16/11/2021 - 16:00

Peet reports profit surge

16/11/2021 - 16:00

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National residential property developer Peet has revised its profit forecasts considerably after COVID-19 resulted in strong demand for local housing.

Peet reports profit surge
Peet managing director Brendan Gore.

National residential property developer Peet has revised its profit forecasts considerably after COVID-19 resulted in strong demand for local housing.

The company said its operating profit for the six months to December 31 was expected to be between $15 million and $19 million, up from $10 million in the same period last year.

At its annual general meeting, Peet said its expected earnings was “on the back of continuing favorable market conditions across the country”.

In 2020-21, Peet reported $28.5 million in operating profit, compared with $15.1 million in 2019-20, when it recorded a statutory loss of $30.1 million.

Peet said residential markets were expected to remain positive over the medium term, supported by an improved economic outlook, population growth and low interest rates.

But the developer said it would continue to monitor and assess the impacts of COVID-19, including government-imposed lockdowns and restrictions.

Peet added that such impacts may lead to project delays, supply chain disruptions and increased development and labour costs due to border restrictions.

For the remainder of the financial year, Peet is expected to continue its focus on delivering land lots and townhouses across Australia, including its developments at Glyde Street and Glendalough.

The $35 million 11-storey residential tower at Glyde Street in Mosman Park is undergoing a public consultation period.

Peet is seeking presales for its $85 million 105-townhouse development in Glendalough.

Shares in Peet were down 0.46 per cent to $1.08 at the time of writing.

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