This article is from the Australian Property Journal archive
DEVELOPER Cedar Woods are expecting to equal or exceed FY22 earnings despite recording smaller net profit after tax (NPAT) than the previous corresponding period.
H1 FY23 results show an NPAT of $9.1 million for Cedar Woods, down from $14.1 million in H1 FY22.
Based on their settlement projects for the third and fourth quarters of the current financial year, the company still has high expectations for the full year earnings.
The company achieved NPAT of $37.4 million from FY22 which was up 13.9% on the previous year. They expect to see this growth continue.
According to the report, Cedar Woods has $509 million in presales with about 50% expected to settle in the second half of the financial year. This will ultimately carry the weight of the company’s earnings in the second half of FY23 with the balance also contributing to FY24 and FY25.
The company’s stock increased by 12% in the past three months however experts believe that it’s hard to judge momentum based on where their earnings are going.
The board has declared a fully franked dividend of 13.0 cents per share, in line with the previous corresponding period.
Cedar Woods’ board of directors are anticipating positive results for the foreseeable future.
“Backed by presales of $509 million, the company is expecting a strong second half and to equal or exceed the prior year’s earnings, with the extent of full year earnings growth dependent upon timing of settlements,” CEO Nathan Blackburne said.
“The company’s full year outlook is subject to weather and construction sector conditions, with workforce and supply chain constraints affecting delivery timeframes at some locations.”
“The company’s expectation for full year earnings takes into account known delays, although there remains some risk that some of the forecast second half FY23 settlements will move into early FY24.”
The report also states that Cedar Woods is prepared for any market volatility that may occur.
“The company has a pipeline of more than 10,500 undeveloped lots/dwellings across four states and is positioned well for any market upturn.”
Cedar Woods also has a number of projects expected to impact their FY24 results such as Sirocco apartments in Adelaide and Clara Place and Boston Commons offices in Melbourne,
