Peet says the longer-term outlook for the residential sector remains positive, despite the impacts of weak consumer sentiment and deterioration in the world’s major economies becoming a major drag, especially in Western Australia and Queensland.
The development group lodged a $44 million after tax operating profit for financial year 2010-11 today, up 3 per cent on the previous year.
Peet’s revenue grew 6 per cent to $188.7 million.
The company paid a final dividend of 4.5 cents per share, bringing the full year dividend payout to 8.5 cents per share.
Managing director Brendan Gore said over the year Peet had successfully repositioned itself as Australia’s largest pure-play residential developer with a funds management platform and a focus on large-scale projects.
“Peet has made considerable progress in line with our stated business strategy to grow and increase the significance of our funds management business,” Mr Gore said in a statement.
“FY11 has seen Peet invest in its future – balancing its land portfolio, implementing its capital management strategy and positioning the operating business for growth in the medium to long-term with new, larger scale managed and company-owned projects in the growth corridors of Western Australia and Queensland.”
Mr Gore said the sputtering trends in the residential property market were cyclical, rather than structural, with household saving remaining high, dwelling approvals below the long term average while population growth rises, unemployment remaining low and skilled labour scarce.
“While Peet remains confident in Australia’s long-term economic outlook, the national residential property market is expected to remain weak through FY12,” he said.
“The Group has a large, geographically balanced land bank and we will continue to meet the demands of the market in terms of product, price and service, with a particular focus on the affordable segment.”
At close of trade today Peet’s stock had gained 2.5 per cent, to trade at $1.23.
