This article is from the Australian Property Journal archive
RESIDENTIAL property developer Sunland’s strategy of selling inventory currently not under development has paid off with investors set to receive a whopping 50 cents dividend for FY21.
Sunland declared a 2021 full year profit after tax of $24.9 million, an increase from $2.4 million in the previous corresponding year. Revenue increased to $282.3 million from $167.2 million, boosted by settlements of $274.4 million (2020: $159.8 million), with the group achieving a 24% development margin, exceeding the target 20% return on costs.
Earnings per share was 18.7 cents, also up from 1.8 cents in 2020. Sunland announced a fully franked final and special dividends totalling 20 cents per share, taking the total dividend for the full year to 50 cents, an increase from 10 cents in the pcp.
Managing director Sahba Abedian said the period sees the continuous implementation of its strategic plan where the group intends converting assets to cash, repay all liabilities, and return net asset value to shareholders, subject to market conditions.
Abedian said management have identified projects within the group’s development portfolio as active development activities and new development activities, each of which are to be delivered by the group; and undeveloped projects which are earmarked for sale.
Sunland yesterday announced the sale of Lots 909 ($13.75 million) and 915 ($19 million) of its property development “The Lanes” for a combined $32.75 million. The winning bidder are Darryl Kelly and Brett Frizelle, in which Frizelle (spouse of Sunland director, Rebecca Frizelle) has an interest.
“This has assisted in focusing on the delivery of the strategy and identifying capital requirements to develop and complete those projects identified as active and new projects,” said Abedian.
Abedian said the effective delivery of Sunland’s strategy is reliant on the continued availability and efficient management of the group’s debt lines, together with appropriate timing for the return of capital to shareholders”.
“Directors will ensure the group retains capacity to manage development risks associated with the active projects and the new projects to be undertaken.
“It is expected these projects will be delivered over the course of the next 18 to 24 months,” said Abedian, and “funds generated will be allocated appropriately for working capital, project delivery, repayment of liabilities, and for returning net asset value to shareholders”.
