Morningstar flags near-term pressure for Mirvac but says long-term outlook intact

Mirvac

23/04/2026 20:50

** Morningstar flags near-term challenges for Australia's Mirvac MGR.AX, including moderating residential settlements and margin pressure, but says these are unlikely to derail long-term fundamentals

** Despite a 28% y-o-y jump in residential lot sales in the first three quarters of FY26, Morningstar says strong momentum failed to lift investor sentiment amid concerns over softer housing market and Iran war–driven building materials inflation

** While investment research firm expects Mirvac's FY26 earnings to remain insulated, it sees marginal moderation in residential settlements in FY27 as homebuyers delay purchases amid higher interest rates and cost-of-living pressures

** Sees higher construction costs crimping margins over the next two years

** Still, longer-term, Morningstar expects co's residential business will benefit from a structurally undersupplied housing market, and keeps its fair value estimate of A$2.50

** YTD, shares down 14.6%

(Reporting by Shruti Agarwal in Bengaluru)

((Shruti.Agarwal@thomsonreuters.com))