Property developer Cedar Woods has posted a $40.5 million net profit, a result far exceeding its guidance range and a 28 per cent uptick on the previous year.
Property developer Cedar Woods has posted a $40.5 million net profit, a result far exceeding its guidance range and a 28 per cent uptick on the previous year.
The West Perth-based developer, which has projects across the nation, said strong sales momentum experienced in previous quarters remained in the fourth quarter, with higher-than-expected settlements in June.
Presales contracts were at $559 million at end of FY24, up 25 per cent on FY23, with 70 per cent expected to settle in FY25.
Revenue was down 1 per cent on FY23, but the company’s $60 million sale of Williams Landing Shopping Centre in Victoria and the $14.3 million sale of two hectares of its Eglinton Village estate to Woolworths buoyed the results.
The company used those sales to pay down $80 million in borrowings.Subsequently, liabilities fell from $352 million to $282 million.
The company said its Mason Quarter estate in Victoria was one of the strongest performers of the year, recording over 250 settlements.
CW managing director Nathan Blackburne said he was delighted with the result.
“We start the new financial year in an excellent position with $559 million in presale contracts,” he said.
“With a national pipeline of more than 10,000 dwellings, lots and offices, and our initiative to further boost earnings through strategic partnerships, the business is well-placed to grow earnings.
“The national undersupply of dwellings, low vacancies in rental markets, high employment and government incentives for homebuyers are expected to underpin housing demand in the medium term, maintaining a positive outlook for our business.”
The company is currently undertaking a 414 townhouse and apartment development with QIC in south-east Queensland, and recently announced a third project with Tokyo Gas Real Estate as part of the Japanese company’s plan to invest $600 million in global real estate.
Shareholders were paid a 17 cents per share final dividend, bringing dividends for the year to 25cps, 23 per cent up on the prior year.
In its FY25 outlook, the company said it was targeting a 10 per cent growth in net profit after tax, with earnings expected to be more weighted to the second half of the year.
Cedar Woods shares were up 7.3 per cent on yesterday’s close to $5.29.