Peet’s profit soars

Peet has posted a record profit of $70.1 million, largely driven by strong lot sales in Western Australia, where a majority of its projects are based.

The land developer today released its FY23 results, showing a 34 per cent increase in its operating profit and statuary profit after tax on last year, and a revenue of $363.7 million, up from $266.6 million in the prior corresponding period.

Peet settled 2,594 lots in the past 12 months, compared with 2,514 lots in FY22, and has sold 1,399 lots this year compared with 3,163 in FY22.

WA accounted for 27 per cent of the company’s settlements and 30 per cent of its sales in FY23.

Peet has the highest number of projects on the ground in WA, at 18, compared with 10 in Queensland, 9 in Victoria, 5 in NSW and one in the ACT.

Peet managing director Brendan Gore told Business News WA was a stronger market than the eastern seaboard in terms of volumes, followed by SA and Queensland.

“In terms of acquisition activity, we’re more focused on eastern seaboard at this point in time in terms of restocking because we’re well positioned in WA,” he said.

“The WA market continues to be a solid performer,” he said.

“We’re seeing consistent strength in volumes [in WA]. We probably need that to continue to maintain for the next three to four months [and] what history tells us is that then should drag prices up.”

He added that sales had dropped as a result of high construction costs and uncertainty around builder availability, as well as interest rates, but conditions were improving.

“Our view is we think the current sales run rate will be consistent over the next six months, but given the fundamentals and given that potentially we could have around four months of interest rate stability, we could start to see a much better market as we get into the March quarter,” he said.

“Having said that we’re seeing a slight improvement in sales each month, it tells us there’s people wanting to acquire a home … there’s an increasing level of enquiries so that’s a positive."

Peet is expected to launch its Glendalough townhouse project before the end of the year, as well as a land development in Mandurah.

The company continues to put its Mosman Park Glyde Street apartment project on ice until the construction market settles.

Peet shares remained flat at $1.22 at the time of writing.