have done over the past three years to reset the business, improve asset quality and drive higher returns.
Importantly, this has been achieved while strengthening our balance sheet, with gearing within our target range at 24.1 per cent, and strong liquidity and credit ratings maintained. Following the progress we have made to reposition the portfolio, strengthen the balance sheet and improve earnings visibility, we have announced an on-market share buy-back of Mirvac securities of up to $200 million. This reflects our confidence in the value embedded in the business, while providing us with flexibility to deploy capital to opportunities where we see the most value for securityholders.
What's next for Mirvac Group?
For FY27, Mirvac is targeting operating earnings per security of 13.2 to 13.4 cents and a distribution of 9.9 cents, assuming market conditions remain steady. The company aims to settle between 2,800 and 3,100 residential lots in the coming year, with a weighted average cost of debt expected around 5.7%.
Management expects ongoing support from its expanded residential pipeline, growing funds management platform, and new commercial projects. While some uncertainty remains in the market, Mirvac believes it's well positioned for sustained earnings and NTA growth.
Mirvac Group share price snapshot
It has been a tough 12 months for the Mirvac Group share price over the past 12 months. During this time, its shares have lost 25% of their value. This compares to a 2% gain by the S&P/ASX 200 index (ASX: XJO).
