• Operating profit of $236m, 6.0 cents per stapled security
• Residential lot sales up 51% on 1H24, pre-sales at $1.9bn
• Improved balance sheet with pro forma headline gearing of 26.3%

Mirvac Group today released its interim result for the half year ended 31 December 2024. The company delivered an operating profit of $236m, which represents 6.0 cents per stapled security, and remains on track to deliver full-year guidance of between 12.0 to 12.3 cents per stapled security. Key highlights include improved future development earnings visibility, with 947 residential lot sales (up 51% on 1H24), and residential pre-sales growing to $1.9bn. Mirvac also made further leasing and construction progress at key commercial and industrial projects, maintained strong investment operating metrics, and improved its balance sheet position with pro forma headline gearing of 26.3%. The company's CEO, Campbell Hanan, said Mirvac has made significant progress delivering its strategic initiatives and is now setting the business up for a return to growth. The new partnerships established in the residential business build on the company's strategy to increase the velocity of capital, unlock value from the development pipeline, and facilitate the accelerated release of lots into the undersupplied housing market.

Mirvac has reaffirmed operating earnings per stapled security guidance of 12.0-12.3 cents per stapled security in FY25 and distribution per stapled security of 9.0 cents per stapled security, subject to the completion of core strategic priorities. These include achieving between 2,000 and 2,500 residential lot settlements, executing more than $0.5bn in non-core asset sales, and securing capital partners at key development projects, with the weighted average cost of debt expected to remain at ~5.7%.

Mirvac's CEO said the results signal the beginning of a market turnaround, and the company is starting to see real benefits from the execution of its strategy. Mirvac has multiple drivers for earnings growth in FY26 and beyond, including a strong pipeline of projects, a high-quality investment portfolio, and earnings through its established funds. The company is well positioned to capitalise on a recovery across all parts of its business, supported by falling inflation and signs that interest rates will start to ease in the near future.