Property development group Mirvac returned to expected levels of profits in fiscal 2025 as the group faced significantly lower portfolio devaluations.
The investment trust’s A$474 million in operating profit after tax was in line with guidance, but still fell behind last year’s $552 million, even though the company reported after-tax earnings of $68 million for FY25, a sharp turnaround from a loss of $805 million.
This turnaround has been attributed to the hits the company took a year earlier from greater investment revaluations, joint venture losses and impairment, disguising a 10% decrease in revenue to $2.74 billion.
Mirvac’s investment properties devalued by A$102 million, an improvement from the $1.1 billion in property devaluations in FY24.
Despite the drops, Mirvac CEO and managing director Campbell Hanan said the company is focusing on a return to growth in FY26 and beyond.
“We saw a strong pickup in activity in our residential business, with unconditional sales up almost 40 per cent, and $1.9 billion of residential pre-sales provide good visibility of future earnings,” he said.
“This is further supported by new investment income and funds under management growth from upcoming development completions, along with an improved NTA outlook.”
Hanan said market conditions are expected to improve in all sectors next financial year supported by lower inflation and a further easing of interest rates.
“We have multiple levers for future growth, supported by more favourable market conditions, as well as our unique development capability and ability to attract high-quality third-party capital to our business,” Hanan said.
“We expect a return to growth in FY26, and subject to no material change in the operating environment we are targeting operating earnings of between 12.8cpss to 13.0cpss, reflecting growth of between 6.7 per cent to 8.3 per cent and distribution of 9.5cpss, reflecting growth of 5.6 per cent.”
