This article is from the Australian Property Journal archive
Peet & Company has set new expansion goals following its net profit result of $17.1 million for the half year to December 31, 2005.
Peet & Co managing director Warwick Hemsley said that the group had continued to build on the FY2005 result over this half-year.
“Expansion and diversification of the group’s business activities are on track. A range of new land acquisitions have been made and new syndicate capital raisings are among key drivers of business activity in the coming 12 months.
“The Peet group was continuing to concentrate on broadening its income streams with its new Peet Income Property Fund and growing its asset base by actively looking for new acquisitions
“We are on a positive path to becoming a truly national funds management company specialising in the property sector,” he added.
Meanwhile, the company is on track to deliver its previously advised full year net profit after tax (NPAT) growth of 10% ($34.8 million).
An interim dividend of 7.5 cents per share fully franked has been declared, which represents a 50% increase on the previous interim dividend.
The company has not activated its Dividend Reinvestment Program. Hemsley said it remains focussed on its capital efficient business model and is committed to earnings per share growth as the key driver of value for shareholders.
During the six months, the company sold more than 1,300 lots, grossing over $193 million across the group, including managed entities for the half-year.
Hemsley said that the residential land market in WA had continued positively with Peet estates experiencing sound sales. In Victoria, demand for residential land has remained steady while Queensland was softer but expected to firm as factors such as continued population growth kicked in. Peet had limited exposure to the NSW market where conditions had been toughest.
Peet & Co also made a range of acquisitions for the period, including a 66ha parcel of land at Cranbourne in Melbourne’s southeast.
“Meanwhile we are continuing our expansion into the retirement/lifestyle village market having identified a range of sites within our landbank in Western Australia, Victoria and Queensland,” he added.
“We remain well positioned to continue to grow our business through new land syndicates, more joint venture projects and expansion of the income property funds management business with many opportunities within our land bank for retail, medical and child-care centres as well as retirement housing opportunities,” Hemsley concluded.
By Adam Parsons
