Meriton has focused on the rental market to counter slower apartment sales, generating an after-tax profit of $222 million for the 2025 financial year. This marks an increase of over one third compared to the previous year, despite property sales falling by nearly half due to reduced demand and higher borrowing costs.
Australia’s second-richest individual has consistently positioned Meriton to succeed in both the sales and rental sectors. That strategy has proven effective in the current climate. With interest rates staying high throughout FY25 and construction costs placing pressure on project margins, apartment buyers have withdrawn, causing sales revenue to drop to $383 million from $726 million the year before.
In contrast, rental revenue rose strongly to $836 million from $765 million. This increase contributed to a profit lift of nearly $60 million. The result was also supported by reduced inventory losses compared to the previous year, which are related to the timing of development completions.
The outlook for Meriton appears positive. The company expects improved residential sales in FY26 as several major developments reach completion. It is also expanding into new areas such as property management and retail lending. Its portfolio now includes 23 serviced apartment sites, 27 rental blocks and additional assets. Altogether, its property holdings are valued at just under $5 billion.
