Peet Limited today announced a record profit from operations of $36.8 million for the year ended 30 June 2006 - a 24 per cent increase on the previous year and its third consecutive report of net profit growth.
Peet Limited today announced a record profit from operations of $36.8 million for the year ended 30 June 2006 - a 24 per cent increase on the previous year and its third consecutive report of net profit growth.
The 111-year-old fund and asset manager which listed two years ago, announced a final dividend of 9.5 cents per share to give 17 cents per share (fully franked) in respect of FY06 or 24.3 cents per share before tax, allowing for the 100% franking.
The solid results were achieved in a mixed trading environment, with the residential land market in Western Australia continuing to deliver sound sales while demand in Victoria and Queensland remained steady. The Company has negligible exposure to the New South Wales market, where conditions are considered to be the most challenging.
Managing Director, Warwick Hemsley said that the results were driven by solid profits from both funds management activity and company owned asset management.
"Peet Limited's land bank diversification has helped deliver our continued strong results, together with the consistent delivery of the Company's strategy continuing to leverage our land bank and expertise into an expanded range of asset management and funds management services," Mr Hemsley said.
"This year, 53% of earnings before tax was delivered by our operations in Victoria and Queensland, and we are well positioned to continue to take advantage of the best of market conditions throughout Australia."
"The Company's track record of consistently delivering quality returns to shareholders is underpinned by the strength and diversity of its business model, its high calibre management team and its ability to respond to changing market cycles," Mr Hemsley said.
During the year, Peet Limited successfully completed three syndications for land assets in Western Australia and Victoria - totalling $48 million - cementing its position as Australia's leading retail land syndicator.
The Company's Income Property Fund achieved a yield of 8.75%, 100% tax deferred, together with an 11% increase in the value of its underlying portfolio of commercial and industrial properties in Queensland and Western Australia.
Continuing its core business activity in residential land estates, Peet posted record sales for the year of 2427 lots across the Group - an increase of 16.3% - for a total gross settlement value of more than $355 million. At the end of the period, Peet and its managed entities had in excess of 1220 lots that had sold but were yet to settle for a value of $214 million.
Managing the third largest land bank of Australia's ASX-listed companies, Peet continued its ongoing program of acquiring well-located land assets in Western Australia, Victoria and Queensland, with the acquisition of 4279 lots during the year. The estimated current market value of the Peet managed and owned land bank is now $4.6 billion as fully developed lots.
Expansion of Peet's business activity of fund and asset management is set to continue, and a range of new land acquisitions and syndicate capital raisings are among the key drivers of business activity for FY07.
Assuming a continuation of prevailing market conditions, the company has a target NPAT growth of 15% for FY07 being $42.35m (or some $60m pre-tax).
