Peet to build on east coast profit lift

Land developer Peet has sharpened its focus on markets in the eastern states, forecasting subdued conditions in Western Australia for the rest of 2016 after lodging a net profit of $18.5 million for the first six months of the financial year.

The half-year net profit was up 8 per cent on the previous corresponding period, largely on the back of strong sales in Victoria, New South Wales and the ACT.

At December 31, Peet had a record 2,318 contracts on hand across the nation, with a collective value of $523 million.

Peet managing director Brendan Gore said the group’s diverse national portfolio had driven the improved performance.

He said he expected mixed conditions across land markets for the remainder of FY2016, with weakness in WA and the Northern Territory to be offset by strength in other states.

“Peet is well-positioned to achieve earnings growth, subject to market conditions and the timing of settlements,” Mr Gore said.

Peet is not alone in ASX-listed land developers setting their sights outside of WA, following Cedar Woods and Stockland which both announced similar strategies alongside half-year results earlier this month.

Peet’s development pipeline to FY2018 comprises 12 estates, totalling 19,505 lots.

Four of those estates are located in WA, totalling 2,789 lots.

The developer is expecting a moderate decline in WA land prices, with the challenging conditions to continue into FY2017 as the economy continues its transition.eastern