Lendlease records statutory loss, funds growth

Lendlease Group has recorded a growth in its funds under management to nearly $50 billion but has reported a loss of $232 million in the 2022-23 financial year.

The national developer announced its 2023 results on the market today, reporting a 9 per cent growth in funds under management to $48.3 billion.

In Western Australia, Lendlease recorded 131 sales valued at $34 million out of the 1,765 lots sold nationally, totaling $702 million.

The results also show a $232 million statutory loss after tax, which Lendlease credited to industry wide action by the UK government on residential buildings.

“This action has retrospective effect by extending the period for defects liability from six years to 30 years and updates to building safety regulations for completed UK residential buildings,” Lendlease said in the ASX announcement.

In the 2021-22 financial year, Lendlease recorded a $99 million statutory loss.

Lendlease announced it had a growth ambition of $70 billion funds under management by FY26, underpinned by more than $60 billion investment yielding assets in its development pipeline.

“We made significant progress during the year towards being Investments-led and further simplifying the group,” Lendlease global chief executive and managing director Tony Lombardo said.

“However, our financial performance was impacted by a number of issues related to prior projects and activities.

“Despite these challenges, we grew our funds under management to $48.3 billion, increased development commencements, further streamlined our operations, and are now on track to achieve our ROE target range in FY24.”

Lendlease reported a core operating profit, after tax, of $257 million, down 7 per cent from the previous year’s recorded figure of $276 million.

"The group remains confident it has the financial flexibility to execute its Investments-led strategy while remaining within targeted gearing levels," Lendlease global chief financial officer Simon Dixon said.