This article is from the Australian Property Journal archive
Strong housing conditions in Western Australia, Queensland and South Australia have driven homebuilder and land syndicator Peet to a 63% profit growth.
Peet delivered a first half year statutory profit after tax of $25.2 million, up from $15.5 million in the previous corresponding period.
EBITDA increased to $46.9 million, representing a 26% margin, compared to $28.9 million and an 18% margin in the pcp. Peet declared a fully franked interim dividend of 2.75 cents per share, up from 1.50 cents.
Managing director and CEO Brendan Gore said the group’s result was driven by robust sales activity, particularly in Qld), WA and SA, alongside price growth.
He also attributed the results to increased sales from the funds management business.
During the period, Peet sold 1,370 lots, a 24% increase on the pcp, with gross value of $541.1 million. Settlements totalled 1,009 lots, valued at $361.2 million, down 9% year-on-year due to lower activity in Victoria, which was partially offset by stronger performance in Qld. Contracts on hand stood at $661 million as of 31 December 2024, providing strong earnings visibility for the second half of FY25.
The group’s gearing rose to 35.3%, slightly above its target range of 20–30%, due to strategic land acquisitions and development investments.
Looking ahead, Gore said the market continues to be mixed with continued growth expected in Qld but moderation expected in WA and SA.
On the other hand, there are signs of recovery in ACT/New South Wales.
Gore said whilst the Victorian will remain subdued, the recent Reserve Bank of Australia rate cut and easing inflation are expected to support market sentiment.
“With more than $660 million in contracts on hand, Peet is well-positioned for FY25, targeting NPAT of $50–55 million,” Gore said. “We remain focused on delivering strong operating cash flows and earnings growth, supported by our diversified portfolio and strategic investments.”
