This article is from the Australian Property Journal archive
SUNLAND has forecast a 10% profit growth for the year ahead after delivering a 12% growth this year underpinned by the buoyant Dubai operations which offset a slowdown in Australia.
Sunland has reported a net profit after tax of $99 million for 12 months to June 30, not only exceeding from its earlier forecast of $95 million but also up from $88.1 million recorded in the previous year. This was despite revenue in FY08 falling short to $497.1 million compared to $634.1 million in the previous year.
As a result, earnings per share rose to 30.8 cents from 29.7 cents and Sunland has announced a final dividend of 7 cents taking the total dividend for FY08 to 14 cents – up from 13.5 cents in FY07. NTA has increased from $1.57 to $1.69 whilst the group maintained a ultra conservative gearing of just 8% debt to assets and 15% debt to equity.
Sunland’s managing director Sahba Abedian said the directors have decided to suspend the dividend reinvestment plan, reflecting the group’s strong capital position.
“Despite the tightening in global credit markets and widespread volatility, Sunland has continued to deliver on our strategy of diversified growth and fiscal discipline,” he added.
Abedian said a highlight for the year was the significant increase in the group’s total portfolio including project services to $7.9 million – up 65% over last year.
He added that the group’s expansion into the United Arab Emirates has proven highly strategic with the region continuing to grow despite global economic volatility.
Sunland’s international operations, mostly Dubai, contributed a net profit after tax of $54 million – representing 54.5% of the group’s earnings. At the same time, the value of portfolio increased by 108% to $5.2 billion.
Meanwhile, the Australian development portfolio grew to $2.2 billion – an increase of 15% over last year.
The group’s property funds management division continued to perform well with the Sunland Diversified Land Fund No.1 delivering a capital distribution of 60 cents per unit to investors – above the forecast 41 cpu.
Looking ahead, Abedian said the international operations will continue to underpin the group’s earnings over the medium term.
“The major focus for Sunland over the ensuing year is to deliver the portfolio under construction both in Australia and in Dubai.
“Demand for our design driven products in our Australian portfolio has remained strong over the past year and is reflected in the 1,087 sales and 810 settlements across our residential portfolio,” he added
In 2009, the group is forecasting a $109 million profit, provided global economic conditions do not worsen.
“As Sunland enters its 25th year of operations, the group remains focused on delivering its strategy of geographic diversification and portfolio expansion through financial discipline and design excellence.
“Sunland’s low gearing levels and debt capacity will enable the group to take advantage of counter-cyclical opportunities in the market, allowing our Australian portfolio to be strengthened and creating a platform for medium term growth,” he concluded.
Australian Property Journal
