Key Highlights
• Mirvac earns money in two main ways: developing and settling housing, and collecting rent from its Investment properties.
• FY2026 operating profit rose 7% to A$508 million, with residential settlements of 2,130 lots and 98% investment-portfolio occupancy.
• A growing funds-management platform, with over A$18 billion of third-party capital, adds a capital-light Earnings stream.
• Its Business rests on two distinct engines: developing residential property and recognising profit when homes are settled, and owning investment properties – office, retail.
Mirvac Group (ASX:MGR) is a diversified Australian property group and a member of the S&P/ASX 200 real estate sector. Its business rests on two distinct engines: developing residential property and recognising profit when homes are settled, and owning investment properties – office, retail and industrial – that generate rental income. How housing settlements and rental income shape Mirvac is the key to understanding it, because these two sources of earnings behave very differently, and together they give the group a balance of development profits and steady, recurring income.
The FY2026 result, for the year ended 30 June 2026, showed both engines contributing, alongside a growing funds-management business.
A solid result
Mirvac reported operating profit of A$508 million, up 7%, and statutory profit of A$677 million, with gearing a conservative 24.1% and Liquidity of A$1.6 billion. Residential lot settlements were 2,130, with residential sales up 15%, and the investment portfolio was 98% occupied, delivering like-for-like income growth of 5.3%. The board launched a share buy-back of up to A$200 million.
The result reflected the recovery of its residential business and the resilience of its investment income, supported by a scaling funds-management platform with over A$18 billion of third-party Capital under management. Mirvac also targeted development returns of more than 10%, signalling confidence in its pipeline.
Housing settlements: the development engine
Mirvac is one of Australia’s largest residential developers, building apartments and houses in master-planned communities. Its development business earns profit when homes are completed and settled – that is, when buyers pay for and take ownership of their properties. Because profit is recognised at settlement, the timing and Volume of settlements drive this part of the business, and they can be lumpy, rising and falling with the delivery of projects and the state of the housing market.
In FY2026, Mirvac settled 2,130 residential lots, and residential sales rose 15%, pointing to improving Demand and a recovering pipeline. The development business depends on housing demand – driven by population growth, interest rates, affordability and confidence – and on Mirvac’s ability to deliver projects profitably. When demand is strong and settlements flow, this engine generates significant profit; when the housing market weakens, settlements and development profits can fall. Managing the pipeline of projects and the timing of settlements is central to this part of the business.
Rental income: the steady engine
Mirvac’s other engine is its investment portfolio – the office towers, shopping centres and industrial estates it owns and leases to tenants. These properties generate rental income, which is far steadier and more predictable than development profits, providing a recurring base of earnings through the cycle. In FY2026, the portfolio was 98% occupied, with like-for-like income growth of 5.3%, reflecting healthy demand and rising rents in parts of the portfolio.
This rental income gives Mirvac stability and balances the lumpiness of its development business. When residential settlements are strong, development drives earnings; when they are weaker, the steady rental income provides ballast. Mirvac has been reshaping its investment portfolio, including growing its exposure to industrial and residential-for-rent (build-to-rent) properties, which offer strong demand, while managing challenges in parts of the office sector. The combination of development profits and recurring rental income is what makes Mirvac a balanced, diversified property group.
The funds-management platform
Increasingly, Mirvac also earns money by managing property on behalf of other investors through its funds-management platform, which had grown to more than A$18 billion of third-party capital under management. By partnering with institutional investors and managing Assets for them, Mirvac earns fees and can develop and own more property than its own Balance Sheet would allow, in a more capital-light way.
This platform adds a third source of earnings – recurring management fees – that complements development profits and rental income, and it allows Mirvac to recycle capital, selling assets into its funds while continuing to manage them and earn fees. The group undertook around A$500 million of asset sales and A$2 billion of capital-partnering initiatives in FY2026, reflecting this strategy.
