Mirvac Reaffirms FY27 Guidance as Residential Sales Slow

Mirvac (ASX:MGR)'s first-quarter FY27 update reaffirms its earnings and distribution guidance while reporting a further moderation in residential sales, which the CEO attributes to interest rate rises and tax changes affecting consumer sentiment.

FY27 guidance remains operating earnings of 13.2 to 13.4 cents per stapled security and a distribution of 9.9cpss. It assumes 2,800 to 3,100 residential lot settlements, skewed to 2H27, and a weighted average cost of debt increasing from approximately 5.7% to 5.8%, reflecting a 0.25% cash rate increase in September. Residential recorded 429 net deposits and lots exchanged, down 17% on 4Q26 and including 282 conditional exchanges, while leads fell 30%. Mirvac settled 291 residential lots with defaults of 1.1%, and holds ~$1.4bn of pre-sales. Investment portfolio occupancy was 97%, with office at 96%, industrial at 97% and retail at 99%. The Mirvac Wholesale Office Fund deployed ~$600m on two Premium-grade CBD office assets in Sydney and Melbourne. Approximately 75% of the $200m on-market buy-back had been completed as at 20 October 2026. Satisfying the condition precedent on Hunter Street East grew the development pipeline by $3bn.

Guidance is subject to no material changes to the operating environment. The release gives no earnings figures for the quarter, and the $3bn is an expected end value subject to factors outside Mirvac's control.