Half Year 2026 Mirvac Group Earnings Call Transcript
Key Points
- Mirvac Group (MRVGF) reported a strong half-year performance with a 10% growth in Group EBIT and a 5% increase in EPS.
- The company has made significant progress in its residential sales, with a 38% increase in sales and margins rising to 22.5%.
- Mirvac Group (MRVGF) has successfully recapitalized its Live BTR fund with Australian Retirement Trust, positioning it for future growth.
- The company has secured future development pipeline opportunities beyond FY28, enhancing visibility of earnings growth.
- Mirvac Group (MRVGF) has maintained a strong balance sheet with gearing reduced to 25.8% and a distribution policy balancing distributions with retained earnings.
- Development returns have been impacted by increased costs over the past few years, affecting the overall return on invested capital.
- The office portfolio has seen some asset sales, which partly offset improved leasing outcomes in retail and development completions.
- Net financing costs increased by $19 million compared to the prior half, primarily due to lower capitalized interest.
- The company faces challenges in the interest rate environment, which could impact future sales and settlements.
- There is a potential risk in achieving the targeted returns from new BTR opportunities, as yield on cost will depend on the type of deal.
Well, good morning everyone and welcome to our half year results call. Joining me is Courtenay Smith, Richard Seddon, Scott Mosely, and Stuart Penklis. I'd like to begin by acknowledging that we present today from Gadigal and I'd like to pay my respects to elders past and present.
At our full year results in August, we spoke about the momentum that was building across the business. So it's pleasing to present our results today, having delivered a strong half-year performance and even greater visibility of earnings growth in FY26 and beyond.
What you'll notice in these results is; a material pick up in residential sales in both build to sell and land lease. Like for like income growth in all of our asset classes. Positive leasing spreads in all of our asset classes. And valuation growth in all of our asset classes. You'll also notice that we've made significant inroads in securing future development pipeline opportunities beyond FY28.
And we have continued our strong track record of capital
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